The Trustees present their report and financial statements for the year ended 31 March 2023. The financial statements have been presented on a group basis. The accounts of Independence Trust form part of the consolidated group accounts and notes contained within.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's 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 2015)”
Public Benefit Statement
In line with GRCC’s Mission Statement all activities focus on our vision of active communities shaping their own futures. This is achieved through direct work with communities, our local knowledge, networks, professional services and our influencing role. The business plan strategic objectives form the basis of the activity throughout the year.
The organisation is a charitable company limited by guarantee, incorporated April 1996, but originally registered as a charity in May 1923. In 1996 the company 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.
In the event of the company being wound up members are required to contribute an amount not exceeding £10.
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:
The directors of the company are also charity Trustees for the purposes of charity law and under the company’s Articles are known as members of the Board of Trustees. Under the requirements of the Memorandum and Articles of Association the Board of Trustees are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. They may serve for a maximum of three terms, plus an additional one year in exceptional circumstances.
Due to the nature of the Charity’s work in and with the communities of Gloucestershire the Board of Trustees seeks to ensure that the needs of these communities are appropriately reflected through the diversity of the trustee body. Trustees work together to address succession planning, and co-option is used as required before taking proposals to members at Annual General Meetings. A range of methods are adopted to attract new Trustees, including formal and informal approaches and open recruitment, and interviews undertaken to establish suitability.
The more traditional business and technical skills are well represented on the Board of Trustees. In an effort to maintain this broad skill mix, members of the Board of Trustees are asked to complete a register of their skills and this is refreshed annually, so that any gaps can be identified and filled. This ensures that a balance of skills is maintained. Trustees also complete an annual self-assessment survey to examine their own and the Board’s performance.
Trustee Induction and Training
Trustees undergo an induction upon taking office with training necessary for their role including Safeguarding,
GDPR, and Cyber Security. The Board of Trustees complete a skills audit and review of roles to ensure the necessary skills and experience for oversight are sustained at board level. Staff give regular presentations of GRCC’s work at Board of Trustee meetings which are held quarterly, with regular Trustee attendance at staff meetings throughout the year. This year, committees for Governance, Finance and Audit, Marketing and communications have been set up to increase organisational capacity and skills to support the full merger with the Independence Trust charity. A review of the Business Continuity and Risk Register has also been completed. Much of this year’s focus has been on the merger with Independence Trust, with the CEO and SLT preparing for the necessary legal documents to be drawn up.
Organisational Structure
The charity is controlled by the Board of Trustees who meet four times per year attended by the CEO and members of Senior Leadership Team (SLT). Responsibility for day to day management is delegated to the Chief Executive supported by the SLT.
The CEO reports to the Chair and the Board of Trustees and is charged with implementing Board Policy, ensuring compliance and ensuring that the Charity delivers the services specified and that KPI's are met.
The Senior Leadership Team during 2021-22 consisted of:
Ms Barbara Piranty - Chief Executive Officer (appointed September 2021)
Mr Russell Hayward – Head of Finance & Resources
Mrs Barbara Pond – Head of Operations & Business Development
Mrs Angela Gilbert – Community Development Team Manager
During 2022-23 the SLT met regularly to share information, discuss topics in detail and check progress of key elements of GRCC work. Whole staff Team Meetings are held monthly in a hybrid of online and in person.
Related Parties
GRCC is a founder member of ACRE (Action with Communities in Rural England), the national association of RCCs.
GRCC is the sole member of Independence Trust.
In so far as it is complementary to the Charity’s objects, the Charity is guided by both local and national policy. The continued representation of GRCC on local partnerships and organisations has proved invaluable to the Charity in maintaining and growing its reputation and profile, establishing improved links within the community and identifying relevant policy developments and prospective funding.
The Board of Trustees annually reviews the strategic direction of GRCC which is encapsulated in the vision, mission and values below. The strategic objectives inform the annual business plan which forms the basis of the activity throughout the year.
Vision
Supporting and empowering Gloucestershire’s communities through change
Mission
To help build strong, healthy, sustainable communities in Gloucestershire using our knowledge, experience, and networks
Values
GRCC seeks to incorporate the following principles in all its activities:
Pursuit of excellence and best value
Partnership and collaboration
Responsiveness and adaptability
Inclusivity and equality
Openness and accountability
Strategic objectives
1. Ensure GRCC and Independence Trust is fit for purpose, sustainable, and gives best value
2. Strengthen GRCC’s role as rural specialists
3. Be the leader in sustainable community development
4. Be the first choice for VCSE infrastructure support, training, and development
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
1. Ensure GRCC and Independence Trust is fit for purpose, sustainable, and gives best value
GRCC has refreshed the Board committees to focus on Finance and Audit, Governance, GRCC Centenary/Village of the Year, and Marketing and Communications. Board members have been identified to sit on these committees as leads with a role to oversee, scrutinise, and report back to the Board on activity and outcomes.
The Business Plan Strategic Priorities were reviewed and revised to set the scene for the organisational and individual work plans going forward. The regular policy review and refresh process was extended to reflect changes around the easing of COVID rules and policy, hybrid working and other Health and Safety considerations, as well as the alignment of GRCC and Independence Trust policies and procedures. A full review of the Employee Handbook is being undertaken. The Performance Review and Induction Policies as well as Equality and Diversity, Employer Supported Volunteering, Finance, and Safeguarding Policies have all been reviewed and updated.
The submission of funding bids has significantly increased, and development or renewal of strategic relationships has resulted in newly commissioned pieces of work such as the refresh of the CARS (Community Approaches to Road Safety) toolkit, and community consultation in the Forest of Dean as part of the Levelling Up agenda. Investment in our new Digital Inclusion project is repositioning and framing GRCC as the ‘go to’ specialists in organisational digital upskilling, including development of relationships with relevant cross sector partners.
Following the transfer of Independence Trust to GRCC in August 2020 and extensive discussions with SLT and members of the Board, it was proposed and agreed that GRCC undertake a full merger with Independence Trust. The merger process, including TUPE of staff, novation of contracts, lease arrangements, and transfer of Trustees, has been conducted throughout 2022/23 and will be completed in June 2023, with Independence Trust maintaining its external identity and branding. A review of services has been undertaken with Independence Trust staff in respect of future business planning and in preparation for recommissioning.
GRCC has invested in a licence to use the Social Value Engine, which has been developed through the ACRE CEO network. It is currently being tested to explore its effectiveness in producing additional intelligence to support future bid submissions and highlighting key outcomes of current service provision. Investment has also been made in GRCC’s back-office infrastructure, with upgrades to telephone and IT systems, office lighting, and electrical installations. A rolling programme of building maintenance has been established.
HR and personnel activities including a focus on recruitment and retention has helped to ensure that work plans and contracts can be sustained and outcomes achieved. Safeguarding practices and policy have been reviewed to reflect the incorporation of Independence Trust into the GRCC group charity and in anticipation of the full merger.
2. Strengthen GRCC’s role as rural specialists
GRCC is part of the ACRE Network (the England-wide network of rural community councils) through which we receive funding from Defra to advice Defra’s rural priorities. The priorities for 2022/23 were: Digital Infrastructure; Digital Skills and Inclusion; Rural Life Opportunities; Social Infrastructure; Rural Transport; Net Zero and Affordable Energy; Housing and Planning; Business Support and Social Enterprise Development. GRCC undertook a wide range of activities to support these priorities. In April 2022, GRCC was asked to attend the EFRA Select Committee on behalf of ACRE to give oral evidence on mental health and access to Gloucestershire Rural Community Council Trustees’ Report (including Directors’ Report) for the year ended 31 March 2023 services. GRCC was also invited to provide evidence of around solutions and interventions at the follow up evidence sessions in May 2022.
GRCC has developed a new workstream of ‘Digital Community Development’ and recruited and appointed a new staff member to lead on and develop this theme.
The RUSTIK project held its first series of ‘Living Lab’ workshops or focus meetings. RUSTIK is a four-year transdisciplinary research project, funded by the EU, aiming to enable rural communities and policy makers to design better strategies, initiatives and policies fostering sustainability transitions in rural areas. GRCC is one of two ‘Living Labs’ in the UK and is partnered with the University of Gloucestershire. The workshops involved strategic and delivery partners who were able to share valuable insight for the University of Gloucestershire to begin to gather data addressing policy gaps. A paper on this is being prepared for presentation to RUSTIK partners in May. GRCC’s Digital Inclusion Manager Daniel Gale represented the UK Living Lab in Barcelona in February 2023 for the initial launch.
Following a successful recruitment drive, GRCC re-established its full Community Development Team in November 2022, increasing GRCC’s rural presence and activity
across the county, with CDT members working hard to raise GRCC’s profile and to
embed themselves in the districts / boroughs through good relationships with parish councils and communities. Employment Support Hub Outreach (ESHO) (phase 2 of the GEM Project) is now more targeted to the economically inactive. GRCC will focus on Tewkesbury borough, and the work GRCC undertakes in relation to affordable housing and digital inclusion will also contribute to this priority.
As a rural specialist, GRCC is recognised as a strategic contributor and contributor in Gloucestershire and is a member of and contributed to several key groups, partnerships and boards. These include Gloucestershire Health & Wellbeing Partnership, GFirst LEP Agri-Tech Food and Business Network; Gloucestershire Local Nature Partnership; the Naturally Healthy Leadership Group; and the Joint Strategic Needs Assessment (JSNA) planning group.
Relationship building with the Executive Director of Adult Social Care and Communities, the Director of Public Health, and engagement with the development of the Integrated Care Strategy has enabled GRCC to ensure rural access and deprivation remain high on the agenda. Discussions are ongoing with a view to piloting the Rural England / National Centre for Rural Health and Care’s Rural Proofing for Health Toolkit as part of testing the ongoing development of the Integrated Care Strategy. The use of the toolkit with the acute trust, health and care trust, and local authority around social care, is also being explored, testing the toolkit against current strategic planning and phase 2 of the Fit for the Future initiative,
which is focused on medium and long-term future of Gloucestershire’s health services.
The Affordable Housing project continues to build from strength to strength with additional social housing providers and income to help increase capacity and sustain the service. A land led approach has developed partnerships with land agents and Gloucester Diocese.
3. Be the leader in sustainable community development
Successful recruitment during the year to rebuild the Community Development Team has enabled us to increase our local presence. Our work has a strong focus on key developmental areas around climate change, digital, and mental health through Levelling Up, UK Shared and Rural England Prosperity Funds, increased flood warden presence, and the districts’ strategic objectives in these areas.
Support and advice continue to be provided to village halls and community buildings
across the county, both through a return to in-person Community Buildings Network
meetings and on an individual basis. Bespoke support has been provided to parishes and groups working on community-led planning initiatives, including existing and new NDPs, communities interested in developing Parish Plans, and provision of options for community led planning approaches.
GRCC continues to support communities with their emergency planning. In addition to the long-established Tewkesbury Flood Wardens scheme, GRCC has launched new Flood Warden schemes in Cotswold and Stroud districts in partnership with the respective District Councils. GRCC was also asked to submit proposals to Forest of Dean District Council and to Cheltenham Borough Council for provision of support with their Community Flood Resilience projects. Both submissions were successful.
Strategic discussions with the OPCC and Gloucestershire County Council resulted in funding for us to refresh the CARS (Community Approaches to Road Safety) toolkit. Launch events for parish council representatives and community road safety groups were held to promote the toolkit and GCC’s new Speed Watch fund in the four rural districts of the county, in partnership with the OPCC and GCC. Representatives of 34 parish councils attended along with 12 district / county councillors.
As part of the Levelling Up agenda, GRCC worked in partnership with Forest of Dean District Council over community consultation for a planning proposal for a regeneration site which would create a focal point of a sports and leisure centre in the district. The consultation included an online survey and in-person events relating to the indicative design proposals. 182 people took part in the survey, 22 organisations were represented at a stakeholder workshop, and 24 people signed in to the public drop-in event. As a result of GRCC’s report, changes are being made to the indicative design to better reflect the preferences of the affected communities and general public for sports and arts provision on the site.
GRCC’s Community Wellbeing Service in the Cotswolds has continued developing its partnership working in relation to the drop-in support hubs. The Moreton-in-Marsh hub has been joined by the Stow-on-the-Wold hub this year. In preparation for the Independence Trust merger a joint CWS database has now been developed to help manage both CWS projects more efficiently and effectively. The two Social Prescriber Link Workers financed by the NHS are part of the Community Wellbeing Service offer, including support for Children and Young Adults in the north Cotswolds.
Digital inclusion has been introduced as a key priority in GRCC’s workplan. GRCC successfully bid for the Digi Hubs Project contracts in Cheltenham and Cotswolds, and has since been awarded an additional year’s funding to end March 2025. Our Digital Inclusion Manager has been building relationships and partnerships with organisations in both districts in addition to our bid partners (Cheltenham Borough Homes in Cheltenham and Churn Project in Cotswold) and working to distribute a donation of sim cards with 5G data bundles to those who are digitally excluded.
Key points and outcomes:
Individuals supported by GRCC’s Community Wellbeing Service with issues including: finances, debt and benefits; housing and homelessness; domestic abuse; loneliness and social isolation; long-term health conditions; mental health; carers support and care support needs
Drop-in support hubs running in Moreton-in-Marsh and Stow-on-the-Wold,bringing together a number of organisations include GRCC, Independence Trust, P3, DWP, CAB, Bromford Housing, and others to provide support and information to the local communities Gloucestershire Rural Community Council
GRCC’s ESHO Co-ordinator is running three Job Clubs to support participants and others looking for work in Brockworth, Churchdown , and Tewkesbury
GRCC achieved Platinum level in the Green Impact Assessment, a sustainability initiative led by the NUS and administered by University of Gloucestershire
A donation of sim cards with 5G data bundles to the value of around £500,000 was secured from Vodafone as part of GRCC’s digital inclusion work. These are being distributed by GRCC to our partners around the county for those who are digitally excluded, e.g., users of food banks, ESHO project clients, etc.
Options for community led planning approaches provided to three parishes; ongoing support provided to four existing NDPs, and support and advice given to parish councils considering the benefits of updating Parish Plans, and starting a new Parish Plan focusing on climate change.
83 attendees at GRCC Community Buildings Network in-person events; 524 subscribers to the CBN mailing list (up 20.7% on previous year)
4. Be the first choice for VCSE infrastructure support, training and development
Following on from GRCC’s work in past years to influence and support the development of the new Gloucestershire Volunteering Collaborative, we submitted a successful bid to enable the facilitation of the partnership as it develops over the next three years. The Collaborative brings together partners from public, private and voluntary sector to look at how volunteering and volunteering infrastructure can be improved throughout the county. Our dedicated VCSE Advice Officer is facilitator for the Collaborative and further developing GRCC’s roleas VCSE infrastructure support provider, particularly in the urban centres of Cheltenham and Gloucester. Strategic discussions are underway with partners for additional networks and forums to support this development.
GRCC’s work on Digital Inclusion is seeing our digital profile steadily build with ongoing awareness raising and engagement via our social media platforms and through our ever-increasing partnership network. The Digi Hubs contracts in Cheltenham and the Cotswolds will allow a base upon which to build strong foundations for the more detailed skills transfer work planned, upskilling our VCS partners providing specialist support to communities and individuals.
Specific work to support BAME-led carers groups is being developed in conjunction with Gloucestershire County Council. Our VCSE Advice Officer is holding strategic meetings with various groups and organisations to discuss and develop GRCC’s role in providing infrastructure support for VCSE organisations in Gloucester. GRCC successfully bid for the contact with FoDDC to provide support with funding applications and networking in the Forest of Dean for 2023/24.
Key points and outcomes:
271 attendees at in-person meetings of the GRCC VCSE networks and forums;1,643 individuals are signed up to the Keeping In Touch e-newsletters for the VCSE sector,
334 attendees at Cheltenham and Cotswold Know Your Patch and Children and Young People Know Your Patch Network events,
419 subscribers to the Cheltenham KYP Network (up 36.5% on 2021/22); 479 subscribers to the Cotswold KYP Network (up 33.4% on 2021/22); 174 subscribers to the Cheltenham Children and Young People KYP Network (up 20%on 2021/22) and 145 subscribers to the Cotswold Children and Young People KYP Network (up 26.1% on 2021/22).
5. Raise the profile and reputation of the organisation
GRCC has established a marketing and communications team comprising Digital Content Officer and Social Media Lead working under the Digital Inclusion Manager. The team is working hard to help raise the profile of GRCC and Independence Trust through regular social media posts, updates to the News / Blogs section of the websites, and through media engagement. All future communications will include reference to Independence Trust and GRCC’s relationship with the Trust to help increase understanding of the merger.
The key promotion area for 2023 is GRCC’s centenary, with a specially designed logo appearing on the website, all marketing and communications material, letterheads, email signatures, etc. Planning is underway for the centenary celebration event to be held at the Annual General Meeting in July 2023.
Plans are also being developed to refresh both the GRCC and Independence Trust websites, with a focus on clear, concise information and accessibility.
Regular appearances on Radio Gloucestershire and in Cotswold Life magazine continue to raise GRCC’s profile, along with district events and, with the successful recruitment to the Community Development Team, increased visibility of members of staff in districts and at partner meetings and events. GRCC’s e-newsletter Newsbites is currently sent out monthly to 994 subscribers.
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at not less than 6 months’ operating costs, plus a provision for employment liabilities. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Based on the accounts to 31 March 2023 this target level would be £149,446, whilst freely available unrestricted reserves are shown as £690,887. The Charity also holds £89,302 in restricted funds and a permanent endowment of £48,233.
GRCC owns Community House, 15 College Green, Gloucester (all but “The Archway” room over the flying freehold into Miller’s Green). The latest freehold valuation has indicated a RICS “Red Book” figure of around £400,000, as against a net book value of £17,502.
Risk Management
The Board of Trustees maintains a risk register and has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risk. GRCC systems and procedures have been reviewed in conjunction with staff and trustees in order to mitigate risks to the Charity.
GRCC is developing future areas of work in response to local need. The Charity continues to have available for use its Trading subsidiary “GRCC Solutions Ltd” as appropriate.
Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the offices of GRCC and regular reports are produced for the Senior Leadership Team and Board of Trustees, for discussion and action.
Plans for Future Periods
The Business Plan Strategic Priorities for 2022-25 were developed to set the scene for the organisational and individual work plans going forward. An evaluation of current partnerships, gaps, and areas of growth and development undertaken with GRCC staff fed into the development of the strategic priorities. In preparation for the merger with Independence Trust, staff were invited to share areas of best practice, and suggest new areas of work and strategic priorities to develop
through a series of staff meetings and SWOT analysis. This information will be included in a revised Strategic Priorities document to reflect the merger in June 2023. An Operational Plan has been drafted to reflect the changes and adjustments that need to be made once the merger has been completed.
Griffiths Marshall were re-appointed as the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.
The Trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Gloucestershire Rural Community Council (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, 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 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 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.
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 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.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
We gained an understanding of the legal and regulatory framework applicable to Gloucestershire Rural Community Council and the industry in which it operates and, considered the risk of acts by Management and directors of Gloucestershire Rural Community Council which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
agreement of the financial statement disclosures to underlying supporting documentation;
enquiries of management regarding known or suspected instances of non-compliance with laws and regulations;
review of minutes of the Board meetings throughout the year; and
obtaining an understanding of the control environment in place to prevent and detect irregularities.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Griffiths Marshall is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Voluntary Income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Gloucestershire Rural Community Council is a private company limited by guarantee incorporated in England and Wales. The registered office is Community House, 15 College Green, Gloucester, GL1 2LZ.
The financial statements have been prepared in accordance with 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)". The Trust is a Public Benefit Entity as defined by FRS 102.
The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements have been presented on a group basis. On 17 August 2020 the control of Independence Trust was transferred from Connexus Housing Two Limited to Gloucestershire Rural Community Council. The accounts of Independence Trust form part of the consolidated group accounts and notes to 31 March 2021 contained within.
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.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds represent grants received for specific purposes, less revenue expenditure incurred. Where the grant was received for capital purposes, the expenditure has been capitalised and is included in fixed assets.
Endowment funds represents the net assets, including unrealised gains on the investment of the Goodeve Legacy.
Legacies, donations, gifts and bank interest are accounted for when they are received unless amounts receivable can be determined with reasonable accuracy.
Income from sales of donated goods is recognised when the goods are sold.
Grant income:
· Grants received for specific purposes are recorded as restricted grants in the period in which the grant related as directed by the donor.
· Grants received for a specific future period are recorded as restricted grants when received but deferred and held as a creditor until the period in which they relate.
· Grants which relate to performance and specific deliverables are accounted for as the charity earns the right to consideration by its performance.
Income is deferred when the donor specifies the income is for a future period or applies conditions that cannot be met until a future period.
Endowment fund income is unrestricted.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recorded on the accruals basis and liabilities are included when the legal obligation has been created.
Expenditure in charitable activities represents the costs incurred in carrying out the charitable objectives of the project.
Governance costs represent the cost of general administration functions of the charity.
Basis of apportionment of expenditure:
· Staff costs are allocated on a basis of time spent on each category of activity.
· Premises costs are allocated to direct charitable support costs.
· Depreciation provision is allocated on the basis of use of the assets.
· All other overheads are allocated to projects as a percentage of direct expenditure.
As a registered charity, the activities are generally exempt from Income Tax and Capital Gains Tax in connection with its direct charitable purpose, but not from VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 the statement of financial activities.
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.
Entities in which the charity has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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).
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.
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, 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.
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 payments 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Deferred income
Income is deferred when the donor specifies the income is for a future period or applies conditions that cannot be met until a future period.
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.
Voluntary Income
Grants receivable
Project funding
Consultancy income
Costs of generating funds
Office service costs
Costs of generating funds
None of the Trustees (or any persons connected with them) received any remuneration during the year.
Support costs
Other costs
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The average monthly number of employees during the year was:
GRCC invested £3,000 into Cirican LLP (OC429471) as part of a collaborative effort by 18 rural community councils to provide research and consultancy services. The partnership is registered at Community House, 15 College Green, Gloucester, United Kingdom, GL1 2LZ
Cirican LLP is deemed an associate to GRCC but the results are immaterial to the consolidated group accounts.
The auditor's report was unqualified.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £66,665 (2022 - £66,160).
The remuneration of key management personnel is as follows.
GRCC Solutions Ltd
The charity controls GRCC Solutions Ltd, a company limited by guarantee, by way of the directors. There is a deed of covenant in place to donate profits to GRCC. The results of the company are considered immaterial to the group accounts..
Independence Trust
The accounts of Independence Trust form part of the consolidated group accounts of Gloucestershire Rural Community Council to 31 March 2023.
In the period Gloucestershire Rural Community Council charged Independent Trust £98,917 (2022- £91,858) for management and overhead services.
On 12th June Independence Trust merged with it parent charity Gloucestershire Rural Community Council (Charity no. 1054282). At this point all assets and liabilities were transferred and Independence Trust will cease to operate as a standalone entity. All Charitable services will continue within Gloucestershire Rural Community Council.
Incoming resources
Resources expended
Transfers
On 17 August 2020 the control of Independence Trust was transferred from Connexus Housing Two Limited to Gloucestershire Rural Community Council. The accounts of Independence Trust form part of the consolidated group accounts and notes to 31 March 2021 contained within. Full accounts for Independence Trust as a standalone entity can be obtained from the groups registered office.
Details of the charity's subsidiaries at 31 March 2023 are as follows:
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its and loss account in these financial statements. The surplus generated by the parent charity for the period was £80,286 (2022 - £131,296).