REGISTERED COMPANY NUMBER: 05233187 (England and Wales) REGISTERED CHARITY NUMBER: 1106526
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
FOR
LYNEMOUTH DAY CENTRE LIMITED
Greaves Grindle Chartered Accountants Victoria House Bondgate Within Alnwick Northumberland NE66 ITA
LYNEMOUTH DAY CENTRE LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
| Page | |||
|---|---|---|---|
| Reportofthe Trustees | 1 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement ofFinancial Activities | 6 | ||
| Balance Sheet | 7 | to | 8 |
| NotestotheFinancialStatements | 9 | to | 14 |
LYNEMOUTH DAY CENTRE LIMITED (REGISTERED NUMBER: 05233187)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of 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 102) (effective 1 January 2019).
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LYNEMOUTH DAY CENTRE LIMITED (REGISTERED NUMBER: 05233187) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 a STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution & Objects Lynemouth Day Centre Limited began trading on 1st April 2006, is registered at Companies House No: 5233187, and is registered with the Charities Commission No: 1106526.
The objects of the charity are to promote the relief of the elderly by providing, maintaining and managing a Day Centre in Lynemouth for the purpose of providing facilities for recreation and other leisure time occupations and other lawful charitable purposes in the interest of social welfare with the object of improving their conditions of life.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objects and in planning future activities.
Organisation
The names of the Directors are set out on page 4. The Directors form the Executive Committee which meets regularly. The day-to-day management decisions are made by the Day Centre Manager with input from the Chairman and Directors as necessary. All decisions are ratified by the committee at the following executive meeting, and/ or by email correspondence. The Directors are elected or re-appointed each year by the members of Lynemouth Day Centre at the AGM.
Appointment Of New Trustees
New trustees are voted on at the AGM. However, in accordance with the Articles of Association, the trustees may appoint a person who is willing to act as a trustee either to fill a vacancy or as an additional trustee provided that the appointment does not cause the number of trustees to exceed the number fixed by or in accordance with the articles as the maximum number of trustees.
A trustee so appointed shall hold office only until the next following Annual General Meeting.
Activities
Our activities are focussed on the provision of services to clients, both on and off site, as well as the wider community. The directors have reviewed arrangements on a regular basis. As an important part of the local community, the Day Centre has continued to provide popular services such as the sharing table, community shop, holiday meal clubs and the provision of hot meals to people in the area. The Day Centre premises are accessed regularly by the local community, including the library which is hosted in part of the building.
Plans for Future Periods
Providing high quality services in a safe environment is a key priority for the Directors and management. A refurbishment plan for the building is in place and work is being conducted in a phased manner; grant funding is being sought for each of these phases. The building is being utilised by the wider community, such as hosting the local library. Additionally, the Day Centre wishes to acquire a section of land adjacent to the building to allow further expansion of Day Centre services, such as various outdoor activities.
The long-term consequences of the Covid-19 pandemic is yet unknown; it has brought about major challenges to the care sector. The Directors continue to monitor developments closely and liaise with the County Council. Measures have been put in place to adapt the service to meet the needs of our clients and to monitor their welfare.
Finance
The financial statements are attached to this report.
Social Services funding continues to support the running of the Day Centre. Since the year end, a donation of £1,000 has been received towards a new bathroom. The Executive Committee is mindful of the risks associated with social care funding and the increase in running costs and overall cost of living pressures. The Day Centre management is investigating diversification, and alternative funding sources, to mitigate these risks. The Directors wish to thank the members who through their own efforts raise significant funds amongst themselves for the centre.
A thorough financial risk assessment has been conducted. Immediate risks are the employers' National Insurance increase, national minimum wage increases and the lack of Government funding to support care for the elderly.
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LYNEMOUTH DAY CENTRE LIMITED (REGISTERED NUMBER: 05233187)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024
Staff
We are privileged to be served by staff who are dedicated to their work, caring for our members and offering the highest standards of service. We are very happy to pay £0.56 an hour above the national minimum wage as required by the Northumberland County Council contract, to support staff welfare. The management team consists of Vikki Thompson and Lynsey Ditchburn. Training has continued with staff members undertaking various qualifications. Placements are often provided for young people from several external education establishments, when possible.
Reserves Policy
The Executive Committee has an obligation to safeguard the interests of its clients, the majority of whom are vulnerable adults. Therefore, we aim to keep six months’ running costs in reserve in light of the risks to the County Council funding which makes up most of our income. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be 6 months of the expenditure. Budgeted expenditure for 2024/25 is expected to be in the region of £370,000 and therefore the target is £185,000 in general funds. The reserves are needed to meet the working capital requirements of the charity and the Executive Committee are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.
Whilst unrestricted funds stand at a decreased figure of £111,069 down from £137,441, an increased designation of £42,890 has been set aside for staff redundancies. The present level of unrestricted net current assets available to the charity is £82,361. After accounting for the designated redundancy amount, this leaves £39,471 working capital for the general reserve. This falls significantly short of the target level. Although the strategy is to continue to build reserves through planned operating surpluses, the Executive Committee is well aware that it is unlikely that the target range can be reached for at least 5 years. In the short term the Executive Committee has also considered the extent to which existing activities and expenditure could be curtailed, should such circumstances arise.
Risk Assessment
The Directors have examined the major strategic, business and operational risks, which the charity faces, and confirm that systems have been established to engage regular reports to be produced so that the necessary steps may be taken to lessen these risks.
Reporting Accountants
A resolution proposing that Greaves Grindle be re-appointed as reporting accountants of the charity will be put to the Annual General Meeting.
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LYNEMOUTH DAY CENTRE LIMITED (REGISTERED NUMBER: 05233187)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024
REFERENCE AND ADMINISTRATIVE DETAILS
Directors
Mr M D Burdon (Chairman) Mr W Tarbit (Secretary) Mr E C Peat (Treasurer) Mrs G Thompson MBE Manager Mrs V Thompson
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|||
|---|---|
|Address|
|Albion|Terrace|
|Lynemouth|
|Morpeth|
|Northumberland|
|NE61|SSY|
|Company Number|
|5233187|
|Charity Number|
|1106526|
|Reporting Accountants|
|Greaves|Grindle|
|Victoria|House|
|Bondgate|Within|
|Alnwick|
|Northumberland|
|NE66|ITA|
|Bankers|
|Barclays Bank PLC|
|Northumbria|House|
|Cramlington|
|Northumberland|
|NE23|6QP|
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This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on sdl2 | Abe and signed on its behalf by:
M D Burdon - Trustee \
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LYNEMOUTH DAY CENTRE LIMITED
Independent examiner's report to the trustees of Lynemouth Day Centre Limited (‘the Company’) I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
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gevs
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Jane Harvey F.C.A.
Greaves Grindle Chartered Accountants Victoria House Bondgate Within Alnwick Northumberland NE66 1TA
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Date: _Boliz/rezy.
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LYNEMOUTH DAY CENTRE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024
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||||||||
|---|---|---|---|---|---|---|
|2024|2023|
|Unrestricted|Restricted|Total|Total|
|funds|funds|funds|funds|
|Notes|£|£|£|£|
|INCOME|AND ENDOWMENTS FROM|
|Donations|and|legacies|1,667|2,815|4,482|8,415|
|Charitable|activities|
|Day|Centre|activities|323,525|-|323,525|282,553|
|Other trading|activities|2|19,752|-|19,752|17,538|
|Investment|income|3|813|-|813|168|
|Total|345,757|2,815|348,572|308,674|
|EXPENDITURE|ON|
|Raising|funds|24,102|-|24,102|23,655|
|Charitable|activities|
|Day Centre|activities|348,027|2,815|350,842|324,790|
|Total|372,129|2,815|374,944|348,445|
|NET INCOME/(EXPENDITURE)|(26,372)|-|(26,372)|(39,771)|
|RECONCILIATION|OF FUNDS|
|Total|funds brought|forward|137,441|1,678|139,119|178,890|
|TOTAL FUNDS CARRIED FORWARD|111,069|1,678|112,747|139,119|
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The notes form part of these financial statements
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LYNEMOUTH DAY CENTRE LIMITED (REGISTERED
NUMBER: 05233187)
BALANCE SHEET
31 MARCH 2024
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|ee|
|2024|2023|
|Unrestricted|Restricted|Total|Total|
|Notes|funds£|funds£|funds£|funds£|
|FIXED ASSETS|
|Tangible|assets|8|28,708|-|28,708|29,351|
|CURRENT|ASSETS|
|Debtors|9|18,168|-|18,168|23,845|
|Cash|at bank and|in hand|78,927|1,678|80,605|98,963|
|97,095|1,678|98,773|122,808|
|CREDITORS|
|Amounts|falling|due|within one|year|10|(14,734)|-|(14,734)|(13,040)|
|NET CURRENT ASSETS|82,361|1,678|84,039|109,768|
|TOTAL ASSETS LESS CURRENT LIABILITIES|111,069|1,678|112,747|139,119|
|NET ASSETS|111,069|1,678|112,747|139,119|
|FUNDS|11|
|Unrestricted|funds|111,069|137,441|
|Restricted|funds|1,678|1,678|
|TOTAL FUNDS|112,747|139,119|
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The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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continued...
LYNEMOUTH DAY CENTRE LIMITED (REGISTERED NUMBER: 05233187)
BALANCE SHEET- continued 31 MARCH 2024
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on Adie [2bj and were signed on its behalf by:
ee F
M D Burdon - Trustee
G ThompsonTrustee
The notes form part of these financial statements
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LYNEMOUTH DAY CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ee
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 102) (effective 1 January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Basic financial instruments
The charity accounts for basic financial instruments on initial recognition as per paragraph 11.7 Charities SORP (FRS 102). Subsequent measurement is as per paragraphs 11.17 to 11.19, Charities SORP (FRS 102).
Debtors
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
Creditors
The charity has creditors which are measured at settlement amounts less any trade discount.
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LYNEMOUTH DAY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024
a
2. OTHER TRADING ACTIVITIES
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||||||
|---|---|---|---|---|
|2024|2023|
|£|£|
|Raffle|3,206|1,733|
|Extemal|catering|11,500|11,474|
|Support|service|5,046|4,331|
|19,752|17,538|
|3.|INVESTMENT INCOME|
|2024|2023|
|£|£|
|Interest|receivable|813|168|
|4.|NET INCOME/(EXPENDITURE)|
|Net income/(expenditure)|is|stated|after|charging/(crediting):|
|2024|2023|
|£|£|
|Independent|examiner's|fees|2,332|2,204|
|Depreciation|- owned|assets|643|643|
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- TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees’ remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Trustees' expenses
There were no trustees’ expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.
- STAFF COSTS
The average monthly number of employees during the year was as follows:
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||||||
|---|---|---|---|---|
|2024|2023|
|Charitable|activities|10|10|
|Management|and|administration|2|2|
|12|12|
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No employees received emoluments in excess of £60,000.
The aggregate remuneration of the management team in the year amounted to £58,598.
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LYNEMOUTH DAY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024
| COMPARATIVES FORTHE STATEMENT | OFFINANCIAL | ACTIVITIES | |||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | |||
| funds | funds | funds | |||
| £ | £ | £ | |||
| INCOMEANDENDOWMENTSFROM | |||||
| Donations and legacies | 3,045 | 5,370 | 8,415 | ||
| Charitable activities | |||||
| Day Centre activities | 282,553 | - | 282,553 | ||
| Othertrading activities | 17,538 | - | 17,538 | ||
| Investment income | 168 | - | 168 | ||
| Total | 303,304 | 5,370 | 308,674 | ||
| EXPENDITUREON | |||||
| Raising funds | 23,655 | - | 23,655 | ||
| Charitable activities | |||||
| Day Centre activities | 318,770 | 6,020 | 324,790 | ||
| Total | 342,425 | 6,020 | 348,445 | ||
| NETINCOME/(EXPENDITURE) | (39,121) | (650) | (39,771) | ||
| RECONCILIATION OFFUNDS | |||||
| Total funds brought forward | 176,562 | 2,328 | 178,890 | ||
| TOTALFUNDSCARRIEDFORWARD | 137,441 | 1,678 | 139,119 | ||
| 8. | TANGIBLE FIXED ASSETS | ||||
| Freehold | |||||
| property | |||||
| £ | |||||
| COST | |||||
| At 1 April2023 and31 March2024 | 35,138 | ||||
| DEPRECIATION | |||||
| At | April2023 | ||||
| Charge foryear | 643 | ||||
| At 31 March2024 | 6,430 | ||||
| NETBOOKVALUE | |||||
| At 31 March 2024 | 28,708 | ||||
| At 31 March 2023 | 29,351 | ||||
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LYNEMOUTH DAY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024
- TANGIBLE FIXED ASSETS - continued
Included in cost or valuation of land and buildings is freehold land of £3,000 (2023 - £3,000) which is not depreciated.
- DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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||||||||
|---|---|---|---|---|---|---|
|2024|2023|
|£|£|
|Other debtors|17,168|22,946|
|Prepayments|1,000|899|
|18,168|23,845|
|10.|CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR|
|2024|2023|
|£|£|
|Trade|creditors|7,447|6,555|
|Other|creditors|688|688|
|Accrued|expenses|6,599|5,797|
|14,734|13,040|
|11.|MOVEMENT IN FUNDS|Net|Transfers|
|movement|between|At|
|At|1.4.23|in funds|funds|31.3.24|
|£|£|£|£|
|Unrestricted|funds|
|General|reserve|102,971|(26,372)|(8,420)|68,179|
|Designated redundancy|fund|34,470|-|8,420|42,890|
|137,441|(26,372)|-|111,069|
|Restricted|funds|
|Transport fund|1,388|-|-|1,388|
|Building|refurbishment|fund|290|-|-|290|
|1,678|-|-|1,678|
|TOTAL FUNDS|139,119|(26,372)|-|112,747|
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LYNEMOUTH DAY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 eeee ee
11. MOVEMENT IN FUNDS- continued
Net movement in funds, included in the above are as follows:
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||||||||
|---|---|---|---|---|---|---|
|Incoming|Resources|Movement|
|resources|expended|in|funds|
|£|£|£|
|Unrestricted|funds|
|General|reserve|345,757|(372,129)|(26,372)|
|Restricted|funds|
|New oven|fund|2,815|(2,815)|-|
|TOTAL FUNDS|348,572|(374,944)|(26,372)|
|Comparatives|for movement|in|funds|
|Net|Transfers|
|movement|between|At|
|At|1.4.22|in funds|funds|31.3.23|
|£|£|£|£|
|Unrestricted|funds|
|General|reserve|138,760|(39,121)|3,332|102,971|
|Designated|redundancy|fund|37,802|-|(3,332)|34,470|
|176,562|(39,121)|-|137,441|
|Restricted|funds|
|Transport|fund|1,388|-|-|1,388|
|Building|refurbishment|fund|940|(650)|-|290|
|2,328|(650)|-|1,678|
|TOTAL FUNDS|178,890|(39,771)|-|139,119|
|Comparative|net movement|in|funds,|included in the above are as|follows:|
|Incoming|Resources|Movement|
|resources|expended|in funds|
|£|£|£|
|Unrestricted|funds|
|General|reserve|303,304|(342,425)|(39,121)|
|Restricted|funds|
|Building refurbishment|fund|5,370|(6,020)|(650)|
|TOTAL FUNDS|308,674|(348,445)|(39,771)|
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continued...
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LYNEMOUTH DAY CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2024.
- ANALYSIS OF NET ASSETS BETWEEN FUNDS
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|||||||||
|---|---|---|---|---|---|---|---|
|Current|Current|Total|Total|
|Fixed|assets|assets|liabilities|2024|2023|
|£|£|£|£|£|
|Unrestricted|funds|
|General reserve|28,708|$4,205|(14,734)|68,179|102,971|
|Designated|funds|
|Designated|redundancy|fund|-|42,890|-|42,890|34,470|
|Total|unrestricted|funds|28,708|97,095|(14,734)|111,069|137,441|
|Restricted|funds|
|Transport fund|-|1,388|-|1,388|1,388|
|Building refurbishment|fund|-|290|-|290|290|
|Total|restricted|funds|-|1,678|-|1,678|1,678|
|Total funds|28,708|98,773|(14,734)|112,747|139,119|
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