Lennox Children's Cancer Fund Annual Report and Financial Statements Year Ending 31 May 2022 Registered charity no. 1011325
Contents Legal and Administrative Information Atx)ut Us Our Values Trustees Report Structure, (*vernarte and Management Our Mission Our Objectives and Activities Our Projects 8-12 Respite Breaks Care Grants Welfare and Benefit Advice Gifts and Vouchers io Emotional SupFX)rt 'We've Got Y(xJr Back. Packs 12 This Year's Highlights 13 Achievemer)ts and Performance 14-18 Fifftncial Remew 17-18 Flans for Future Periods 19-20 Statement of Trustees. Responsibiltties Annual Accounts Independent Audttor's Report Statement of Financial Activt 22-25 26 Bance Sheet 27 Statement of Cash Flows 28 Notes to the Finanaal Statements 29 Lennox Children's caer Fwd Anwal Report and Financial Statements Yeap Ending 31May 2022 2of40
Legal and Administrative Information Charity Name Lennox Children's Cancer Fund Charity Registryation Number 1011325 Registered OFffice 28 Hemmells Laindon Essex SS15 8ED Trustees Mr K J Davis (Charl Mr D Piers Mr D Plato Mr M Brow) Senior Management Mr V Fitzmaurice (Chief ExecuLive opficerl Independent Audttors KLSA LLP KalamLJ H(xJ8e 11 Coldbath Square London ECIR 5HL Bankers Santander UK 2 Triton Square Regent's Race London NWI 3Am Lennox Children's caer Fwd Anwal Report and Financial Statements Yeap Ending 31May 2022 3of40
Trustees Report The Trustees are pleased to Fyesent this reFX)rt together with the financi statements of Lennox Children's Cancer Fund for the year er)ded 31 May 2022. The financial statements have been prepared in accordance with the accounting FX)licies set out in Note I to the accounts, and comply with the charity's Trust Deed, the Charities Act 2011 and 'Accounting and Reporting by Charities.. Statement of Recommended Practice apICable to charities preparing their accounts in accordance with the Financial ReFX)rting Standard applicable in the UK and Republic of Ireland IFRS 1021 las amended for accounting periods comnEncing from 1st Jawary 20161. The gaI and administrative information set out on page 3 forms part of this report. Lennox Children's Cancer Fund was registered as a charity in England and Wales with the Charity Comrrission on 21SL May 1992. The charitu registration number is 1011325. Structure, Governance and Management Governin Document Lennox Children's Cancer Fund is an unincorFX)ryated charity which is governed and operated within the requirements of a Trust Deed. The chartty's membership is comprised of ts Trustees. The Trustees served during the year and up to the date of signature of the final statements are listed in the legal and administrative information set (xjt on page 3. Recruitment intment and Tminin of Trustees The charity was formed W the original Trustees who retained the right to aF)point additional Trustees from time to time. No Trustee is, or has been, appointed ~for life" Accordingly, the appointment and remov of Trustees remains exclusively with the board of Trustees as ConstUted from time to time. The Trust Deed requires the board of TrLJStees to have at least three Trustees and a maximum of five. New Trustees are apFX)inted by the existirKJ Trustees. New appointees are given a personal induction to the charity, where their govemance obligations are explained to them. Each new Trustee is provided with a copy of the Trust Deed, the charity's latest reFX)rt and statement of accounts and the minutes of the last Trustees, meeting The Trustees hold at least three meetings each year and agree the broad strategy and areas of activity, the grant making, investment, reserves and risk management policies and performance of the charity. Details of any Trustee expenses are disclosed in the accounts. Trustees are required to disclose all relevant interests and register them with the CEO and, in accordance wtth the charity's FX)Iicy, withdryaw from any discussions where a conftict of interest may arise. At present, none of the appointed Trustees has interests in property held by the charity. The Trustees have reviewed and accepted the code for go(Id governance htt overnancecode.or fulkc()de4)f overnance as advised by the Charity Commission. Lennox Children's caer Fwd Anwal Report and Financial Statements Yeap Ending 31May 2022 5of40
anisational Structure At the end of the year, the charity employed 18 full time and 7 part time stafP. The CEO oversees the day-t(Fdau running of the char and degateS reswnsibilities to line managers and employees. At the end of th year our ernFeeS' time collectively was divided equlY between charritAble activities and mising funds so that we can continue offering wr projects and services. Risk hAana ement With the help of the CEO, and in conjunction wnth staff and volunteers for the area of activity, the Trustees annually review the major risks to which the charity is exposed. Systems and procedures have been established to manage any risks. The Trustees have 80 reviewed all the FX)licies that are currently in place and have found them to be worknng effectively. The charity has the appropriate employer's insurance to cover all major risks. contractu risks are reviewed before being entered into to assess that they could not significantly affect the chartLy's ability to fulfil its ot4ectives. The Tmstees have c(x)tinued to support the policy of current and savings accounts for the funds of the chartty and have not exposed the charity by investing in the extreme volatility of the stock market or other investment vehicles. act of COVID-19 A survey carried out by the Charity Commission in October 2021 found that 91% of chartties experienced some negative impact from COVID-19, the majortty seeing a loss of income4 Lennox was no different and reSed heavily on SUPFX)rt from the government's Job Retention Scheme I'furlough,; as well as some funding from London BOrJgh of Havering and several large donations from corporate SUFPOrters. The furlough scheme enabled the Trustees to place all employees on furIgh, which meant that the charity could continue to support beneficiaries throughoLJt the pandemic and keep the core services up and running. However, since the furlough scheme ended, the charity has found tt very difficult to raise enough funds to cover the ne¢es8ary outgoings. Thankfully, the generosffcy of several corporate and individual SupPters, as well as a gryant from the London Borough of Havering, has given the charity time to invest and adapt. At the start of the financial year, the Chart had £208,094 in unrestricted funds, which reduced to £92,858 at the end of the year following a variety of key investments to raise the chartLy's long-term income, in particuLar from marketing and advertising as part of the pandemic recovery plan. Many bUrneSseS that once supported Lennox by fundraising in their wOrkFaCes, now have employees working from home permanently, which has drastically reduced fundraising income. The fundraising team have had to find new ways to raise money, such as virtual challenges and increased requests to Trusts and FrKlationS. Prior to the pandemic, the charity had agreed to move to a $Mler office, which was a suffficient size to accommodate all of the charity's emFJoyees. However, following government advice during tFE pandemic, was decided that the office would be too small for employees to remain a safe distAnce apart while worknng. Therefore, many employees began to work from home, and most continue to do so. Lennox Children's caer Fwd Anwal Report and Financial Statements Yeap Ending 31May 2022 8of40
Our Projects Respite Breaks Lennox Children's Cancer Fund owns two large holiday homes with three bedrooms in each. They are both lttated at Shorefield cntrY Park in the beaLJtiful New Forest National Park and are used solely to give children and their families Sne time for rest and relaxation, away from doctors, hospitals arKI treatment. This qLJality time enables each family to reconnect while enjoying the loc nature, getting to know the famous New Forest ponies or simply relaxing on the verandal ere so grateful fon the (yportunity to spend some tirrE away all together. Thank you go much for arnanging it for usl Organisations like yours are such an incredible support fon families like ours, helping us to regain sorne normality after the stress of diagnosis and treatment. 7hank uou for all that you do, and to everyone who donates to the cause.1" A short break away is often key for the survival of family relationships during the rdler-coaster ride of childhood cancer. However, for so rrnY families with a child undergoing cancer treatment, a holiday can seem like an imKK)sb1e dream. A common de effect of cancer treatment is a very low immune system, which can mean that children become ill often and Ljnexpected hospitAI stAyS are a regular occurrence. The flexibility of (xjr Resptte Breaks woject takes away the worry of finala1 loss if their child is too ill to travel, we can mply re-armnge, or let them travel later in the weel Additionally, both holidau homes are dose to a UK hospitsl should they need it. "l underestimated how a week away can mend a family. It was what Lve all needed and we cant thank you enough. Ralph loved every nUte of it and made some lovely friends. He really didn't want to leave. The lodge, site, location was all just perfect. You all do such a fantastic job at Lennox" In addition to providing a respite broak, we also offer spending money for s(xne extra treats and a worry- free holiday, as well as providing tous, games and DVDS in each holiday home for ryainy days Every year many of the families who receive a respite break leave heart-warming messages of thanks in the guest books, along wtth lots of advice 8nd ideas for other families. A short break away is oft£n key for the survival of family relationships during the roller4oaster ride of childhood carer. This year we were s0 able to provide resFXte breaks at Lenmx Retreat in ff01k thanks to the charity's partnership with the owners of Broad Oak Farm. The two year parthership came to an end in October 2021 so we are now looking at ways to acquire an addItOn holiday home within the next four years to secure the future of the reSpe breaks project. Lennox Children's caer Fwd Anwal Report and Financial Statements Yeap Ending 31May 2022 Bof40
Achievements and Performance At the end of this year, we celebrated the chartty's 30th anniversary. To mark 30 years of hard work, we re-bryanthd the charity irrvAge, which can be seen throughout this reFX)rt. Our new logo is rwresented as a ribbon that is synonymous with childhood cancer inside a shield, and our new cdours represent the gold of childhood cancer, the cream of our calmness and the black and white of (n straight tAking, no jargon, philosophy. Early in the year we launched a new project called 'We've &)t Your Back, Packs, which is aimed at providing essential supplies to children and parentsicarers when they are first admitted to hospitAI. Funding of 3,889 was secured to purchase 250 packs, 125 of which have aready been distributed to hospitsls I(ly. The resFX)nse from hospit workers has been vew FX)Sitive and we have already received messages of gryatiknde from parents who may otherwse have spent severa days in hospital wtth only the clothes they arrived in. We saw an ir)crease in requests for financial support to cover the cost of COLJnselling for children who were experiencing Merntakheah issues as a direct result of their diagnosis. This year the Trustees aged to prioritise these requests where possible, so that these children would receive the support they need wtthout delay. During the coming Year, they w(xJld like to intr(xJuce a more permanent service to address this growing issue 8morYJ children and young people wtth cancer. The Family SupKK)rt Team has contirKJed to offer a 24 hour emotional SUPFX)rt service to those in r)eed of a n(x)-judgemental person to talk to. The demand on this service has increased dramatically this year. The care granLg woject provided direct funding for many specific items, including a bedroom furnishings, laptops. school unifomi The majortty of care grant applications received are for help with travel costs, utility bills and white good. This year, we proudly released three promotional videos to broadcast the wonderful work we do. Three families who have received support from us, generously agreed to partake in a filming day at the Shorefield Country Park, the location of the two holiday homes. These promotiona videos showcase with wonderful work of the charity and the huge impact that our projects have on the families they benefit. After a short period of dosure during the pandern, we were delighted when our holiday homes were able to r open fully and we could (x)ce again provide 3, 4 or 7 night reSpe breaks to families in need of time away from hospital and home. This was especially imFX)rtant, after many families were forced to shield from COVID-19 at home for a very long time. Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 14of40
The charity hosted tts first 'Party for Heroes, in March at St Michael's Church Hal in Benfleet. &Jperheores, Disney Princesses, Piryates and Stsr Wars Character volunteered their time to make the day extra special for the families in attendance. Following it's success, another event has been FAanned for July 2022 We continued our partnership wtth the owners of Lennox Retreat, a beautiful, seven bedroom farm house in Bramfield, rfOlk. At the owners, request, the use of the farm house continued to be restricted to families from, or receiving treatment in, Suffolk and tts surrounding c(xJnties. The feedback was consistently positive and the children especially liked interacting the farm anim8. We have worked hard to improve and expand our projects this year to ensure that we are able to support beneficiaries in the most sutsble way. This is how our employees SarleS are divided betwe our projects.. 9% ca Grants 7% Gift In Kind 4% Weare and Benefit Advice 28% 2417 Helpline IO% 'We've Got Your Back, Packs 31% other Over the last few years. the charity has seen a reduction in the number of F)OStcards and letters that we receive from beneficiaries, however there has been a dramatic increase in the number of emals and messages of thanks received throug) social media. Employees enjoy hearing this feedEAck and it motivates kx)th staff and volunteers to continue their go(xl work. With the permission of the parentslcarer's, these messages are often used in the charity's marketing. Last year, COVID-19 prevented LJS from delivering gifts to children hospttals, which was especially disappointing for the children in hospitral during the Christmas and Easter periods. This year, we were over the moon to be allowed to visit hospitals again and make our annual deliveries of toys, games, DVDS, Easter eggs and sele(£ion boxes at regular stages throughout the year. December is a particularly busy time, as many hospitals hold Christmas parties for their young patients. The 30 anniversary was celebryated with a masquerade ball, which many of the families we have supported attended, along wh individual and corporate supporters, employees and volunteers. Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 15of40
Students from a local college made some capes as part of their classwork and donated them for the children we support. They were mainly hero themed and put a smile on the faces of rrHny children. We were very lucky to re1ve funding to take a Marketing Manager to improve our branding, marketing and online presence. In additicn, we invested in three fantastic womotional videos that show the difference our projects have made to some of the beneficiaries. These videos can be seen on our website. The Zero2Hero partnership throLJgh LBM Boxing has continued through(xJt this year. Zero2Hero have hosted many tx)xing events throughout the year that have ryaised £19,595. Our partnership is ongoing wtth many more events Farnned for the coming year. Since the start of our partnership, LBM Boxing have raised over £IOO,000 thr(xJgh Zero2Hero events and other fundraising activtties. £128,7ei was received from major yant making organisatiorL4 and Trusts. This is a huge increase of £51,980 from the weviou4 year, which is largely due to investment in stAff training. The fundraising team has continued to support those who ryaise funds via their own fundraising aCtIvleS and challenges. Many individLJals organised their fundraising activities, such as dress down days, quiz nights and cake sales, Whi others chose to take on a challengq such as skudives, abseils, marathon4 swirn4 and CYcs. We were delighed to be chosen from a pool of over go charities as one of three charity partners that canadian Imperial Bank of Commerce will be SUPFX)rting for the next two Yea We will be working closely wtth the employees of CIBC to fundraise, publiase and offer volunteering Opportun1 throughout our partnershiry 24i. Many of the team have adapted to working remotely as a result of the pandemic so it was great to get the team together for si)me training and team building days. Some quotes from our beneficiarie -There are not enough wonls: the team are amazing, they are so helpful, caring considerate, gentle. One day I called about a Spite break and I bLJrst into tears. They just let me cry and didn't speak untfi I was ready, amazing.. ur grant was such a kind gesture in a moment of darkness that opened a door that would have otherwise remained shut because of straned finances and allow us to try and be part of the world again without sacrificing my daughters health.. -Lennox have been truty amazing, they have a lovely mple applcation process so there is not a stressful application in worrying times. Grants have been quick, and even a voucher fon an attraction Park was sent to me. A wonderful, helpful charity that gives so much in times of hardship." Lemox Chiken's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 18of40
Expenditure The totAI expenditure from areas was £7,730, a huge increase of 33% on the wevious year. Of this, 54% was used for charitable activities, which totalled £46l799. The charttable expenditure ir)cludes money awarded to families in the form of care grants, rYK)ney spent maintaining the charrity's two holiday hornes (i.e. ground rent, insurance, weewy cleaning, travel and depreciation), the costs of WOVKling emotional supporL money spent on toys, gmes and other gifts for beneficiaries, events for beneficiaries and all other chartLable project costs. moSt £50,000 was given to beneficiaries in the form of care grants and a further £25,086 was used to provide gifts, such as tous, DVDS, clothing. exrIence vouchers/tk8ts, cuddly toys and other gift& Over £26k was spent on the newly introduced We've Got Your Back, Packs at get the project launched. It is likely that more furKling will be rased and allocated for this during the next year. CharItae expenditure is not currentjy seFHrated by project, however in the futu we will be aiming to provide a more tryansparent breakdown. The administration expenditure indudes rent for offices, utiltty bills, IT and telephones, insurance, fundraising staff, stationery and printing, advertising and prizes for fundraising activities. These essential expenses are necessaw to sustain the charity and build its future. We are constantly reviewing these expenses and looking for ways to reduce them. Reserves At the end of the financial year, the charity held unrestricted funds totAlling £92,858. The charity has not held reserves in the past, but following the COVID-19 pandemic, building a reserve account has become a priority to ensure the Surviv of the chartty, create statxltty for the future, and woduce more opportuntLies for growth. The charity's first priority is always to retain as many services as possible while building enough reserves to sustain the charity for at least six months in the event of c(mte loss of income. The charity CUrrernt has no lonterm investments and there are no restrictions upon the chartLy's power to invest. At present, the funds of the chartty are held in CLJrrent accounts a nation high street bank The totsl funds held at the erKI of the reFX)rting period is £92,858. Going Concern The Trustees have reviewed the charity's financi position and assessed the cash flow forecasts. They have reasonable expectation that the charity will have adeqLJate reswrces to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concem bas of accounting in weparing the annual accounts. Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 18of40
A classical concert at Southwark Cathederal was cancelled Last year due to COVID-19, $0 the charity is [annIng to r&book it for next year. This time, Lennox Children's Cancer Fund will receive all of the profits from the performance of Verdi's Requiem. We are hoping that the family Superhero Fun Run wll take place again in 2023, and will continue as an annual event. As the fundraising department grows, the team will increase the number of annual fundraising events. There are many fundryaising events in the pipeline that we hope wil raise the additional funds needed to launch our new projects arKJ imFYove current (x)es. The chartLy's fundraising database is working well kxjt needs some imwovement during the coming year. The fundraising team is currently Ljsing more than one database leading to some crossover and tt has now become rcessary to make changes to pvent this from happening in the future. Administration The charity will continue to s(xJrce the best prices for products and services in an effort to keep the costs to a minimum. The charttable expenditure will be recorded rn0 clearly and seperated by project so that supporters can see exactly how their donations are spent. Lemox Chiken's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 20of40
Independent Auditor's Report to the Trustees of LenrKJX Children's Cancer Fund (continue her matters Your attention is drawn to the fact that the char has prepared financid statements in accordance with 'Accounting and Reporting by chanles.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wh the Financial Reporting Standard applicable in the UK and RewEIe of Ireland IFRS 1021 las amendedj in preference to the Accounting and ReFX)rting by Chartties.. Statement of Recommended Practice issued on l April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the finanaal statements to provide a true and fair view in accordance with current Generally Accepted Accounting Pryactice. se of our re ort This report is made solely to the charity's Trustees, as a tx)dy, in accordance with part 144 of the Charities Act 2011 and the regulations made under section 154 of that Act 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 auditors, report and for no other wrpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the chartty's Trustees as a b(xly, for our audit work, for this report, or for the OFxnions we have fonned. 1411212022 Shilpa Cheda Isenior Statutcry AudiLorl For and on behalf of KLSA LLP Ghartered Acwuntarts Statutory Auditor KLSA LLP Kalamu Hjge 11 Coldbath Square Lonthn ECIR 5HL Lwnox Chll(tren's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 25of40
Statement of Financial Activities For the year ended 31 May 2022 Notes 2022 2021 Income and Endowments From.. Donations and legacies Fundraising actThitLies Retail & trading Other income Total income and endowments 192,918 488,213 14,030 49,333 742,494 223.449 337,688 5,887 201,972 768,798 Expenditure On.. Cost of generating funds Charitable activities Tot resources expended 395,931 461,799 857,730 280,838 364.197 845,033 Movement In Funds.. Fund tHlances at l June Fund EHlances at 31 May Net lexpenditurel[Income for the yearlnet movement in funds 208,094 92,858 1115,2361 84.331 208,094 123,783 The statement of financial activities indudes 1 gains and losses recognised this year. l income and expenditure derive from continuing activtLies. Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 28of40
Balance Sheet As at 31 May 2022 Notes 2022 2021 Fixed Assets Tangible assets 12 50,951 50.951 58,520 56,520 Current Assets Debtors Cash at bank and in hand 13 15,439 88,071 103,510 31,732 182,635 214,387 Current Liabilities Creditors.. amounts falling due within one year 15 134,8401 131,8851 Net CAJrrent assets 88,e70 182,702 Total assets less current liabilities 119,821 239,222 Creditors.. am(xJnts falling due after more than one year Net assets 18 128,7831 92,858 131,1281 208,094 Income Funds Unrestricted funds Restricted Funds TotAI Income Funds 92,858 208,094 92,858 208,094 The financi statements were approved by the Trustees 01 ZL Mr K J Davis, Chair of Trustees Mr D W F4ato. Trustee Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 27of40
Statement of Cash Flows For The Year Ended 31 May 2022 Notes 2022 2021 Cash flows from operyating activities.. Cash (absorbed Wllgeneryated from operyations 20 185,9781 133,240 Investing activttie& Purchase of fixed tangle assets Net cash generated fromllused inl investing activities 14,8241 14,8241 13,3271 13,3271 Financing activtties.. Payment of obligations under finance leases Net cash used in financing activities 13,9841 13,9841 13,2811 13,2811 Net {decreaselIirrease in cash and cash equivalents Cash and Cash equivalents at beginning of year Cash and cash equivalents at end of year 194,5641 182,635 88,071 126.632 56,003 182,635 Lemox Chik*en's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 28of40
Notes to the Financial Statements For the year ended 31 May 2022 L Accounting Policies 1.0. Chartty Infrnation Lennox Children's Cancer Fund is a charity fftgistered with the Charity Commission since 22 May 1992. 1.1 Accounting convention The accomts have been prepared in accordance wh UK Generally Accepted Accounting Practice, including FRS 102 'The Financial Reporting Standard apFIeab1e in the UK and RePU1C of Ireland the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities weparing their accOt5 in accordance wtth the Financial Reporting Standard applicable in the UK arKI Republic of Ireland IFRS 1021" las amended for accounting periods commencing from l Jawary 2018,. Lennox Children's Cancer Fund is a Public Benefit Enttty as defined by FRS 102. The financial stAtements have departed from the charleS iAcc(xJnts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for chartties applying FRS 102 rather than the version of the ststernènt of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the fLX)Ctional currency of the Chartt Monetaw amounts in these financi statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, Imodified to include the revaluation of freehold properties and to include investment woperties and certain rinancial instruments at fair valuel. The principal accounting FX)licies adopted are set out below. 1.2 Gcxng Concern In the current year, the charffcy's statement of financial activleS was in a net expenditure posffcion at £115,236 12021.. net in¢ome £123,763,, The bJan¢e sheet was in a net asset poS10n with a fund balance of £92,858 12021.. 208,0941 with net current assets of £88,670 12021.. £182,702). The organisation had kx)re a signtricant human capttal cost in the current year as the chartty scales up to increasing funding generating aCtivleS by b(x)sting corporate support among keeping up with individual pledges in future. This has already kx)rne retums as the chartty has secured material fund pledges from large corporations after the year end. As a result the net expenditure in the current year will be overshadowed W the secured matr£ri incomes in the year 202212023. These among other factors as considered such as the charity's financing facilities and future funding plans, we confirm that the application of the going concem basis for the preparation of the ffinanci statements ccx)tinued to be appropriate. At the time of approving the financi statements, the Trustees have a rea8(able expectation that the Charity has adequate resources to Continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the goirKJ concern basis of accixjnting in preparing the ffinancial statement 29of 40 Year ErKfing SIMay 2022
l Accounting Poficies IContinue( 1.7 Impairment of Fixed Assets At each rerK)rting end date, the charity reviews the carrying amounts of tts tAngible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the reCoveraLe amunt of the asset is estimated in order to deterynine the extent of the impairment loss [If anyj. 1.8 Cash and Cash Equivalents Cash and cash equivalents include cash in hand, depot$ held at call with banks, otFr short-term liquid investments with original maturtLies of three months or ss, and bank overdrafts. Bank overdrafts are shown wthin Ex)rrowings in current liabilitie 1.9 Financial Instruments The chartty has elected to apFY the provisions of Section Il'Basic Financial Instruments, and Secti(x) 12'0ther Finanoi& Instruments Issues, of FRS 102 to all of S financi instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisiork4 of the instrLxnenL Financi 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 intenti(x) to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic firlanc assets Basic financial assets, whh include debtors and cash and bank balances, are initially measured at transaction price including tryansaction costs and are subsequently carried at amortised cost using the effective interest method urless the arryangement constitutes a financing transaction, where the tmnsaction is measured at the present Ve of the future receipts discounted at a market rate of interest. Financi assets classified as receivable wtLhin ce year are not amortised. Basic firwicRI liabilities Basic financi liabiltties, including creditors and bank loans are initially recognised at tryansaction wice unless the arrangement constitutes a financing transaction, where the debt instrurrEnt is measured at the present vue of the future payments discounted at a market rate of interest. Financial liabl1leS dassiffied as payable wh1n one year are not amortised. Debt instruments are subsequently carried at amortised cost, wng the efftIVe interest rate method. Tryade creditors are obligations to pay for goods or services that have been acquired in the ordinanJ course of operntions from SUPFYiers. Amounts payakye are dassified as Current liabl1leS if paument is due within one year (r ss. If not, they are presented as non-current liabilitie& Trade creditors are recognised Initial at transaction price and subsequently measured at 8ffl0rtised cost using the effective interest method. Derecognition of financial liabi7ities Financi liabiltties are derecognised when the charitys contractual obligations expire or are discharged or cancelled. Lemox Chiken's FLnd Anral ReFYrtand Financh21 Statements Year ErKYing 31May 2022 32of40
The Trust is treated for tax purposes as a charity and is not liable to Income Tax on income derived from charitable activities. The Trust is not registered for VAT. All expenditure amounts in the Statement of Financial Activities (SOFA) are shown inclusive of VAT, where relevant.