**Charity Registration No. 1048549**
**Company Registration No. 03067374 (England and Wales)**
## **THE LYME TRUST**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **THE LYME TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr G Thomson|
|---|---|
||Mr J J A Pearson|
||Mr N H Ecclestone|
||Mrs M Faichney|
||Mr P A Lomas|
||Mrs K A Smith|
||Mr L Wilbraham|
|**Secretary**|Mr P A Lomas|
|**Charity number**|1048549|
|**Company number**|03067374|
|**Registered office**|37 London Road|
||Newcastle-under-Lyme|
||Staffordshire|
||ST5 1LN|
|**Auditor**|Geens Limited|
||68 Liverpool Road|
||Stoke on Trent|
||Staffordshire|
|**Chief Executive**|Mrs S Tagliarino|
|**Solicitors**|Walters & Plaskitt Solicitors|
||124 Ford Green Road|
||Stoke on Trent|
||ST6 1PG|
|**Bankers**|Barclays Bank|
||118 High Street|
||Newcastle-under-Lyme|
||Staffordshire|
||ST5 1PT|
## **THE LYME TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' Report report|1 - 4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 24|
## **THE LYME TRUST**
## **TRUSTEES' REPORT REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
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 31st March 2021. 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).
## **Objectives and activities**
The objective of The Lyme Trust is to provide short and mid-term accommodation and support for people with mild to moderate mental health needs, and those at risk of homelessness.
The primary aim of The Lyme Trust is to provide a stable, safe and comfortable environment for all of its residents and to offer encouragement and assistance, via its team of project workers and support workers, to help them return to independent living.
The Lyme Trust support staff are experienced and highly trained to offer guidance and support but the final outcome is down to each resident’s engagement and hard work. Many of the people who come to live at the Lyme Trust also have alcohol or substance dependency issues. Our aim is to develop the positive attitudes and self-motivation that will lead to independent living.
## **Achievements and performance**
The Lyme Trust delivers against its objectives by investing in and leasing local residential property which it lets to its residents at low rent. The charity makes a housing benefit claim to Newcastle-Under-Lyme council on behalf of its residents to support rental payments. As at 31 March 2021, the Charity owned 7 properties and leased a further 13, for a total of 85 resident rooms. As at the same date, 95.6% of rooms were let to residents.
The Lyme Trust also provides a regular and continuing schedule of activities for its residents that are creative, therapeutic and social in nature. Engagement of residents in this manner contributes to their personal and social rehabilitation, and mental wellness, and is an important part of their journey to independent living.
The Lyme Trust provides ongoing training to its project workers and support workers to equip them with the tools to successfully support the residents and help them with current and historical issues.
The Charity measures its performance through key performance indicators. ‘Planned moves’ refers to residents moving into private accommodation and ‘unplanned moves’ relates to evictions or abandonment. The Charity records all eviction reasons, and these are discussed by the board of trustees monthly.
The board of trustees is pleased to report that for the year ended 31 March 2021, a total of 23 residents made a successful planned move to independent living within the community (13% of resident moves). A further 73 residents abandoned their accommodation during the year (41% of resident moves) and 82 were evicted (46% of resident moves).
## **Financial review**
The COVID-19 pandemic has had a substantial impact on the operations of the trust, principally due to the management of infection and the availability of staff. However, the Charity has remained financially stable. During the year ended 31 March 2021, the Charity generated a surplus of £131,825 (2020: £139,804). A transfer of £28,500 was made on 3rd March 2021 from working capital to the property improvement reserve.
The principal source of funding for the Trust is via working capital generated from the housing benefit claim. The trust receives no government grants or other support. Property purchases are funded via the property improvement fund and bank mortgages. Two properties were purchased during the year and one further property was leased.
- 1 -
## **THE LYME TRUST**
## **TRUSTEES' REPORT REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Detailed monthly financial reports are scrutinised by the Finance Sub Committee and a summary is presented to the Management Committee meeting of the trustees. The trustees and management committee meetings incur no costs.
For the year ended 31 March 2021, the Charity’s assets and cash balances are in line with Charity Commission recommendations. The policy of the charity is that a minimum of three months operating costs shall be retained in reserves.
## **Plans for future periods**
Due to the uncertainty surrounding the ongoing COVID-19 pandemic, the Charity is not planning on investing in further property in the next financial year due to potential staff shortages due to sickness. Instead, the Charity plans to maintain a strong level of working capital and to separately begin a property refurbishment programme across the existing property portfolio. This is intended to be supported via charitable donations from local businesses.
The current CEO of the Lyme Trust is due to retire in 2023 and, as such, the trustees will be assisting in the employment of a suitable replacement and ensuring an uninterrupted transition.
## **Structure, governance and management**
## _**Governing Document**_
The charity is a company limited by guarantee governed by its Memorandum and Articles of Association.
It is registered as a charity with the Charity Commission in England and Wales.
## _**Trustees**_
The trustees who served during the year and up to the date of signature of the financial statements were:
Mr G Thomson Mr J J A Pearson Mr N H Ecclestone Mrs M Faichney Mr P A Lomas Mrs K A Smith Mr L Wilbraham Mr R Fazackerley (Resigned 5 December 2020) Mrs C Redman (Resigned 5 December 2020)
## _**Recruitment and appointment of new trustees**_
As set out in the Articles of Association, the trustees are elected at the annual general meeting and serve for a period of two years.
Co-opted members may be appointed throughout the year as required.
All members are circulated with invitations to nominate trustees prior to the AGM advising them of retiring trustees and requesting nominations for the AGM
## _**Organisational structure**_
The board of trustees administers the charity. The board meets monthly and there is a Finance Sub Committee and they also meet on a monthly basis.
A chief executive is appointed by the trustees to manage the day to day operations of the charity.
To facilitate effective operations the Chief Executive has delegated authority for operational matters including finance, employment and welfare of the residents of the trust.
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## **THE LYME TRUST**
## **TRUSTEES' REPORT REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## _**Induction and training of new trustees**_
New trustees are provided with an orientation pack to brief them on their legal obligations under charity and company law.
Trustees are encouraged to attend The Lyme Trust to meet key employees and obtain a better understanding of the work the charity carries out.
It must be understood that there is a strict regime of resident confidentiality in place which to some extent governs the type and amount of information that can be shared with trustees.
## _**Remuneration policy**_
An annual pay review for all employed staff is completed with reference to inflation and industry comparatives, and is submitted sequentially to the Finance Sub-Committee, Board of Trustees and Newcastle-Under-Lyme council (with reference to the housing benefit claim) for approval.
## **Summary of The Lyme Trust Properties**
## **Owned by The Lyme Trust**
41 London Road 9 Bedrooms 52 London Road 4 Bedrooms 70 London Road 3 Bedrooms 108 London Road 8 Bedrooms 13 Webster Street 2 Bedrooms 39 Victoria Street 2 Bedrooms 23 Well Street 3 Bedrooms **Leased by The Lyme Trust** 2 Grosvenor Road 4 Individual flats 4 Grosvenor Road 7 Bedrooms 10 Horton Street 2 Bedrooms 11 Well Street 3 Bedrooms 18 Hanover Street 2 Bedrooms 33 London Road 9 Bedrooms 35 London Road 1 Flat 37 London Road - 39 London Road 6 Bedrooms 40 London Road 5 bedrooms 56 London Road 5 Bedrooms 80 London Road 3 Bedrooms 112 London Road 4 Bedrooms 70 Stubbs Gate 2 Bedrooms 72 Stubbs Gate 2 Bedrooms
All the above properties are based in Newcastle-Under-Lyme.
- 3 -
## **THE LYME TRUST**
## **TRUSTEES' REPORT REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Statement of Trustees' Report responsibilities**
The trustees (who are also directors of The Lyme Trust for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 charities SORP
-Make judgments and estimates that are reasonable and prudent
-State whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements.
-Prepare the financial statement on a 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 Charities 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.
In so far as the trustees are aware:
-there is no relevant audit information of which the charitable company's auditors are aware; and -The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of said information
## **Auditor**
Geens Chartered Accountants were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.
The Trustees' Report report was approved by the Board of Trustees.
Mr G Thomson
21 January 2022
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## **THE LYME TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE LYME TRUST**
## **Opinion**
We have audited the financial statements of The Lyme Trust the charitable company for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).
- In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' Report 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.
- 5 -
## **THE LYME TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE LYME TRUST**
## **Matters on which we are required to report by exception**
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 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.
## **Responsibilities of trustees**
As explained more fully in the statement of Trustees' Report 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.
## **Auditor's responsibilities for the audit of the financial statements**
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.
As part of our planning process:
- we enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, whether there was any known, suspected or alleged fraud. the charity did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: the Charity SORP. FRS 102, Charities Act 2011. Companies Act 2006.
- We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
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## **THE LYME TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE LYME TRUST**
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.
- Assessing the extent of compliance, or lack of, with relevant laws and regulations.
- Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted and restricted funds.
- Obtaining third party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing documentation such as charity board minutes for discussions of irregularities including fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 auditors' 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.
## **Geens Limited**
## **Chartered Accountants Statutory Auditor**
21 January 2022 68 Liverpool Road Stoke on Trent Staffordshire ST4 1BG
Geens Limited 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.
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## **THE LYME TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
57,261
20,850
Charitable activities
**4**
1,183,015
-
Investments
**5**
182
-
Other income
**6**
-
-
**Total income**
1,240,458
20,850
**Expenditure on:**
Charitable activities
**7**
1,094,115
20,850
**Net income for the year/**
**Net movement in funds**
146,343
-
Fund balances at 1 April 2020
634,053
-
**Fund balances at 31 March**
**2021**
780,396
-|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
78,111
16,948
37,408
1,183,015
1,185,817
-
182
116
-
-
60
-
1,261,308
1,202,941
37,408
1,114,965
1,063,137
37,408
146,343
139,804
-
634,053
494,249
-
780,396
634,053
-|**Total**
**2020**
**£**
54,356
1,185,817
116
60|
|---|---|---|
|Donations and legacies
**3**
Charitable activities
**4**
Investments
**5**
Other income
**6**
**Total income**
**Expenditure on:**
Charitable activities
**7**
**Net income for the year/**
**Net movement in funds**
Fund balances at 1 April 2020
**Fund balances at 31 March**
**2021**|||
|||1,240,349|
|||1,100,545|
|||139,804
494,249|
|||634,053|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 8 -
## **THE LYME TRUST**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Income funds**
Unrestricted funds|**2021**
**£**
**£**
845,352
64,202
333,938
398,140
(82,579)
315,561
1,160,913
(380,517)
780,396
780,396
780,396|**2020**
**£**
**£**
680,694
55,380
276,321
331,701
(107,726)
223,975
904,669
(270,616)
634,053
634,053
634,053|
|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 21 January 2022
Mr J J A Pearson **Trustee**
## **Company Registration No. 03067374**
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## **THE LYME TRUST**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**2021**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash generated from operations
**20**
156,732
**Investing activities**
Purchase of tangible fixed assets
(203,058)
Investment income received
182
**Net cash used in investing activities**
(202,876)
**Financing activities**
Proceeds of new bank loans
124,600
Repayment of bank loans
(20,839)
**Net cash generated from/(used in)**
**financing activities**
103,761
**Net increase in cash and cash equivalents**
57,617
Cash and cash equivalents at beginning of year
276,321
**Cash and cash equivalents at end of year**
333,938|**2020**
**£**
(18,759)
116
-
(11,908)|**£**
162,739
(18,643)
(11,908)
132,188
144,133
276,321|
|---|---|---|
- 10 -
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
## **1.2 Going concern**
Despite the ongoing COVID 19 pandemic, at the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Rental income is recognised on an accruals basis.
Cash donations are recognised on receipt.
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers have not been included.
Income from grants, are recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income from investments is included in the year in which it is receivable.
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## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
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.
## **1.6 Tangible fixed assets**
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:
Freehold land and buildings 2% Straight Line Leasehold improvements 5% Straight Line Fixtures and fittings 25% Reducing Balance Computers 25% Straight Line Motor vehicles 25% Reducing Balance
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.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand and deposits held at call with banks.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Critical judgements**
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
## **Useful economic lives of tangible assets**
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of assets. See note 11 for the carrying amount of property, plant and equipment, and note 1.6 for the useful economic lives of each category of asset.
- 14 -
##
##
##
||Total||2020|£|16,948||37,408|54,356|||19,440|4,897|4,000|4,750|-|-|4,321|37,408|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Restricted|funds|2020|£|-||37,408|37,408|||19,440|4,897|4,000|4,750|-|-|4,321|37,408|
||Unrestricted|funds|2020|£|16,948||-|16,948|||-|-|-|-|-|-|-|-|
||**Total**||**2021**|**£**|7,748||70,363|78,111|||16,200|-|4,400|-|24,513|25,000|250|70,363|
||**Restricted**|**funds**|**2021**|**£**|-||20,850|20,850|||16,200|-|4,400|-|-|-|250|20,850|
||**Unrestricted**|**funds**|**2021**|**£**|7,748||49,513|57,261|||-|-|-|-|24,513|25,000|-|49,513|
|**Donations and legacies**|||||Donations and gifts|Grants||||**Grants receivable for core activities**|Lloyds Bank Foundation|Ardonagh Community Trust|The National Lottery Community Fund|Computershare|HMRC Job Retention Scheme Grant|Newcastle Borough Council Grant|Other||
|**3**|||||||||||||||||||
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4 Charitable activities**
|**Income**
**from**
**charitable**
**activities**
**Income**
**from**
**charitable**
**activities**
**2021**
**2020**
**£**
**£**
Shop Takings
2,853
16,499
Housing Benefits & Rents
1,180,162
1,169,318
1,183,015
1,185,817|**Income**
**from**
**charitable**
**activities**
**Income**
**from**
**charitable**
**activities**
**2021**
**2020**
**£**
**£**
Shop Takings
2,853
16,499
Housing Benefits & Rents
1,180,162
1,169,318
1,183,015
1,185,817|**Income**
**from**
**charitable**
**activities**
**Income**
**from**
**charitable**
**activities**
**2021**
**2020**
**£**
**£**
Shop Takings
2,853
16,499
Housing Benefits & Rents
1,180,162
1,169,318
1,183,015
1,185,817|
|---|---|---|
||**2021**
**£**
2,853
1,180,162
1,183,015|**2020**
**£**
16,499
1,169,318|
|||1,185,817|
## **5 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Bank deposit interest|182|116|
## **6 Other income**
||**Total**|Unrestricted|
|---|---|---|
|||funds|
||**2021**|2020|
||**£**|£|
|Other income|-|60|
- 16 -
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Charitable activities**
|**Resident**
**housing**
**and support**
**2021**
**£**
Staff costs
338,358
Depreciation and
impairment
38,400
Rent, Rates & Water
161,268
Light & Heat
78,593
Insurance
18,279
Professional Fees
20,427
Telephone
9,092
Printing, Postage &
Stationery
13,386
Advertising
7,409
Healthcare
1,046
Motor & Traveling
16,038
Resident's social activities
1,083
Training
4,787
Health and safety
20,037
Repairs & Maintenance
65,770
Bad debt write off
31,977
Other charitable
expenditure
34,369
860,319
Share of support costs
(see note 8)
233,045
Share of governance costs
(see note 8)
7,140
1,100,504
**Analysis by fund**
Unrestricted funds
1,079,654
Restricted funds
20,850
1,100,504|**Resident**
**housing**
**and support**
**2021**
**£**
Staff costs
338,358
Depreciation and
impairment
38,400
Rent, Rates & Water
161,268
Light & Heat
78,593
Insurance
18,279
Professional Fees
20,427
Telephone
9,092
Printing, Postage &
Stationery
13,386
Advertising
7,409
Healthcare
1,046
Motor & Traveling
16,038
Resident's social activities
1,083
Training
4,787
Health and safety
20,037
Repairs & Maintenance
65,770
Bad debt write off
31,977
Other charitable
expenditure
34,369
860,319
Share of support costs
(see note 8)
233,045
Share of governance costs
(see note 8)
7,140
1,100,504
**Analysis by fund**
Unrestricted funds
1,079,654
Restricted funds
20,850
1,100,504|**Lyme**
**treasures**
**shop**
**2021**
**£**
-
-
9,333
-
-
-
-
-
-
-
-
-
-
-
-
-
5,128
14,461
-
-
14,461
14,461
-
14,461|**Total**
**2021**
**Resident**
**housing**
**and support**
**2020**
**£**
**£**
338,358
278,662
38,400
33,563
170,601
156,027
78,593
92,295
18,279
15,388
20,427
12,565
9,092
8,912
13,386
23,237
7,409
23,123
1,046
2,784
16,038
15,967
1,083
33,398
4,787
14,100
20,037
4,728
65,770
68,257
31,977
26,435
39,497
35,832
874,780
845,273
233,045
216,502
7,140
8,378
1,114,965
1,070,153
1,094,115
1,032,745
20,850
37,408
1,114,965
1,070,153|**Total**
**2021**
**Resident**
**housing**
**and support**
**2020**
**£**
**£**
338,358
278,662
38,400
33,563
170,601
156,027
78,593
92,295
18,279
15,388
20,427
12,565
9,092
8,912
13,386
23,237
7,409
23,123
1,046
2,784
16,038
15,967
1,083
33,398
4,787
14,100
20,037
4,728
65,770
68,257
31,977
26,435
39,497
35,832
874,780
845,273
233,045
216,502
7,140
8,378
1,114,965
1,070,153
1,094,115
1,032,745
20,850
37,408
1,114,965
1,070,153|**Lyme**
**treasures**
**shop**
**2020**
**£**
5,722
-
19,728
-
511
-
-
-
-
-
-
-
-
-
-
-
4,431
30,392
-
-
30,392
30,392
-
30,392|**Total**
**2020**
**£**
284,384
33,563
175,755
92,295
15,899
12,565
8,912
23,237
23,123
2,784
15,967
33,398
14,100
4,728
68,257
26,435
40,263|
|---|---|---|---|---|---|---|
||**2021**
**£**
338,358
38,400
161,268
78,593
18,279
20,427
9,092
13,386
7,409
1,046
16,038
1,083
4,787
20,037
65,770
31,977
34,369
860,319
233,045
7,140
1,100,504
1,079,654
20,850
1,100,504|||**2020**
**£**
278,662
33,563
156,027
92,295
15,388
12,565
8,912
23,237
23,123
2,784
15,967
33,398
14,100
4,728
68,257
26,435
35,832
845,273
216,502
8,378
1,070,153
1,032,745
37,408
1,070,153|||
|||||||875,665
216,502
8,378|
|||||||1,100,545|
|||||||1,063,137
37,408|
|||||||1,100,545|
- 17 -
##
||**Basis of allocation**|||The Lyme Treasures Share of Expenditure||||Governance|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Support costs**|**Support**
**Governance**
**2021**
Support
Governance
2020|**costs**
**costs**
costs
costs|**£**
**£**
**£**
£
£
£|Staff costs
217,476
-
217,476
198,449
-
198,449|Interest payable and bank||charges
15,569
-
15,569
18,053
-
18,053|Audit and accountancy fees
-
7,140
7,140
-
8,378
8,378|233,045
7,140
240,185
216,502
8,378
224,880||Analysed between|Charitable activities
233,045
7,140
240,185
216,502
8,378
224,880||Governance costs includes amounts payable to the auditors of £7,140 (2020- £8,378) for audit & accountancy fees.|
|**8**|||||||||||||||
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **9 Trustees**
None of the trustees (or any persons connected with them) were reimbursed any expenses during the year ended 31st March 2021 (2020 - £nil).
In the prior year, one staff trustee, Mrs K Harrison received remuneration in respect of services she provided while undertaking her role as an employee under a contract of employment and in respect of her role as staff trustee:
Remuneration £nil (2020 - £17,043).
Employer's pension contributions - £nil (2020 - £608)
## **10 Employees**
The average monthly number of employees during the year was:
|Provision of accomodation and support
Management and administration
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
19
9
28
**2021**
**£**
293,969
32,294
12,095
338,358|**2020**
**Number**
18
9|
|---|---|---|
|||27|
|||**2020**
**£**
243,450
29,046
11,888|
|||284,384|
There were no employees whose annual remuneration was more than £60,000.
- 19 -
|**Total**||**£**|1,015,143|203,058|1,218,201|334,449|38,400|372,849|845,352||680,694|
|---|---|---|---|---|---|---|---|---|---|---|---|
|**Computers Motor vehicles**||**£**
**£**|63,329
11,500|4,006
-|67,335
11,500|40,818
9,881|8,350
405|49,168
10,286|18,167
1,214||22,511
1,619|
|**Fixtures and**|**fittings**|**£**|167,394|7,560|174,954|139,657|8,825|148,482|26,472||27,738|
|**Leasehold**|**improvements**|**£**|80,482|3,474|83,956|32,290|3,211|35,501|48,455||48,192|
|**Freehold land**|**and buildings**|**£**|692,438|188,018|880,456|111,803|17,609|129,412|751,044||580,634|
##
##
##
|**Tangible fixed assets**|**Cost**|At 1 April 2020|Additions|At 31 March 2021|At 31 March 2021|**Depreciation and impairment**|At 1 April 2020|Depreciation charged in the year|At 31 March 2021|At 31 March 2021|**Carrying amount**|At 31 March 2021|At 31 March 2021|At 31 March 2020|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**11**|||||||||||||||
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**13**
**Loans and overdrafts**
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2021**
**£**
34,863
13,321
16,018
64,202
**2021**
**£**
403,436
22,919
380,517
279,772|**2020**
**£**
17,819
1,897
35,664|
|---|---|---|
|||55,380|
|||**2020**
**£**
299,675|
|||29,059
270,616|
|||154,381|
|Bank loans are secured by a legal charge on the freehold properties to which the loan relates. Interest is
charged on the bank loans at a variable rate of interest and the loans are repayable within 15 years.
**14**
**Creditors: amounts falling due within one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
22,919
29,059
Other taxation and social security
8,820
7,818
Trade creditors
35,325
30,559
Other creditors
8,123
14,817
Accruals and deferred income
7,392
25,473
82,579
107,726
**15**
**Creditors: amounts falling due after more than one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
380,517
270,616|Bank loans are secured by a legal charge on the freehold properties to which the loan relates. Interest is
charged on the bank loans at a variable rate of interest and the loans are repayable within 15 years.
**14**
**Creditors: amounts falling due within one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
22,919
29,059
Other taxation and social security
8,820
7,818
Trade creditors
35,325
30,559
Other creditors
8,123
14,817
Accruals and deferred income
7,392
25,473
82,579
107,726
**15**
**Creditors: amounts falling due after more than one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
380,517
270,616|Bank loans are secured by a legal charge on the freehold properties to which the loan relates. Interest is
charged on the bank loans at a variable rate of interest and the loans are repayable within 15 years.
**14**
**Creditors: amounts falling due within one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
22,919
29,059
Other taxation and social security
8,820
7,818
Trade creditors
35,325
30,559
Other creditors
8,123
14,817
Accruals and deferred income
7,392
25,473
82,579
107,726
**15**
**Creditors: amounts falling due after more than one year**
**2021**
**2020**
**Notes**
**£**
**£**
Bank loans
**13**
380,517
270,616|
|---|---|---|
||**2021**
**£**
22,919
8,820
35,325
8,123
7,392
82,579
**2021**
**£**
380,517|**2020**
**£**
29,059
7,818
30,559
14,817
25,473|
|||107,726|
|||**2020**
**£**
270,616|
- 21 -
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**|||
|---|---|---|---|---|---|---|---|
||**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**||**Balance at**|
||**resources**|**expended**|**1 April 2020**|**resources**|**expended**|**31**|**March 2021**|
||**£**|**£**|**£**|**£**|**£**||**£**|
|Lloyds Bank Foundation|19,440|(19,440)|-|16,200|(16,200)||-|
|The National Lottery||||||||
|Community Fund|4,000|(4,000)|-|4,400|(4,400)||-|
|Ardonagh Community||||||||
|Trust|4,897|(4,897)|-|-|-||-|
|Computershare|4,750|(4,750)|-|-|-||-|
|Other|4,321|(4,321)|-|250|(250)||-|
||37,408|(37,408)|-|20,850|(20,850)||-|
## **Lloyds Bank Foundation**
A grant to fund the salary of a floating support worker as part of a three year project which commenced in January 2018 and finished in January 2021.
## **The National Lottery Community Fund**
A grant received in connection with the Outreach project.
## **Ardonagh Community Trust**
Funds to enhance the drop in services at Lyme Treasures.
## **Computershare**
A grant to fund 'move on' packs.
## **Other**
Other funds received for specific purposes.
## **17 Analysis of net assets between funds**
||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||**funds**|**funds**||funds|funds||
||**2021**|**2021**|**2021**|2020|2020|2020|
||**£**|**£**|**£**|£|£|£|
|Fund balances at 31|||||||
|March 2021 are|||||||
|represented by:|||||||
|Tangible assets|845,352|-|845,352|680,694|-|680,694|
|Current assets/|||||||
|(liabilities)|315,561|-|315,561|223,975|-|223,975|
|Long term liabilities|(380,517)|-|(380,517)|(270,616)|-|(270,616)|
||780,396|-|780,396|634,053|-|634,053|
- 22 -
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **18 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2021**
**£**
36,000
105,000
141,000|**2020**
**£**
19,200
63,000|
|---|---|---|
|||82,200|
## **19 Related party transactions**
## **Remuneration of key management personnel**
The key management personnel of The Lyme Trust comprises the senior management team. The total amount of employee benefits (including employer pension contributions) received by key management personnel is as follows:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|156,608|127,000|
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties.
Belgrave Property Services Limited - rental expenditure paid in the year was £50,565 (2020 - £51,380). This is a company for which trustees Mr R. Fazackerley and Mrs C. Redman are members.
Lymebrook Media Limited - PR services paid in the year was £7,639 (2020 - £21,014). This is a company owned by trustees Mr L. Wilbraham and Mr G. Thomson.
Mr N H Ecclestone, a trustee, received commission from utility providers totalling £5,122 (2020: £Nil) during the year.
- 23 -
## **THE LYME TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**20**|**Cash generated from operations**||**2021**|**2020**|
|---|---|---|---|---|
||||**£**|**£**|
||Surplus for the year||146,343|139,804|
||Adjustments for:||||
||Investment income recognised in statement of financial|activities|(182)|(116)|
||Depreciation and impairment of tangible fixed assets||38,400|33,563|
||Movements in working capital:||||
||(Increase) in debtors||(8,822)|(2,701)|
||(Decrease) in creditors||(19,007)|(7,811)|
||**Cash generated from operations**||156,732|162,739|
|**21**|**Analysis of changes in net (debt)/funds**||||
|||**At 1 April 2020**|**Cash flowsAt 31 March 2021**||
|||**£**|**£**|**£**|
||Cash at bank and in hand|276,321|57,617|333,938|
||Loans falling due within one year|(29,059)|6,140|(22,919)|
||Loans falling due after more than one year|(270,616)|(109,901)|(380,517)|
|||(23,354)|(46,144)|(69,498)|
- 24 -