Charity Number: 1074983 Company Number: 03527370 LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) Trustees. Report and Accounts For The Year Ended 31 December 2023 MOORE & SMALLEY
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) CONTENTS Charity Details Report of the Trustees Independent Auditor's Report to the Members statement of Financial Activities Balance Sheet statemenl of Cash Flows 12 Notes to the Accounts
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) CHARITY DETAILS Company Name Lancashire Environmental Fund Charity registration number 1074983 Company reglslration number 03527370 Trustee5 J Drury F McGinty A J Hughes S Turner Secretary Lancashire County Council Fund Manager A Rowett (Resigned 1110612023) E Morgan (Appointed 1010712023) Auditor MHA Richard House Winckley Square Preston PR1 3HP Legal advisor Company Secretary PO Box 100 County Hall Democratic Services Lancashire County Council Preston PR1 OLD Principallcontact address clo Lancashire Wildlife Trust The Barn Berkeley Drive Bamber Bridge PR5 6BY Registered address Company Secretary PO Box 100 County Hall Democratic Services Lancashire County Council Preston PR1 OLD Members Community Futures Lancashire County Council Suez Recycllng & Recovery UK Limited Lancashire Wildlife Trust
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023 The Trustees, who are also directors of the charity for the purposes of the Companies Act, present their report and the audlted financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of the Statement of Recommended Praclice ISORP) "Accounting and Reporting by Charities" (FRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies sel out in the notes lo the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Slatement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in Oclober 2019. structure, governance and management Lancashire Environmental Fund Limited (hereafter referred lo as'the charitable company") is a charitable company limited by guarantee, incorporated on 13 March 1998 and registered as a charity on 1 April 1999. The charitable company is governed by its memorandum and articles of association. The power of appointing and removing trustees is vested in the members by way of an instrument in wriling signed by each member, each member having the power to appoint one trustee. The crileria used by Lancashire Environmental Fund Limited lo determine the pay and remuneration of key management personnel are the same as those used by Lancashire Wildlife Trust from whom staff are seconded. Lancashire Wildlife Trust use comparisons to external charilies for similar roles as a basis for determlning the pay and remuneration of key management personnel. Trustees of the charity The directors of Ihe charitable company are ils trustees for the purposes of charity law. The trustees who have served during the year and since the year end are set out on page 1. Truslees are appointed by the Board. The Board's Legal Officerwill update the Truslees on changes lo the law affecting the scheme. The Fund Manager will provide induction for new members. The trustees delegate the assessment of applications lo an assessment group, which is chaired by the fund manager. The fund manager is assisted by a small team and co-ordinates the daily operation of the charity. The trustees meet quarterly to approve or refuse grants based on the recommendations of the assessment group. Risk review The board has conducted its own review of the major risks lo which the charity is exposed and systems have been established to miligale those risks. Significant external risks are mitigaled by Professional Indemnity Insurance. Internal risks are minimised by segregation of duties and checking procedures. The major risks to which the charity is exposed due to ils management and administration being provided by LV have been reviewed by the trustees of LWT. Inlemal risks relevant lo Ihe charity are being minimised by the implementation of procedures for authorisation of all transactions. Risk management priorities of Lwf, impacting on the management and administration of the charity, are quality systems, succession planning for key staff and the regular review of systems. Future legislative changes to the Landfill Communities Fund could result in Suez Recycling & Recovery UK Limited, the landfill operator, deciding lo withdraw from the scheme. If this happens, the Lancashire Environmental Fund Limited will have lo wind up after running down the existing general unrestricted fund balance. The Fund could also face further challenges as a result of possible legislation to cap administration fees at 7.50/0 of projecl expenditure. This represents an extremely challenging target for such a relatively small fund which does not enjoy the benefits of economies of scale which other larger Landfill Communilies Fund distributors have. However, the Trustees have made and will continue to make significanl efforts to reduce administration fees wherever possible.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023 The Lancashire Environmental Fund primarily distributes monies raised from the Landfill Tax paid by Lancashire County Council. The current contract for waste management expires on 31sl March 2025 and the expectation is that Ihe amount of Landfill Tax that the fund is likely to receive will reduce slgnificantly thereafter. Dependin9 on how much this reduction is and also upon the administration costs of running the Fund il may well be thal Ihe continued operation of the Fund becomes unviable. If this is indeed the case, alternative arrangements for the distribution of any future and existing funds will have to be made. The Fund relies on the continued support of Lancashire County Council who pay many ofthe third party contributions required to enable the Landfill Tax income to be released. Connected Charities and Organlsations Lancashire Wlldllfe Trust Limited The trustees consider Lancashire Wildlife Trust Limited {"LWT") to be a connected charity as it is a member of the charitable company with the power lo appoint one trustee to the board. J Drury was a trustee of LWT until October 2019 and remains a trustee of Lancashire Environmental Fund. In addition, LWT provides management, organisational, administrallve and supervision services to the charitable company under an agreemenl and both parties operate from Cuerden Valley Park near Bamber Bridge. The charilable company has no employees of its own, but subconlracls one full lime and two part time employees from Lancashire Wildlife Trustwhowork exclusively on the charitable company's affairs. Ouring ihe year, a total of £63,975 (2022.. £67,283) was payable for these services and other management, organisalional, administrative and supervision services. is established to promote the conservation of nature for Ihe purpose of study and research and to educate the public in the understanding and appreciation of nature, Ihe awareness of its value and the need for its conservation. During the year Ihe charitable company awarded grants tolalling £99,510 (2022.. £135,755) to Lwf in connection with Ih05e objectives. Lancashlre County Council The trustees consider Lancashire County Council lo be a connected organisalion as it is a member ofthe charitable company with the power to appoint one trustee to the board. S Turner is both a trustee of the charitable company and Deputy Leader of Lancashire County Council. One of the current functions of Lancashire County Council is to provide and maintain public open spaces including country parks, greenway bridle paths, footpaths elc for the pleasure and enjoyment of the people of Lancashire. During the year the charitable company awarded grants lotalllng £0 (2022.. £30,000) to Lancashire County Council in connection with this objective. Community Futures The trustees consider Community Futures to be a connected charity as it is a member of the charitable company with the power to appoint one trustee to the board. F McGinty is the Community Futures appointee and a Trustee of the charitable company. The aim of Community Futures is to promote and develop social and community activity in Lancashire, working through voluntary groups and in partnership wilh public authorities. Suez Recycling & Recovery UK Limited The trustees consider Suez Recycling & Recovery UK Limiled to be a connected organisation as it is a member of the charitable company with the power to appoinl one Iruslee to the board. A J Hughes is the Suez Recycling & Recovery UK Limited appointee and a Trustee of the charitable company. Suez Recycling & Recovery UK Limiled are the waste management company Gontracled by Lancashire County Council to dispose ofthe waste in the county which goes to landfill.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023 Objectlves, actlvltles and public beneflt The principal activity. of the charitable company is the support for environmental projects via an Entrust registered environmental body which receives18ndfill lax credits and awards grants to environmental projects which meet the criteria specified by the Landfill Tax Regulations 1996 (As Amended).. Providing and maintaining public amenities and parks, within 10 miles of a landfill site, when the work benefits the natural social or built environment., The provision, conservalion, restoration or enhancement of a natural habitat, maintenance or recovery of a species within 10 miles of a landflll site., Restoring and repairing buildings which are for religious worship, or architeclural or historical interest within 10 miles of a landfill site. The trustees have had due regard to guidance published by the Charity Commission on public benefit. Grant making policy The charity invites applications for funding of environmental projects across the Lancashire area. Institutional applicants are invited to submit a summary of their proposals in a specified format. The applications are reviewed against specific criteria by the fund manager. Projecls may be funded over varying periods of time, therefore cost and progress is monitored on a continuous basis. The Iruslees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and 5etling the grant making policy for the year. Achievements and performance During the year, the charitable company awarded a total of £1,620,531 {2022'. £1,331,210 to 75 projects (2022.. 68 projeclsl while maintaining sufficient resources to enable charitable aclivilies going forward. The Fund distributes grants on a quarterly cycle on a demand led basis. This makes il difficult to set specific targets for the number and type of project applications received and supported. To ensure the number of applications is maximised, the Fund Manager regularly attends funding events in Lancashire to promote access to Ihe fund. Financial review All of the £1,258,513 {2022: £1,265,423) landfill tax income was received from Suez Recycling & Recovery UK Limited in the year. The Irustees anticipate the charitable company will continue to be dependent on this income source. The expectalion going fOard is that the amount of waste going lo landfill and therefore the landfill tax income paid to the Fund will start lo reduce as alternative contracts for disposal of waste are entered into by LCC. In addition to the grants awarded of £1,620,531 {2022'. £1,331,210), previously awarded balances to1311ing £137,672 12022.. £112,159) were written off and this resulted in a net grant cost for the year of £1,482.859 (2022- £1,219,051). At the year end, grant balances tolalling £1,845,449 (2022.. £1,637,692) remained unpaid. Further to the cosls of grant awards, governance and support costs of £116,156 (2022.. £119,981) were incurred and the excess of expendilure over income for the year was £273,778 (2022: £49,420 excess of expenditure over income).
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023 At the year end, Lancashire Environmental Fund was holding a balance of £166,081 {2022'. £146,137) as an agent for Lancashire County Council. This amounl is being used to cover the third party conlribulion payments required to draw down funds to enable payments of grants awarded under all the Grant schemes including the Green Grant scheme. During the year an amount of £2,159 (2022: £333) interest on these monies held was received. Amounls tolalling £565 (2022.. £7081 were disbursed to Suez Recycling & Recovery UK Limited to facilitate the drawdown of funds for the Green Grant scheme lotalling £5,13912022'. £7,077). £40,00012022.' £40,000) was paid to secure funding under the other grant schemes during the year. Investment policy Surplus funds are héld on deposit with Nationwide Building Society and The Royal Bank of Scotland, to ensure a competitive interest rate as well as security and fund accessibility. Interest earned is reviewed regularly by the Finance Officer. The trustees consider the returns achieved lo be satisfactory in the current investment climate. Reserves pollcy The general unrestricted fund balance of £794,06212022.' £1,067,840) which remains unallocated will be applied to future awards. The level of general unrestrlcted funds is reviewed before grant commitments are made to ensure that the balance of these funds is always sufficient to cover current and proposed grant commitments and ongoing administration costs. The trustees are concerned lo maximise the benefit to the community of their grant making policy. The trustees, however, have lo work within the statutory framework set out in the Landfill Tax regulations and the compliance control of Enlrusl, the regulator of the Landfill Tax Credit Scheme. £150,000 of unrestricted funds have previously been set aside in a designated reseNe to provide for transitional costs, in the evenl of landfill operations ceasing as a result of stalutory changes to the Scheme or a decision of the landfill operator. The reserve was calculated on the basis of an 18 month wind-up at an annual cost of£100,000 to provide support for existing grant-funded projects. The trustees have reviewed the level of the designated reserve and have decided to keep it as this level, subject to continuous review in Ihe future. The tolal fund balances at 31 December 2023 were £944,062 (2022.. £1,217,840). The required level of free reserves is currently £nil as the designated fund has sufficient resources to provide for foreseeable transitional Gosls. The actual level of free reserves at 31 December 2023 amounted to £794,062 (2022: £1 ,067,840). Reserves were built up in the early years due lo uncerlainty over the continued funding from Landfill operations. At that time it was Ihe Trustees intention to hold sufficient funds to provide for five years of grant and adminislralive expenses following cessation of funding. This is no longer the case and the Trustees are actively looking lo reduce the amount of free resewes held. It is the intention of the Trust to continue to reduce reserves through the issuing of grants. The rate at which reserves are distributed is limiled by the number and value of applications received, and by the number of those applications that meet the requirements as set out in the Objectives and in the Landfill Tax Regulations. The Trust actively encourages applications through advertising and promotion of the scheme. Future plans The Trust will continue lo offer grants in line with the objects subject to the potential impact of the factors highlighted in the risk review.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2023 Auditor MHA are deemed lo be re-appoinled under section 48712) of the Companies Act 2006. Trustees, responslbllltles The Iruslees {who are also directors of Lancashire Environmental Fund Limited for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial stalements in accordance with applicable law and Uniled 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 stale of affairs of the charitable company and of the incoming resources and application of resources, including the income and expendilure, of the charitable company for the year. In preparing these financial statements, the Irustees are required to= select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charltles SORP 2019 (FRS102)- make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained In the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them to ensure Ihat the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and deleclion of fraud and other irregularities. In so far as the trustees are aware: Ihere is no relevant audit information of which the charilable company'5 auditor is unaware., 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 audilor is aware of that informalion. In preparing this report the Trustees have taken advantage of the small companies exemption provided by the Companies Act 2006. The report was approved by the board on 10th July 2024 and signed on ils behalf by S Turner Trustee H Ma¢Andrew- Lancashire County Councll Secretary
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR YEAR ENDED 31 DECEMBER 2023 Opinion We have audited the financial statements of Lancashire Environmental Fund Limited (the 'charilable company,) for the year ended 31 December 2023 which comprise the Statement of Financial Aclivilies, the Balance Sheet, the Cash Flow Slalemenl and notes lo 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and R&publiG of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements= give a true and fair view of Ihe state of the charitable company's affairs as al 31 December 2023, and of ils incoming resources and application of resources, including its income and expenditure, 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 conducled our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)} and applicable law. Our responsibilities under those slandards are further described in the Auditor's responsibilities for the audlt of the financial statements section of our report. Wa are independent of the charitable company 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 olher ethical responsibilities in accordance with these requirements. We believe that the aLFdit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relating to golng concern In audiling the financial statements, we have concluded that the Irustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriale. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on Ihe charitable company's ability to continue as a going concern for a period of at least Iwelve 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 Ihe Irustees 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 statemenls does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whelher the other information is materially inconsistent with Ihe 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 misslatement in Ihe financial statements themselves. If, based on the work we have performed, we conclude Ihat there is a material misstatement of this other informatlon, we are required to report Ihat fact. We have nothing lo report in this regard.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS (CONTINUED) FOR YEAR ENDED 31 DECEMBER 2023 Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit- the information given in the trustees, report {incorporatlng the directors, report) for Ihe financial year for which the financial statements are prepared is consistent with the financial statements., and the directors, report has been prepared in accordance wilh applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misslatements in'the directors, report. We have nothing lo report in respect of the following matters in relation to which Ihe Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial slatements are not in agreement wilh the accounting records and returns., or certain disclosures of directors. remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies, exemption in preparing the directors, report and from the requirement lo prepare a strategic report. Responslbillties of Trustees As explained more fully in the trustees, responsibllities statement sel out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the rinancial 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 stalements, the trustees are responsible for assessing Ihe charitable company's ability lo continue as a going concern, disclosing, as applicable, matters relaled lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company. or to cease operations, or have no realistic allernalive bul lo do so. Auditor's responslbilities for the audit of the financial statements 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 misslalemenl when it exisls. Misslatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We dasign procedures in line with our responsibillties, outlined above, to delect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the exlenl to which these are capable of delecling irregLtlarilies, including fraud is detailed below.. Obtaining an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on those laws and regulations that have had a direct effect on the financial statements. The key laws and regulations we considered in this contexl include Charities Act and Entrust regulations. In addition, we consider compliance with employee legislation, as fundamental to the Charity's operations-,
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS (CONTINUED) FOR YEAR ENDED 31 DECEMBER 2023 Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud., Enquiry of management and those oharged with governance around actual and potential litigation and claims., Performing audit work over the risk of management override of controls, including testing of journal entries and other adjuslmenls for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting eslimales for bias., Auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and proof in total of donations to ensure revenue is complete in the financial slatemenls and recognised in the correcl 8ccounling period., Reviewing minutes of meelings of Ihose charged with governance; and Reviewing financial stalement disclosures and testing to supporting documentation lo assess compliance with applicable laws and regulations. Because of the inherent Ilmitations 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 regulalion. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statemenls, as we will be less likely lo become aware of instances of non-compliance. The risk is also grealer regarding irregularilies occurring due to fraud ralher 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'.Ilwww.frc.org.uklOur-WorklAudiUAudit-and-assurancelStandards-and-guidancelSlandards-and-guidance- for-auditorslAuditors-responsibililies-for-auditlDescription-of-auditors-responsibililies-for-audit.aspx This description forms part of our auditor'5 report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mighl state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. N(((olo Pk(N Nicola Mason For and on behalf of MHA, Slatulory Auditor Preston, United Kingdom MHA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales (registered nLFmber OC312313}
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2023 Designated funds 2023 General funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Investments 1,258,513 66,724 1,258,513 66,724 1,265,423 24,189 Total Incorne 1,325,237 1,325,237 1,289,612 Expenditure on: Charitable activities 1,599.015 1,599,015 1.339,032 Total expenditure 1,599,015 1,599,015 1,339,032 Net movement in funds (273,778) (273,778) (49,420) Fund balance blf at 1 January 2023 150,000 1,067,840 1,217,840 1,267,250 Fund balance clf at 31 December 2023 150,000 794,062 944,062 1,277,840 All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the year.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Current assets: Debtors Cash at bank and in hand 48,456 2,929,127 21,085 3,009,073 Total current assets 2,977,583 3,030, 158 Liabilities: Creditors: amount falling due wilhin one year 10 (2,033,521) (1,8t2,318) Net current assets. 944,062 1,277,840 Net assets less current liabilities 944,062 1,217,840 The funds of the charlty: Unrestricted.. General Designated 794,062 150,000 1,067,840 150,000 Total funds 944,062 1,217,840 These financial statements have been prepared in accordance with the provisions applicable lo companies subjecl lo the small companies regime. The financial statements were approved and authori5ed for issue by the Board on 101h July 2024 and signed on its behalf by.. S Turner- Trustee Company Regislration Number: 03527370 The noles on pages 13 to page 22 form part of these financial slatements.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Cash inflows from operatlng actlvities: Net cash provided by/(used In) operatlng actlvltles 12 (146,670) 39,609 Cash flows from investing activities: Interest receivable 66,724 24,189 Net cash provided by/(used In) Investing activities 66,724 24,189 Change In cash and cash equivalents in the year (79,946) 63,798 Cash and cash equlvalents at 1 January 2023 3,009,073 2,945,275 Cash and cash equivalents at 31 December 2023 2,929,127 3,009, 073 -12-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2023 Accounting policies General information and basis of preparation Lancashire Environmental Fund Llmited Is a company limiled by guarantee and does not have a share capital. The liability of the members is limited and is not to exceed £1 per member. The address of the registered office is given In Ihe charity information on page 1 of these financial slatemenls. The nature of Ihe charity's operations and principal activities are detailed in the Trustees Report on pages 2 10 6. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance wilh Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the Uniled Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial stalements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in slerling which is the functional currency of the charity and rounded lo the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise slated. Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for olher purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for partlcular purposes. The aim and use of each designated fund is sel out in Ihe notes to the financial statements. Income recognltion Income arising from the Landfill Tax Credit Scheme is included in Ihe Statement of Financial Activities {SoFAI when the charity is legally entitled to the income after any performance condilions have been met, the amount can be measured reliably and it is probable that the income will be received. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees, Annual Report. Investment income is earned through holding assels for investment purposes such as shares and property. It includes interest received from interest bearing deposit accounts. 11 is included when the amount can be measured reliably. Interest income is recognised using the effective inlerest melhod. Expenditure recognition All expendllure is accounted for on an accruals basis and has been classified under headings that aggregate all oosts related to the category. Expenditure is recognised where there is a legal or constructive obligation lo make payments to third parties, it is probable that the settlement will be required and the amount of the obligalion can be measured reliably.11 is categorised under the following headings.. Expenditure on charilable activities includes grants awarded. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED} YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) Expendlture recognition (contlnued) Grants payable to third parties are within the charitable objectives. Grants are due for payment when the grantee makes an approved claim. Previously grant liabilities were treated as falling due within one year unless the terms of the grant offer anticipated payment after one year from the balance sheet date and by reviewing the current status of the projecl at the year end and when it was anticipated to be completed. Grants are released to the income and expenditure account when: projects are cancelled by the grant applicants; the original grant application exceeds the final amount claimed on project completion. Support costs allocatlon Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. The analysis of these costs is included in note 5. Debtors and creditors recelvablelpayable within one year Debtors and creditors with no staled interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Ernployee benefits When employees have rendered service to the charity, short-term employee benefits to which Ihe employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Staff costs are recharged to the charity by Lancashire Wildlife Trust. Going concern The financial slalemenls have been prepared on a going concern basis as the trustees believe thal no material uncertainties exist. The truslees have considered this when making assessment of the level of funds held and the expected level of income and expenditure for 12 months from aulhorising these financial slalements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able lo continue as a going concern. Judgements and key sources of estimation uncertalnty There have been no significant judgements (apart from those involving estimates) made in the process of preparing the financial slalemenls. There have been no key assumptions concerning the future and other key sources ofestimation uncertainty at the reporting dale that have a significant risk of causing a material adjustment to the carrying amounts of assels and liabilities within the next financial year. -14-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Donations and legacies 2023 2022 Landfill tax income 1,258,513 1,265,423 1,258,513 1,265,423 All of the income from donations and legacies in the current and previous year was unrestricted. Investments 2023 2022 Interest receivable from interest bearing deposit accounts 66,724 24,189 All of the income from investments in the current and previous year was unreslricted. Charitable actlvltles 2023 2022 Grants (note 8) Governance and support costs (note 5) 1,482,859 116,156 1,219,051 119,981 1,599,015 1,339,032 All of the expenditure on charilable aclivities in the current and previous year was unrestricted. -15-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Governance and adminlstration of the charitable company 2023 Basis of apportlonment Support costs Governance 2023 Entrust levy Staff costs Publicity Audit fee Stationery Senior mgt charge Office Expenditure Other Income Slaff lime Usage Usage Staff lime Staff lime Staff time Staff time 43,052 57,020 76 43,052 57,020 76 6,042 41 5,668 3,831 426 6,042 37 2,834 3,448 2.834 383 426 9,689 106,467 116,156 2022 Basls of apportionment Support costs Governance 2022 Entrust levy staff costs PubliGIty Audil fe8 Stationery Senior mgr charge Office Expendilure other Income staff time Usage Usage Slaff time Slaff time Staff time Staff time 43,069 60,276 1,452 43,069 60,276 1,452 5,700 52 5,668 3,509 255 5,700 47 2,834 3,158 2,834 351 255 9,145 110,836 119,981 The 2023 and 2022 costs were all charged to unreslricted general funds. During the year the charitable company, which has no employees of ils own, subcontracled one (2022.. one) full-lime and two (2022.. two) part-time employees from Lancashire Wildlife Trust lo work exclusively on the charitable company's affairs. All these employees undertook work relating lo the provision of granls. The aggre9ate payroll costs of three persons were as follows- 2023 2022 Gross salaries Social security costs Pension contributions 52,107 3,598 1,315 54,344 4,090 1,842 57,020 60,275 No employee received emoluments of more than £60,000.
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Audltor's remuneration 2023 2022 Auditor's remuneration (net of VATI.. For audit services 5,035 4, 750 Trustee and key management personnel remuneration and expenses The directors, who are also trustees, of the charilable company are non-executive, are not remunerated and as such are nol regarded as employees. None of the trustees received any reimbursement of any expenses. Indemnity insurance of£99512022'. £1,001) was purchased during the year, to protect the charity and its truslees from any loss arising from the actions of the trustees. The key management personnel of the charity comprise only the fund manager. The total cost of key management personnel of the charity (including employer's pension and National Insurance contributions) was therefore £34,915 (2022.. £41,372). Grants 2023 2022 Balance payable brought forward 1,637,692 1,558,240 Previously awarded grants released New grants awarded in Ihe year Nel grant cost in year (note 4) (137,6721 1,620,531 (172, 159) 1,331,210 1,482,859 1,219,051 3,120,551 2,777,291 Grants paid in Ihe year Grants previously paid in advance returned (1,275,102) (1, 139,599) Balance payable carried forward 1,845,449 1,637,692 Being: Due within one year (note 10) 1,845,449 1,637,692 During the year the oharilable company awarded 75 grants (2022: 68 grants). All grants in the year were awarded to institutions and all were amenity related. An analysis of new commitments (grants awarded) in the year is shown below. Previously awarded grants released relate to grants where the intended recipient no longer meets the criteria for granl award or does not require the full grant award any longer. -17-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Grants (continued) Grant Awarded Community Facility Improvements Bolton le Sands Community Centre Solar panels Building for Growth, Moorlands Church, Lancaster Rammy Men Kitchen Expansion & Access, Stubbins Vale Mill, Ramsbottom Solar panels, Low Moor Reading Room and Club, Clitheroe Barton & Myerscough Village Hall Energy Generation and Storage Trawden Forest Community Cenlre, Modular Building and Sensory Garden New Pathway, West End Community Hall, Oswaldtwistle Hurst Green Village Hall Replacement Windows Sanctuary Cookalongs Kitchen Improvements, Catherine Beckett Centre, Preston New Roof at Cowpe Institute Storeroom Renovation, Mellor Brook Community Cenlre Rewiring Victoria Institute, Calon Washroom Refurbishment at Catlerall Village Hall Kitchen Refurbishment at Padiham Road Methodist Church Claughton Memorial Village Hall Regeneration Wesl Bradford Community Hub Renovation Developing New Day Church CommLtnity Hub Efficient Warmth, Greenhill Community Hub, Skelmersdale Sound & IT at Garstang Methodist Community Hub Community Network Outreach Service, Leyland, Community Kitchen New Footpath at Salesbury Memorial Hall Ingol & Tanterton Community Trusl, local Treasures Inexlricably Linked Over Kellel Jubilee Bells Kitchen Upgrade al West Craven Baptist Church Knowle Green Village Hall Nel Zero PCC of St Michaels & All Angels Church, Croston, Boiler Replacement Sl Andrews Church Ashton, Roof Renovation Roof Replacement at Tarlelon Scout Group Community Centre New Community Facilities at Whalley Old Grammar School Community Centre Community Kitchen al Williams Hall Vocational Centre, Nelson Solar Solution al Parbold Community Hall Central Healing Boiler at Sion Baptist Church, Burnley Young Inskip People Centre, Refurbishment and Development Solar panels at st Marys Clitheroe Communlty Hall Poullon Le Fylde Community Hall Sustainable Roof Phase 2 St Pauls PCC Low Moor, Clitheroe Enhancing Community Space Communlty Kitchen at St Laurence's Church, Chorley Wellness Hub £2,480 £40,000 £18,960 £14,250 £36,630 £20,000 £11,250 £9,000 £40,000 £30,000 £3,517 £40,000 £18,550 £10,000 £40,000 £40,000 £31,120 £48,280 £7,000 £10,540 £27,200 £39,890 £7,900 £3,950 £20,000 £18,950 £21,430 £27,830 £40,000 £40,000 £39,200 £32,625 £7,310 £16,630 £40,000 £11,000 £40,000 Total £905,492 Habitat Creatlon and Management Lancashire Wildlife Trust, Aughton Woods & Lawsons Meadow Resloralion Adlington Pollinator Project Lancashire Wildlife Trusl Booths Invasive Species Woodlands Trust, Improvements at Swindells Woodland, Billington RSPB Leighton Moss, Lower Hide Replacement £40,000 £1,000 £26,760 £9,040 £40,000 Total £116,800 -18-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Grants (continued) Grant Awarded Parks, Gardens and Open Spaces Waterfool Forward, Trickells Memorial Ground Improvements Friends of Newton Community Park, Phase2 Transformation Enhancing Community Space at Padiham War Memorial Ground Lancashire Wildlife Trust, Palhs for All Al Boillon Woods, Brockhole5 Sallerforth Parish Council Community Garden Hyndburn Leisure, Clayton Community Garden Making Freemans Wood, Lancaster, Accessible, Tanlerton Village Centre Ltd, Garden Project Thornlon Clevel,'eys FC Gamble Road Landscaping Scheme £40,000 £28,150 £40,000 £32,750 £40,000 £2,160 £40,000 £17,000 £40,000 Tolal £280,060 General Environmental Improvements stanhill Village Community Association, Kemp Delph Improvements Waddington Parish Council Village Habitat creation and Access £40,000 £11,075 Total £51,075 Play Areas and Recreational Facilities Sycamore Grove Playpark Refurbishment, Marsh Community Centre, Lancaster Carnforth Community Swimming Pool Extension Improvemenls to Draper Avenue Play Area, Eccleston Thornton Cleveleys Sports Club Play Area Friends of Memorial Park, Padiham, Wheeled Sports Facility Childrens Play Equipment, Ribchester Playing Fields Trust Grindleton Recreation Ground, Multi Use Games Area Renovation Kidtopia, Mercer Park, Clayton with Altham Prospects The Last fence, Read & Simonslone Communily Tennis Club Fell View Play Area Improvements, Calon with Littledale Parish Council Hapton Pump Track, Hapton Parish Council £28,775 £40,000 £40,000 £5,000 £5,000 £16,500 £13,060 £40,000 £20,250 £13,500 £40,000 Total £262,085 Green Grants Balance Equipment at Bay Cotlage Play Area, Heysham Garstang Millenium Trust Bird Hide & Feeding Station Friends of Whalley Moor Woodland, Queens Memorial Bench Friends of Haslingden Cemelery, Green Shoots Project Fooipalh Access Improvements, Ramsgreave Parish Council New Tools for Fairfield Association Nature Reserve £512 £1,000 £906 £1,000 £650 £951 Total £5,019 Overall Total £1,620,531 -19-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Debtors 2023 2022 Accrued income 48,456 21,085 All accrued income related lo unrestricted general funds. 10 Creditors: amounts falllng due within one year 2023 2022 Grants awarded {note 8) Other creditors Accruals 1,845,449 182,024 6,048 1,637,692 168, 920 5, 706 2,033,521 1,812,318 During the year ended 31 December 2023 Lancashire County Council paid £nil12022: £nil) lo the fund lo cover the cost of third party contributions necessary to draw lahdfill lax income to finance the Green Grant Scheme golng forward. In the event ofthe Green Grant Scheme ceasing lo exist, the monies are to be used specifically to pay third party contributions lo draw landfill tax income lo be allocated to Lancashire Environmental Fund's other remaining grant schemes. At the year end an amounl of £26,080 {2022'. £24,487) was held within other creditors. During the year ended 31 December 2023 Lancashire County Council paid £80,000 (2022.. £80,000) lo the fund lo cover the cost of third party contributions necessary lo draw landfill tax income to finance the Main Grant and Small Grant Schemes going foward. At the y,ear end an amounl of £140,001 (2022.. £121,650) was held within other creditors. -20-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 Summary of funds Total unrestricted fund General Designated fund Fund Fund balances at 31 December 2023 Represented by: Current assets Current liabilities 2,827,583 (2,033,521 } 150,000 2,977,583 (2,033,521) 794,062 150,000 944,062 Movements in funds Balance brought foNard Nel ouigoing funds 1,067,840 {273.778) 150,000 1,217,840 {273,7781 Balance carried forward 794,062 150,000 944,062 Total unrestricted fund General Deslgnated fund Fund Fund balances at 31 December 2022 Represented by: Current assets Current liabillties 2, 880,158 (1,812,318) 150,000 3,030, 158 (1,812,318) 1,067,840 150,000 1,217,840 Movements In funds Balance brought forward Net incoming funds 1,117,260 (49,420) 150, 000 1,267,260 (49, 420) Balance carrled forward 1,067,840 150,000 1,217,840 The general fund relates to surplus funds from landfill tax credit receipts not yet paid oul as granls. A designated fund of £150,000 has been sel up by the Trustees to provide for future transitional expenses in the event that landfill operations cease. -21-
LANCASHIRE ENVIRONMENTAL FUND LIMITED (BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2023 12 Reconciliation of net Incomel(expenditure) to net cash flow from operating actlvities 2023 2022 Net incomel(expendilurel for the year (273,7781 (49,420) Interest receivable {Increase)Idecrease in debtors Increaselldecrease) in creditors {66,724} {27,371) 221,203 (24,189)) (73,880) 127,098 (146,6701 39,609 13 Related party transactions SUEZ Recycllng & Recovery UK Limited ('SUEZ'I is a member of the charitable company with the power to appoint one trustee lo the board. A J Hughes is a Director of Suez 8nd a trustee of the charitable company. During the year landfill tax monies payable to the charitable company from SUEZ amounted lo £1,258,513 {2022'. £1,265,423). Lancashire Wildlife Trust {'Lwf'i is a member of the charitable company with the power to appoint one trustee to the board. J Drury was a trustee of LWT until Oclober 2019 and remains a trustee of LEF. During the year provided management, organisational, adminislralive and supervision services to the charitable company forwhich £63,97512022: £67,283) was charged in the income and expenditure account. A balance of£179,207 {2022- £167,175) was due to LWT at 31 December 2023. This comprised outstanding grants of £172,965 (2022.. £154,955) and service charges of £6,242 (2022.. £12,220). Grants totalling £99,510 (2022.. £135,755) were awarded lo LWT during the year. Grants of £2,617 (2022.. £nil) previously awarded to LWT have been written back during the year. Lancashire County Council {'LCC') is a member of the charitable company with the power to appoint one trustee to the board. S Turner was the Chairman of the charitable company and a member of LCC. A balance of £nil (2022.. £30,000) was due lo LCC as at 31sl December 2023 (2022: £30,000). Grants totalling £nil (2022- £30,000) were awarded to LCC during the year. Grants of £285 {2022'. £nill previously awarded lo LCC have been written back during the year. It is the company policy that trustees musl inform the board of their interests in grant applications at the slart of board meetings. The interested trustee will not participate during the consideration of these applications. In the case of the Chairman having an interest in an application, the chair is taken by the Vice- Chairman. -22-