Charity registratlon number 1100759 Company registration number 04878364 {England and Wales) FRIENDS OF THE LAKE DISTRICT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 FRIENDS OF THE LAKE DISTRICT LEGAL AND ADMINISTRATIVE INFORMATION Trustees David Felton Lucy Hetherington Robin Forrest Malcom Boswell Laura Doan Robert Mccracken Fiona Sanders Anthony Vaux {Appointed 13 Febnjary 2023) (Appointed 13 February 2023) (Appointed 13 February 2023) Secretary Stuart Clayton Senior management Position Vacant John Campbell Sir Martin Holgate Michael Hill President Vice President EmeritLES President Chief Execulive Officer Charlty number 1100759 Company number 04878364 Registered office Murley Moss Oxenholme Road Kendal Cumbria LA9 7SS Auditor Lamont Pridmore 136 Highgate Kendal Curnbria LA9 4HW Bankers CAF Bank Limited Kings Hill West Malling Kent ME19 4TA National Westminster Bank 10 Elephant Yard Kendal Cumbria LA9 4LZ Co-operative Bank Delf House Skelmer5dale WN8 6WT FRIENDS OF THE LAKE DISTRICT LEGALAND ADMINISTRATIVE INFORMATION Solicitors Bumetts Victoria House Wavell Drive Rosehill Carlisle Cumbria CA12ST Investment advisors RBC Brewin Dolphin 1 Mason Court Gillan Way Penrith 40 Business Park Penrith Cumbria CA119GR CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET Canaccord Genuty Wealth Management Ltd Talisman House Boardmans Way Blackpool FY4 5FY FRIENDS OF THE LAKE DISTRICT CONTENTS Page Chairman's ststement Trustees report 3-16 Statement of Trustees responsibilities 17 Independent auditor's report 18-21 statement of financial activities current period 22-23 Summary income and expenditure account 24 Balance sheet 25 Statement of cash flows 26 Notès to th6 financial statements 27-44 Statement of financial activities prior period 45-46 FRIENDS OF THE LAKE DISTRICT CHAIRMAN'S STATEMENT FOR THE PERIOD ENDED 31 MARCH 2024 I write this report months after local 81ections for the new unitary authorities, three days into a new Parliament, and a day after the Lake District National Park Authority annoUn￿d the appointmènt of Gavin Capstick as the next Chief Executive of the Lake District National Park Authority. He takes Ihe reins from Ri¢hard Leafe in October. The three sets of changes offer opportuniti6S to Friends at both the national and local level. After too many years of change at Friends, the last year has been more settled. Mike has now been in post for 18 months, and the strategiG review - which took in the views of staff, trustees and, most importantly, members- was completed in January, and is now being bedded in across the charity. A subsequent soft-touch refinement of the organisation to deliv8r its objectives is also well underway. Notably, the resounding response to our strategic outreach was to double down on our campaigning and planning work - strands of work that have been in Friends, DNA since day one. We have responded by adding staff capacity into the charity for both. We are aware of a continuing downward trend in membership. and a steady decline in associated membership income. Some of this decllne is explained by the older demographic of Friends. membership. But there is much we can - and must - do to reverse these trends. As such trustees have backed ambitious plans to invest from our reserves into expanding both the membership and fundraising teams. l arn pleased to say both teams are now at capacity and working on new growth strategies. In the past year you will, I hope. have heard from a louder Friends, not least in our objections to a major new holiday resort at Roanhead and Ihe Zipworld adventure development at Eltemater. It was good to see members at both rallies. But Friends has always had a quieter side, too, and we continue that work, whether by contributing to the amazing footpath work undertaken by Fix the Fells, supporting wral skills like hedge-laying and dry-stone walling, or rvnning Forest School sessions with primary schools. Our hands-on projects contFnue apace, with staff, volunteers and plenty of local schoolchildren removing litter, planting trees, building walls and removing tree guards from emerging woodland. We continue to inspire. through our Leaders Landscape Training Programme, our works with schools and our Nurtured by Nature programme. And we are IFterally. rewriting planning rules. our Cumbria Good Lighling Technical Advice Note won two awards - the Platinum, and Green Build Back Better Awards which champion innovation. creativity, environmental leadership and social purpose. For a small charity. we hit high. and where necessary, hard. Meanwhile, our work on landscape value has started conversations way beyond our own walls and landscapes about how the emerging Environmental Landscape Management Schemes (ELMS) might reward farmers and landowners for a range of societal and cultural benefits beyond a gain in, say, soil health or access. We are also working. in house, on how to pass the baton from our transport conference in 2019 and subsequent 'Public appetites for the future of the Lake District's transport system, report to build consensus for a world-leading transport system that captures revenue from tourists to re-invest in buses, active travel and Fix the Fells to the benefit not just of air quality and landscape. but also locals, tourists and business. One of the crilicisms levelled with boring regularity at Friends is that we're always the naysayer. Aside from the fact that we rarely say no, when we do. we do so for good reason. But it's important - sometimes to also offer a positive vision to contextualise the 'no'. and l am proud of the work FLD is doing to make Ihe case for taking tourist pressure seriously- for seeking ways to properly fund visionary land management- and for imagining a future beyond the status quo for traffic on the Park's roads, built- mosUy- with non-mechanised transport in mind. Announcing his new role, the National Park press team noted that Gavin Capstick 'had shared thrèe key priorities he will be working towards, alongside partners.. supporting nature recovery and agricultural transition, promoting low impact visiting, and helping people access and learn aboul the National Park and World Heritage Site. FRIENDS OF THE LAKE DISTRICT CHAIRMAN'S STATEMENT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 They are areas of interest to FLD, too. Gavin may have been inspired by the 2023 vision of the Brecon Beacons National Park - The Bannau with a Park filled with new areas of woodland,. of restored peatlands., of re- meandered rivers- and of waters wnning free of sewage. The challenge - as ever - will be how lo resolve a drive for nature restoratlon wlth the 'promotion' of 'low impact visiting,. What does 'low impact, look like in reality? With nature and water quality in decline, can the Park continue to support the number of visitors it currently does? And - this is where the more difficull questions start for the Park - would a major new tourist hub, like the Eltemater quarry- be described as 'low impact. (we don't think sol? When considering an answer. I would ask Gavin to think big- the Park challenges of our age will not be solved by tinkering with the status quo. We rernain - as.ever- here to help leadlframe andlor contribute to both the debate and to impleTnentalion of policy, as we have done for a proud 90 years. I have left Mike to write in detail about the many areas of FLD work Ihat for space reasons I have neglected,. and I will leave you in our Treasurer Robin's more than capable hands to write about our perennially healthy finances (with enduring thanks to all of you who support Friends, in whatever form). I close with a few notes of thanks. firstly to my team of fellow trustees, who give many, many unpaid hours to the governance of this charity. And secondly, to every member of the slaff team. whose commitment both to the charity and the landscapes we love mean that both are in the best possible hands. And finally, to the team of the Westmorland Dales Landscape Partnership. This fabulous scheme- that ran be￿een March 2019 and February 2024 - showcased the very best in collaborative working, with David Evans and his sterting team involved in a swathe of activities. from tree planting and habitat restoration to excavating archaeological sites and improving access. Friends was there at the very start of the scheme. which managed not only to do a whole lot of good on-the-ground work, but also inspired Ihousands of people - locals and visitors - to leam more about, and celebrate the remarkable hidden heritage of the county's quieter eastem dales. It was a showcase in what we can do when we work togelher. and we look forward to capturing the energy at the heart ot that scheme as Friends moves into 2025. Chairman Date: . 264201 FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE PERIOD ENDED 31 MARCH 2024 The Truste8s pr8S8nt their annual report and financial statements of th& charity for the 15 month period ending 31 March 2024, which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The Trustees, who are also directors for the purposes of company law and who are serving at the date of this report, are set out on page 13. The Trustees took the decision to align the charty's financial year with the business operating year 1 April to 31 March. The financlal statements have been prepared in accordance with Ihe accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and °Accounting and Reporting by Charitie5.- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102}" (effedive 1 January 2019). Objecllves and activities Friends of the Lake District continues to have Ihe following Objects.. to promote and organise concerted action for Ihe protection and conservation of the Landscape and natural beauty of the Lake District and Ihe County of Cumbria as a whole. to Co-operate with other bodies having similar objectives or interests. Our Vision: to secure a LANDSCAPE thal is.. Beautiful. dIve￿e. locally distinctive, trnnquil and environmentally healthy. ConseNed and enhanced. Accessible and enjoyed by all. Our Mission-. to ensure that People- Are inspired by the beauty and diversity of the landscape; Have an understanding of how the landscape has been shaped,. Care for and help look after the landscape, both for its own sak8 and for the benefits it brings to people s lives. Our Princlples The special qualities and distinctiveness of Cumbria s landscapes should be conseNed and enhanced. Land use change should be sustainable, be sympathetic to fhe local landscape character and deliver positive long-ten77 social. economic, cultural and biodiversity beneffts. trvhere there is conflict between land use change and the landscape, then pre￿dence should be given to the landscape. Quiet enjoyment of the countryside is fundamental to people's physical and spi17tual well-being and should be accessible to all. Public understanding of the special qualities of th8 landscape and the value of its sustainable management should be encouraged. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 2021-23 Strategic Direction Our Strategic Direction has 4 k8y Strategic Alms which provid6 a framework for our work in Ihe period 2021-2023= Protecting and enhancing the landscapes of the Lake District and CLtmbria Promoting thriving, sustainable communities Inspiring and Empowering Securing our Futur& To deliver our vision and to address the key challenges in the period, we will prioritise our activilies and resources on the following fourAims and eight Objectives: Atm 1: Protectlng and enhancing the landscapes of the Lake Dlstrict and Cumbrla 1.1 We want legislation. plans and policies which better protect and enhance our landscapes and all its inhabitants 1.2 We want a living, working. biodiverse and culturally rich landscape 1.3 We want sustainably-managed upland landscapes Aim 2: Promoting thriving• Sustainable communities 2.1 We want to support thriving communities and protect cultural heritage Aim 3: Inspiring and Empowering 3.1 We want an increasingly diverse range of people to be inspired by. value and understand our landscapes 3.2 We will use our land to showcase best practice land management and to engage, inspire and educate people of all ages and backgrounds on the value of landscapes Alm 4: Securlng our Future 4.1 We will have a financial strategy that ensures our goals are funded and that we are resilient into the future 4.2 We will further develop the positive culture within the organisation and its enga'gement with others The struclure of our Strategic Direction has been aligned to our Landscape Charter, launched in 2017, and can be found on our webpage.. htt s'.Ilwww.friendsofthelakedi5trict.or our- ur ose Public benefit The Trustees have had regard to Charity Commission guidance in preparing this statement of public benefit. The protection and enhancement of the landscape of Cumbria and the Lake District is recognised as a Gharitable purpose and is regarded as producing a public good. Friends of the Lake District exists to promote and organise concerted action for the protection and conservation of the landscape and natural beauty of the Lake District and the County of Cumbria as a whole and therefore provide a clear public benefit. Examples of our charitable activities for public benefit include= our campaigning and events to raise awareness of and irnprove Dark Skiès in the Lake District and Cumbria,. our Fell Care Days and Great Cumbria Litter Picks that improve and enhance the landscape of thè Lake District and Cumbria. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Achievements and performance Pollc and Plannin Elterwater In March 2022 plans began to emerge for a significanl tourist developm8nt at Elterwater Quarry In Ihe Langdale Valley which originally included a 'cavern coaster, and an outdoor zip-wire. These plans were scaled down and a revised proposal was submitted to the Lake District National Park Authority in January 2023. Friends of the Lake District campaigned against the proposal, on the grounds of the impact increased traffic would have on the tranquillity and Tural character of the area. The plans were rejected in September 2023 as the planning committee were not satisfied by transport plans connected to the site. A revised proposal, with an updated Iravel plan. was submitted in December but we remained unconvinced by the travel arrangements. In March 2024 we organised a rally near the proposed sile at Elterwater which attracted over 100 people and gained significant media attention. Plannlng responses In 2023. we responded to 35 planning applications out of a total of 7,625 applications received by Cumbrian planning authorities. The greatesl proportion of those we responded to were within the Lake District National Park. We objected to just 0.3Yo of all the planning applicalions received by local authorities in 2023. Roanhead: working with local communtties The Save Roanhead campaign was set up by a local community group in response to a proposal to develop a major holiday park on the Fumess peninsula, close to an intemationally important nalure reserve. July 2023, Friends of the Lake District staged a Make a Stand on the Sand event which gained lots of media coverage. Developers withdrew their initial application for a holiday resort consisting of 450 lodges, but since then, a new application for a reduced number of lodges has been put foNard. Concerns about the impact of the resort on the surrounding natural environment remain the same. Masts Throughout 2023. there was an influx of proposals for telecommunications masts to be pla￿d throughoul the Lake District. Many of the proposals were linked to the Government's roll-out of 4G connectivity and preparation for 5G. Whilst Friends of the Lake.District appreciate the need for mobile and intemet connectivity in rural areas, many of the applications for masts were ill-lhought out and lacked important information regarding aspects such as assessed alternatives, and existing and anticipated coverage. Between January 2023 and March 2024 we worked with local communities to respond lo several planning applicalions in relation to masts and successfully challenged most of them. Improving the View Following our No Pylons in the Lake District campaign and other work via lobbying and detailed consultalion responses. the government changed its policy on electricity. ne￿orkS last year. New power lines will now be undergrounded as a matter of course when crossing through protected landscapes. We worked with our partn8rs from Electricity North West. National Parks and National Landscapes, to pla￿ existing wires underground. Not only does this enhance the landscape. it also ensures energy security by protecting powerlines from things like strong winds and ice. Areas included: Dacre, near Penrtth,. Helsington church; Aughertree near Caldbeck; Thompson Ground near Hawkshead. RSPB land at Clesketts near Brampton. Mungrisdale: RSPB land at North Plain in the Solway Coast; New Barn5 near Arnside. Behvéen January 2023 and March 2024 nearly 10km of overhead lines were removed - that's more than twice our planned target for a year. Cutting Carbon in Cumbria Our work with the Zero Carbon Cumbria Partnership has helped gel Emissions Reduction Action Plans up and running wlth bold targets for carbon reduction across a number of areas in Cumbria, including transport, housing and buildings. waste, and agriculture and biodiversity. We also helped develop a Roof First Solar campaign with our colleagues at the CPRE the Countryside charity which urges the govemmenl to fully realise the potential of solar panels on rooftops, rather than using farmland or other land for solar panels. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Transport Report We supported Action with Communities in Cumbria on developing the transport report "Where do you want to get to?" which will be published later in 2024. The research. which started in 2022 and went on throughout 2023, looked al vlsitors and residents, attitudes to Iransport in the Lake District using on-street and online surveys. alongside focL¢S groups. The research, jointly funded by Friends of the Lake District. Lake Dislrict National Park Authority and Action with Communities, has found that both vlsltors and local people are keen to see a change in the Lake District's transport system. Landsca eEn ement and events Fix the Fells As a partner of Ihe Fix Ihe Fells Programme. Friends of the Lake Dislrict were delighted that an independent evalualion report found that the programme plays a vital role in the conservation of the Lake District uplands and has a positive impact on changing the way people behave when walking in the fells. The evaluation was carried oul as a requirement of the European Regional Development Fund, which funded the programme from April 2019 to June 2023. Friends of the Lake District are proud to continue to support the programme through our role as a Fix the Fells board member, the sale of our Fix the Fells Landscape Gifts. and by joining forces on volunteer events such as our annual Fell Care Day. Fell Care Day Our annual mass volunteering event in November welcomed 60 volLSnteers, task leaders and Friends of the Lake District staff to sites around Buttermere valley, out a wide range of conservation tasks. They contributed around 300 hours of conservation work. 7.5 metres of hedge laid at Watergate Farm, Loweswater 7 metres of dry-stone wall rebuilt at High Nook, Loweswater, led by the National Trust. 400 tree shelters and stakes extended and redundant shelters removed from trees planted in the Hobcarton Valley, led by Forestry England. 12km walked maintsining the Fleetwith Pike fell path with Fix the Fells. Friends in the community We delivered 40 events during this period, including conservation days. litter picking, training events, and traditional rural skills such as hedge laying and dry stone walling. More than 800 people took part in one or more of our events. Great Cumbrian Litter Picks We led hvo Great Cumbrian litter picks between January 2023 and March 2024. Community groups, schools and individual volunteers from all over the county helped to pick up litter from their local streets. school grounds. public areas, lakes and mountain tops. At least 203 bags of rubbish were collected by 450 people across both events. Hedge laying and dry stone walling competitions We held hedge laying competitions, and one for dry stone walling, be￿een January 2023 and March 2024. Hedgerows and dry stone walls are significant features in the Lake District. They are an important part of our cultural heritage, help keep livestock in place, and provide habitats for all kinds of nature. Their maintenance is vital lo retsin the landscape character of the Lake District, bul the traditional skills needed to maintain them are being lost. Thg Friends of the Lake Dislrict hedge laying and dry stone walling competitions encourage peopl8 to learn these skills. to keep hedgerows thriving and dry stone walls in good shape. The youngest entrant in our 2023 dry stone walling compelition was aged 11. Leaders, Landscape Training Programme Our Leaders, Landscape Training Sessions are aimed at outdoor practitioners to help d8epen their understanding of Cumbria's landscapes and enable them to pass on their new-found knowledge to those with whom they work. The sessions are also offered as accredited Continuous Professional Development training through the Mountain Training Association. Last year's sessions were themed around geology with sessions discussing topics such as how our landscapes have been formed, and the features of glaciation and the lasl I￿ age. 38 people attended Leaders Landscape Training sessions with an estimated reach of 4,000 people with whom they will share their newfound knowledge. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Nurtured by Nature Through this project we were able to offer free opportunities for key workers and others to get involved in different wellbeing activities, whether to take a b￿ak from the stresses of everyday life. get out wilh likeminded people. or build the skills and confidence to continue to get oul in nature in their own time. We held 22 events between February to November 2023 including gulded walks, navigation trainlng days, sound bathing, wild swimming and alpaca walking. Worklng with Schools 43 pupils and 5 staff from Sedbergh School visited our land at High Borrowdale in December for their 'Giving Back Day.. They removed around 500 tree tubes from the fell-side and restaked many trees. Meanwhile. children from Threlkeld Primary School helped build a willow den on our land at Dan Mire Wood. The school uses the site regularly as part of their forest school sessions, which Friends of the Lake District is helping to run. Pro ects Westmorland Dales Westmorland Dales is a beautiful area of Cumbria north of the Howgill Fells and within Ihe north-west comer of the yorkshi￿ Dale5 National Park. It stretches from Tebay in the south-west to Kirkby Slephen in the east and to Maulds Meaburn in the north-west. At its heart are the limestone fells above Orton and Asby, Tich in natural and ultural heritage, and with magnificent views to the Pennines. the Howgills and the Lakeland fells. Relatively overlooked compared with its better-known neighbours. our projects have aimed to reveal its heritage for more to enjoy without detracting from its unique qualitie5. The Westmorland Dales Landscape Partnership. led by Friends of the Lake District and the Yorkshire Dales National Park Authority. delivered a range of projects, mainly funded through the National Lottery Heritage Fund. It ran over a five-year period from March 2019 to February 2024. The scheme was led by David Evans. and trustees are grateful to him for the projecvs enomious achievements, including.... Revealing the Foundations.. designating Local Geological Sites {111. interpreting the area's geology: engaging with schools and wider public. working with Cumbria Geoconservation. Conserving Species-rich Grasslands: volunteer training, surveying and monitoring; enhancinglrestoring species-rich meadows120ha),' creating a roadside nature reserve.''grassland-related events., pollinator workshop. Reconnecting Woods, Trees and People.. creating woodland (1 Oha)- restoring hedgerow {4km),' installing tree cages (150) and bird boxes (40)., engaging landowners (101 and schools (41. Changing the Course, Slowing the Flow= restoring thè reaches of Scandal Beck and Riv8r Lyvennet (tributaries of the River Eden) through= restoring river channel (2km) and water dependent habitat (1 ha)- planting trees {1,800)- adding flood managèment measures (20)- and engaging landowners (6). Sustaining Farming in the Westmorland Dales- involving fam businesses (60) in knowledg6-transfer events; training vouchers for farmers {20}. skills developmant programme for young people {2),' public events (6>. Riverine Species Monitoring - Upper Lune Area:collect better data on the presence. prevalence and distribution of key riverlne Indicator species including White Clawed crayfish, Atlanllc salmon and other fish species. Great Asby Scar Community Archaeology SuNey: surveying 4.3 sq km. Little Asby Through the Keyhole: community archaeology excavations {6). Digging the Past: community archaeology excavating test plts (25) in an historic settlement. Gamelands Stone Circle: undergrounding visuallyintrusive overhead electricity cables (1.3km); geophysical survey involving volunteers. Dry-stone Walls.. historical and condition survey of drystone wa115', consolidating priority lenglhs11 km). Tradltional Farm Buildings: surveying, recording, interpreting and conserving. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Srnall-scale Heritage Features.. community surveying settlemenls (7). Our Common Heritage: training volunteers (6) in Oral History capture and recording testimonies from common6rs (15). Monuments at Risk: conserving Monuments at Risk (4).. Pendragon Castle" Smardale Lime Kilns; Crosby., Raven5WOrth Barrow: Shieling. A Way Through from Roman roads to M6.. researching routes; interpreting findings. Love your landscape.. small grants scheme for voluntary and community groups, landowners, famiers, schools and local councils (20 grants). Skills for the future.. apprenticeships (9) in environmental management and cultural heritage conservation. plus certified vocational training. Discovering the Westmorland Dales: improving accessibility of rights of way ne￿ork. creating a link {9kml be￿een the Pennine Bridleway National Trail and other bridleways; extending Ihe Yorkshire Dales Cycleway to become a touring route around the whole National Park. Distinctly Westmorland Dales: up-skilling and conneciing local tourism businesses through courses. workshops and liaison events. Inlerpreting the Westmorland Dales.. schematic map- interpretative (15) and orientation (9) panels and leaflets. Celebrating and Engaging- volunteers, skills workshops (8). annual socials and other events-, arts events- formal and informal leaming events. focusing on outdoor activity sessions for primary (9) and secondary {2) schools, families, young people and adults. Dark Skies In 2023, we launched our Cumbria Good Lighting Technical Advice Note developed in conjunction with Dark Source Lighting Design. The guide provides lighting guidance to planners and planning applicants, and is also designed to help individuals, organisations or communities to make good lighting choices. The work was supported and endorsed by planning authorities across Cumbria and the Yorkshire Dales National Park. By developing it, we hope lo achieve a nel reduction in light pollution across the region. helping to protect the darkest areas and reduce light pollution in those areas already affected. Almost as soon as it was launched, the guide won iwo awards.. Ihe Platinum, and Green Build Back Better Awards which champion innovalion. creativity, environmental leadership and social purpose. Stargazlng There were over 100 Dark Sky ev8nts across the region organis8d by our Dark Skies partners and businesse5, which included dark sky walks, a "moonwatch. with Kirkbie Kendal school pupils. talks and even a canoeing trip under the stars. We also ran three Big Switch Off events where businèsses, community groups and residents in Ambleside, Grasmere and Keswick turned off lights to enjoy the night sky. In addition. we ¢reated a 'Cumbria Dark Skies room brochure, for hotel and B&8 guests to encourage them to step outside, look up and be wowed by how many stars they could ses. Lighling the way We worked with Patterdale and Sedbergh Parish Councils who installed new dark sky and wildlife friendly slreetlights. As our Dark Skies officer Jack Ellerby explains. The design of the new lighls means their beam throws light onto path and road surfaces. rather than up into the sky. They are a warmer colour too, which is gentlèr on our eyes and better for wildlife that's active overnight. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 National Park Societias conforonce in Kendal Representalives from the UK'S 15 national parks societies, govemment and partner organisations gathered in Kendal in October for the 2023 National Park Societies Annual conferen￿ co-hosted by Friends of the Lake District and Campaign for National Parks. Key topics on the agenda included politics, policy making and a panel session on campaigning, passion. and principle. Kirby leeture Our 2023 Kirby 18Cture was titled 'Re-imagining Lakeland's water: fresh idèas for a sparkling fiJtur8', and it was inspired by the pollution-free Lake Annecy in France. There was a briefing about the science behind water from Freshwater Biological Association and West Cumbria Rivers Trusl. and then speakers lalked about the main challenges facing water quality: mains and public sewage. private septic tanks and agricultural n¥n-off. They answered lots of searchirkg questions from a packed audience and presented their visions for.the future of water In Cumbria. Our land Friends of the Lake District has owned land in Cumbria since 1937. We own land to enhance the landscape of the area, increase access and model best practi￿ in land management. Our land includes valleys, native woodlands. moorlands. uplands and commons. We own 11 ple￿$ of land scattered across Ihe Lake District National Park and Cumbria covering approximately 600 hectares. Virtual Tours In 2023, we launched a virtual tour of High Borrowdale and began work on six other properties. enabling people to explore our beautifvl landscapes from the comfort of their own armchairs no matter where they are in the world. We also added digital information points onto our High Borrowdale land, meaning people can watGh videos explaining more about the area around them as they explore. Benefits of the Land Last year. we commissioned the first ever assessment of the multiple benefils that land provides for society. We focused on Litlle Asby Common and our report found the land delivers between £20 million lo £60 million pounds of public benefits in terms of health and wellbeing, access and recreation, and Cultural heritage. This research can help us make the case for better funding to protect and enhance landscapes in the foture. for example. Fundraising practices Membership In 2023124 we had Iwo mèmbership meet-ups plus a well-attended Annual General Meeting and a sell-out Kirby lecture. We brought together our February 2024 member meet up with our Ambleside Big Switch Off event and spent time exploring all the incredible achievements of our Da￿ Skies projed. We publlshed four editions of our membershlp magazine Conserving Lakeland, and a speclal supplement on climate and biodiversity. We also sent 15 Postcard from the Lakes e-newsletters to members and supporters. Between January 2023 and March 2024 we welcomed 279 new members. We're working on a new mèmbership strategy which will be launched later in the year. Fundraising We ran four appeals last year to raise funds for land management, planning and campaigning, a general appeal and our 90th Birthday Nature Appeal. 229 walkers took part in Ihe annual Morecambe Bay Crossing in 2023. Legacy Income and individual giving continues to be incredibly important enabling us to deliver our charitable aclivities, plan for the future and hold an accaptable level of reserves to purchase at risk landlprop8rty. Fundraising perfomianc8 Merchandise Our 2023 photo competition contest attracted the usual high quality enlries with the winning images featuring in our 2023 Christmas card collection and 2024 calendar. Along with Christmas cards and calendars, sales of our nolecards, tea towels, landscape gifts and art prints generated £22,479. FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Digital evolution We understand the importance of maintaining traditlonal methods of WOTking whilst also recognising the ever evolving digital world we all live in. This year we 8nlisled Ihe support of an external specialist lo help us map our digital journey to ensure that we are not left behind. We have developed a new digital strategy which will guide us to embed technologies across the organisation which will increase efficiency, greater agility and, ultimately, unlock new value for employees. members, volunteers and donors. Thank you Thank you to our members, supporters and partner organisations for all their support during the last fifteen months. From generous donations, to Ihe hard work of our volunteers, we're gratefvl for all the contributions that we've received to help us protect and enhance Cumbrian landscapes. We also wish to express our sincere gratitude to those who left a gift lo Friends of Ihe Lake District. in their will.. Joyce Andrews. Jill Austin. Eileen Barton. Joyce Blanchard. Sheila Brandon, Sylvia Brockbank. Gilian Brown, Patricia Joan Crompton, David Cutforth, Robert Harry Hill. Betty Hinchliffe, Ann Hinton. Duncan Hobbs, Christine Huggins. Nancy Hyde. Katharine Mary Jephcott, Rita Langman, Brian Lawrence, Barbara Peel, Robin Scoones, Robert K Thompson. Judith Todd. Raymond Todd. Alan Wells and Constance Wright. Leaving a lasling legacy is a wonderful way to ensure that future generations can continue to enjoy the tranquillity and beauty of Ihese special places. If you'd like to know more about leaving a legacy, please contact claire.cobum fld.or We'd also like to thank and honour donalions made in the memory of.. John Battersby. Mrs Bower, SLssan Bradley, Winefride Bromley, David Cufforth. Joanna Gent, Jeffrey Hazelton. Joy Hutchings. Geoff Mather, Godfrey Moy, John Nutter, John Pattison, Alan Place, Heather Reid Whittaker. Jean Savage, Pat SchwarLenbach, Eric Stuffins, Michael ThunTtran. Rita Tuck & Sharon Bloomfield, Simon Rodney Tudor. Joanna Wates, Neil Wraight, Constance Wright and Sheila Willett Anholt. And finally, we'd like to thank our benefactors for their continued support= John Bery, James Brockbank & Louise Ronane, John Campbe15. Richard Coates, Philip Cropper, Margaret Haigh. John Harris. Peter Hughes QC, John & Margaret Jackson. Brian Leig￿Bramwel1, Rosamund Macfarlane. Jim & Sue Martin, and Elizabeth Reddaway. 10- FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Flnancial review Consolidated financial fi ures from the 202314 Accounts 15 month eriod Total income £1094 503 Voluntary Income- {Legacies, Donations and Subscriptions) £699,912 Charitable Acttvities £248,443 Trading Activities £22.479 Investments £123.669 Land donated £Nil Totsl e enditure £1 510 940 Generating Voluntary Income (Inc. Membership) £172,368 Charitable Activities £1.248,814 Trading Activities £72,544 Investment Management Costs £17.214 Total FundslNet Assets at 31 March 2024 Total £5 444 629 Tangible Fixed Assets (including properties) £1.604,473 Investments £2.848,637 Net Current Assets £991.519 Funds b restriction Unrestricted £2,062,685 Designated (including Tangible fixed assets} £2,795,473 Restricted £151,126 Permanent Endowment £435,345 Going concem In line with the Charities SORP {FRS 102) and the Charities Acts of 2006 and 2011. as a result of our evidence assessment and levels of reserves. as laid out in this Annual Report. the Trustees conclude the charity is a going concern and there are no material uncertainties relating to its going concern status. The financial statemenls have been prepared on a 'going concern, basis. 11 FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Reserves policy The Charity needs reseNes in order that. it can provide working capital when funding is paid in arrears., it can meet the costs of new campaigns, unforeseen emergencies andlor other unexpected needs for funds, including employing temporary slaff to cover long-term sick absence; it protects against unpredictable legacy income, in order to provide a stable and quality servi¢e to fulfil its objectives; it can acquire strategic land holdings, should théy become available,. and It can purchase land which may be at threat of inappropriate development. It can meet contractual obligations should the charity have to close. In 202314. the Board maintained reserves for the lollowing purposes.. a designaled fund for working capital., a designated fvnd for contingencies -including provision to address the ongoing financial impact of inflationary pressures- The purchase of land under threat of inappropriate development. Endowment funds: Our Endowment funds are managed separately from the other assets of the charity by Brewin Dolphin. The 2 Kirby Endowment Funds are: 1 } Amenity Fund, the income from which is restricted for use in our charitsble activrties and policy work; and 2) General Fund, income from which is unrestricted but used for our Environmental Improvement Grants (which became the Landscape Grants Scheme in 2019) and the annual Kirby Lecture. Towards the end of 2015 we were notified of a new endowment legacy - the Margaret Taylor Memorlal Fund. The income from the Margaret Taylor Memorial fvnd is not restricted and is used to support our wider work.. Property Assets The charity owns a portfolio of land and a propety, which are maintained by the charity in furtherance of its charitable objects. Details of all our properties can be found on our website= httPS-Ilwww.friendsofthelakedistrict.org.uklLislingl Categorylour-land The trustee Board in 2017 agreed to adopt the change to accounting procedures relating to valuation of propety assets, as offered by the transttion arrangements switching from FRSSE to FRS102. As such, property asset values will be set at 2012 amounts as deemed cost. Investment poliGy The Articles of Association of the charitable company Oemit the Board wide powers of investment. The investment policy for the charity has been to maintain capttal growth and tske advantage of the income which it generat8S. Plans for future perlods Over the summer of 2023 Friends of the Lake District ran a major strategic consultation exercise. with detailed questionnaires sent to Ihousands of membèrs, supporters, staff, and trustees. The results fed into a new set of strategic objectives, a new work plan, and a revised organisational structure, which have been signed off by trustees and adopted from April 2024. Structure, governance and management The Charity is a membership organisation governed by its Articles of Association dated 16 June 2003, updated and approved at the AGM in May 2014. and was incorporated as a company limited by guarantee on 27 August 2003. The previous, unincorporated, charity of the same name was founded in 1934. The new Charities Act 2022 received Royal Assent in early 2022, and the first tranche of provisions came into effect at end of October 2022. There were no immediate implications for our working practices during 2023-24 and the Trustees remained aware of provisions being introduced in 2023 and any implications these might have. Similarly, the Trustees were aware of the anticipated changes to Companies House legislation in early 2023. 12- FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 The Tnjstees, who are also the directors for the purpose of company law. and who served during the period and up to the date of signature of thè financial stalements were.. Judith Cooke (Resigned 7 July 2023) David F81ton Philip Cropper Lucy Hetherington Robin Forrest Malcom Boswell Laura Doan Sarah Hodgson-Jones Robert Mccracken Fiona Sanders Anthony Vaux (Resigned 7 July 2023) (Appointed 13 February 2023) (Resigned 7 July 2023) (Appointed 13 February 2023) (Appointed 13 February 2023) Recniitment and appointment of tnjstees The Board, whose members carry the responsibilities of directors with trustee responsibilities. is the main governing body of the Charitable Company. Trustees are elected by the members at the AGM in accordance wilh the Articles ofAssociation which provides for a minimum of 4 and a maximum of 18 members on the Board. New Trustees are supported in the induction process by the Chair of the Board and Company Secretary. and are usually elected after a period of co-option. This induction process includes sessions with the staff and an introduction to the Charity. Newly inducted Trustees reported high levels of salisfaction with Ihe induction programme. Trustees agree a Code of Govemance which is reviewed and adopted after each AGM. In compliance with the Code of Governance. a self-assessment of effectiveness and efficiency was conducted during the period. Given the effectiveness of hybTid meetings during the COVID pandemic, the option of remote attendance at Board and sub- committee meetings will be maintained. as required, although face-to-face attendance is encouraged. Strategy and governan￿ functions of the trustee Board are monitored as part of tnjstee meetings, with regular agenda items that include= the stralegic diredion of the organisation,- proper arrangements relaling to effective governance of the Friends of the Lake District.. risk management- the nomination of candidates for appointmont as trustees- and that appropriate systems exist for the induction and training of trustees. 13 FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Organisational structure Who we are . from Janua 2023 to March 2024 President Position Vacant ice President Mr John Campbell Emeritus President Sir Martin Holdgate CB Trustees David Felton (Chair) Lucy Hetherington (Vice Chairl Robin Forrest (Treasurer) Malcolm Boswell (co-opted from Fèbruary 2023) Robert Mccracken (Co￿0Pled from February 2023) Fiona Sanders (COryOPted from February 20231 Laura Doan Anthony Vaux Philip Cropper (term ended July 2023) Sarah Hodgson-Jones (temi ended July 2023} Staff (Full and Part time) Kay Andrews {Landscape Engagement Officer) Stuart Clayton (Head of Finance and Operations) and acting Chief Executive until April 2023 Jan Darrall {Policy Officer) Rachel Do￿Ington (Fundraising Officer) Jack Ellerby (Dark Skies Officer) Dawn Groundsell (Communications Officer) Amanda Mccleery (Overhead Wires Project & Policy Officer) Megan Mattinson (Administration & Finance Officer) Jasmine O'Flaherty (Dala Lead) Laura Partington (Policy Offi￿r) Kate Willshaw (Policy Officer) Lorayne Woodend Wall (Planning Officer) Nèw starters in the period Michael Hill (Chief Executive) from April 2023 Stacey Plant (Finance & Administration Offi￿rI from July 2023 Helen Howe (Membership & Volunteering Lead) from September 2023 Maggie Shelton (Finance & Administration Officer) from October 2023 Claire Coburn (Fundraising Stjpporter Relations Manager) February 2024 Christian Lisseman (Communications Lead) from March 2024 Leavers In the period Grac8 Cooper (Administration and Finance Officer) until March 2023 Vanessa Rhoden (Fundraising Manager) until August 2023 Jodie Lucas-Jones (Administration and Finance Officer) until September 2023 Ellie Morton (Membership Officer) until October 2023 Krislina Dobie (Finance and Central Resources Manager until December 2023 Clare Hucknall (Company Secrelary) until January 2024 Chris James {Communications Officer) until February 2024 Maggie Shelton (Finan￿ & Adminislration Officer) March 2024 14- FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Closure of the Hèritage Lottery Funded Westmorland Dales Landscape Project Hannah Kingsbury (Cultural Heritage Offi￿r- Westmorland Dales Landscape Partnership) until July 2023 Nicola Estill (Community Engagement Officer- Westmorfand Dales Landscape Partnership) until October 2023 Penny Mcmullen (Administration and Finance Officer- W8strnorland Dales Lands￿pe Partnership) until December 2023 Amanda Walters (Interpretalion Officer- Westmorland Dales Landscape Partnership) until De￿rnber 2023 David Evans {S¢hemè Manager, W6Stmorland Dales Landscape Partnership) until March 2023 Other matters Corporate Governanco Rolling agenda items include consideration of the flnancial status and sustainability of the organisation and regular reviews of risk management which includes financial systems and audit procedures. Specifically, the Executive Board: maintains oversight of the development of an annual budget in line with the requirements of Ihe proposed Business Plan: ensures appropriate financial systems and controls are in place, that there is effective management and monitoring of the Friends of the Lake Districl's finances, financial control systems and procedures. assets including properties. and all other matters relevant to the financial affairs of Friends of the Lake District in order to achieve the charitable Objects and the legal obligations of the organisalion.. ensures proper arrangements are in place to secure effective audit of the Friends of the Lake District. During 2018 General Data Protection Regulation (GDPR) was introduced and in 2022 we reviewed our policies and procedure5 to meet these regulations. There has been one request for personal data erasure. which was carried out within Ihe timeframe specified. There have been no fundraising, or other complaints. We continue to operate within the guidelines set out by the Fundraising Regulator. We tske great care and caution with our fundraising practices to ensure protection of vulnerable people and other members of the public and keep all direct fundraising in-house. We have not employed any exlemal professional fijndraiser or commercial participator. Our Fundraising Manager has monitored and maintained an overview of all fundraising activities carried out by individuals within the organisation, and by the organisation as a whole. which is overseen by the Chief Executive and the Board of Trustees. Organisational Management The introduction of Michael Hill as the new CEO in April 2023 coincided with the requirement to draft a new strategic plan to guide Ihe organisation through the next 3 year period. The period saw a relatively high tumover of staff due to a number of factors including the planned closure of the 5 year funded Heritage Lottery project- Westmorland Dales Landscape Scheme. staff vacancies enabled the management team to re-shape the staffing structure to deliver the clear objectives within the new strategic plan. This includes investment in a new fijndraising team recognising the need to diversify our income streams to meet the ever-increasing operational costs and enable the charity to achieve our medium and long term aspirations. Our new structure reflects the new stralegi¢ plan and will enable the charity to focus on the areas we know are of importance to our members. 15- FRIENDS OF THE LAKE DISTRICT TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Relationship with wider network Cooperation with other organisatlons Throughout the year, we have continued lo work in co-operation with other bodies with similar aims and objecttves to our own. These include the Campaign for National Parks, the Campaign to Protect Rural England Isince 1978 the charity has represented CPRE in Cumbria]. the National Trust. the Lake District National Park Authority, and Ihe Yorkshire Dales National Park Authority. who worked closely with us in The Westmorland Dales Landscape Partnership Scheme. We are also members of Ihe Lake District National Patk Partnership, leading on Ihe Dark Skies and Landscape Character Assessment projects. In addition, we are represented on a number of local groups. Friends of the Lake District is a member of the Fix the Fells project Board and other organisalions we have moré direct involvement with include= Foundation for Common Land, and Cumbria Local Nature Partnership and the UK Dark Skies Partnership. As part of our landscape engagement activities we have worked closely with a number of partners including.. John Muir Trust, Cumbria Wildlife Trust, RSPB. Eden Rivers Trust, South Cumbria Rivers Trust, John Strutt Conservation Foundation. Trash Free Trails, as well as National Trust. National Park and Fix the Fells. Our adIa￿nt AONB'S (areas of outstanding natural beauty) have sifflilarly been involved in events such as Great Cumbrian Litter Pick and Greal Landscapes Festival. Auditor In accordance with the companvs articles, a resolution proposing that Lamont Pridmore be reappointed as auditor of the company will be put at a General Meeting. The Trustees report was approved by the Board of Truslees. David Felton Date: 16- FRIENDS OF THE LAKE DISTRICT STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE PERIOD ENDED 31 MARCH 2024 The Trustees are responsible for preparing their Annual Report and the financial statements in accordan￿ with applicable law and regulalions. The financial slatements comply with Ihe Charities Act 2011, the Companies Act 2006, the Mernorandum and Articles of Association, and Ac¢ounting and Reporting Charities.. Stalement of Recommended Practice applicable to charities preparing their accounts in accordance with Ihe FinanGial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) (effective 1 January 20151. Undef company.law the directors must not approve the financial statements unless they are satisfied Ihat Ihey give a true and fair view of the state of affairs of the charity and of the net income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to: (i) select suitable accounting policies and thers apply them consistently., (li) make judgements and accounling estimates that are reasonable and prudent: and {iii} prepare the financial statemenls on the 'going concem, basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are Sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charily and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and delection of fraud" and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial infomiation published on the charivs website. The Trustees understand there is no relevant audit infomiation of which the company's auditors are unaware. The Trustees have each taken all the steps that Company's Directors need to take in order to make Ihemselves aware of any relevant audit infr)rmation and to establish that the CoMpan￿S auditors are aware of that information. The Trustees are aware of no incidents of non-compliance with other regulatory policies and intemal policies. and we have complied with all previous and current fvndraising requirements. In line with Charity Commission recommendations. we are happy to report no serious incidents have come to our attention in 2023-24. In addition. the Trustees are confident that during the year since the AGM in July 2023. the Charity has complied with its Articles of Association, charity law requirements and other applicable laws. In 2017, legislation was intrOdU￿d requiring all companies to identify and register any Persons of Significant Control. This was reviewed by the trustees in 2017. and subsequently on an annual basis most recently March 2023, and there was no one identtfied as being a person of significant control. 17- FRIENDS OF THE LAKE DISTRICT INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FRIENDS OF THE LAKE DISTRICT Oplnlon We have audited the financial statements of Friends of the Lake Dislrict (the 'Charity'} for Ihe period ended 31 March 2024 which comprise, the summary income and expenditure account, the balan￿ sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework thal has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporting Standanl applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitsble company's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the period then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿. and have been prepared in accordance with the requirernents of the Companies Acl 2006. Basis for opinion We oonducted our audit in accordance with International Standards on Auditing {UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities ft)r Ihe audit ol the financial statements section of our report. We are independent of the Charity in accordance with the elhical requirements Ihat are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Trustees use of the going concem basis of accounting in the preparation of ihe 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 the Charity's ability to conlinue as a going concem for a p6riod of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilitie5 of the Trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The other infomiation comprises the information included in the annual report other than the financial slatemenls and our auditor's report thereon. The Trustees are responsible for the other informalion contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and we do nol express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of Ihe audit, or othe￿ise appears to be materially misststed. If we idenlify such material inconsistencies or apparent material misslatements, we ar8 required to determine whether this gives rise to a material misstalement in the financial statements themselves. If, based on the work we have performed, we ¢onclude that there is a material misstatement of this olher infomats'on. we are requiréd to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of th8 audit.. the information given in the Trustees, Report, which includes the Directors, Report prepar8d for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial sÉatements; and the Directors, Report included within the Trustees. Report has been prepared in accordance wilh applicable legal requirements. 18- FRIENDS OF THE LAKE DISTRICT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FRIENDS OF THE LAKE DISTRICT Matters on whlch we are required to report by exceptlon In the light of the knowledge and understanding of the charity and Its environment obtained in the course of the audit, we have not identified material misstalements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinlon: the infomiatlon given in the financial ststements Is inconsistent in any material respect wth the Trustees report. or 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 statements are nol in agreement with the accountlng records and retums. or we have not received all the information and explanations we require for our audit. the trustees were not entitled to prepare the firiancial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the directors. report and from the requirement to Prepare a strategic report. Responsibilitles of Trusl•os As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial 5talements and for being satisfied that they give a true and fair view. and for such intemal control as the Trustees detemine is necessary to enable the preparation of financial stalements that are free from material misstatement. whether dué to fraud or e￿Or. In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concem. disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Auditor's responsiblllties 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. whelher due lo fraud or error. and to issue an auditols 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 misstatement when it exists. Misststements can arise from fraud or emr and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are inslances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are Gapable of detecting irregularities, including fraud is detailed below: The objectives of our audit in respect of fraud are.. to identify and assess the risks of material misstatement of the flnancial stslements due to fraud., to obtain sufficient appropriate audil evidence regarding the assessed risks of material misslatement due lo fraud. through designing and implementing appropriate responses to those assessed risks,. and to respond appropriately to instances of fraud or suspected fraud identified during the audtt. However, the primary responsibility for the prevention and detection of fraud rests wilh both management and those charged with govemance of the charitable company. 19- FRIENDS OF THE LAKE DISTRICT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FRIENDS OF THE LAKE DISTRICT Our approach was as follows: We obtained an understsnding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are: Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective 1 January 2019) - (Charities SORP IFRS 102)). FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel and the Companies Act 2006. We assessed the risk of material misstatement of the financial statements, including the risk of material rnisstatement due to fraud and how it might occur. We inquired of management and those charged with govemance as to any known instances of non- compliance Of suspected non-compliance with laws and ￿gUlatIOnS. We examined supporting documents for all material balances, transactions and disclosures. We applied analytical procedures lo identify any unusual or unexpected relalionships. We tested the appropriateness of journal entries recorded in the general ledger and other adjuslments made in the preparation of Ihe financial statements. Owing to the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial stalements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non- Complian￿ with laws and regulations is from the events and Iransaclions reflecled in the financial slatemenls, the less likely the inherenlly limiled procedures required by auditing standards would identify it. In addition. as wilh any audit. there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions. misrepresentations. or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non- compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance wilh ISAS (UK). we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misststement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks, and obtain audit evidence that is SLrfficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher Ihan for one resulting from error, as fraud may involve collusion. forgery, intentional omissions. misrepresentations, or the override of internal contml. Obtain an understanding of internal control relevant to the audit in order to design audit prO￿dureS that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit eviden￿ obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we Conclude that a material uncertainty exists, we are required lo draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate. to modify our opinion. Our conclusions are based on the audit evidence obtained up lo the date of our auditor's report. However, future events or conditions may cause th8 charitable company to cease lo continue as a going concern. Evaluate the overall presentation, structure and content of th8 financial ststements. including the disclosures. and whether thè financial statements represent the underlying transactions and 8vents in a manner that achieves fair presentation. We communicate with those charged wilh governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings. including any significant deficiencies in internal control that we identify during our audit. -20- FRIENDS OF THE LAKE DISTRICT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FRIENDS OF THE LAKE DISTRICT Use of our report This report is made solely to the charity's trustees. as a body, in accordance with Chapier 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to slate to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone olher than the charity and the chariws trustees as a body, for our audit work. for this r6POrt, or for the opinions we have formed. Christopher Lamont Bsc FCA (Senlor Statutory Audltor) for and on behalf of Lamont Prldmore •rlvgiivZ* Chartered Accountants statutory Auditor 136 Highgate Kendal Cumbria LA9 4HW 21 FRIENDS OF THE LAKE DISTRICT STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2024 Current financial period Unrestricted Unrestricted Restricted Endowment funds funds funds funds General Designated 2024 2024 Total Total 2024 2024 2024 2022 Notes Income and endowments from: Donations, Legacies, Membership Subscriptions & Grants Charitable activilies Properties Events & Other Income Sale of Merchandise 697.131 235,690 932,821 1,363,650 2.941 12.593 22,173 2.941 12,593 22,479 1.840 10.754 29.524 306 Investments Other income 101,192 22.477 123,669 66.025 110,000 Total incorne and endowments 836,030 235,996 22,477 1.094,503 1,581,793 Expenditure on: Raisin funds Costs of Generating Voluntary Income Costs of Sale of Merchandise Investment Management Costs 172,368 172,368 134.329 72.544 72,544 61,094 12.036 5,178 17.214 9,217 256,948 5,178 262.126 204,640 Charitable activities Protect Your Lake District Train & Inspire Grants - Amenity and Conservation 344.818 518,083 344,818 802,824 242,710 488,552 284,741 88,251 12,921 101.172 61,958 Total charltable expenditure 951,152 297.662 1,248,814 793,220 Total expendlture 1,208,100 297.662 5,178 1,510,940 997.860 Net gainsl(losses} on investments 13 214,709 467 215,176 {408,063) Net incomel{expenditure) (157,361) 161,666} 17,766 {201,261) 175,870 -22- FRIENDS OF THE LAKE DISTRICT STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Current financial period Unrestricted Unrestricted Re$lri¢ted Endowment funds funds funds funds General Deslgnated 2024 2024 Total Total 2024 2024 2024 2022 Notes Net Incomel(expendlture) (157,3611 (61,666) 17,766 {201,261) 175,870 Transfers belmeen funds (32,370) (14,503) 53,686 {6,813) Net movement in funds 10 (189,731 > (14,503) (7.980) 10,953 (201.261> 175,870 Reconciliation of funds: Fund balan￿$ at l January 2023 2,252,416 2.809,976 159,106 424,392 5,645.890 5.470.020 Fund balances at 31 March 2024 2,062,685 2,795.473 151,126 435.345 5,444,629 5.645,890 The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities. 23- FRIENDS OF THE LAKE DISTRICT SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2024 All income funds Perlod ended 31 March 2024 31 December 2022 Gross income Gainsl(lossesJ on investments 1,094,503 215,176 1.581,793 (408,0631 Total income in the reporting period 1,309,679 1,173.730 Total expenditure from income fLtnds (1,510,940} (997,860) Net {expenditure)lincome for the perlod (201,261) 175,870 -24- FRIENDS OF THE LAKE DISTRICT BALANCE SHEET ASAT31 MARCH 2024 2024 2022 Notes Fixed assets Tangible assets Investments 15 16 1,604,473 2,848,637 1.618,976 2,686,528 4,453,110 4,305,504 Current assèts Stocks Debtors Cash at bank and in hand 17 18 2,511 354.198 730,970 3,243 489,855 917,581 1.087,679 1.410,679 Creditors: amounts falling due wlthln one year 19 (96,160) (70.2931 Net current assets 991,519 1,340.386 Totsl assets less current liabilities 5.444,629 5,645.890 Net assets excluding pension liability 5.444,629 5,645.890 The funds of the Charity Endowment funds Restricted income funds Unrestricted funds - general Unrestricted funds - Désignated 21 22 435,345 151.126 2,062,685 2,795.473 432,939 167.606 2.235.369 2.809,976 23 5,444,629 5,645,890 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Truslees on David Felton Company registration number 04878364 (England and Wales) -25- FRIENDS OF THE LAKE DISTRICT STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2024 2024 2022 Notes Cash flows from operating activities Cash (absorbed byygenerated from operations 29 (363,347) 166,997 Investlng activlties Purchase of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received (16.011) (500,000) (50,000) 103,067 123,669 66,025 Net cash generated froml(used in investing activities 176,736 {449,986) Net cash used in financing activitles Net decrease In cash and cash equlvalents {186,611} (282.989) Cash and cash equivalents at beginning of period 917,581 1,200,570 Cash and cash equivalents at end of period 730,970 917.581 -26- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Accountlng pollciès Charlty Informatlon Friends of the Lake District is a private company limited by guarantee incorporated in England and Wales. The registered office is Murley Moss, Oxenholme Road. Kendal, Cumbria, LA9 7SS. 1.1 Reporting period In the first quarter of 2023 trustees took the decision to align the financial year with the fiscal rather than the calendar year as per previous years. This move enabled the organisation to align the financial activities of the organisation with the operational activities to enhance efficiencies. 1.2 Accountlng convention The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. ("FRS 102.) and the Charities SORP'Accounting and Reporting by Charities= Statement of Recommended practi￿ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102}" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in slerling, which is the functional currency of the Charity- Monetsry amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention unless othe￿ise stated in the relevant accounting policy note. The principal accounting policies adopted are set out below. 1.3 Going concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus Ihe Trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.4 Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Designated fijnds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial ststements. Restricted funds are subject to specific conditions by donors or grantors as to how they may b8 used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specrfic conditions by donors that the capital must be maintained by the Charity- 1.5 Income Income is recognised when the Charity is legally 8ntitled to tt after any performance conditions have been met, the amounts can be m8asured reliably, and it is probable that income will be re￿ived. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donalion. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the lime of the donation. Legacies are recognised on re￿Ipl or otheNise if the Charity has been notified of an imp8nding distribution, the amount is known, and receipl is expected. If the amount is not known, the legacy is treated as a contingent asset. -27- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Accountlng pollcl88 {Continued} 1.6 Expenditure Expenditure is recognised once there is a legal or conslructive obligation lo transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each actlvlty are made up of the total of direct Gosls and shared costs. including support costs involved in ursdertaking each adivity. Direct costs attributable to a single activity are allocated directly to thal activily. Shared costs whith contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those aclivilies on a basis consistent with. the use of resources. Cenlral stsff costs are allocaled on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.7 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation. net of depreciation and any impairment losses. Depreciation is reGognisèd so as to write off the cosl or valuation of assets less their residual values over their useful lives on the following bases.. Freehold buildings Office equipment Motor vehicles 2¢J/o Straight line 250h reducing balance 20 /0 reducing balance Freehold land is not depreciated. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carying value of the asset, and is recognised in the statement of financial activities. 1.8 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transadion cosls, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel(expenditure) for the year. Transaclion costs are expensed as incurred. 1.9 Impairment of fixed assets At each reporting end date. the Charity reviews the carrying amounts of ils tangible assets lo delermine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to detsrmine the exlent of the impaimient loss {if any). 1.10 Stocks Stocks are ststed at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour ¢05ts and those overheads thal have been incurred in bringing the stocks to th8ir present location and condition. Items held for distribution at no or nominal conslderation ar8 m8asured at the lower of replacèm8nt cost and cost. Net realisable value is the estimatéd sèlling pri￿ less all estlmated costs of completlon and costs to be incurred in marketing, selling and dislribution. 1.11 Cash and cash equlvalenls Cash and Cash equivalents include cash in hand, deposits held at call with banks, other short-teTm liquid investments with original maturities of Ihree months or18ss, and bank overdr8fts. Bank overdrafts are shown within borrowings in current liabilities. -28- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Accounting pollclès (Contlnued) 1.12 Financial instruments The Charity has elected to apply Ihe provisions of Section 11 'Basic Financial Instruments, and Seclion 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party tr) the contractual provisions of the instrument. Financial ass6ts and liabilities are offset, with the net amounts presented in the financial statements. when there is a legally enforceable right lo set off the recognised amounts and there is an intention to settle on a net basis or to realise Ihe asset and settle the liability simultaneously. Baslc flnanclal assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carrTred at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basi¢ financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing Iransaction, where the debt inslrument is measured at the presenl value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost. Using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary COLtrse of operations from suppliers. Amounts payable are classified as current liabilities rf payment is due within one year or less. If not. they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. 1.13 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's sarvices are receiv8d. Termination benefits are recognised immediately as an expense when thè Charity is demonstrably committed to terminate the employment of an employee or to provide termination b8n8fits. 1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. -29- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Crltlcal accounting estimates and judgèments In the application of the Charity's accounting policies, Ihe Trustees are required to makè judgemants, estimates and assumptions about the carrying amount of assets and liabilities that are nol readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimales. The estimates and underlying assumplions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Income from donations, legacies, membership subscriptions & granls Unrestrlcted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2022 2022 Totsl 2024 2022 Donalions and gifts Legacies receivable Grants receivable Membership fees 150.206 391,247 18,854 136,824 21.636 171.842 391,247 232,908 136.824 102,556 850.329 32.488 122,476 59,635 162,191 850.329 228,654 122,476 214,054 196,166 697,131 235,690 932,821 1,107.849 255,801 1,363,650 Grants receivable for core activities Rural Payments Agency Westmorland Dales Landscape Partnership Dark Skies Landscape Engagement 18.854 18,854 32,488 32,488 209,054 5,000 209.054 5,000 184,347 1.500 10.319 184,347 1.500 10.319 18,854 214,054 232,908 32,488 196,166 228,654 -30- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Income from charitable activtties Unrostrlcted Restricted funds funds 2024 2024 Total Unrestricted Restrlcted funds funds 2022 2022 Total 2024 2022 Properties Charitable rental income 2,941 2,941 1,840 1,840 Events & Other Income Other income 12,593 12,593 9.919 835 10,754 Sale of Merchandise Sales of services by beneficiaries 22,173 306 22.479 21,889 7.635 29.524 37,707 306 38.013 33.648 8,470 42,118 Income from investments Unrestricted Endowment funds funds 2024 2024 Totsl Unrestricted Endowment funds funds 2022 2022 Total 2024 2022 Investment income 101,192 22,477 123.669 57,478 8.547 66.025 Other Income Unrestrictsd Unrestricted funds funds 2024 2022 Land Donated - Little Bléans16y, Broughton-In-Fumess 110,000 31 FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Expendlture on ralslng funds Unrestricted Endowment funds funds 2024 2024 Total Unrestrlcted Endowment funds funds 2022 2022 Total 2024 2022 Fundraising and publicity Membership schemes and social lotteries Staging fundraising events Other fundraising costs . Support costs 33,972 33,972 16,598 16,598 4,476 4,810 129,110 4,476 4,810 129,110 3,549 10.736 103.446 3,549 10,736 103,446 172,368 172.368 134,329 134.329 Trading costs Cost of me￿handise sold Support costs 7,989 64,555 7,989 64,555 9.370 51,724 9,370 51,724 72,544 72,544 61,094 61,094 Investment management 12,036 5,178 17.214 9.217 9.217 Total costs 256,948 5,178 262,126 204.640 204.640 -32- - CO O )0 (D rri (O Z5 0 C f4 o) o) a) > o co J £0 ¢D r CO ¢4 t?) ro o a) In r WJ r * O fo Tr- ￿ (r) ￿ (5> 1 O£¢i EL)CJ Qu)iQQrfJofT)QUCL(i(n FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Support Costs allocated to activitles 2024 2022 Basls of allocation staff time staff time staff time staff time staff tsm8 staff time staff time staff lime staff tima staff lime staff time staff time Staff costs Depreciation Marketing & communication Other staff costs IT Costs Printing stationery & postage Telephone Property costs Motor & travel Bank charges Sundry Govemance costs 805,023 14,503 72,057 19,565 42,937 15.790 5,735 33,790 7,022 3.631 3,295 52,569 665.488 15,249 19,784 28.781 25.633 12.512 5.092 17,202 3,037 1,472 9,429 20.663 1.075,917 824,342 Analysed between: Fundraising Protect Your Lake District Train & Inspire Grants - Amenity and Conseryation 193,665 281,315 518.543 82.394 155,170 224,568 408,254 36,350 1.075,917 824,342 10 Net movement in funds 2024 2022 The net movement in funds is stated after chargingl{crediting)'. Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets 11,700 14.503 7.885 15,249 11 Trustees None of the Tfuslees (or any persons connected with them) re¢eived any remuneration or benefits from the Charity during the perlod. Amounts of £295 (2022.. £1,090) were reimbursed lo cover part of the travel and subsist8nc8 8xpenses incurred on behalf of the charity by two trustees {2022= three trustees) -35- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 12 Employees The average monthly number of employeès during the period was.. 2024 Number 2022 Number Generating funds Charitable activtties Govemance Support 10 12 Total 23 25 Employment costs 2024 2022 Wages and salaries Social security costs Other pension costs 797.682 61.104 127.366 544.910 45,090 75,488 986.152 665,488 The number of employees whose annual remuneration was more than £60.000 is as follows= 2024 ' Number 2022 Number £60,001 - £70.000 Remuneration of key management personn•l The remuneration of key management personnel was as follows.. 13 Galns and losses on Investments Unrestricted Endowment funds funds 2024 2024 Total Unrestrtcted Endowment funds funds 2022 2022 Total 2024 2022 Gains1{losses) arising on: Revaluation of Investments 214,709 467 215,176 {311,765) (96,298) (408,063) 14 Taxatlon The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 15 Tangible fixed assots Freehold bulldlngs Offlco equlpmgnt Motor vehlcles Total Cost At 1 January 2023 1,619,436 111,535 18,134 1,749,105 At 31 March 2024 1,619.436 111,535 18.134 1.749,105 Depreciation and impairment At 1 January 2023 Depreciation charged in the period 36.886 4.290 81,051 8,728 12,192 1,485 130,129 14,503 Al 31 March 2024 41,176 89,779 13,677 144,632 Carrying amount At 31 March 2024 1,578.260 21,756 4,457 1.604,473 At 31 December 2022 1,582.550 30,484 5,942 1,618,976 The carrying value of land included in land and buildings is £1,352,836 (2022- £1,352.836) 16 Fixed asset investments Listed investments Cost or valuation At 1 January 2023 Addttions Valuation changes Interest & Dividends Disposals 2.686,528 50,000 215,212 51,162 (154,265) At 31 March 2024 2,848,637 Carrylng amounl Al 31 March 2024 2,848,637 At 31 December 2022 2,686.528 17 Stocks 2024 2022 Finished goods and g¢)ods for resale 2.511 3,243 -37- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 18 Debtors 2024 2022 Amounts falling due within one year: Accrued legacy income Other debtors Prepayments and accnjed income 345,065 5,101 4,032 434,171 52.095 3.589 354,198 489,855 19 Credltors: amounts falllng due within one year 2024 2022 Other taxation and social security Other creditors Accruals and deferred income 15.400 63,874 16.886 12.337 30.966 26,990 96.160 70.293 20 Retirement benefit schemes 2024 2022 Deflnod ¢ontrlbution Schemes Charge to profit or loss in respect of defined contribution schemes 127,366 75,488 Tho Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. 21 Endowment funds Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordan￿ with the objects of the Charity and is included as unrestrithd income. Any capital gains or losses arising on the assets fom part of the fund. At 1 January 2023 Incoming resources Resources expended Transfers Gains and At 31 March losses 2024 Permanent endowmènts Kirby General Fund Kirby Amenity Fund Margaret Taylor Memorial Fund 291,321 15,429 {3.554) (4,6831 321 298.834 37,459 1,984 (457) (598) 41 38,429 95,612 5.064 (1,167} {1,532) 105 98,082 424,392 22,477 (5,178) {6,813) 467 435,345 -38- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 21 Endowment funds {Contlnued) Previous year: At 1 January 2022 Incoming Resources resources expendèd Transfers Gains and losses At31 December 2022 Permanent endowments 8,547 8,547 Kirby General Fund Kirby Amenity Fund Margaret Taylor Memorial Fund 357,425 (66,104) 291.321 45,959 {8,500) 37,459 117.306 (21,6941 95,612 520,690 8,547 {96,298) 432.939 The permanent endowment fund represents the two Kirkby funds and the Margaret Taylor Memorial Fund. The capital of the Kirkby & Taylor Funds 15 invested. The income arising from the Kirkby Amenity Fund may only be used for special conservation activities and is included in restricted funds. The income from the Kirkby General Fund and Margaret Taylor Memorial Fund is for the general purposes of the ¢harity- -39- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 22 Restricted fund$ The restricted funds of the charity compris8 the unexpended balances of donations and grants held on trust subjed to specific eondilions by donors as to how they may be used. At 1 January 2023 Incomlng Resources resources expended Transfers At 31 March 2024 Fell Care Days Wellbeing Work (Sanduary Project) Troutbeck Churchyard For Upkeep Properties Our Green Space Virtual Gifts Donation Path5 Land Management Appeal Policy and Planning Climate Change Project Conquer the Lakes Storm A￿en Appeal WDLPS Championing Upland Hill Farming Property Purchase J Kent Dark Skies 17,443 17,925 35,368 29,225 (21,717) 7.508 1,871 373 1,668 13,006 8,746 7.447 15,025 12.239 539 2.152 34.164 1,871 {1.135) 762 1,668 13.312 12.042 306 3.296 258 (21.160) (16,877) 13.455 1,852 12,239 539 (2,500) (191.744) 348 209,054 51,474 15,105 103 15.105 (1.939) 140.590) 1.836 35.433 5,157 159,106 235.996 {297,662) 53,686 151,126 -40- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 22 Restricted funds (Continued) Prevlous year: At 1 January 2022 Incoming Resources resourcos expended Transfers At31 December 2022 8.500 8,500 17,443 Fell Care Days Wellbeing Work (Sanctuary Project) Troutbeck Churchyard for Upkeep Properties Our Green Space Landscape Grants IWDLPS) Dark Skies Projecl Virtual Gifts Donation Paths Land Management Appeal Policy and Planning (restricted) Climate Change Project Conquer The Lakes storm Arwen Appeal WDLPS Kirby Amenity Fund Championing Upland Hill Farming Propety Purchase J Kent 19.669 (2,226) 29,225 29,225 1,870 1.994 1,668 (7,470) (16.044) 15,069 1,870 373 1,668 {1,621) 7.470 13,164 2,880 (2.063) 13,006 8,746 7,448 15.025 12.239 539 2.152 34,164 8,746 (10.717) 18,165 15,025 30,404 989 (18,165) (450) 2,152 226,968 29,043 342 (214,377) {8,500) (7,4701 8,158 15.105 3.448 15,105 103 {3,345) 125,312 264.271 (243,299} 21.322 167.606 41 FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 23 Unrestricted funds - Doslgnat6d These are funds d8signated by the trustees for specific purposes At 1 January 2023 Transfers At 31 March 2024 Tangible Fixed Assets Working Capital Sustainabilty and Growth Digital Transformation Development Fund Capital Expenditure 1,618,976 600,000 316,000 100,000 100,000 75.000 (14,503) 1,604.473 600.000 316,000 100,000 100.000 75.000 2,809,976 (14,5031 2,795.473 Prevtous year: At 1 January 2022 Transfers At31 December 2022 Tangible Fixed Assets Working Capital Sustainability and Growth Digital Transformation Development Fund Capital Expenditure Contingency including support through the impads of Covid-19 1,508,214 450.000 525.000 110,762 150.000 (209,000) 100,000 100.000 (625,000) (832,000) 1,618.976 600,000 316.000 100,000 100,DOO 75,000 700,000 832,000 4,015.214 {1,205,238) 2.809.976 24 Unrostricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. At 1 January 2023 Incoming resources Resources expended Transfers Gains and At 31 March losses 2024 General fvnds 2.252,416 836,030 (1,208,100) {32.370J 214,709 2,062,685 Previous year". At 1 January 2022 Incoming resources Resources oxpended Transfers Galns and losses At31 December 2022 General funds 808,804 1.308,975 (754,5611 1,183,916 (311,765) 2.235,369 -42- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 25 Analysis of net assets betwèen funds Unrestricted Unrestrlcted funds funds General Deslgnated 2024 2024 Restricted Endowment funds funds Total 2024 2024 2024 At 31 March 2024: Tangible assets Investments Current assetsl{liabilities) 1,604,473 1,604,473 2,848,637 991,519 2,413,292 (350,607) 435.345 1,191,000 151,126 2,062.685 2,795,473 151.126 435,345 5,444,629 Unrestricted Unrestricted funds funds General Designated 2022 2022 Restricted Endowment funds funds Total 2022 2022 2022 At 31 December 2022: Tangible assets Investments Current asselsl{liabilities) 1.618.976 1,618.976 2,686,528 1.340.386 2.246.031 {10,662) 440,497 17,558) 1,191,000 167.606 2,235.369 2.809,976 167.606 432.939 5,645.890 26 Operating lease commitments Lessee At the reporting end date the Charity had outstanding commitments for future minimum lease payments under nOn-Can￿lIable operating leases, which lall due as follows- 2024 2022 Within one year Between two and five years 4.894 2.749 4,898 7,920 7,643 12.818 27 Contlngent Assets - Legacy Income At the reporting date, the Charity had been notified of re5iduary legacies where the value of the estates was uncertain as the exècutors had not yet compiled thé estate accounts and probate had not been granted. Therefore no amount has been accrued in respect of these legacies which are estimated to be in éxcess of £186,00012022: £186,000) -43- FRIENDS OF THE LAKE DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 28 Related party transactlons There were no disclosable r8lated party transactions during the period {2022 - none). 29 Cash generated from operations 2024 2022 (Deficit)Isurpus for the period (201,261) 175,870 Adjustments for: Investment income recognlsed in slatement of financial activities Donation of land Fair value gains and losses on investments Depreciation and impairment of tsn9ible fixed assets (123,669) (66.025) (110.000) 408.063 15,249 {215,176) 14,503 Movements in working capital= Decreasel(increase) in stocks Decreasel{increase) in debtors Increase in creditors 732 135.657 25,867 (70) (275,661) 19.571 Cash (absorbed by)Igenerated from operations {363,347) 166,997. 30 Analysis of Changes in net funds The Charity had no material debt during the year. -44- FRIENDS OF THE LAKE DISTRICT STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2024 Prior financlal year Unrestricted Unrestrlcted funds funds General Designated 2022 2022 Restricted Endowment funds funds Total 2022 2022 2022 Notes Incomo and endowments from: Donations, Legacies. Membership Subscriptions & Granls Charitable activities Properties Events & Olher Income Sale of Merchandise 1.107,849 255,801 1.363,650 1.840 9.919 21,889 1,840 10,754 29,524 835 7,635 Investments other income 57,478 110,000 8,547 66,025 110.000 Total income and endowments 1,308,975 264.271 8,547 1,581,793 Expenditure on: Raisin funds Costs of Generating Voluntary Income Costs of Sale of Merchandise Investment Management Costs 134,329 61,094 134,329 61,094 9,217 9.217 204.640 204.640 Protect Your Lake District Train & Inspire Grants-Amenity and Conservation 242.710 245,253 242,710 488.552 243.299 61,958 61,958 Total expenditure 754,561 243,299 997,860 Net gainsl{losses) on investments 13 (311,765) (96,298) (408,063) Net incomel(expendlture) 242,649 20,972 {87,751) 175,870 Transfers between funds 1,183,916 (1,205,238) 21,322 Net movement in funds 10 1.426,565 (1,205,238) 42,294 (87.751) 175,870 Reconciliation of funds: Fund balances at 1 January 2022 808,804 4.015.214 125,312 520,690 5,470,020 -45- FRIENDS OF THE LAKE DISTRICT STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2024 Prlor flnanclal yoar Unrestrlcted Unrestrioted funds funds General Deslgnated 2022 2022 Restrlcted Endowment funds funds Total 2022 2022 2022 Notes Fund balances at 31 December 2022 2,235,369 2,809,976 167,606 432,939 5,645.890 -46-