Company registration number. 3665797 Charity registration number. 1075786 Lakeland Arts Support Trust (A cornpony limited by guarantee) AUl1 Report and Financial Statements for the Year Ended 31 December 2023
Lakeland Arts Support Trn8t Contsnts Reference and Administr*1 Detsils Thislees, Report 2to4 Independent Examinerfs Report ststement of Financial Activities Bala¢ Sh¢et Notes to the Financial Ststements 8t016
Lakeland Arts Support Trust Reference and Administrathre Details Trustees C T S Batten (Chair) C W N Crewdson A Karwa Mmscott Charity Regl$tratEon Number 1075786 Company Reglstratlon Number 3665797 The charity is Incoorated in England. Abbot Hall Kendal Cumbria LA9 SAL Reglstered Offlce Independent Examlner Stables Thompson & Briscoe Chartered Accountants & Ststutory Auditor Lowther House Lowther Street Kendal Cumbria LA9 4DX Sollclton: JWK sn Skipton Street Morecambe Lancashire LA4 4AW Bankers Barclays Bank PIC Kendal 9 Highgate Kendal LA9 4DF Page I
Lakeland Arts Support Trust Trn8tees' Report The trnstees, who are directors for the purposes of company law. present the annual report together with the fman¢ial statements of the charitabje company for the year ended 31 December 2023. Trustees and offlters The trnstees and officers serving during the year and since the year end were as follows: Tnl¢es. C T S Batten (Chair) C W N Crewdson C J Pennington (resigned 13 September 2023) Mmscott ObJ¢¢tlves and a¢¢fvltl Objects and aln The Charitys objects are the provision of funding for the facilities of Lakelond Arts TrusL $0 lon8 &5 it remains a registered charity (No 526980). The Trusl was set up on I lth November 1998 with a restricted gift of £1.250.000 from the Francis C Scott Charitable Trusi for the Purposes of generating in¢ome to provid¢ finClaI support for the Lakeland Ans Trusl at its Abbot Hall site in Kendal. ObJe¢llves, slraiezles and acllvlrfes During the year £60.000 (2022 - £48.000) was transferred lo Lakeland Arts for the Abbot Hall site. Lakeland Arts (No. 1153001) operates the Kendal site on behalf of Lakeland Arts Trust. Pmblle benefil The Thi generates fimds to support Lakeland Arts TrusL charity number 526980. All net in¢ome was transferred to support the Abbot Hall site in the year. The trustees confirn) that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Flnan¢lal revlew Polley on reserves The charity d(Ks not hold general reserves as all nel income is paid over in acconlance with its obje¢tives. The charity has invested funds frorn the original gift. These generate the income used to support Lakeland Arts Trusl at its Kendal site. Inveslmenipollcy and objecllwes The investment policy is detemiined by the Trustees. Evelyn Partners are responsible for implementing the overall policy which is to manage the portfolio on a total return basis lo produce a high level of inwme consistent with the reasonable expectation of protecting the real value of the portfolio over th¢ long tern). Page 2
Lakeland Arts Support Tnist Trustees, Report Structurej governanee and management N41iire o18overnlng documenl The charity is governed by its Memorandum and Articles when incorporated on I l November 1998 as amended by special resolutions dated 20 May 1999, 12 July 2006. 14 March 2016 and most recently 17 Mar¢h 2017. Recrnlthienl and oppolnlmenl ollruslees The total number of Truslees at the present time is restricted to five, of which two are appointed by L8ke18nd Arts and two by the Francis C Scott Charitable Trust. The chaimian is recomm¢nd¢d by the Francis C Scott Charitable Trust but is independent of both Trusts. The Thistees nornially meet twice each year and review investment perforniance and if appropriate investment policy. together with the Fund Managers. Furth¢miore, they a briefed on major developments at Abbot Hall and the wider Lakeland Arts. Flnan¢lal Instruments ObJe¢llves 4ndpollcles The Charity's activities expose it to a number of financial risks includlng ¢redil risK cash flow risk and liquidity risk. The ¢harity does not use derivative financial instrnments. Cashflow rlsk The Charity's activities expose it primarily to the financial risks of changes in investment values and interesl rates. Credll rtsk The Charity's principal financial assels are cash at bank and investments. The credit risk on liquid funds 1$ limited because Ihe ¢ounterparti¢s are banks with high ¢redit-ralings aSsI¢d by international ¢redit-rating agen¢ies. Llquldity rlsk Lakeland Arts Support TNst has investments which are mana8ed by Evelyn Partners who are professional advisors and their perfornlance is under constant review. The annual report was approved by the truslees of the charity on 30 April 2024 and signed on its behalf by: C T S Batten (Chair) Trustee Page 3
Lakeland Arts Support Trust Statement of trustees, responslbllltlej The trustees (who a]so the directors of iakeland Arts Support Tn for the pu4)oses of company law) are respoTrsible for preparing the trustees, report and the financial statern¢nts in acCOrdae with applicable law and United Kingdom Accounting Slandards (United Kingdom GerKrally Accepted Accountin8 Practicel including FRS 102 The Finala1 Reporting Slandard appli¢abk in the UK and Ryblic of Ireland". Company law requir¢s the trustee5 to prepare financial statements for each financial year. Under cornpany law the trustees must nol approve the financial ststements unless they are satisfied that they give a true and fair view of the state of affairs of the charitsble company and of the incoming resou and application of resources, including its incorne and expenditure. of the charitable company for that period. In preparing these financial slalements, the trustees are required to: sele¢t suitable accounting policies and apply them Consistently. observe the methods and prin¢ipks in the Charities SORP: make judgements and estimates that are reasonable and prudenL' state whether applicable ac¢ounting #and8rd& Comprising FRS 102 Iwve been followed. subj¢¢t to any material departures disclosed and explained in the financial ststements: and prepare the fmancial slatements on the going concern basis unless it Is inappropriate to presume thal the charitable company will Continue in IAtsiness. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accurncy at any time the financial posilion of the charitsble company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the &ssets of the charitabl¢ company and hence for tsking reasonable steps for the prevention and detection of frnud and other irregularities. Tr trwstees are responsible for the maintenance and integTity of the corporate and fmancial InforntIon included on the charitsble compan$ website. Legislalion governing the preparation and dissemination of fman¢ial ststernents nw differ from legislation in other jurisdi¢tion& Approved by the trustees of the Charity on 30 April 2024 and $ied on its behalf by: C T S Batten (Chair) Tnlee Page 4
Lakeland Arts Support Trust Independent Examiner's Report to the trnstees of Lakeland Arts Support Trust ('the Company,) I report to th¢ charity trustees on my exaMIn10n of the a¢¢ounts of the Company for the year ended 31 December 2023. Responsibilities and basls of report As the charity's trustees of the Company (and also its directors for the purp(w of company law) you a respolbIe for the weparaiion of the accounts in a)rdance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having salisfied myself that the accounts of the Company are noi required to be audiled under Pan 16 of the 2006 Act and are eligible for independent examination. I report in res of my examination of your charity's accounls as carried out under seclion 145 of the Charities Aci 2011 ('the 2011 Act,). In Carrying out my examination I have followed th¢ Directions given by th¢ Charity Commission under section 145(5Xb) of the 2011 Act. Independent exsmlner's statement I have completed my examination. l nfirnj that no matters have come to my attention in connection with the examination giving me cause to believe: l. a¢¢ounting records were nol kept tn respect of Lakeland Arts Support Trust as required by section 386 of the 2006 Act; or 2. the a¢¢ounts do not accord with those T¢rds. or 3. the accounts do nol ¢omply with the accounting requirements of seclion 396 of ihe 2006 Act other than any requiremeni thai the a¢counts give a 'true and fair view, which is not a matter considered as part of an independent examination: or 4. the aecounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Prarfice for a¢¢ounting and reporting by charities applicable to charities preparing their accounts in a¢¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in neC(lOn with the examination to which attention should be drawn in this report in order to enable a proper understanding of the acwunts lo be rea¢hed. H Holmes Bsc FCA Chartered Accountants & Statutory Auditor ICAEW Lowther House Lowther Street Kendal Cumbria LA9 4DX Page 5
Lakeland Arts Support Trust Statement of Flnaneial Aellvitim for the Year Ended 31 Detember 2023 neluding Income and Expenditllre Aeeollnt and Statement of TotAI Reeognised Galns and Losses) Total 2023 Total 2022 UDr¢J¢rkted Note Ineome aDd Endowments from: Investsnent income Totsl Income 4Q919 Expenditure on: Raising fimds Charitable activities (11.124) (11.124) (I lJ43) (7U23) 49.911 (72223) 49911 (60.514) 133 Net iM)m&(expenditure) Net movement in fimds 145 956 24,607 24.607 (145.956) Re¢oD¢lllatlon of funds Tolal fimds brought foThvard Total funds carried forward 1.552248 1698 204 576 855 1576 855 1552 248
Lakeland Arts Support Trnst (Registration number: 3665797) Balance Sheet as at 31 Deeember 2023 2023 2022 Note Flxed assets Investments 1,582.609 1.556,982 Current assets Cash at bank and in hand 1,880 1,801 Creditors: Amounts falling due within one year 10 7.634 6.535 Net current lirdbllltles 5.754 4.734) Net assets 1,576,855 1552 248 Fund$ of the eharlty: Unrestrleted Income funds Unrestricted funds 1.576.855 1.552.248 Total funds 1.576.855 1,552,248 For the financial year ending 31 De¢ember 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities: The members have not required the charity lo obtain an audit of its accounts for the year in question tn a¢cordan¢e with section 476: and The dirertors a¢knowledge their responsibilities for ¢omplying with the requirements of the Act with respect to a¢¢ounting re¢ords and the preparntion of accounts. The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 30 April 2024 and signed on their behalf by: C T S Batten (Chair) Trustee The notes on pages 8 to 16 fonn an integral part of these financial statements. Page 7
LAkeland Arts Support Trust T4otes to the Finalleial Statements for the Year Ended 31 Deeember 2023 I Charity statvs Tr charity is limiled by guarath. incorp in EnglarKI, aNI cowentty does not have share capitsl. Each of the trustees is liable to ¢ontribute an aniount not exceeding £10 towants the assets of the charity in the event of liquidation. The addr¢55 of its registered offi¢¢ Abbot Hall Kendal LA9 SAL These financial Statements wtre authori5ed for issue ty th¢ trustees on 30 April 2024. 2 Aceountfjng pTrllties Summary of slgnlfieant aeeountlng policies and key aeco•ntiDg estimates The principal accounling policies applied in the pyeparntion of these financial SLements are set out below. These w)li¢ies have been consistently applied to a]1 the years pret unless otherwise stated. ststement of eompllanee The financial statements have beffl wq)ared in accordan¢e with A¢¢oiinting and Rewting by Charities: Statement of Recornmded Practice applicable to ¢harities prying trRir aunts in accord with th¢ FinanciaI Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (efftctive l January 2019) - (Charities SORP (FRS 102)l the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also mplY with the Companies Act 2006 and Charities Act 2011. Bosii of preparatlon Lakeland Arts Support Tntst meets the definition of a public Ixnefit lIty under FRS 102. Assets and liabilities are initialty reco]sed at historical cost or transaction vahK unkss otherwise stated in the relevant arxounting policy notes. Tr acnts are presented in sterling and rounded to the nearest £ Going concern The trustees consider ttmt there are no material uncertainties about the ¢harity$ ability to continue as a going ¢on¢ern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. Exemptlon from preparing a cash Ilow statement The charity opted to early adopt Bulletin i published on 2 Febnw 2016 have therefore not included a cash flow stslement in these fmarKial sthtrrnents. Ineome and endowments JnveslnKn¢ Income Interest on fimds held on deposit is i]uded when CeIVable and the amount can be llaSUr reliabty by the charity. this is norn)ally upon notifi¢ation of the interest paid or payable by the banlLDividends are recognised once the dividend has been de¢lared and notific*ion has been re¢eived of the dividend due. Page 8
Lakeland Arts Support TnL8t Notes to the FiDaneial Statements for the Year Ended 31 Deeember 2023 Expenditure All expenditiwe is reCOlsed orAce there is a legal or constructive obligation to that expenditure, it is probable settlemenl is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate sirnilar costs to that category. Where costs Cam be directly attributed to particular headings they have been allocated on a basis consislent with the use of resource4 with central staff costs allocated on the b&sis of tirne spenL and depre¢iation charge5 allocaled on the portion of the asset's use. Other support costs are allocated based on the spread of stsff ¢osts. Rolslngfvnds These are costs incunyd in attrdcting voluntary income. the management of inve51ments and those incurred in trading activities that raise fimds. Charflable activili4f Charitable expenditure comprises thos¢ ¢osts in¢U by the charity in the delivery of its activities and services for its benefi¢iaries. It includes both costs that ¢an be allocated directly to such activilies and those costs of an indirect nature necessary to support them. GoverDaDce costs These include the costs attnl)utable to the charity's ¢ompliance with constitutional and statutory requirements, including audiL strdtegic management and ttustees rneet1n and reimbursed expenses. TaxatlOD The charity is considered to p&8s the tests set out in Paragraph I khedule 6 of the Finance Ad 2010 and therefore il meets the definition of a charitable company for UK COTporation tsx PUTposes. Accordingly? the charity is potentially exempt from laxation in respect of Incon or capital gains received within categories covered by Chapter 3 Part I l of the COOratIon Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such incorne or gains are applied exclusivety to charitable purposes. Fixed asset investments Fixed asset investment4 other than prograne related investment& are included at market value at the balance et date. Realised gains and lo5S (m investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cosL and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the rnovement in rnthet values during the year and are Credited or charged to the Statemenl of Financial Activitie5 based on the market value at the year end. Cash and cash equfvaknts Cash and cash equivalents comprise cash on hand and call deposit4 and other short-terni highly liquid investments that are readity convertible io a knomm amount of c&sh and are subject to an insignifi¢ant risk of change in value. Page 9
Lakeland Arts Support Trust Notes to the FiDaneial Statements for the Year Ended 31 December 2023 Trnde eredltors Trade creditors are obligations to pay for goods or servi¢es thal have been a¢quired in the ordinary course of bwsiness from suppliers. Accounts payable are cl&8sified a8 current liabilities if the charity does nol have an unconditional righL at the end of the reporting perio4 to defer settlement of the ¢reditor for at least twelv¢ months after the reporting date. If there 1$ an uncondilional right lo defer settlement for at least twelve mlmths after the rewiing date. they are preseed as non4nt liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effe¢tive interest meth(Kl. Fund structure Unrestrithed income fimds are genernl fimds are availabk for use ai trustees discreiion in fifftherance of the objectives of the Charity. Designated fimds are unTeSed funds set &8ide for spe¢ifK purposes at the disttetion of the trustees. Restricted ftmds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have be¢n rais by the ¢harity for particular purpostt. The Cost of raising and administering such fimds are Charged against the specific fimd. The aim and use of u¢h restricted fund is set out in the notes to the fman¢ial stsiement& Endowment funds represent those assets whith mu# be held pemwmtly by the ¢harity, principally investments. Income arising on the endowment fimds can be used in accordance with the objects of the ¢harity and is included as unrestricted income. Any capital gains or losses arising oft the investrnents forni part of the fund. Investment management charges and legal advice relating io the nd are charged against the income of th¢ fund. Page io
Lakeland Arts Support Trust Notes to the Flnaneial StatemeDts for the Year Ended 31 December 2023 Financial Instruments CILfslflca¢lon Financial assets and fmancial liabiliti¢5 ar¢ recognised when the charity becomes a party to the contracftml provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual atTangements entered into. An equity instrument is any contra¢1 that evidences a residual interest in the assets of the charity after d¢ducting all of ils liabilities. Re¢o8nlllon andmeasuremenl All financial assets and liabilities are initially measured at transaction price (in¢luding transa¢tion Costs). except for those fJnan¢ial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is nornially the transaction pri¢e excluding transaction costs), unless the arrangemenl constitutes a rinan¢ing transaction. If an arrangement constitutes a fman¢ing transaction, the financial asset or financial liability is measured at the present value of the tUre payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the re¢ognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are dere¢01$ed when and only when a) the contractual rights to the cash flow5 from the financial asset expire or are settled. b) the charity transfers to another party substontially all of the risks and rewards of ownership of the financial asset, or c) the charity. despite having retained some. nol all, Si1ficant risks and rewards of ownership* has tra1)SfeCd control of the asset to another paty. Financial liabilities are deOlsed only when the obligalion specified in the contract is dlscharged, cancelled or expires. liiveslments Investments in non-¢onvertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably• investhients are measured at ¢ost less impaimient. Investments in subsidiaries and associates are measured at Cost less impainnent. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief. cost is measured by reference to Ihe nominal value of the shares issued plus fair value of other ¢on$ideration. Any premium is ignored. Page 11
LakelaDd Arts Support Tnt Not¢s to the Finan¢1 Ststsments for the Year Ended 31 Deeember 2023 3 Investment income UDrestrieled funds General Total 2023 Total 2022 In¢ome from dividends. Dividends receivable from other listed inveslme Interest receivable and similar income: Aterest receivable on bank deposits 47,796 79 18 46.919 4 Expendlture on rahlng fun a) Investment management Unrestrlcted runds Total 2023 Total 2022 General Inveslmenl management fees S Expendllure on tbarltabk getfvhles Totsl 2023 Total 2022 Cenernl Note Donati(xi lo iaknland Arts Governance ¢osts 48.000 Included in the expendilure anatysed above, there are also governance costs of £1.099 (2022 - £1,171) which relate directty to clwitable activities. See note 6 for finther details. Pag¢ 12
Lakeland Arts Support Trust F4otes to the FinaDCiAI Statements for the Year Ended 31 December 2023 6 Analys1$ ofEovernaTrce and support eosts Covernanee costs Unreslrleted funds General Total 2023 Totsl 2022 Independent eMIner fee5 Examination of the fu)ancial statements Other fees paid to examiners Ixgal fees 550 536 13 550 536 13 525 633 13 1.171 7 Trustees remuneratlon and expense5 No trustees, nor any persons ¢onne¢ted with them. have received any remuneration from the charity during the No trustees have received any reimbursed expenses or any other benefits from the charity during the year. 8 Taxation Th¢ charity is a registered charity and is therefore exempt from taxation. Page 13
Lakeland Arts Support Trngt Notes to the Finaneial Statements for the Ymr Ended 31 Deeember 2023 9 fftxed agset investments 2022 Other investments 1582.609 1556.982 Other Investments Cash held part of the Investmenl portfolio Lbted investments Total Cost or valtIOn At l January 2023 Revaluatlon Additions DisFM)sals Al 31 De¢ember 2023 1,533.719 49.910 135.650 155 23263 1.556,9K2 49,910 337,845 362 128 202.195 1563 925 1582 609 Net b(k value Al 31 December 21Y23 1582 609 At 31 December 2022 533 719 1556 982 10 Credltors: Amounts falllng due wlthln one yar 2023 2022 knounts owed to Lakeland Arts Other ¢reditOTS A¢¢ruais 3,501 1231 Page 14
Lakeland Arts Support Trust Notes to the Financial Statsments for th¢ Year Ended 31 December 2023 11 Funds Balanee Bajanee Other at31 JaD112ry I•¢omiDg Resourees recogDised December 2023 resourtts expended Transfers gaiusl(losses) 2023 unrestri funds Genernl Unrestricled genml funds Deslgnaled Investsnents 18.529 46.919 (72223) 6.854 79 1.533 719 6.854 49,911 l J76,776 Totsi funds 1.552.248 46.919 (72 49,911 1.576,855 Balanee Balanee Other at31 January Ineomlng Resoor¢es recognised December 2022 regourees expended Transfers gainsloosses) 2022 Unrestrleted funds Genernl 34.732 47,814 (60.514) (3 503) 18.529 Deslgnaled Investments 1.663.4r2 3.503 {133256) 1.533 719 Total funds 60.514 133256 1.552248 12 ADalysi5 of net assets betweeD funds Total funds at 31 Decernber 2023 Unrestricted fund5 General Designated Fixed 0&8et inveslments 5,833 1.880 (7,634 1,576,776 1,582,609 1,880 7.634 Curnt liabilities Total net assets 79 1.576.776 1576,855 Page 15
LAkeland Arts Support Trust Notes to th¢ FlnAnefial Statements for the Year Ended 31 December 2023 Total fund$ at 31 Dee¢mber 2022 Unrestrlcted funds GeDeral Deslgnat¢d Fixed asset investments Cumt assets Cumt liabilities 23263 1.801 6.535 1,533,719 1.556.982 1,801 Totsl net assets 1533 719 1.552.248 13 Related party trangJ¢tlon$ Pag¢ 16