**REGISTERED COMPANY NUMBER: 02699283 (England and Wales) REGISTERED CHARITY NUMBER: 1010883** ## **REPORT OF THE TRUSTEES AND** ## **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** ## **FOR** ## **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** D.R.E. & Co. (Audit) Limited 7 Lower Brook Street Oswestry Shropshire SY11 2HG **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** |||**Page**|| |---|---|---|---| |**Reference and Administrative Details**||1|| |**Report of the Trustees**|2|to|6| |**Independent Examiner's Report**||7|| |**Statement of Financial Activities**||8|| |**Balance Sheet**|9|to|10| |**Cash Flow Statement**||11|| |**Notes to the Cash Flow Statement**||12|| |**Notes to the Financial Statements**|13|to|21| **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** **REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2024** |**TRUSTEES**|M J Penn|| |---|---|---| ||G S Williams (resigned|29.11.23)| ||Mrs L Johnston|| ||C M Henry (resigned 19.4.23)|| ||P W Rew|| ||L M Mundy|| ||J I Deakin|| ||I Andronov|| ||Ms F Morrell (appointed 19.7.23)|| ||J I Walker (appointed 19.7.23)|| ||Ms R M Napier (appointed 19.7.23)|| ||A C McGowan (appointed 19.7.23)|| ||T G Hughes (appointed|21.2.24)| |**COMPANY SECRETARY**|M J Penn|| |**REGISTERED OFFICE**|1 Mill Street|| ||Ludlow|| ||Shropshire|| ||SY8 1AZ|| |**REGISTERED COMPANY**|02699283 (England and Wales)|| |**NUMBER**||| |**REGISTERED CHARITY**|1010883|| |**NUMBER**||| |**INDEPENDENT EXAMINER**|D.R.E. & Co. (Audit) Limited|| ||7 Lower Brook Street|| ||Oswestry|| ||Shropshire|| ||SY11 2HG|| |**OFFICERS**|Chairman|- L. Johnston (2021)| ||Vice Chair|- L. Mundy (2024)| ||Treasurer|- T. Hughes (2024)| Page 1 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of 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). Page 2 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31 MARCH 2024** ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The Memorandum of Association of the Ludlow & District Community Association Limited (LDCA) states that the guiding objectives of the organisation are: 1. To foster and promote the maintenance, improvement and development of artistic taste and a knowledge, understanding and appreciation of the arts among the inhabitants of Ludlow and the district thereof. 2. To promote a community centre for the use of the said inhabitants without distinction of political, religious, or other opinion, with the object of improving the conditions of life for the said inhabitants. Following the disruption cause by Covid and the refurbishment of the Assembly Rooms it became clear that the previously established strategic plan needed to be modified to reflect the change in patterns of use by customers and other users of LAR (Ludlow Assembly Rooms, the Charity's working name). It also needed to be modified to deal with the removal or reduction of all local government grants, including that previously received from Ludlow Town Council. A new Patrons scheme was launched in October 2023 and the Members scheme continues to deliver useful financial benefits. However the first half of the period under review saw significant financial losses and it was decided to modify the programming to ensure more events with popular appeal, thereby not only generating more revenue but also fulfilling the objective of widening the participation in the arts and encouraging more members of the community to use LAR. There has also been a refocus on encouraging participation by sections of the community who would not have used LAR in the past from Children's workshops to specialist music nights. LAR has many income streams, some small in themselves, but all contributing to the whole. The focus has been on developing those with the most potential to grow. Bar revenue is an excellent income stream and it is recognised that it can be developed further. This will be a key area for growth going forward. Income from Bill's Kitchen is well down on that foreseen when preparing the strategic plan. LAR has been working with Bill to increase footfall by holding Jazz and Folk events and a monthly Games Night; in addition to increased revenue it encourages wider participation from the community. During the year 27 such events were held producing ticket sales of £7,700. ## **ACTIVITIES OVER THE YEAR** LAR's main source of income has been the provision of live entertainment, film screenings and the live or pre-recorded screening of opera, theatre and ballet. Over the year 32,781 tickets for all events were sold. In the past Cinema has been a mainstay of LAR's income. This has changed post Covid, with attendances being well down. This phenomenon has been seen nationally with major cinema chains under financial pressure leading to many venues closing. LAR has received support with programming through the national organisation, the Independent Cinema Office (ICO). Unfortunately this has led to LAR having to take films for a number of showings when there was insufficient audience to support this approach. Discussions have been held with ICO, and a more flexible approach to programming now appears to be possible. It remains to be seen whether this will allow LAR to rebuild audiences. Notwithstanding these comments, Cinema accounted for the second largest share of tickets sold with 12,272 generating income of over £58,000. Streaming of opera, theatre and ballet remains very popular. There were 22 streamed events shown with 2,056 tickets sold. The value of each ticket is much higher than average due to the sums charged by the provider. Income from this source was £27,000. There were a number of sell out live performances during the year and overall there were 180 different live events generating over £173,000. For most of these events LAR is merely hiring the space and selling the tickets, the risks being taken by the promoter. However the bar takings often generate profit in excess of that from the hire and ticketing activities. As in previous years the biggest contributor to funds was the annual pantomime put on in conjunction with Ludwig Theatre Arts. Snow White and the Seven Dwarfs made a contribution of £19,638. LAR has worked with the organisers of other events such as the inaugural Piano Festival, to provide facilities and ticketing support. Such events introduce LAR to a much wider audience. Page 3 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024** LAR has continued to be a valued space for the display of art by local artists. It also benefits from commission payable on the sale of the artwork. Workshops held by the artist generate income and again fulfil the Charity's objective of greater community participation. There were 26 workshops held in the year generating income of £2,100. LAR's role as a community centre is also fulfilled by the hiring out of facilities to many local organisations involved in sport, yoga, dance etc. and as a venue for lectures. It also hires rooms for private functions when bar takings can be a significant contributor to revenues. ## **FUNDRAISING** While the majority of income comes from events described above, fundraising is a vital part of the financial security of LAR. As ever, the annual Secret Gardens event was the major fund raising occasion of the year. Just one of the events organised by LARFE during the year, it contributed £14,600 to resources. LAR is very grateful to the effort made by LARFE members and the garden owners to this much loved event. In total LARFE contributed over £20,000 to LAR funds. Donations from individuals and organisations totalled over £61,000. A very important part of this is the member's scheme, the benefits of which are being reviewed to make it a more attractive offering. In the past LAR has benefitted from large legacies and this is an area that has potential for development, although there was no major contribution this year. ## **BUILDING AND MANAGEMENT** Following the resumption of occupancy of the refurbished structure it has emerged that there are a number of problems with operation of the building, particularly with the air handling facility. This problem is ongoing, and while there are no direct cost implications to LAR there are reputational issues to consider. There have been many discussions with the Council, who are the client for the purposes of the refurbishment, but these are taking a long time to resolve. It is clear that some of the work carried out has not been to a high standard, witnessed by a recent failure of a plumbing system leading to a serious flood, and the implications of this for any lease entered into by LAR are under review by the Trustees . Joel Baldwin resigned as Artistic Director and CEO in December 2023 and Steve Catanach became the interim Business Manager. Steve has been instrumental in instigating a review of operations to identify those areas with greatest opportunity for development. LAR owes a huge vote of thanks to the many volunteers who literally make the whole thing possible. Box office, stewarding, bar work, admin tasks and other activities carried out by volunteers mean LAR can fulfil its objectives and offer wonderful facilities for the residents of Ludlow and the surrounding area. In 2023-24 there 6,131 hours recorded by volunteers but the actual number of hours they provided was significantly higher. The Board would also like to record their appreciation of the effort put in by the paid staff in moving the organisation forward at a very difficult time. They show great commitment to LAR and what it stands for. Page 4 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31 MARCH 2024** ## **FINANCIAL REVIEW** ## **Principal funding sources** The total income from LAR's charitable activities, including events, hire of auditorium and other rooms, box office facilities, and membership etc was £576,798. This is in excess of prior year albeit below the levels envisaged in the strategic plan prepared prior to refurbishment. Detailed make-up of the figure is discussed above. The prior year also benefited from a legacy of £150,000 which was not duplicated in the year under review although other donations received (including the benefit of the Member's scheme and LARFE donations) achieved a comparable level at £61,000. Included in the Charitable Activities Income is the contribution from bar sales, which at £70,000, well in excess of the prior year's £52,000. Thanks are due to the volunteers staffing the bar for this major contribution. As mentioned above income from the café is below forecast levels, reflecting a change in the market. The net contribution of £35,000 is included in Other Income. Discussions are ongoing as to how this could be improved. No grants were received from Shropshire Council, but £5,000 was received from Ludlow Town Council. The Trustees are exploring other sources of grant support but this is a difficult exercise in the current climate. Any such grants would not be available for revenue funding but appropriate capital projects might attract support. ## **Financial Results for the Year** Overall the year saw an excess of expenditure over income of £129,000. If the large legacy referred to above is ignored this means the result is comparable with the prior year. Most of this loss occurred in the first half of the year and it became clear that revenue generation needed to be addressed to enable LAR to continue. This was done mainly by programming more accessible events and strong cost control. It should be noted that that the deficit mentioned above was after charging depreciation and other "non-cash" items of £59,000 hence the cash deficit was £70,000. Focus on areas of income generation with greater levels of contribution such as room hire and bar takings also helped to turn profitability around. The new year has started well with the first 5 months showing cash generation from operations. Costs remain under tight control with great reliance on volunteer staff. While the refurbished building should mean that maintenance costs should not be high, there will always be the possibility of unforeseen repairs. Also there will be the need to invest in updated technical equipment, as hirers of the spaces, particularly the auditorium, come to demand the latest facilities. Cash resources are robust with cash on hand of £224,000. The excess of expenditure over income was the main reason causing a reduction in balances in the year of £89,000. The agreed overdraft available to the Association has not been drawn upon for 9 years. The Trustees believe that the Charity is a going concern with sufficient reserves to meet its obligations as they fall due. In addition to the adequate funds for day to day operation they intend to build a fund to cover unforeseen large capital or revenue expenditure in the future. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The governing document is the Memorandum and Articles of Association, as incorporated on 20 March 1992, and in accordance with these the company is governed by a Council of Members. The maximum number of members of the Council is determined by the Association in General Meeting, but there shall be at all times at least five and not more than twelve. Page 5 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees** The Council of Members, all of whom are unpaid, currently consists of eleven trustees. Although the Articles of Association provide for the election of new trustees at the Annual General Meetings, in practice new members are found by advertisement and interviewed against a person specification, co-opted during the year, and proposed for election at the following Annual General Meeting. All new trustees sign a Declaration of Eligibility and undergo formal induction. The Articles of Association provide that those trustees with the longest Council of Members service, forming one-third of the Council, shall retire each year. ## **Scheme of delegation** The Council of Members decides the priorities for the Association, sets the annual budget, and delegates all day-to-day management to the Business Manager. The Council has adopted rules, in accordance with its Articles of Association, which set out the limits of their authority. ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Council of Members has reviewed the risks to which the charity is exposed and this review is updated on a regular basis. In addition to financial controls to guard against fraud and error regular reviews of physical assets are carried out to ensure all legislation is complied with and physical safeguards are in place to reduce risks to personnel and the fabric of the building. The strategy for the Charity is being updated to address any developing existential threats to its operation. ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees (who are also the directors of Ludlow & District Community Association Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the board of trustees on 23 October 2024 and signed on its behalf by: Mrs L Johnston - Trustee Page 6 ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **Independent examiner's report to the trustees of Ludlow & District Community Association Ltd ('the Company')** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024. ## **Responsibilities and basis of report** As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, 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: 1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). 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 accounts to be reached. Francis Nock F.C.C.A. D.R.E. & Co. (Audit) Limited 7 Lower Brook Street Oswestry Shropshire SY11 2HG 23 October 2024 Page 7 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
5
Operation of assembly rooms
Investment income
4
Other income
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Operation of assembly rooms
Administration costs
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
**36,319**
**469,887**
**2,303**
**68,289**
**576,798**
**5,011**
**529,196**
**132,302**
**666,509**
**(89,711)**
**470,597**
**380,886**|Restricted
fund
£
**-**
**-**
**-**
**-**
**-**
**-**
**31,203**
**7,801**
**39,004**
**(39,004)**
**600,704**
**561,700**|**31.3.24**
**Total**
**funds**
**£**
**36,319**
**469,887**
**2,303**
**68,289**
**576,798**
**5,011**
**560,399**
**140,103**
**705,513**
**(128,715)**
**1,071,301**
**942,586**|31.3.23
Total
funds
£
199,665
361,451
296
73,861| |---|---|---|---|---| |||||635,273| |||||3,775
503,173
125,792| |||||632,740| |||||2,533
1,068,768| |||||1,071,301| The notes form part of these financial statements Page 8 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **BALANCE SHEET** ## **31 MARCH 2024** |Notes
**FIXED ASSETS**
Tangible assets
13
**CURRENT ASSETS**
Stocks
14
Debtors
15
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
funds
£
**247,816**
**6,696**
**19,565**
**199,839**
**226,100**
**(93,030)**
**133,070**
**380,886**
**380,886**|Restricted
fund
£
**624,775**
**-**
**-**
**24,636**
**24,636**
**(87,711)**
**(63,075)**
**561,700**
**561,700**|**31.3.24**
**Total**
**funds**
**£**
**872,591**
**6,696**
**19,565**
**224,475**
**250,736**
**(180,741)**
**69,995**
**942,586**
**942,586**
**380,886**
**561,700**
**942,586**|31.3.23
Total
funds
£
947,186
5,979
11,437
313,127
330,543
(206,428)
124,115
1,071,301
1,071,301
470,597
600,704
1,071,301| |---|---|---|---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company. The notes form part of these financial statements continued... Page 9 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD (REGISTERED NUMBER: 02699283)** ## **BALANCE SHEET - continued** ## **31 MARCH 2024** These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 23 October 2024 and were signed on its behalf by: L Johnston - Trustee The notes form part of these financial statements Page 10 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|**31.3.24**
**£**
**(38,019)**
**(38,019)**
**(52,936)**
**2,303**
**(50,633)**
**(88,652)**
**313,127**
**224,475**|31.3.23
£
135,754
135,754
(11,704)
296
(11,408)
124,346
188,781
313,127| |---|---|---| The notes form part of these financial statements Page 11 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024** ## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**OPERATING ACTIVITIES**||| |---|---|---| |**Net (expenditure)/income for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase in creditors
**Net cash (used in)/provided by operations**|**31.3.24**
**£**
**(128,715)**
**58,598**
**(2,303)**
**(717)**
**(8,128)**
**43,246**
**(38,019)**|31.3.23
£
2,533
58,685
(296)
223
18,665
55,944| |||135,754| **2. ANALYSIS OF CHANGES IN NET FUNDS** ||At 1.4.23|Cash flow|**At 31.3.24**| |---|---|---|---| ||£|£|**£**| |**Net cash**|||| |Cash at bank and in hand|**313,127**|**(88,652)**|**224,475**| ||**313,127**|**(88,652)**|**224,475**| |**Total**|**313,127**|**(88,652)**|**224,475**| The notes form part of these financial statements Page 12 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** ## **1. CHARITY INFORMATION** Ludlow and District Community Association Ltd is a charitable company , limited by guarantee, registered in England and Wales. The charity number, company number and registered office details can be found on page 1 of the accounts. ## **STATEMENT OF COMPLIANCE** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" and the Companies Act 2006. ## **2. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements have been prepared under the historical cost convention. The accounts are for the individual entity only. These financial statements are presented in £ sterling, rounded to the nearest £1. ## **Going Concern** While there are uncertainties in terms of the organisation's external environment, including key funding sources, the Trustees have, in the past few years, sought to expand revenue opportunities for the LDCA while seeking to reduce operating costs wherever practicable. With this strategy, they have achieved some specific successes as can be seen by the small but significant surpluses achieved in recent years and the establishment of a reserve fund. Further potential revenue opportunities do remain as do threats to funding sources but the Trustees continue to work hard on developing a sustainable business model going forward. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Raising funds** Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold property - 2% on cost Improvements to property - 4% on cost Plant and machinery - 20% - 50% per annum and 2% on cost continued... Page 13 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **2. ACCOUNTING POLICIES - continued** ## **Tangible fixed assets** The trustees have considered the need for a valuation on 1 Mill Street, however, they are of the opinion that it would not be a cost effective use of resources to do so as the carrying value in the financial statements reflects the market value of the property. ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Financial instruments** Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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. Basic financial liabilities, including trade and other creditors, 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 receipts discounted at a market rate of interest. ## **3. DONATIONS AND LEGACIES** |Ludlow Town Council
Fundraising Committee and other fundraising activities
Revenue grants and other income
Capital grants, donations and related gift aid
Legacies|**31.3.24**
**£**
**5,000**
**20,496**
**13**
**10,810**
**-**
**36,319**|31.3.23
£
12,500
28,745
146
5,828
152,446| |---|---|---| |||199,665| continued... Page 14 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** |**4.**
**INVESTMENT INCOME**
Deposit account interest
**5.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Cinema
Operation of assembly rooms
Live events
Operation of assembly rooms
Education and outreach
Operation of assembly rooms
Catering and bar
Operation of assembly rooms
Room hire
Operation of assembly rooms
Membership subscriptions
and gift-aided tax reclaimable
Operation of assembly rooms
Booking fees
Operation of assembly rooms
Live streaming
Operation of assembly rooms
**6.**
**RAISING FUNDS**
**Raising donations and legacies**
Fundraising Events Committee and other fundraising activities
expenditure
**Other trading activities**
Bad debts
Aggregate amounts|**31.3.24**
**£**
**2,303**
**31.3.24**
**£**
**58,524**
**173,843**
**1,660**
**70,192**
**36,009**
**30,048**
**72,368**
**27,243**
**469,887**
**31.3.24**
**£**
**2,456**
**31.3.24**
**£**
**2,555**
**5,011**|31.3.23
£
296
31.3.23
£
54,242
160,771
272
51,997
21,521
13,201
35,878
23,569|31.3.23
£
296
31.3.23
£
54,242
160,771
272
51,997
21,521
13,201
35,878
23,569| |---|---|---|---| |||361,451|| |||31.3.23
£
2,343
31.3.23
£
1,432
3,775|| ||||3,775| Page 15 continued... **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **7. CHARITABLE ACTIVITIES COSTS** |Operation of assembly rooms
Administration costs|Support
costs (see
note 8)
£
**560,399**
**140,103**| |---|---| ||**700,502**| ## **8. SUPPORT COSTS** |Management
£
Operation of assembly rooms
**544,852**
Administration costs
**136,216**
**681,068**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets|Governance
Finance
costs
£
£
**10,711**
**4,836**
**2,678**
**1,209**
**13,389**
**6,045**
**31.3.24**
**£**
**58,598**|Totals
£
**560,399**
**140,103**| |---|---|---| |||**700,502**| |||31.3.23
£
58,685| ## **9. NET INCOME/(EXPENDITURE)** ## **10. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. ## **11. STAFF COSTS** |**STAFF COSTS**||||| |---|---|---|---|---| |Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Direct charitable work
Administrative||**31.3.24**
**£**
**219,340**
**7,251**
**2,693**
**229,284**
**31.3.24**
**10**
**2**
**12**||31.3.23
£
198,329
5,956
2,743| |||||207,028| |||||31.3.23
10
2
12| Page 16 continued... **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **11. STAFF COSTS - continued** No employees received emoluments in excess of £60,000. Certain staff wages and salaries have been allocated to the activity to which they relate. ## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** |**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Operation of assembly rooms
Investment income
Other income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Operation of assembly rooms
Administration costs
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
199,665
361,451
296
73,861
635,273
3,775
469,764
117,440
590,979
44,294
426,303
470,597|Restricted
fund
£
-
-
-
-
-
-
33,409
8,352
41,761
(41,761)
642,465
600,704|Total
funds
£
199,665
361,451
296
73,861| |---|---|---|---| ||||635,273| ||||3,775
503,173
125,792| ||||632,740| ||||2,533
1,068,768| ||||1,071,301| continued... Page 17 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **13. TANGIBLE FIXED ASSETS** |**COST**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**DEPRECIATION**
At 1 April 2023
Charge for year
At 31 March 2024
**NET BOOK VALUE**
At 31 March 2024
At 31 March 2023|Improvements
Freehold
to
property
property
£
£
**145,000**
**827,272**
**41,893**
**-**
**-**
**(68,933)**
**186,893**
**758,339**
**54,000**
**66,035**
**3,538**
**30,333**
**57,538**
**96,368**
**129,355**
**661,971**
91,000
761,237|Plant and
machinery
£
**122,288**
**11,043**
**-**
**133,331**
**37,609**
**18,769**
**56,378**
**76,953**
84,679|Computer
equipment
Totals
£
£
**29,796**
**1,124,356**
**-**
**52,936**
**-**
**(68,933)**
**29,796**
**1,108,359**
**19,526**
**177,170**
**5,958**
**58,598**
**25,484**
**235,768**
**4,312**
**872,591**
10,270
947,186|Computer
equipment
Totals
£
£
**29,796**
**1,124,356**
**-**
**52,936**
**-**
**(68,933)**
**29,796**
**1,108,359**
**19,526**
**177,170**
**5,958**
**58,598**
**25,484**
**235,768**
**4,312**
**872,591**
10,270
947,186| |---|---|---|---|---| |||||**177,170**
**58,598**| |||||**235,768**| |||||**872,591**| |||||947,186| During the financial years to 31 March 1997 and 1998, the company acquired a small plot of land at the rear of 1 Mill Street for £10,000. This is included within freehold property. Since October 1992 the company has had a leasehold over 1 Mill Street and 11 Castle Square. The current lease is for 30 years to April 2048. ## **14. STOCKS** |**14.**|**STOCKS**||| |---|---|---|---| |||**31.3.24**|31.3.23| |||**£**|£| ||Stocks|**6,696**|5,979| |**15.**|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||| |||**31.3.24**|31.3.23| |||**£**|£| ||Trade debtors|**17,730**|4,600| ||Other debtors|**1,630**|3,600| ||Prepayments and accrued income|**205**|3,237| |||**19,565**|11,437| continued... Page 18 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income|**31.3.24**
**£**
**16,944**
**8,952**
**81,795**
**73,050**
**180,741**|31.3.23
£
90,734
6,566
72,638
36,490| |---|---|---| |||206,428| Included within other creditors is an amount for £66,276 (2023: 65,217) which has been received on behalf of clients for exhibitions and shows. Before settlement to the client, the association raises charges for services and administration, after the event takes place. ## **17. SECURED DEBTS** The bank holds a debenture dated 25 April 1997 over all the assets of the company as security in respect of the overdraft. ## **18. MOVEMENT IN FUNDS** |**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**|At 1.4.23
£
**470,597**
**600,704**
**1,071,301**
Incoming
resources
£
**576,798**
**-**
**576,798**||Net
movement
in funds
£
**(89,711)**
**(39,004)**
**(128,715)**
Resources
expended
£
**(666,509)**
**(39,004)**
**(705,513)**|At
31.3.24
£
**380,886**
**561,700**|At
31.3.24
£
**380,886**
**561,700**| |---|---|---|---|---|---| |||||**942,586**|| |||||Movement
in funds
£
**(89,711)**
**(39,004)**
**(128,715)**|| ||||||**(128,715)**| continued... Page 19 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **18. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |At 1.4.22
£
**Unrestricted funds**
General fund
426,303
**Restricted funds**
Restricted Fund
642,465
**TOTAL FUNDS**
1,068,768
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
635,273
**Restricted funds**
Restricted Fund
-
**TOTAL FUNDS**
635,273
A current year 12 months and prior year 12 months combined position is as follows:
At 1.4.22
£
**Unrestricted funds**
General fund
426,303
**Restricted funds**
Restricted Fund
642,465
**TOTAL FUNDS**
1,068,768||Net
movement
in funds
£
44,294
(41,761)
2,533
Resources
expended
£
(590,979)
(41,761)
(632,740)
Net
movement
in funds
£
(45,417)
(80,765)
(126,182)|At
31.3.23
£
470,597
600,704
1,071,301
Movement
in funds
£
44,294
(41,761)
2,533
At
31.3.24
£
380,886
561,700
942,586| |---|---|---|---| ||||| ||||| continued... Page 20 **LUDLOW & DISTRICT COMMUNITY ASSOCIATION LTD** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024** ## **18. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: ||Incoming|Resources|Movement| |---|---|---|---| ||resources|expended|in funds| ||£|£|£| |**Unrestricted funds**|||| |General fund|1,212,071|(1,257,488 )|(45,417)| |**Restricted funds**|||| |Restricted Fund|-|(80,765)|(80,765)| |**TOTAL FUNDS**|1,212,071|(1,338,253 )|(126,182)| ## **19. RELATED PARTY DISCLOSURES** Donations received during the year from trustees amounted to £Nil. ## **20. COMPANY LIMITED BY GUARANTEE** The liability of each member, in the event of winding up, is limited to £1. Page 21