2020-12-31-accounts - Lindisfarne Trust Limited

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

LINDISFARNE TRUST LIMITED

(A Company Limited by Guarantee)

CHARITY REGISTRATION NUMBER 1092445

COMPANY REGISTRATION NUMBER 04170471

Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

	LINDISFARNE TRUST LIMITED
	(A COMPANY LIMITED BY GUARANTEE)
	CONTENTS
Pages 3 to 6	Report of the Directors
Page 7	Statement of Financial Activities
Page 8	Balance Sheet
Pages 9 to 18	Notes to the Financial Statements
Page 19	Independent Examiners' Report

LINDISFARNE TRUST LIMITED

(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2020

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER 1092445 COMPANY REGISTRATION NUMBER 04170471 START OF FINANCIAL YEAR 1st January 2020 END OF FINANCIAL YEAR 31st December 2020 DIRECTORS AT 31ST DECEMBER 2020 Geoff Holt (Chair) (ALSO THE CHARITY TRUSTEES) Janet Bissex Sue Clarke (resigned 1st March 2021) Joy Holt Linda Butler Ruth Stock REGISTERED ADDRESS 137 Newton Road Sparkhill Birmingham B11 4PU DATE OF INCORPORATION 1st March 2002 GOVERNING DOCUMENT Memorandum and Articles of Association incorporated on 1st March 2001 as amended by special resolution dated 8 April 2002 BANKERS Unity Trust Bank Birmingham ACCOUNTANTS Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

LINDISFARNE TRUST LIMITED

(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2020

Charitable objects

The advancement of the Christian religion, in particular:

(i) to assist in the establishment of a house of prayer at Lindisfarne
(ii) to promote retreats and other spiritual events at Lindisfarne and elsewhere
(iii) to promote the advancement of education by a study of the saints of Lindisfarne and elsewhere

Review of Activities during the year

The Trustees of Lindisfarne Trust have a particular responsibility to manage the property and other facilities of the Community of Aidan and Hilda, including the regular maintenance and improvement of the Community’s buildings and other assets, in keeping with the ethos of the Community, and so to offer spiritual renewal and refreshment to guests, pilgrims and visitors.

In line with the experience of many organisations involved in the hospitality sector, Covid-19 has had a major impact on our activities during the year, as follows:

Loss of guest income whilst the Retreat House was closed due to lockdown restrictions
Implementation of an appropriate risk assessment, with reduced numbers of guests, when we were able to reopen
Furlough of staff in accordance with the Government Job Retention Scheme
Overall a very significant reduction in income during 2020
Serious questions about the future financial sustainability of our current model of operation

During the year Trustees have met much more frequently (by video conferencing) to keep the ongoing situation under close and regular review, as follows:

A range of options and financial projections have been considered, including the potential sale of one of our properties
After detailed and very careful consideration it has been decided that the only option which gives future financial sustainability is to sell the Open Gate, this would allow all our liabilities to be paid off (both bank loans and personal loans)
Sadly this would mean that the jobs of our current staff are at risk
∙ A process of consultation regarding potential redundancy of their jobs will be implemented in 2021

It would however be possible to continue to offer space for spiritual retreat, renewal and refreshment for guests, pilgrims and visitors at our other properties, primarily on a self-catering basis. It is therefore planned that we should be able to do this in a financially sustainable way during the 2021 season.

Financial Review

The Trustees report a deficit of £29,078 expenditure over income during the financial year end 31st December 2020, compared to a surplus of (£1,519) in the previous year.

Payments to Trustees

Apart from loan repayments totallng £10,000, no other payments were made to Trustees or any persons connected with them during this financial period.

One Trustee donated an aggregate total of £10,000 to the charity during 2020 (2019: One Trustee donated an aggregate total of £10,000).

Two Trustees made loans to the charity totalling £23,500 during 2020 (2019: One Trustee £12,000).

The above transactions did not have conditions attached.

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2020

No other material transaction took place between the organisation and a Trustee or any person connected with them.

Covid-19

During 2020 there was a significant reduction in guest income at the Open Gate, owing to the impact of Covid19.

The impact of Covid-19 is as follows:

There was a loss of guest income whilst the Retreat House was closed from March – July 2020 due to Covid restrictions.
We have received relevant Government Coronavirus support - £10k from Northumberland County Council and Job Retention Scheme Grants for furloughed staff
We have also received a number of gifts and personal loans

Risk Assessment

The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

Reserves Policy

The Trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily.

Public Benefit

The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or aims that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

Statement of Director's responsibilities:

The Charities Act and the Companies Act require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to

:-
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
state whether applicable accounting standards and statements of recommended practice have been followed , subject to any material departures disclosed and explained in the financial statements;

The trustees are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They 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 trustees are also responsible for the contents of the trustees' report, and the responsibility of the independent examiner in relation to the trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements.

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2020

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

I approve the attached statement of financial activities and balance sheet for the year ended 31 December 2020, and confirm that I have made available all information necessary for its preparation.

Signed on behalf of the Board by G Holt

PRINT NAME: G HOLT

Date: 21 August 2021

LINDISFARNE TRUST LIMITED

(A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST DECEMBER 2020

Notes
INCOME AND ENDOWMENTS FROM:
Donations and Legacies
2a
Charitable Activities
2b
Other Trading Activities
2c
TOTAL
EXPENDITURE ON:
Charitable Activities
3a
TOTAL
NET INCOME/(EXPENDITURE)
Transfers Between Funds
15
Other recognised gains/(losses):
Gain/(Loss) on Investment
Gain on revaluation of fixed assets
Net movement in funds
Reconciliation of funds:
Total Funds Brought Forward
TOTAL FUNDS CARRIED FORWARD

Unrestricted
Designated
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
50,700
0
50,700
20,371
47,835
0
47,835
118,496
2,110
0
2,110
13,542
100,645
0
100,645
152,409
129,723
0
129,723
150,890
129,723
0
129,723
150,890
(29,078)
0
(29,078)
1,519
0
0
0
0
0
0
0
0
0
0
0
0
(29,078)
0
(29,078)
1,519
859,664
0
859,664
858,145
830,586
0
830,586
859,664

Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.

The notes on pages 9 to 18 form part of these financial statements.

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

REGISTRATION NO.04170471

BALANCE SHEET AS AT 31ST DECEMBER 2020

Note
Fixed Assets
Tangible assets
8
Current Assets
Stocks
9
Debtors
10
Cash at bank and in hand
11
Total Current Assets
Creditors:amounts falling due within one
12
year
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETSless current liabilities
Creditors:amounts falling due in more
13
than one year
NET ASSETS
Funds of the Charity
Unrestricted General Fund
Restricted Funds
14
Designated Funds
15
Revaluation Reserve
Total Funds

Unrestricted
Designated
31-Dec-20
31-Dec-19
Funds
Funds
Total
Total
£
£
£
£
1,237,718
0
1,237,718
1,239,837
13,174
0
13,174
13,300
3,196
0
3,196
2,632
35,891
0
35,891
773
52,261
0
52,261
16,705
25,140
0
25,140
26,319
27,121
0
27,121
(9,614)
1,264,839
0
1,264,839
1,230,223
434,253
0
434,253
370,559
830,586
0
830,586
859,664
615,586
0
615,586
644,664
0
0
0
0
0
0
0
0
215,000
0
215,000
215,000
830,586
0
830,586
859,664

The directors are satisfied that for the year ended on 31 December 2020 the charitable company was entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that no member or members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011, the accounts have been examined by an Independent Examiner whose report appears on page 19.

The directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).

The directors acknowledge their responsibility for ensuring that the company keeps proper accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and if its profit and loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

Approved by the Directors on 21 August 2021

Signed on their behalf by Director G Holt

Print Name: G HOLT

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

Basis of preparation

Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP.

The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement.

Lindisfarne Trust Limited meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.

Preparation of accounts on a going concern basis

Preparation of the accounts is on a going concern basis. The Trustees are of the view that the level of reserves will support the charity going forward.

The charity has opted to prepare its accounts using natural categories.

Changes to accounting estimates

No changes to accounting estimates have occurred in the reporting period.

Material prior period errors

No material prior year error have been identified in the reporting period.

1. ACCOUNTING POLICIES

The particular accounting policies adopted are set out below.

Income

Recognition of Income

These are included in the Statement of Financial Activities (SOFA) when: ▪the charity becomes entitled to the income; ▪it is more likely than not that the Directors will receive the resources; and ▪the monetary value can be measured with sufficient reliability

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

ACCOUNTING POLICIES (continued)

Grants and Donations

Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP).

Tax reclaims on Donations and Gifts

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Gifts in Kind

Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.

Legacies

Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.

Government Grants

The charity has received HMRC job retention scheme government grants in the reporting period.

Donated goods

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.

Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale, and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'.

Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.

Donated Services and Facilities

Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably.

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.

Volunteer Help

The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report.

Income from interest, royalties and dividends

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

Expenditure and liabilities

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Governance Costs

Support costs represent the cost of central functions, for example governance costs, payroll administration, information technology. Governance costs are those support costs which relate to public accountability of the charity and its compliance with regulation and good practice.

Employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Redundancy cost

The charity made no redundancy payments during the reporting period.

Deferred income

No material item of deferred income has been included in the accounts.

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

Legal status of the charity

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Debtors

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Taxation

Lindisfarne Trust Limited is not registered for Value Added Tax and therefore expenditure is shown inclusive of Value Added Tax.

The company is recognised as a charity by H M Revenue & Customs and therefore benefits from certain exemptions on income and gains, to the extent that they are applied for charitable purposes.

Funds

Funds held consist of:

▪ Unrestricted General Funds which are used for general running of the charitable company

▪ Designated Funds which have been ring-fenced for a specific purpose by the Trustees

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

Assets

Tangible fixed assets for use by the charity:

These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the charity on receipt.

Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives. The rates applied per annum are as follows:

Motor Vehicles 25% Property Improvements 10%

No depreciation is charged to freehold property as the property is maintained to such a standard that the estimated residual value is not less than cost. Land and buildings are primarily used for charitable purposes.

In 2016, the Board of Directors carried out a revaluation of the properties held and based the fair value on current local market conditions. The effective date of revaluation is 31 December 2015.

An independent valuer was not involved, but the Trustees believe that internal personnel had sufficient knowledge of the local property market to make an informed valaution.

The value of the land element of the property is deemed to be one fifth of the total carrying value. For properties acquired after 1st January 2016 the cost of acquisition is taken.

The carrying amount that would have been recognised had the assets (those purchased before 1 January 2016) been carried at historical cost is as follows:

£ Open Gate Holy Island 331,599 Shalom Holy Island 220,000 Lindisfarne Retreat Holy Island 195,000 2. INCOME Notes a) Donations and Legacies Donations and Gifts Gift Aid Donations Gift Aid Tax Recoverable Grants Grants - HMRC Job Retention Scheme b) Charitable Activities Open Gate Guest Income	Unrestricted Designated TOTAL TOTAL Funds Funds 2020 2019 £ £ £ £ 5,568 0 5,568 663 19,526 0 19,526 17,650 4,881 0 4,881 2,058 10,000 0 10,000 0 10,725 0 10,725 0 50,700 0 50,700 20,371 47,835 0 47,835 118,496 47,835 0 47,835 118,496

LINDISFARNE TRUST LIMITED

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

Notes
c) Other Trading Activities
Rental Income - Shalom
Resource Centre Sales
3. EXPENDITURE
Notes
a) Charitable Activities
Resource Centre
Cost of goods sold
Building and establishment costs
Bank and Mortgage Interest and Fees
Depreciation
8
Insurance, Council Tax and Utilities
Open Gate Household Expenses:
Catering
Cleaning Expenses
Open Gate Retreat Costs
Open Gate Repairs and Maintenance
Staff and volunteer costs
Wages, Salaries and Voluntary NI
7
Honorarium Payments
7
Support and Governance costs
Administration Costs
4,5
Companies House Fee
5
Independent Examiners Fees
5
Telephone
5

Unrestricted
Designated
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
485
0
485
6,750
1,625
0
1,625
6,792
2,110
0
2,110
13,542
Unrestricted
Designated
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
1,056
0
1,056
4,463
20,650
0
20,650
14,951
2,119
0
2,119
2,119
29,271
0
29,271
27,576
38,995
0
38,995
37,340
1,215
0
1,215
2,997
888
0
888
9,522
4,897
0
4,897
19,960
23,655
0
23,655
23,741
0
0
0
750
2,474
0
2,474
3,773
13
0
13
13
840
0
840
792
3,650
0
3,650
2,893
129,723
0
129,723
150,890

LINDISFARNE TRUST LIMITED

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020

4. ANALYSIS OF ADMINISTRATION COSTS

----- Start of picture text -----
2020 2019
£ £
IT and Computer 234 541
Licences and Subscriptions 354 310
Printing and Stationery 0 130
Streamline and Bank Charges 1,836 2,206
Sundry Administration 50 478
Repairs and Maintenance 0 108
2,474 3,773
----- End of picture text -----

5. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Support costs Telephone and Broadband Office, Admin and Upkeep Costs Governance costs Companies House Fee Independent Examiners Fees	Staff Other and related direct costs costs £ £ 0 3,650 0 2,474 0 13 0 840	TOTAL TOTAL 2020 2019 £ £ 3,650 2,893 2,474 3,773 13 13 840 792
	0 6,977	6,977 7,471
6. DETAILS OF CERTAIN TYPES OF EXPENDITURE Other fees (for example: financial advice, consultancy, the independent examiner Tax advisory fees Independent examiner’s fees	accountancy services) paid to	2020 2019 £ £ 840 792 0 0 0 0
		840 792

LINDISFARNE TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020

7. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

----- Start of picture text -----
2020 2019
£ £
Gross Wages and Salaries 23,400 22,967
Voluntary NI contributions 255 774
Honorarium 0 750
23,655 24,491
----- End of picture text -----

The average number of employees who were engaged in each of the following activities:

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |TOTAL|TOTAL| |Operational activities|3|3|