Annual Report and Financial Statements for the Year Ended 31 March 2023
Living Rock Trust
Charity registration number: 1082876
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
LIVING ROCK TRUST
CONTENTS
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Cash Flow Statement | 9 |
| Notes to the Financial Statements | 10 to 17 |
LIVING ROCK TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees
Christopher Alton Richard Knapp Kathryn Boden (resigned 6 December 2023) Sadie Batstone Esther Shackell (appointed 6 December 2023)
Charity Registration 1082876 Number
Principal Office Station Road Stoney Stanton Leicestershire LE9 4LU Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers Barclays Bank plc Town Hall Square Leicester Leicestershire LE1 9AA
Page 1
LIVING ROCK TRUST
TRUSTEES' REPORT
The Trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2023.
Structure, governance and management
Nature of governing document
Living Rock Trust is a registered charity, number 1082876, and is constituted under a Trust deed.
Recruitment and appointment of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
Induction and training of trustees
Induction of Trustees is the responsibility of the appointed Chair of Trustees, who is currently also a Pastor of the Church.
Organisational structure
Trustees are responsible for controlling the work, management and administration of the charity and its assets on behalf of its beneficiaries. Policies, procedures and legal compliance are the responsibility of the Trustees. Salaries and contracts are also the responsibility of Trustees who meet annually in the form of a remuneration committee. Trustees are appointed by fellow Trustees and are selected based on specific skills and experience and comply with the Church’s statement of faith. Trustees do not receive payment for their role as a Trustee and are also members of the Church.
Risk management
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Trustees follow guidance from the Charity Commission to ensure that the Trust is compliant with the principles of Charitable purpose and public benefit.
The spiritual activities of the Church are delivered by the Pastors of the Church, with some of these Pastors receiving payments from the Trust to support them in their Ministry and so they are available to the Church members and to develop teaching.
Page 2
LIVING ROCK TRUST
TRUSTEES' REPORT (CONTINUED)
Objectives and activities
Objects and aims
The charity supports the activities of Living Rock Church, a church promoting the Christian Gospel with congregations meeting across Leicestershire, Warwickshire and Staffordshire. The objects of the charity are:
(a) The proclamation and furtherance of the gospel of God concerning his Son, Jesus Christ Our Lord and the preaching and teaching of the Christian faith.
(b) The relief of persons who are in conditions of need, hardship and distress, or who are aged or sick.
To further its aims the Church has regular Church Meetings and events which are open to the public and provides training and encouragement to members and associated Churches.
Public benefit
The Trustees confirm 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.
Achievements and performance
Review of activities
On 6 December 2023 Kathryn Boden retired as a Trustee, and will remain an active member of the Church which the Trust supports. Esther Shackell was appointed as her replacement, being a qualified Accountant and representing the Market Harborough congregation.
The Church which the Trust supports continues to grow and now meets across three locations - Stoney Stanton, Market Harborough and Atherstone.
The Trust owns a building which has a 500 capacity auditorium used for Sunday gatherings and other meetings, smaller meeting rooms, and offices hosting the administration of the Trust. The building is also used for Community outreach activities.
C Alton, R Jones, S Russell, R Pemberton, P Chapman, W Lyon and M Shuter continue as Pastors of the church across the three locations. Market Harborough and Atherstone congregations meet regularly in rented buildings.
The Church currently serves 330 people who are regarded as members. A further 148 people visit the Church and are regarded as regular visitors. Additionally there are 84 people in Youth (11 - 18s) and 146 children (0-11s).
In order to deliver Pastoral support the congregation is encouraged to join Life Groups which are led by other Church members and are overseen by Pastors. These Groups generally meet in homes in the community. Additionally Alpha and Marriage courses have been regularly delivered, available to the local community.
Page 3
LIVING ROCK TRUST
TRUSTEES' REPORT (CONTINUED)
To support the congregation and associated Churches significant investment has been made in media facilities to share teaching and communicate more effectively with members. This includes the development of an LRC Grow app which provides online access to resources.
Long term plans include giving more autonomy to congregations, ultimately investing in buildings where congregation growth requires a local presence.
The Church also seeks to serve the local community through regular activities, provided by Church members at the Church building. This includes Mumstop providing weekly support through Baby and Toddler Groups and for meetings for families with pre-school children with special needs, impacting over 120 community families. There is also a weekly Community Coffee event.
Activities and Achievements can further be seen on the Living Rock Church Website.
Financial review
Income for the year amounted to £829,411 (2022: £757,508) and expenditure £847,548 (2022: £772,564). Funds carried forward amount to unrestricted funds of £1,405,830 and restricted funds £Nil. The increase in income is a result of continued Church growth.
The Trust is mainly funded by Tithes and Gifts of Church members plus the associated Gift Aid claimed on these donations. These gifts are voluntary donations in order for the Church to deliver its Christian services, including meeting specific needs and alleviating hardship where appropriate.
The Trust also makes significant donations to the Quantum Trust to support their Christian activities, following the principle of Tithing income.
Policy on reserves
In principle the Trust ensures it has reserves to operate for three months, in order to be able to meet objectives in the event of a change in circumstance, particularly with regard to support of people. This is estimated at £100k. There are also plans for building expansion in Market Harborough and therefore £78k has been reserved from past surpluses to support potential activity. Additionally there is a £18k fund for missionary activities. These funds are not regarded as restricted. Given changes in interest rates the Trust has opened instant access interest bearing accounts to generate interest income. The Trustees do not wish to speculate with Charity income and therefore at this stage do not have plans to enter into term deposits or investments which mean that cash is not accessible.
The Trustees are aware of future economic challenges therefore funds are in place in the event of a drop in income which is voluntarily provided by donors and so is subject to reduction. There are also plans to refurbish parts of the building which is owned by the Trust. In principle the Trustees approve break even budgets with surpluses used for investments to support future operations.
Page 4
LIVING ROCK TRUST
TRUSTEES' REPORT (CONTINUED)
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Statement of Responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the Trustees of the charity on 17 January 2024 and signed on its behalf by:
Richard Knapp
......................................... Richard Knapp Trustee
Page 5
LIVING ROCK TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LIVING ROCK TRUST
I report to the Trustees on my examination of the accounts of Living Rock Trust for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity Trustees of Living Rock Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Living Rock Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since Living Rock Trust's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Living Rock Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
17 January 2024
Page 6
LIVING ROCK TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 762,610 Charitable activities 3 14,517 Other income 4 32,202 Total income 809,329 Expenditure on: Charitable activities 5 825,534 Total expenditure 825,534 Net expenditure (16,205) Net movement in funds (16,205) Reconciliation of funds Total funds brought forward 1,422,035 Total funds carried forward 12 1,405,830 |
Restricted funds £ 20,082 - - 20,082 22,014 22,014 (1,932) (1,932) 1,932 - |
Total 2023 £ 782,692 14,517 32,202 829,411 847,548 847,548 (18,137) (18,137) 1,423,967 1,405,830 |
Total 2022 £ 725,863 9,349 22,296 |
|---|---|---|---|
| 757,508 | |||
| 772,564 | |||
| 772,564 | |||
| (15,056) | |||
| (15,056) 1,439,023 |
|||
| 1,423,967 |
The notes on pages 10 to 17 form an integral part of these financial statements. Page 7
LIVING ROCK TRUST
BALANCE SHEET AS AT 31 MARCH 2023
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 12 |
2023 £ 988,340 988,340 9,760 409,892 419,652 (2,162) 417,490 1,405,830 - 1,405,830 1,405,830 |
2022 £ 998,252 |
|---|---|---|
| 998,252 | ||
| 10,629 417,247 |
||
| 427,876 (2,161) |
||
| 425,715 | ||
| 1,423,967 | ||
| 1,932 1,422,035 |
||
| 1,423,967 |
The financial statements on pages 7 to 17 were approved by the Trustees, and authorised for issue on 17 January 2024 and signed on their behalf by:
Richard Knapp
......................................... Richard Knapp Trustee
The notes on pages 10 to 17 form an integral part of these financial statements. Page 8
LIVING ROCK TRUST
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023
| Note Cash flows from operating activities Net cash expenditure Adjustments to cash flows from non-cash items Depreciation Working capital adjustments Decrease in debtors 9 Increase/(decrease) in creditors 10 Net cash flows from operating activities Cash flows from investing activities Purchase of tangible fixed assets 8 Net decrease in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March Reconciliation of net cash flow to movement in net funds Decrease in cash Net funds at 1 April 2022 Net funds at 31 March 2023 |
2023 £ (18,137) 54,942 36,805 869 1 37,675 (45,030) (7,355) 417,247 409,892 (7,355) 417,247 409,892 |
2022 £ (15,056) 49,635 |
|---|---|---|
| 34,579 615 (4,410) |
||
| 30,784 (32,106) |
||
| (1,322) 418,569 |
||
| 417,247 | ||
| (1,322) 418,569 |
||
| 417,247 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 10 to 17 form an integral part of these financial statements. Page 9
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Living Rock Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Going concern
The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 10
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £750 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Land and buildings | 2% on a straight line basis |
| Fixtures and fittings | 33.33% on a straight line basis |
| Computer equipment | 33.33% on a straight line basis |
| Building improvements | 10% on a straight line basis |
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 11
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
Liabilities
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Fund structure
Unrestricted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2 Income from donations and legacies
| Donations and legacies; Donations Gift aid reclaimed Grants, including capital grants; Government grants |
Unrestricted funds General £ 658,047 104,563 - 762,610 |
Restricted funds £ 20,082 - - 20,082 |
Total 2023 £ 678,129 104,563 - 782,692 |
Total 2022 £ 615,799 105,476 4,588 |
|---|---|---|---|---|
| 725,863 |
Page 12
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
3 Income from charitable activities
| Unrestricted funds General £ Events and outreach 14,517 4 Other income Unrestricted funds General £ Other incoming resources 32,202 5 Expenditure on charitable activities Unrestricted funds Note General £ Ministry support 332,010 Training 2,318 Meeting expenses 47,021 Other gifts 73,791 Building expenses 24,386 Administration 42,915 Legal and professional 1,314 Independent examination 2,160 Depreciation 54,943 Staff costs 7 244,676 825,534 |
Restricted funds £ - Restricted funds £ - Restricted funds £ - - - 22,014 - - - - - - 22,014 |
Total 2023 £ 14,517 Total 2023 £ 32,202 Total 2023 £ 332,010 2,318 47,021 95,805 24,386 42,915 1,314 2,160 54,943 244,676 847,548 |
Total 2022 £ 9,349 |
|---|---|---|---|
| Total 2022 £ 22,296 |
|||
| Total 2022 £ 328,030 1,695 33,208 74,813 22,204 38,310 824 2,160 49,635 221,685 |
|||
| 772,564 |
Page 13
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
6 Trustees remuneration and expenses
During the year the charity made the following transactions with Trustees:
Christopher Alton
Christopher Alton received ministry support payments of £13,651 (2022: £13,126) during the year.
No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No Trustees have received any reimbursed expenses or any other benefits from the charity during the year.
7 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2023 £ 224,974 14,930 4,772 244,676 |
2022 £ 208,493 8,962 4,230 |
|---|---|---|
| 221,685 |
The number of persons (including senior management team) employed by the charity during the year was as follows:
| 2023 | 2022 | |||
|---|---|---|---|---|
| No | No | |||
| Staff | 11 | 12 |
No employee received emoluments of more than £60,000 during the year
Page 14
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
8 Tangible fixed assets
| 8 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Land and buildings £ Furniture and fixtures £ Computer equipment £ Cost At 1 April 2022 1,375,167 84,704 75,133 Additions - 15,111 4,798 At 31 March 2023 1,375,167 99,815 79,931 Depreciation At 1 April 2022 442,148 84,704 51,319 Charge for the year 27,503 5,038 14,712 At 31 March 2023 469,651 89,742 66,031 Net book value At 31 March 2023 905,516 10,073 13,900 At 31 March 2022 933,019 - 23,814 9 Debtors Accrued income Other debtors 10 Creditors: amounts falling due within one year Accruals |
Computer equipment £ 75,133 4,798 |
Building improvements £ Total £ 51,773 1,586,777 25,121 45,030 76,894 1,631,807 10,354 588,525 7,689 54,942 18,043 643,467 58,851 988,340 41,419 998,252 2023 £ 2022 £ 9,730 10,629 30 - 9,760 10,629 2023 £ 2022 £ 2,162 2,161 |
|||
| 79,931 | 76,894 | ||||
| 51,319 14,712 |
10,354 7,689 |
||||
| 66,031 | 18,043 | ||||
| 13,900 | 58,851 | ||||
| 23,814 | 41,419 | ||||
| 2023 £ 9,730 30 9,760 2023 £ 2,162 |
|||||
| 10,629 | |||||
| 2022 £ 2,161 |
Page 15
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
11 Pension and other schemes Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £4,772 (2022 £4,230).
12 Funds
| Unrestricted funds General General Funds Restricted funds Acts 4:34 fund Specific offerings Total funds Unrestricted funds General General Funds Restricted funds Building fund Acts 4:34 fund Zambia housing Total funds |
Balance at 1 April 2022 £ Incoming resources £ Resources expended £ Balance at 31 March 2023 £ 1,422,035 809,329 (825,534) 1,405,830 1,932 - (1,932) - - 20,082 (20,082) - 1,932 20,082 (22,014) - 1,423,967 829,411 (847,548) 1,405,830 Balance at 1 April 2021 £ Incoming resources £ Resources expended £ Transfers £ Balance at 31 March 2022 £ 1,391,135 752,065 (719,558) (1,607) 1,422,035 46,128 4,933 (52,668) 1,607 - 1,760 172 - - 1,932 - 338 (338) - - 47,888 5,443 (53,006) 1,607 1,932 1,439,023 757,508 (772,564) - 1,423,967 |
Balance at 31 March 2023 £ 1,405,830 - - |
Balance at 31 March 2023 £ 1,405,830 - - |
|---|---|---|---|
| - | |||
| 1,405,830 | |||
| 1,932 | |||
| 1,423,967 |
Page 16
LIVING ROCK TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
13 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 988,340 419,652 (2,162) 1,405,830 Unrestricted funds General £ 998,252 425,944 (2,161) 1,422,035 |
Restricted funds £ - - - - Restricted funds £ - 1,932 - 1,932 |
Total funds at 31 March 2023 £ 988,340 419,652 (2,162) |
|---|---|---|---|
| 1,405,830 | |||
| Total funds at 31 March 2022 £ 998,252 427,876 (2,161) |
|||
| 1,423,967 |
Page 17