COMPANY REGISTRATION NUMBER: N1659778 CHARITY REGISTRATION NUMBER: 108163 Rural Action Company Limited by Guarantee Financial Statements 31 March 2023 Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN Rural Action Company Limited by Guarantee Financial Statements Year ended 31 March 2023 Page Trustees, annual report (incorporating the directorfs report) Independent auditor's report to the members Statement of financial activities (including income and expenditure account) 14 Statement of financial position Statement of cash flows 15 16 Notes to the financial statements 17 The following pages do not forni part of the financial statements Detailed statement of financial activities 30 Rural Action Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) Year ended 31 March 2023 The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023. Reference and administrative details Registered charity name Rural Action Charity registration number 108163 Company registration number N1659778 Principal office and registered Administration Building office Loughry College Cookstown BT80 9AA Tyrone The trustees T McNally A McAdam S Henry Dr M Farrell K Addis (Appointed 7 April 2022) (Appointed 1 March 2023) Auditor Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN Bankers Ulster Bank Ltd 11-16 Donegall Square East Belfast BT15UB Rural Action Company Limited by Guarantee Trustees, Annual Report (Incorporating the Director's Report) (¢ontlnued) Year ended 31 March 2023 Structure. governance and management Rural Action was established in 2019 with the objective of inspiring action and to make positive contribution to the everyday lives of rural people. The organisation is a charitable company limited by guarantee incorporated on 14 March 2019 and is registered as a charity {NIC108163). The Company was established under a Memorandum of Association and is govemed under its Articles of Association. Directors and Trustees The Directors of the charitable company (the Charity) are its trustees for the purpose of charity law and are known as members of the Rural Action Board. The Rural Action Board has 5 members (who meet at least 6 times per year) representing a range of relevant interestslexperience including those involved in the business community, communitylvoluntary sector, education and training. Trustees Induction and Training Induction and Training is provided to Trustees when they join the Board. A skills audit has been completed this year to identify any potential gaps which will be addressed through training or future recruitment drives. This will support the Board in carrying out their duties. Risk Management The Rural Action Board has conducted a review of the major risks to which the charity is exposed. A risk register has been established and is presented at each Board meeting. It is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Organisational Structure The current staffing structure of Rural Action includes the following roles: Chief Executive Officer Head of Finan￿ & Governance Head of Programmes Head of Regeneration & Communities Programme Officers x 3 Programme Support Officers x 2 Finance Administrators x 2 Administrator Rural Action Company Limited by Guarantee Trustees, Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Objectives and activities Rural Action's vision is of a living, working, sustainable and shared community. Ifs mission is to inspire action and to make a positive contribution to the everyday lives of rural people. It aims to do this by: Championing the needs of rural communities through consultation and community development projects Designing, delivering and inspiring practical community-based projects and actions to alleviate poverty, ensure economic vibrancy and promote health & social wellbeing Encouraging and promoting social and economic development and entrepreneurship to relieve those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage Making our communities inclusive and attractive places to live by assisting and engaging communities to develop an interest in local culture, history, arts and traditions and through the promotion of equality and diversity The achievements listed below detail Rural Action's performance for 2022-2023 in advancing its said objectives. Public Benefit Statement The trustees have regard to the Charity Commission's guidan￿ on public benefit. Strategic report The following sections for achievements and performan￿ and financial review form the strategic report of the charity. Rural Action Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (¢onUnued) Year ended 31 March 2023 Achievements and performance Achievements and Performance 2022123 Rural Action is a registered charity and a company limited by guarantee. It operates across Northern Ireland and the border region of Ireland from a base in Cookstown, Co. Tyrone. It has a small staff team of 12 and is managed by a voluntary Board of DirectorslTrustees. A full account of Rural Action's achievements during the year are listed below. Strategic Aim 1: To Champion the needs of rural communities through consultation and community development projects Objective 1." Respond, engage and support relevant policy and programme consultab'ons. stakeholder meetingslevents and evaluation work to champion rural needs Objective 2: Work in partnership with local and central govemment and the community voluntary sector to make recommendations for future rural service delivery Objective 3". Carry out research and evidence rural needs Objective 4.. Pilot and test rural projects to infom future delivery Outputs 24 meetingslevents and engagements attended 1 regional rural halls pilot programme implementing engaging 107 rural community organisations and 704 volunteers 5 pipeline projects developed 7 evaluations completed Strategic Aim 2: To design. deliver, implement and inspire practical community-based projects and actions to alleviate poverty. ensure economic vibrancy and promote health & social well-being Objective 1: Design, delivery and implement projects that benefit people and places Objective 2.. To maintain Rural Action as an Open College Network (OCN) Accredited Centre for the delivery of training to communities Objective 3: To establish the Rural Action Awards scheme to support and inspire rural community action Outputs Managing agent for the International Fund for Ireland (IFI) Personal Youth Development Programme (PYDP) in Northern Ireland supporting communities to help at risk young people to build and develop life skills that foster good relations, build confidence and resilien￿ and make them more employable 0 17 applications assessed and recommendation reports completed 0 30 projects approved and implementing O Letters of Offer issued totally £5.34million 0 458 young people engaging Managing agent for the IFI Communities in Partnership Programme (CIPP) in Northern Ireland supporting communities to foster good relations and support community initiatives on a cross border basis 0 4 applications assessed and recommendation reports completed 0 8 projects approved and implementing 0 24 cross border organisations participating O Letters of Offer issued totally £897.056 Rural Action Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) fc¢>nUnued) Year ended 31 March 2023 0 1 new pilot programme designed to support leadership and succession development opportunities for IFI funded community organisations- Transfonning Local Leadership Partner with Mid Ulster District Council in the delivery of the Connecting Pomeroy project to develop community capacity and engagement activities to support social well-being, inclusion and village regeneration 0 40 groups engaging in community capacity and engagement activities 0 9,500 people participating in programmes 0 5 Project Steering Group meetings attended Deliver OCN Level 1 'Managing your Space. programme to 57 community based organisations engaged in the DAERA Rural Halls Refurbishment pilot programme Launch the Rural Action Awards scheme to support and inspire rural community action 0 12 awards presented to community-based organisations to the value of £12,000 Rural Action Awards Scheme During the financial year the Board agreed to establish and implement a Rural Action Awards scheme (Strategic Aim 2 Objective 3). The scheme is designed to support volunteer led community action projects. It is open to constituted rural community-based organisations undertaking projects that alleviate poverty. ensure economic vibrancy. and promote health & social wellbeing locally. A total of 12 awards were made during the period to the value of £12,000. Strategic Aim 3: To encourage and promote social and economic development and entrepreneurship to relieve those in need by reason of youth. age, ill-health, disability, financial hardship or other disadvantage Objective 1= Inspire communities through the exchange of information, sharing of stories and practice Objective 2: To develop a rural ￿ntre of eX￿llen￿ demonstrating social entrepreneurship in action Outputs Development of toolkit for community-based groups who own or manage community facilities Increase in websitelsocial media traffic (up by 1400A on previous year) 9 Case studies developed for sharing practice Completion of viabilitylfeasibility study on the redevelopment of Lindesay Hall as a centre ft)r rural excellen￿ and to further promote social entrepreneurship in rural areas Strategic Aim 4: To make our communities inclusive and attractive places to live by assisting and engaging communities to develop an interest in local culture, history, arts and traditions and through the promotion of equality and diversity Objective 1: Promote good relations and support actions for inclusion and effective community engagement Objective 2.. Engage in projects and programmes that encourage a better understanding of local identity, culture and heritage Outputs 135 community-based organisations participating in good relations training and awareness workshopslevents 10 meetingslworkshops attended strategic Aim 5: Good Governance and Corporats Management Rural Action Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Objective 1= To deliver on budget Objective 2.. Corporate Governance, Board and Organisational Development Outputs Financial Management O Annual budget agreed with Board O Monthly management reports and cashflow statements produced for Board O Annual accounts presented at AGM O Satisfactory assurance in External audit reports O Implementation of financial procedures & procurement guidan O Budget profiles & expenditure reports prepared for funders O Submission of claims to funders within agreed deadlines Strategy O Operational plan agreed and monitored by Board Human ReSoUr￿S O Review and update policies and procedures O Board Induction O Stsff handbook compiled O Board Skills Audit completed O Carry out recruitment exercises as required Financial review Rural Action receives support from the International Fund for Ireland as their Managing Agent for the Personal Youth Development Programme (PYDP) and the Communities in Partnership Programme (CIPP),. the Department of Agriculture, Environment and Rural Affairs (DAERA) Tackling Rural Poverty and Social Inclusion (TRPSI) Programme. Mid Ulster District Council Connecting Pomeroy Project, with funding provided by the Eu's PEACE IV Programme. managed by the Special EU Programmes Body (SEUPB), Early Years Childcare Recovery Support Fund and the Architectural Heritage Fund. Reserves The total funds held by the charity at 31st March 2023 is £384,697, of which £61,534 is restricted and not available for the general purposes of the charity. A designation of £12,000 has been set aside for the Rural Action Awards. These awards are designed to support volunteer led community action projects that alleviate poverty, ensure economic vibrancy, and promote health & social well-being locally. The organisation currently operates out of the Administration Building of the CAFRE Loughry Estate. A major redevelopment of the estate is planned within the next 12-15 months, with the Administration Building due to be demolished. A designation of £50,000 has been set aside to pursue alternative accommodation over the next 2 years. The Trustees have examined the charity's requirements for reserves considering the main risks to the organisation. They have established a policy whereby the unrestricted funds not designated for a particular purpose or invested in tangible assets held by the charity should be equal to the value of six months expenditure based on senior management salaries, overheads and accrued statutory redundancy liability. The trustees consider that this level will provide sufficient fvnds to respond to applications for grants and ensure that there are sufficient funds available to cover support and governance costs. The balance held as free reserves at 3110312023 was £256,059 against an actual 6 months expenditure of £123.328.18. The current level of reserves is therefore higher. The organisation is entering a new period of programme development and regards this as prudent. Rural Action Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (contlnuedj Year ended 31 March 2023 Trustees. responsibilities statement The trustees, who are also directors for the purposes 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 AC￿pted Accounting Practi￿). Company law requires the charity trustees to prepare financial ststements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming reSoUr￿S and application of reSoUr￿s. including the income and expenditure, for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistentty" observe the methods and principles in the applicable Charities SORP: make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements" prepare the financial statements on the going con￿rn basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confirms that". so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware., and they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to estsblish that the charity's auditor is aware of that information. The trustees, annual report and the strategic report were approved on 21 September 2023 and signed on behalf of the board of trustees by: T McNally Trustee Dr M Farrell Trustee Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action Year ended 31 March 2023 Opinion We have audited the financial statements of Rural Action {the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position. statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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.. give a true and fair view of the state of the chartty's affairs as at 31 March 2023 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended: have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting practi￿., have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 con￿rn 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 charity'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. Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action (continued) Year ended 31 March 2023 Other information The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or othewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the trustees. report has been prepared in accordan￿ wth applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and tts environment obtained in the course of the audit, we have not identified material misstatements in the trustees. 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- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us: or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remunerats'on specified by law are not made; or we have not re￿]Ved all the inforrnab.on and explanations we require for our audit. Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action (continued) Year ended 31 March 2023 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement. the trustees (who are also the directors for the purposes of company law) are responsible ft)r 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so. 10 Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action (continued) Year ended 31 March 2023 Auditorfs responsibilities for the audit of the financial ststements 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below- In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following.. the nature of the industry and sector. control environment and business performan￿ including the design of the remuneration policies. key drivers for directors, remuneration, bonus levels and performance targets" results of our enquiries of management about their own identification and assessment of the risks of irregularities., any matters we identified having obtained and reviewed documentation of their policies and procedures relating to- identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance: detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud", the internal controls established to mitigate risks of fraud or non-complian￿ with laws and regulations. the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists. including tax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understsnding of the legal and regulatory frameworks in operation, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included ongoing compliance with the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for their ability to operate or to avoid a material penalty- 11 Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action (continued) Year ended 31 March 2023 As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. Wle also: Identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions. misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees. use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial ststements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However. future events or conditions may cause the charity to cease to continue as a going concem. Evaluate the overall presentakn'on. structure and content of the financial statements, including the disclosures, and whether the financial ststements represent the underlying transactions and events in a manner that achieves fair presentation. 12 Rural Action Company Limited by Guarantee Independent Auditor's Report to the Members of Rural Action {continued) Year ended 31 March 2023 We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charty's members, as a body, in accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have fomied. Conor Dolan FCA (Senior Statutory Auditor) For and on behalf of Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN 21 September 2023 13 Rural Action Company Limited by Guarantee Statement of Financial Activities {including income and expenditure account) Year ended 31 March 2023 2023 Restricted funds Total funds Total funds 2022 Unrestricted funds Note Income and endowments Donations and legacies Charitable activities 29,720 425,882 29,720 867,830 441,948 555,636 Total income 455,602 441,948 897,550 555,636 Expenditure Expenditure on charitable activities Taxation 199.483 373,355 572,838 547,215 2,146 Total expenditure 199.483 373.355 572,838 549,361 Net income 256,119 68,593 324,712 6,275 Transfers between funds 500 (500) Net movement In funds 256.619 68,093 324,712 6,275 Reconciliation of funds Total funds brought forward Total funds carried forward 66,544 323,163 {6,559) 61.534 59,985 53,710 59,985 384,697 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing ackn"vities. The notes on pages 17 to 28 fomi part of these financial statements. 14 Rural Action Company Limited by Guarantee ststement of Financial Position 31 March 2023 2023 2022 Note Fixed assets Tangible fixed assets 15 5.104 8,626 Current assets Debtors Cash at bank and in hand 16 95,086 301,658 92,022 127,729 219,751 396,744 Creditors: amounts falling due within one year Net current assets 17 17,151 379,593 158,172 61,579 Total assets less current liabilities 384,697 70,205 Creditors: amounts falling due after more than one year Net assets 18 10,220 59,985 384,697 Funds of the charity Restricted funds Unrestricted funds 61.534 323,163 (6.559) 66.544 Total charity funds 21 384.697 59,985 These financial statements were approved by the board of trustees and authorised for issue on 21 September 2023. and are signed on behalf of the board by: T McNally Trustee Dr M Farrell Trustee The notes on pages 17 to 28 forni part of these financial statements. 15 Rural Action Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2023 2023 2022 Cash flows from operating activities Net income 324,712 6,275 Adjustments for Depreciation of tangible fixed assets Taxation Accrued income 7,154 2,876 2,146 (3,108) (139,208) Changes in.. Trade and other debtors Trade and other creditors (3,064) (145,987) 179,707 514 152,806 Cash generated from operations 25,409 Tax paid Net cash from operating acts'vities (2.146) 177,561 25,409 Cash flows from investing activities Purchase of tangible assets Net cash used in investing activities (3,632) (3.632) Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 173,929 127,729 25,409 102,320 301,658 127,729 The notes on pages 17 to 28 fonn part of these financial ststements. 16 Rural Action Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General information The charity is a public benefit entity and a private company limited by guarantee, registered in Northern Ireland and a registered charity in Northern Ireland. The address of the registered office is Administration Building. Loughry College, Cookstown. BT80 gAA, Tyrone. statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the 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) (Charities SORP (FRS 102)) and the Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern There are no material uncertainties about the charty's ability to continue. Changes in accounting estimates The charity has changed the depreciation policy for assets held in Equipment asset class from 25 % reducing balance method to 33 % straight line method. This change means that depreciation expense is £4,089 higher, and carying value of assets is £4,089 lower. than if the change had not been applied. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Income tax The taxation expense represents the aggregate amount of current and deferred tsx recognised in the reporting period. Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. 17 Rural Action Company Limited by Guarantee Notes to the Financial Statements {¢ontlnued) Year ended 31 March 2023 Accounting policies {contlnued) Income tax (continued) Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tsx losses and other deferred tax assets are recognised to the extent that tt is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub