REGISTERED CHARrrY NUMBEIL. 1066850 REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 hL4RCH 2024 FOR LANCASTER FOUNDATION Xeinadiii Audit Limited Statutory Auditor 17 St Peters Place Fleetwood Lancashir¢ FY7 6EB LANCASTF.R FOUNDATIOF4 CONTENTS OF THE FINANCIAL STATEMEIYTS for the year ended 31 March 2024 Page Report of the Trustees I to 3 Report of the Independent Auditors Statement of Financial Actlvities Statement of FinAneial Posltion ststcment of C85h Floivs Notss to the Statement of Cash FIoiv5 Not¢$ to the FinAlleiAI Statements 10 10 20 LANCASTER FOUNDATION REPORT OF THE TRUSTEES for the year ended 31 March 2024 The trustees present their report with the financial statements of the charity for the year ended 31 Mareh 2024. The trnsttts have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the FiT]ancial Reporting Standard applicable in the UK and Republic of ￿tand (I.RS 102) (effective l January 2019}. 0￿ECTIVEs AND ACTIVITIES Objectives and aims The IAncaster Foundation has been founded on Christian principles offering medical and prnclical support to the uffcTing. disadvantagLxI and marginalised people throughollt the UK and Afric& Additionally the foUnd￿10n is committed to numerous ongoing local and national youth and community projecLs. Granls are awarded at the absolute discretion OF Ihe board of trustees. Although many applications are receive¢ the administrativc structure of ihe charity does not allow for the consideration of unsolicited requests for grant fijnding. Due to the nature of thc projects that are awarded grant% the trustecs endeavour to moniloT their progre￿ and bccome actively involved in them whercv¢r this is practical. The ongoing success of projects is asse55ed when subsequent applicalions for funding are made. The trusttts confinn that Ihcy have ￿ferred to the guidance contained in the Charity Commission's general guidance on public benefi¢ when reviewing th¢ Foundation's aims and objectives and in planning future activities and setting the grant making policy for the year. ACHIEVEMENT AND PERFORMAIYCE Charitable activities During the year the Foundation Continued to support charities promoting a Christian ethos undertaking ptzctical projects addre&sing poverty and social issues both in the UK and Afric& Delails of grnnts made in the year can be seen at note 8 lo the financial statements. Investment performance Investment income h&g fallen slightly from £3,394.770 last year to £3,260,735. The fall in investment incorne in p relates lo lower returns on listed investments. The aim of the investrnent portfolio is to generate sufficient ineome on an ongoing basis to cover grant funding and ongoing operating costs whilst preserving capital value. During 2024 one particular investment fund has increased in market value resulting in an overall gain on investment values. FINANCIAL REVIEW Fin2nciAI position Management of the various investment portfolios has generated income during the year enabling all grants and expenditure for the year to be met. Principal funding sources The charily generdles income through its invG51mcnl% and in accordance with the tru.st dCC￿ thc ttuslees have the power to invest in such stocks, sharcs. inveslments and property in the UK they see fit. The Trustees retain and takc advicc from an independent financial advi￿r. Thc policy is to adopt a low risk investment strategy bascd on M￿lmiS1ng income within this strategy in ordei to cover annual expenditure and donations. Reserves policy It is the policy of thc charity to maintain sufficient frec re5Ctves al a level io generate income adequate to cover annual dona¢ions and management and administralion costs. Unrestricted funds were rnaintained at this level throughout the At the year end. the total value of unreslri¢ted reserves held by the charity was £67,863,472 (2023 - £64,985,878}. Within the total unrestricted reserves there ar¢ tangible fixed assets totalling £678.380 which the charily uses itself and £66,633,425 of fixed asset investments which could only be distributed if disposed of. The balance of the charity's general funds at 31 Mawh 2024 was £551,667 (2023 £2,282,199). Under Charity Commission definitions these represent the charity'5 free reserves. Page I LANCASTER FOi]NDATION REPORT OF THE TRUSTEES for the year ended 31 March 2024 FUTURE PLANS The Iruslees continuously evolve the I'.oundalion's stralegic giving plans. however thc trustees remain committed to its Christian principl&q by supporting ¢haritics undcrtaking practical projects in the community and dddressing poverty and social issu&%. STRUCTURE, GOVERNAISCE AIYD MANAGEMENT Governing document The charity is controlled by its goveming documenL a dccd of trust dated 2 July 1997 and con%litutes a registercd charity. Charity numbcr 1066850. Recruitment and appointment of new trnstees The trustees currently foresee no requirement to recrnitlappoint new trustees. However, should the need artS¢, the trustees will seek advice from suitably qualified adviso￿ lo help establish the specific skills required and identify prospective candidates. Should new trustees be taken on, suitable induction procedures ivill be undertaken and relevant training provided where a need is identified. OrgAnisational structure The trust￿£ who have served during the year and since the year end are set out on page 3. A board of trustees of four members are involv&1 day to day in the activities of the eharily bul they also meet more fonnally when significant decision5 are taken such as the investment of funds. The organisational structure includes a Development Director who was appointed by the tNstees to ensure that TNst monies are invested caretully and to gain a sustainable income wherever possiblc. The Dcvclopment Director also woiks with other staff to evaluate charitable projects and future commiiments. Remuneration packagcs for key managemenl are reviewed attnually. taking account of the generdl maTkct for such roles. Related parties Mr J E Lancastcr, Mrs R Lancaster and Mr S J Lanc&8t¢r are also truslees of The Grand at Clitheroe, a charitable company limited by guarantee. The Lancasler Foundation is currently providing fiLnding to the LTrand to assist the development and day to day running Costs of the Grand and also the Skate Park. REFEREPICE AIYD AD.NllNISTEL4TIVE DETAILS Registered Charity number 1066850 Prln¢lpAI address TutTel House Edisford Road Clithcroe Lancashirc BB7 2LA Trustees Dr J E Lancaster MBE Mrs R Lancaster MBE Mr S J Lancaster Mrs J R Broadhurst Auditors Xeinadin Audit Litnilcd Ststulory Auditor 17 St Pders Place Fleetwood Lancashire FY7 6EB Page 2 LANCASTER FOUNDATION REPORT OF THE TRUSTEES for the year ended 31 March 2024 REFERENCE AND ADMINISTRATIVE DETAILS BAnkers H￿de1Sbanken I st Floor, Wallandcr Housc Capricom BusÉness Park Blakewater Road Rlackburn Lancashire BBI 5QR STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Report of th¢ 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" The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) R¢gulations 2￿8 and the provisions of the mjst deed requires the trustee5 to prepare financial statements for each rinancial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those finan¢Aal statements, the trustees are required to select suitable accounting policies and then apply them Consistently. ubserve the method5 and principles in the Charity SORP; make judgements and eslirnatcs that arc rc&sonable and pNdeni; state whcthcr applicable accounting standards have bcen followed, subject to any material departures discloscd and explained in the financial statcrncnts. ptepare the financial statements on the going concern b&418 unlcs% it is inappropriate to presume that the charity will continue in business. The trnstees are responsible for keeping proper accounting words which disclose with reasonablc accuracy at any time the financial posÉlion of the charity and to enable thern to en4urc that the financial statements comply with the Charities A¢1 2011. the Charity (Account% and Reports) Regulations 2008 and th¢ provisions of the trust deed. They are a]so r&spon5ible for safeguarding the assets of the charity and hence for taking re&sonable steps for the prevention and detection of fraud and other l￿egularl11es. The trustees have had due regard to guidance published by the Charities commi.￿s1on on public benefil. Approved by order of the board of trustees on ....... . . and stgned on its behalf by: Lancaster MBE- Trustet Page 3 REPORT OF THE INDEPENDENf AUDITORS TO THE TRUSTEES OF LANCASTER FOUNDATION Opinion We have audited the financial statements of Lancaster Foundation (the 'charity') for the year ended 31 March 2024 ,hich comprise the Statement of Financial Activities, the Statement of Financial Positio￿ the Statement of Cash Flows and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that h&$ been applied in their preparation is applicable law and United Kingdom Accounting Siandards (United Ktngdoin Generally Accepted Accounting Praclice). including Financia] Reporting Standard I02 The Financial Reporting StandaTd applicable in the UK and Republic of treland,. In our opinion the financial statemenls.. give a true and fair view of the state of the charity's affairs as ￿ 31 March 2024 and of its incoming resources and application of TesoufL¥& for the year then ended,. have been properly prq)ared in accordance with United Kingdom Generally Accepted Accounting Practice. including Financial Rq)urting Standard 102 'The Financial Reporting Stsndard applicable in thc UK and Republic of Ireland,. have been preparcd in accordance with the requirements of the Charitith Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under thosc 4tandar(Ls arc further described in the Audi¢or.s' rospon%ibilities lor the audit of the financial statcmenls section of our report. Wc arc independcnt of the charity in accordance with the ethical requirancnts that are relevant to our audit of the financial slalements in the UL including the FRC'S Ethical StandaTd. and we have fLtlfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we hav¢ obtained is sufficient and approprialc to provide abasis for our opinion. Concluslons relating to going con¢ern In auditing the fjnancial statements, we have concluded that the trustees, use of the going ¢oncem basis of accounting in the preparation of the financial statements is appropriaie. Based on the work w¢ have perfornied, we have not identified any material uiicertainlies relating lo events or ￿nditionS that, individually or collectively, may ¢a# significant doubt on the charity'5 ability io Continue as a going concem for a period of at leasc twelve months from when the finan¢ial 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 infortnation The twste&s are responsible for the other infonnation. The other infonnation comprises the infonnation included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on Ihe financial statements does not cover the other infonnation and, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance conclusion thereon. In connection with our audit ot the financial ststements, our ￿SpOnSIbl]ity is to rrdd the other infomialion anl in doing so, consider whether the other inforniation is materially inconsistcnt with the financial statements or our knowledge obtained in the audit or oiheTWiSC appears to be materially misstated. If wc idcntify such material inconsistencies or apparent malerial misstateinent8 we arc rcquircd to detem)ine whether this gives rise to a material misstalemcnt in the financial statcmcnts themselv&s. It. based on the work we have performed. we concludc that there is a mat¢rial misslalement of this other infonnation. we are required to report thal faet. We have nothing lo report in thi.% Teg￿ Matters on which we are required to report by exception We have nothing to rcport in Icspecl of the followtng matters where the Charities (Accounts and Reports) Regulations 2(Ki8 requires us to report to you if. in our opinion: the infom]ation given in the Report of the Trustccs is in¢onsis*nt in any material resped with the financial statements. or sufficlent accounting records have not b¢en kepl- or th¢ financial statements are nol in agreement with ihe accounting records and returns,. or we have not received all the infomiation and explanations we require for our audit. Page 4 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF L4NCASTER FOUNDATION Responsibilities of trusttts As explained more fully in the Statement of TTUStees' Regponsibilities the ttwstees are responsible for the preparation of the financial statements whTeh give a true and fair view, and for such intemal control as the trnstees detennine is neeessary to enable the preparation of finaneial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial stat￿Trents, the trustcc& arc rcsponsible for assessing the charity's ability to continue as a going conccrn, di￿1051n¥, &% appliL