LOCAL INFORMATION UNIT LIMtrED (C¢)mpany Ilmfted by Guarantse REPORT AND FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 DECEMBER 2023 Registration Number. 1872218 (England and Wales) Chanty Registration Number. 1113495 LOCAL INFORMATION UNIT LIMITED REPORT AND FIIYANCIAL STATEMENTS YEAR EIYDED 31 DECEMBER 2023 CONTENTS Page Legal and administration Trustees, report IndeperKlent audttor's report 14 ConsolKlated statement of finanaal activities 17 Group and Charrty balano sheets 18 Consolidated cash flow statement 19 Notes to the financbal statements 20 T.OCAL INFORMATION UNIT LIMITED LEGAL AND ADMINISTRATION YEAR ENDED31 DECEMBER 2023 Reglstered Name of charlty Local Inforniation Unit Limited Othor names usod by the charlty LGIU Trusteos Cllr Abdul Jabbar Cllr Alexander Hollingsworth Cllr Brian Robinson - resigned May 2023 Cllr Jayne Mccoy Cllr Michael Payne (Chair) Mike Short Cllr Neil Nerva Cllr Sam Chapman-Allen - resigned 9th November 2023 Cllr Tudor Evans Cllr Amanda Jayne Hopgood Cllr Elizabeth Pendrill Raphael Leffman - resigned 18th July 2023 Cllr Linda Joy Taylor Chlef Executlvo & Company J Carr-west Secrntary Registered office 251 Pentonville Road London N19NG Company Reglstratlon Number 01872218 {England and Wales) Charity Reglstratlon Number 1113495 Audftor Haysmacintyre LLP 10 Queen Street Place LorKlon EC4R 1AG Bankern National Westminster Bank PLC 23 Brunswick Place Southampton S015 2AQ LOCAL INFORMATION UNIT LIMITED LEGAL AND ADMINISTRATION (¢otttlDued) YEAR ENDED 31 DECEMBER 2023 Subsldiary undertakings: LGIU International Ltd Directors J Carr-west A Johnston E Coll L Slack H Muirhead- resigned 12th July 2024 H Yedigaroff V De Blasi- appointed 26 June 2023 Company Registered NuM￿r 07132669 (EnglarKI and Wales) Local Energy Llrnited Dlrectors J Carr-west Yedigaroff Company Reglstration number 07092950 (England and Wales) LGIU Entorpriw Llmit•d D5rectors J Carr-west H Yedigaroff A Hollingsworth N NeNa Company Regl$tration number 07073861 (England and Wales) LGIU Ireland Llmlted Dlrectorn J Carr-west H Yedigaroff S O'Riordain Company Registration number 597961 (Ireland) LOCAL INFORMATION UNIT LIMITED TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 Objectives and activities Introduction The Local Government Infomiation Unit (LGIU) is a membership organisation and think tank The object of the organisalion is the promotion for Ihe public good of efficient public administration of lo¢al government by the provision of infomiation, advice. research and training and the publicalion of research. LGIU operates intemationally through LGIU Intemational, a wholly owned trading subsidiary. Publlc benefit The LGIU must be able to demonstrate that its aims and activiti'es are forthe public benefit. The Trustees have reviewed the guidance issued by the Chaiity Commission and have prepared this report wrth the guidance in mind. M188lon The LGIU - Local Government Infomation Unrt - is a not-for-wofft. nowartisan membership organisation. We are for local govemment and anyone with an interest in local democracy and finding local solutions to the challenges that we all fa￿. Our ￿sourCes, innovattve research and connections are relied on by councillors and council officers across the globe. As LGIU becomes increasingly international in focus, our aim is to te the preeminent global hub for the best information, ideas and insight about local govemment and local demo¢ra¢y and to create a global network of local authorities. public servants and politicians supporting each other to strengthen local democracy, improve wblic services and meet the complex chall8nges of the 2111 century. Actlvltles, $poclfi¢ objectives and relevant pollcl To fulfil our charitable mission we support innovation in local government working wrth our members and others to provide.. The practical support, on tap. that Council staff arKI elected representstives need for their jobs every day, including.. in depth policy briefings. county-specific daily news roundups,. case study bank,. analysis and commentary. Opportunit18S to be involved with our Local Democracy Research Centre's original research proj8Cts. A global network of local govemment professionals and other stakeholders coming together to collaborate, share and innovate. A significant member discount on LGIU training. A programme catering specrfically to the needs of local govemment staff and elected representatives, delivered by sector experts. Supportive and productive fowms for exploring the challenges and emerging opportunities in an ever changing local govemment landscape. A voice for the intemational local govemment communty. which grows stronger with each new member. iL)CAL INFORMATION UNIT LIMITED TRUSTEESI REPORT YEAR ENDED 31 DECEMBER 2023 We are a critical friend to councils but we are unwavering in our advocacy of local government as the foundation of the places V￿ live and work. - Volunteers Generally the LGIU does not use volunteers: internships are occasionally provided to people seeking work experience, and are paid at the London living wage. The LGIU group Since 2015 the LGIU has been expanding its intemational operations with the launch of LGIU Scotland, LGIU Ireland and LGIU Australia. In 2024 we reached an agreement with NILGA to bring all 11 Northem Irish Councils in to membership. We believe that if local government is at rts best when it is informed, engaged and networked, then all our members will gain value from global perspeth'ves, lessons and relatiortships. These intemth'onal operations are tr•Ying subsidiaries vtholly owned by LGIU. LIW) IOKJ LGIU Enterprises and LGIU International have Ix)ards whith report to the main LGIU Board. The relationship between subsidiaries is set out in a Resource Sharing Agreement and govemed by a corfflict of interests policy. .LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2023 These arrang8ments a￿ regularfy reviewed by our legal advisors Bates Wells. LGIU International and LGIU Ireland are audited separately. Achievements and perforniance 2023 at a glance 'Ne turned 40 35,000 globol subscfibers iiioior ro5ei)rch proipilE Inl?riiicd l)y tho koy Ihpnics ol Ihe ijnd publi. .hod our nLsw ii)onileslo. colling lor CJ riow ctsvenanl belwpen cenlrol ond ,?c.ol (Jovoriiineiil BuildiFI9 on o decode of reseoiih 'Jnd deV￿lOp@d Ironi exlLknsive coiiSulliJliori wilh nieiDbei 5. LGlU@40 329 rrbembeT ?¥9onisolions ocross the UK, IrÈlond. Auslrolio ond New Zeolond in.hcMA• arKI wer& cJolivoi¢d by l ocnl fJefilOCfOCy "There is a wealth of accessible and interesting information which is very useful in my day-to-day work. ' ,OILQ gIUVIfi vor r,Iiorb(Jer .'Iiih LGIU,: ,'ioi k Teoluied AT4¥0rd# ottmd•d 300+ nomy￿ 2,712 and PrOd￿•d 5 Daily News every 26 morn1ng at 6om thè lop locol govÈrnmeftl news delivered lo our membeTS every doy 287 policy briehngs. legislolion ouides and seclcTrr round-ups vJork5h(Ip5. -Truiidiable£ Ulicl PUliL.I i.?cJioiial ond 'Accessible information about issues I need to know about as an active councillor. ' -%clusive nieiiibor-oi)ly .¥enls 5 Glol)cbl i )cuI ponel discussioii> 'Ilh seninr specJki:IS ' )m ¥."i)glnnd. Scoilond. lond ttnd Aiislrnlio 150+ Cose slLtdiè* shorin9 leorning ond In5pirolion from oround Ihe world. .7*Kl￿re?￿tY of tlye clayNY) IK)nxuii- Sci11?r7￿9 ran 52 Editions ol Globol Locol bringing o world of Ic>col governmenl ideos lo everyone 256 Art*cle5. InleTviews. ond Ihink-pieces - o plotfoym lor our membeTS ochievementS ond opinions LGIU, -.PiJgh LGIU hEYps li LOCAL INFORMATION UNIT LIMITED TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 LGIU In 2023 2023 was a year of consolKlation for LGIU. This follows significant change in 2022 induding the appointment of a new Chief Operations Officer, Ihe introduction of a set of new "Head of roles as the LGiU's management team; a new Customer Relationship Management database and a new "newsletter strategf whTrch uses the Daily News emails as the vehicle for all LGIU content delivery. We continued to work towards the Iwo key ambitions set out in our five-year 2020-25 strategy 1) To be the preeminent global hub for the best irrfomiation, ideas and ins￿ht about local government and local demo¢ra¢y. 2) To act as a global ne￿ork of local authorilies. public servants and politicians supporting each other to strengthen lorAI democracy. improve public services and meet the complex Challenges of the 21st century We do this within a challenging environment with a backdrop of high infiation and budget cuts infiuencing both LGIU'S own activities and that of the membership. At the same time, in an increasingly digital world. the LGIU is having to evolve its systems and membership offering to meet the Changing needs and t￿renCeS of its readers. We developed a single organisational plan based around four key workstreams each with a set of objectives and associated actions. 1. Continue to ensure financial staknlty 2. Deliver high quality services that meet members needs 3. Close awareness gap 4. Organisation changelmanagement Detailed results against these key objectives were reported to the trustee board but some key successes indude: The 2023 annual suNey showed an increased favourability score. Our 'Net Promoter score, amongst paying members increased from +6 (2022) to +16. We published our LGIU @40 manifesto calling for a new covenant b8tween central and local government. This manifesto was built on a decade of research and extensive consultation with members. LGiU's work was featured 2712 times in local, regional and national press - a new record in temis of Coverage and profile. The Local Democracy Research Centre had an extremely successful year with high profile projects on elections, indusive economies. intemational local govemment finance Our profile and membership strengih in Scotland in particular went from strength to strength with 30 out of 33 local govemment members, a h￿h-profi1e finance suNey, significant press Coverage and speaking plafforms in the Scottish Parliamènt. Wé had our biggest ever Cllr awards with over 3IXI nominations. Our staff team remained stable with no resignations and our 1 st staff survey found that 1000/0 of staff enjoy their work and are proud to work for the LGIU. We also improved our digital, data and analytics capabilities through the recruitment of a new Head of Systems and Digrf(al. I LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2023 Financial revlew Results for the y•ar 2023 was a successful year for LGIU in which we continued to build on the strong financial perfomiance of the previou$ three yews. There is a deficit of £24,268 before adjustments for pension costs. The total deficit to reserves is £24,268 giving total reserves of £822.681. LGIU. s finances refiect the Board's ambition to create a 5UStainable financial model for the LGIU. There is now a structural surplus built into the ￿lationShiP be￿een our two main financial lines- affiliate income and salaries. Levels of reserrfes now allow us to invest in future growth while still maintaining a robust position to deal with unforeseen fluctuations in income or costs. The 2024 budget is an investment budget. drawing down from reserves v￿th a budgeted £211 K loss in LGIU vthilst the LGIU Group is forecast to end the year with a deficrt of £97K. These figures do not include the results of the FRS17 annual pension fund report. Reserves pollcy The trustees recognise the need to hold reserves to yotect against unforeseen fluctuations in incorne, assist long tenn-strategic planning, and to provide a fund to deal with costs arising should the organisation cease to trade. General funds of the group at 31 December 2023 were £822,681 (2022 - £846,949) and there was no pension r8S8rve deficit (2022- £nil). The pension is 8 defined benefft scheme and we are part of a pool within the Camden Council LGPS. The scheme Shov￿ a surplus posrtion at 31 t)e¢ember 2023 but this ts not recognized in these accounts. The pension surplusldeficit arising in a period is not taken into account against reseNes and is dealt with from future budgets. LGIU budgets are, and have always been, prepared on this basis. The level of contribution that LGIU makes to the pension fund is set every three years. We a currently coming to the end of one ofthese periods and we have ￿taIned enough space in the budget to be able to increase the contribution in future rf necessary. The trustees are satisfied that we will be able to meet future commitments. The 2023 reserves represent approximately 22 weeks, expenditure. In 2024 we are budgeting a deficit of £211 K for LGIU. surplus of £114K for LGIU Intemational with a combined group deficit of £97K. This includes investment in digital, research, arKI the development of our international offer. LOCAL INFORMATION UNIT LIMITED TRUSTEES* REPORT YEAR ENDED 31 DECEMBER 2023 Investment poll¢y Any surplus cash is held in either our deposit accourrt, or in short tem bonds specifically designed for charities who want to retain liquidity and attract a reasonable rate of retum. Rlsk management The rnost s￿nifIcant risk faced by the LGIU is the loss of income. primarily from the resignation of members. Strategies are in place to retain existing membets and to recruit new ones. In 2023 we received 13 member resignations taking effect from January 2024. However this was partially offset by the reversal of 4 res￿natIonS and by the recruitment of 6 additional members in 2023. The Execulive Board is regularfy updated about these issues, together wrth actions being taken to ameliorate the ris The LGIU believes that there will be fvrth8r pressure on the finances of local authoritl8s in the UK over the coming years. but that our a¢tive engagement wtth members and the value of our services especially in a fast moving and challenging environment will mitigat8 the risk of subslanlial decline in membership in¢ome. Expansion into other local govemment markets around the world also offsets that risk. The LGIU also faces the organisational risks that vmuld be exkEcted in a small company, $u¢h as loss of key staff. Strategies are in place to antiripate and reduce these risks aNI staff movement in 2023 has not led to any significant problems. We maintain a risk register and this is regularly reviewed by the board. Governance, structure and management Governanco The LGIU is a registered charity {Chartty Registration Number 1113495) and is constituted as company limited by guarantee (Company Registration Number 01872218). It is govemed by its rnemorandum and artides of association. which were most re￿ntlY modified in July 2009. The Charity was registered with the Charity Commission in England and Wales on 30 Mar¢h 2006. The Local Information Unit Limited (which trades as the Local Govemment Infomiation Unrt} was registered as company limited by guarantee on 17 December 1984 and has i￿en operating since that date. The trustees of the charity are also directors of the company for the purposes of the Companies Act. Each affiliate of the LGIU nominates a representative to be part of the Members. Assembly, the body which debates the general policy direction of the organisation. The Members. Assembly elects the Executive Board (Board of Directors) from within their ranks. Directorsltrustees seNe a three year set term before being required to stand for r￿lectIOn. Where directorsrtrusteès resign or become ineligible, a replacement is sought at the next Members. Assembly meeting to complete that three year term. The memorandum and articles of association spe¢fy a minimum number of pla￿S on the Board from different types of affiliates, such as District Councils. London Boroughs and Trade Unions etc. This is to ensure balanced rep￿Sen￿tIOn of the membership. New trustees are given relevant documentation on their dUt￿S and responsibilities, including the Charity Commission publicalion designed for this purpose. The LGIU has several nominated contacts that trustees can contact rf they have any speafic queries. ,LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED31 DECEMBER2023 Trustees are offèred the opportunity to take part in various training Opportuni￿$, and the LGIU is always prepared to buy in specffic training as and when necessary. Structure and manag•ment rnportlng The day-to-day running of the organisation is delegated to the staff under the leadership of the Chief Executive. The Executive Board meets about six times per year primarily to discuss issues of strategic direction in relation to th8 running of the organisation. They approve the annual budget before the start of the year and then monitor its progress through regular updates. In addition, the Executive Board has a business and policy planning weekend each September. together with senior staff. Remunoratlon The Board has a Remuneration Committee with a membership of four Board members which has oversight of pay strategy across the organisation and direct ￿SpOnsIbl11ty for the Chief Executive's pay and appraisal. Current rnembership of the Remuneration Committee is Mike Short, Neil Neprfa and Jayne Mccoy and two vacancies. LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2023 Trustses The following trustees were in offKe at 31 December 2023. and served throughout the year, except where shown: Trustees 1 January 2023 - 31 st December 2023 Cllr Abdul Jabbar Cllr Alex Hollingsworth Cllr Jayne Mccoy Cllr Michael Payne (Chair) Cllr Linda Taylor Michael Short Cllr Neil Nerva Cllr Tudor Evans Cllr Amanda Hopgood Cllr Elizabeth Leffman - resigned 18 July 2023 Cllr Sam Chapman-Allen - resigned 9 November 2023 Cllr Brian Robinson - resigned 4 May 2023 LGIU Enterpr1$• Board Heather Yedigaroff Jonathan Carr-west Cllr Alex Hollingsworth Cllr Neil Nerva LGIU Internatlonal Board Andy Johnston Jonathan Carr-west Liz Coll Lucy Slack Vicki DeBlasi - appointed 24 May 2023 Heather Yedi9aroff Hannah Muirhead - resigned 12 July 2024 In 2024 the￿ will be elections for the Board arKI Chair. io ,LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2023 Plans for the future A single integrated plan for 2024 has been developed drawing together all departments and countries. Ther8 are seven overarching objectives each with a set of activitses and key results. We are utilising an Objective and Key Result (OKR) approach- this is a framework for goal setting and management based on.. Objectives (where YOU'￿ going) Key resutts (how you track your progress getting there) that make your goals actionable and measurable. Our proposed seven 2024 objectives are as follows.. 1. Ensur8 that our seNices are designed to meet user needs and to maximise readershi￿ usage through ongoing engagement and f8edback mechanisms The LGIU provides a wide-ranging service which aims to meet the needs of a diverse set of users {from policy managers to council leaders). We have been working on a project to document our target audiences, and we are now at the stage where we want to validate our assumptions wrth real people. We know that social proofing is a proven method of increasing sign upslreadership. This means when your current users recommend your products and se￿iceS based on their experiences with your brand. We also know that can do more to attract readership and usage and market our serVI￿S through different content fonnats (e.g. infographics. video) and social media 2. Deliver a research, content and engagement programme building on LGiU@40 that speaks to members across 811 ctye countiies. demonstrates thought18adership and 8nabl8S US to advocate for the sector. The LGiU@40 programme was extremely successful as an engagement and advocacy tool but spoke mostly to the UK. We need to build on it by extending it to other ¢ore countries. and to use it as a basis to influence local government policy. The LDRC currently has two full-time members of staff, and we would like to investoate the feasibility of a fellowship type programrne as a method of InC￿asing the capa¢ty of the research ¢entre, as well as creating an alumni network of LGIU supporbng academics. 3. Launch a new int8m8tional offer incory)￿atlng at least one new product. In order to meet the 2025 'global' objectives we need to expand the LGIU offering outside of the four 'core countries.. In 2023 we did a product development exercise looking at six potential new offerings. We need to validate our thinknng from that wrth some market research. We Can increase brand awareness oulside core countries through partnerships, marketing and social media, and will be looking for partnership opportunities that would help with this. 4. Set out our digital strategK direction meetsng userneeds through unlocking of data insights 8nd creating the technic81 foundations ftx future product offering& In 2023 we created a new role in the team responsit4e for Systems and Digital. Following a successful appointment to this role, the development of a digital strategy is underway. LOCAL INFORMATION UNIT LIMITED TRUSTEES) REPORT YEAR ENDED 31 DECEMBER 2023 This strategy will include an LGIU website upgrade - this upgrade Yo￿11 take into account both our Current and future offer and requirements will indude legal compliance induding meets'ng a¢¢essibility standards (minimum AA). 5. Ensurn long term financial sustwnability. Local government is in a challenging financial position, and this puts pressure on LGIU membership. 2023 and 2024 have seen higher than usual numbers of membership resignations. We will seek lo ensure finanrAal sustainability through a comts'nation of resignation reversal and increased income generation {sponsorshiplcommercial inc0meltraini￿Mombershlp). We expect that UK local authoritres will remain in finanaal difficults.es over 2024125 and therefor8 for there to be further membership resignations. To minimise this. we need to communicate and evidence the messag8 that LGIU membership is an 'essential' for a local authority and saves both time and money. 6. Leverage technology and data to inFprove our secuty Standing. our cowlratè govemance and compli8nGe thmugh clearfy defined processes and employee poIici8S. Over 2023 we had a signfficant fows on security. We developed a security plan. As part of this we conlraded and ￿mpleted security penetration testing. We need to continue ensuring security is on our agenda and at the same time be proportionate in tems of risk and Sec￿ investment. There is further work to be done on database administration and related policies (induding GDPR). As well as compliance benefits, cleaning up our data and contad database (CiviCRM) will help us with member engagement arKI with a more accurate understsnding of our membership and reporting on usagelengagement. 7. Ensure that the LGIU is a place that people love to ww*, ￿"th a pow'twe wo￿ng culture and supportive govemance and employee policies. A staff survey was conducted in 2023 and results were broadly positive with extremely strong results on purpose, mission and work enjoyment. Outcomes included a quarterfy workload and wellbeing view and an upgate to the appraisal process. A roles and responsibilities exercise is planned and we will map out and develop plans to address our training needs. Our staff employment policies and contracts require updats.ng -and new updated policies will be submitted for Board approval in May 2024. Key results and planned activities have been mapped out against each of these obJec*'v8s and these will fomi the basis of reporting to the Board over the course of 2024. Trustees. liability In the event of the charity being wound up twstees, are required to contribute an amount not exceeding £1. 12 .LOCAL INFORMATION UNIT LIMITED TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2(123 Stat•m•nt of TrustOos' responslbllhl The trustees (who are also directors of Local Infomation Unit Limited ft>r the purposes of company law) are responsible for preparing the trustees, report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give true and fair view of the state of affairs of the tharity and the group and of the incoming resources and application of resources. induding the income and expenditure. of the group for that period. In preparing these financial statements, the twstees are required to: • select suitatrAe accounting F)olicies and then apply them consistently; • observe the methods and principles in the Statement of Recommended Practice (Accounting and R8POrting by Charities) (the Charities, SORP),. • make judgements and estimates that are reasonable and prudent. • state whether applicable United Kingdom Accounting Standards have been followed. subject to any material departures disclosed and explained in the finanoal statements,. and • prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy at any time the finanaal posiiion of the charity and enable them to ensure that the financial statemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularth'es. Each of the trustees confirms that: • so far as the trustee is aware. there 18 no relevant audit infonnation of which the chanty's auditors are unaware,. and • the trustee has taken all the steps that helshe ought to have taken as a trustee in order to make himselflherself awa￿ of any relevant audit inforrnation and to establish that the charity's auditors are aware of that inforniation. This confimation is given and shoukl be interweted in accordance with the provisions of s418 of the Companies Act 2CK)6. The trustees are responsible for the maintenance and integrity of financial infomation included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of finaneial statements may drffer from legislation in otherjurisdictions. Approved by the trustees and signed on their behatf by.. Neil Nerva Trustee 13 September 2024 13 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LOCAL INFORMATION UNIT LIMITED Oplnlon We have audited the financial state￿Its of Lo31 Inf0M￿tIon Unit Limrted for year ended 31 December 2023 which comprise the Consolidated Statement of Financknql Activities. the Group and Parent Charitable Company Balance Sheets. the Consolidated Cash Flow Ststeff*nt and related to the financial statements, including a summary of Signrf￿ant accounts.ng pOI￿leS. The financial reporting framework that has been applie<* in thelr preparatr.on is applicable law arKI United Kingdom Accounting Standards, including Financ￿1 Reporting Stsndard 102 Th8 Financial Reporting Standard appli¢able in the UK and Republ￿ of Ire18nd (United ￿"ngdorn Generalty Accepted Accounting PractKel. In our opinion, the financial statenTrnts'. gNe a true and fair view of the state of the group's and of the pa￿nt ¢harilable company's affairs as * 31 tkcember 2023 and of the group's and pa￿nI ¢harilable company's net moveff£nl in funds. including the income and expenditure, for the year then ended,. have been propety prepared in accordance with Unrte(l ￿"ngdoM Generalty ￿￿ePted Accounting Practice.. and have been prepared in accordance with the requirements of the Companies 2006. Basls for opinion We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and appl￿ble law. Our responsibiliknes under those standards are further describe(l in the Audilorfs responsibilrties for the audtt of the financial statements seth'on of our report. are independent of the group in w?rdance with the ethical requirements that are relevant to our audit of the financial statenEnts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilrties in accordance wth these requirements. We believe that the audrt evKJence we have obtained is sufficient and appropriate to wovwje a basis for our opinion. Con¢lu$lon8 relating to golng ¢oncern In auditsng the financial staterr*nls. we have concluded that Ihe trustees. use of the going wncem basis of accounting in the preparation of the ffinancial statements is approprkite. Based on the work we have perforn￿, we have not thntsfEd any material uncertaintss relabng to events or conditions that. individualty ￿ Co1￿1vety. may cast sunificant doubt on the group's abilty lo ¢ontsnue as a going concern for a period of at knt ts¥elve rrh)nths from when the finanaal stateffonts are authorised for issue. Our responsit4.lilies and the resrN)nsibilTbes of the trustees wrth respect to g￿n9 concem are described in the relevant seclions of this repJrL Responslbllltle6 of trustees for th• financial statoments As explained more fully in the trustees, reswnsibilities ststement set out on page 13, the trustees {who are also the directors of the charitable company for the purwses of Company lawl are responsible for the preparation of the financial stslements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemine is necessary to enable the preparats.on of financial statements that are free from material misstalemenl, whether due to fraud or error. In preparing the financial Stateff￿nts. the trustees ara responsible for assessing the group's and the parenl charitable company's ability lo continue as a going ¢on¢em. disckjsing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operabons, or have no realistrc alternative but lo do so. 14 . INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LOCAL INFORMATION UNIT LIMITED othor Information The trustees are responsible for the other infomiation. The other informatK)n comprises the inf0m￿tIOn included in the Trustees, Annual RepM)rL Our opinion on the financial $tateThnts does not Cover the other inft)nnation and, except lo the 8xlent otherwise explrruy stated in our reForL we do not exp￿$ any fomi of assurance conclusion Ihereon. In connection wth our audit of th8 financial st*ements. our reswnsibility is trj read the other infomatron and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or olhefwise appears to be malerially missiated. If we identify such malerkil inconsistencies or apparent material misst*emenls, we are required to determine whether there is a mat8rial misstatement in the financial statements or a material MISStaten￿nI of the other infomiation. If. based on the work we have performed, we conclude that there is a materhql misstatement of this other infomialion, we a￿ r8quired to report that fact We have nothing to report in regard. Oplnlon8 on oth•r matters pru¢rlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. AnnLBI Report (which incorporates the diwtors. report) for the financial year for which the firtancial stateTh*nts are prepared is consi*tent wth the finanaal statements., and the Trustees. Annual Report Iwhid) incofporates the directors, report) has been prepared in a¢cordance with applicable legal requirements. Mattern on whkh wo arg requlred to roport by oxceptlon In the light of the knowledge and understanding of the group and the parent Charrtable company and its environment obtained in the course of the audit. we have not identffied material misstalemenis in the Truste8S' Annual Report (which incorForates the dIr￿torS, report}. We have nothing to report in respect oflhe following matters in reLgtA)n to whth the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting rerords have not been kept by the parent charitable ¢ompany' or the parent charitabl8 company financial statements are not in agreement with the a¢¢ounting records and returns", or certain disclosures of irustees, remuneration specified by law are not made,. or we have not ￿ceIve(l all the inforniation and explanations we require for our audit," or the trustees were not entitied to prepare the financwl ststements in accordance with the small companies, regime and take advantage of the small companies, exemPt￿nS in preparing the trustees. report and from the requirement lo prepare a Strateg￿ report. Audltorfs rosponsibilitie8 for the •udit of the financlal slatom•nts Our objectives are to obtain reasonabb assurance about whether the financial st*em&nts as a whole a￿ free from material misstatement, whelherdue to fraud orerror. and to issue an audilorfs report that indudes our opinion. Reasonable assurance is a high kgvel of assurance. but is not a guarantee thal an audit condu¢led in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, ind[v￿ualfy or in the aggregate, they could reasonabty be expected to influence the economi¢ decIS￿lS of users taken on the basis of these financial statements. Irregularitieg, including fraud, are instances of non-complian￿ wth laws and regulations. We design procedures in line with our responsibilities. outlined at4)ve, lo detect material misstslements in respect of irregularities, including fraud. The extent to which our procedures a￿ capable of detecting irregularities. including fraud is detailed below.. Based on our undèrstanding of the parent charity and the environrrEnt in which rt operates. we identified that the principal risks of non-compliance with laws and regulations related to company and charty law, and we considered the extent to wh￿h non-¢ompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP and Companies Act 20￿. 15 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LOCAL INFORMATION UNIT LIMITED We evaluated management's incenirrfes and opportunit￿$ for fraudulent ManipU￿10n of the financkgl slatements (including the risk of override of controls) and deteThined that the principal nsks were related to management ov8rride. Audit procedures performe(J by the engagement lean induded.. Discussions with managen*nt including c4jnslderatK￿ of known or suspected instances of non- ¢omplian¢e with laws and regulati¢M and fraud," Evaluating management's controls designed to prevent and detect irreguLqritss.' Idenltying and tssting Joumals.. and Challenging assumptThis and judgements made by management w) thoir {503,629) (611.6051 Not Current assets 646,704 787.171 716,845 778.151 Net a880ts oxcludlng penslon liability 682.217 822.681 785.646 846,949 Pension liability 17 Net Ilablllllo5 includlng p•n8ion Il•bllKy 682,217 822,681 785,646 846,949 Repre8ent•d by: Funds •nd ro8eN Income funds.. Unrestricted funds General funds Pension reserve 14 17 682,217 682,217 785,648 785,646 682.217 682,217 785.646 785.646 Non-¢haritable trading funds 14 140.464 61.303 682.217 822.681 785,646 846.949 The parent ¢harity's income the year was £1.713.010. Net mvement in fvnds before the pension cosls was £1103.429}. Net nN)vement in fvnds after pensions was £1103,429). The financial state￿￿nts were approved arKI authorised issue by the Trustees on 13 September 2024 and we gned on their behalf by.. Neil Nerva Director of Local Informa n Unit Lirrdted 13 September 2024 18 , LOCAL INFORMATION UNIT LIMITED COMPANY NUMBER: 01872218 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Charlty Group Charlty Group Ca•hllow from op•rating acllvltlgs Net 1r￿￿me1(eXpenditUreI for the year (103,430) (24.2681 3,306,098 3,378,569 AdJu8tm•nts for Movements on defined tenefft Fension scheme Depreciation of tsngible and intsngible assets Interest received Decrease I (increase) in debtors Increasel Idecrea$81 in creditors 13.352,000) 13,352.000) 32,174 32.174 (2,297) 12.297) 29,964 {245.4651 107,976 162,218 35.447 133.209) 97.010 (275.213) 35,447 (33,209} 183,521 {332.0871 Net cash 9onor•tod from op•rnting actlvltles (279.395) (170.696) 121.913 126.8011 Ca8hflow from InV￿lIng aetiviti Nel purchase of fixed assets Interest ￿CeIved 12.1591 33,209 {2,159) 33.209 {46.308) 2,297 {46.308) 2.297 31.050 31.050 144,0111 {44.011) Not In¢r•a8d{dKrnasel In cash 1248.345) {139.5461 77.902 170,8121 Net cash and cash equivalents at the start of the year 987.4e6 1.078,151 909.564 1,148,963 N•t eash and cash oqulval?nts at tho ond of the year 739.121 938,605 987,466 1,078.151 Cash and c•$h •qulval8nts Consists of: Short Term deposits Cash at bank and in hand 330.152 408.969 330.152 608,453 497.647 489.819 497,647 580,504 Cash and ¢a•h wuivalents at 31 D•¢•m￿r 739.121 938,605 987.466 1,078,151 19 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENIS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICES Basls of a¢¢ountlng The financial ststements have been prepared in accordance with Accounting and Rep)rting by Charities.. Stslement of Recomrrthded Practice applicabk to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republ￿ of IreLqnd (Charities SORP 20151 (Second Edition, effecbve 1 January 20191, tho Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 102) and the Compan￿5 Act 2(K16. The Local Infomiation Unit Limited meets the definitb)n of a public benefrt entity under FRS 102. Assets and l￿bil￿￿$ are initially recognised at hiStOr￿al cost or transxtion value unkss otheNse stated in the re￿ant accounling poI￿Y nolelsl. Golng Concom The trustees have assessed whether the use ofthe going concem basis is appropriale and have considered possible events or ￿nditiOnS that might Cast significant doubt on the abil￿￿ of the charitable group to continue as a 90ing Con￿M. The trustees have made ihis assessffent for a period of at least one year from the date of approval of the financial stslements which is to 31ffi July 2025. In particular the trustees have Considered the Charitab￿ 9roup's forecasts and projections have taken account of pressures on n￿lberShip and other income and considered Ihe impact of the coronavirus pandemic on the LGiU's operations. The majority of the LGIU'S incorne comes from membership income which fixed from 30 June in the preceding financial year. This allows Trustees io be confident that expenditure budgets are appropriate. In considering going concem the trustees have reviewed cash fiows and are o)nfident that the Charity can meet ongoing liabilities. including ¢ontributions to the pension scheme. After making enquiries Ihe trustees have concluded that there o a reasonable expectation that the charitable group has adequate resources to continue in operakn'onal existence for the foreseeab￿ future. The charitable group th&refore continues to adopt the going eoncem basis in preparing its financial statements. Ba$ls of con801idatlon These ffinan￿aI stslements consolmjate the wults of tt)e charity and ils wholty owned subsidiaries, Local Energy Limited, LGIU International Ltd, LGIU Enterprises Limited and LGIU I￿land Limited on a line by Ilne basis. A separate statement of financial activ￿"e5 is not prepared by the charity itself following the exemplKsn afforded by section 408 of the CoMpan￿S Act 2CK6. Income Income is recognised in the FefKMJ in whth the charity arnl the group are entiued to receipt and the amount can be measured with reasonable certainty. Income is deferred onty when the Charity and the group has to fu￿1 conditions before becoming enkn"tW to it or where the doTh)r or funder has specified that the income is lo be expended in a fvture accounts'ng period. Flnanclal Instruments Financial assets such as cash and debtors are measured at Iheir present value of the amounts ￿ceIvable, less an allowance for the expected level of doubtful receivabks. Financial1obilrt*s such as trade Creditor8, loans and finance leases are measured al the present value of the otluabon. 20 'LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMKNfs (eoDtiDued) FOR THE YEAR ENDED 31 DECEMBER 2013 1. ACCOUNnNG POLICIES (continued) Exp•nditurn and th• basls of apportloning ¢￿ts Expenditure is included in the ststerrent of financial activities when incurred. Expenditure which can be allocated diredy to the charity and the group's charitable activities ar8 charged against the applicable activity. All other costs are troated as support costs and are allctsted lo activities on the basis of staff lime spent on those a¢tivilies. Ex￿ndItUre comprises the following.. The costs of charrtable *ivities ¢ornprw expenditure on the charity's pnmary charitable purposes as described in the trustees. report. Such costs indude.. Staff costs P￿rniSes costs Office costs Other costs Tanglbl? fix•d a••¢ts l assets costing more than £500 with an exF*cled usefvl life exceeding one year are capitalised. Tangible fixed assets are ¢apitalised arKi dep￿lated at th8 following annual rates in order to write them off over their esb'mated usefvl INes'. Fumrture and general office equipment Computer equipment and website Over 6 years on a straKJht line basis Over 3 years on a straight line basis Intanglbh fix•d a•8•ts All assets Cosb'ng more than £sc￿ with an expected useful lite exceeding one year are capitalised. Intangible fixed assets are Capitalised and depreciated at the follThing annual rates in order to write them off over their estimated u$efvl lives: Website Over 3 years on a straKJhl line basis Flxed asset Investmènts The investments in the subsidk?ry undertakings, Lc￿1 Energy Limtted. LGIU InteM8t￿)naI Ltd. LGIU Enterprises Limited and LGIU Ireland Limited, a￿ ststed at cost. FuTrd accountlng General funds represent those ￿￿rtIes whth are freely avaiFable for applicatKJn towards achieving any charitable purpose that falls wrthin the charty's charitable obj'ects. L•as•d assets Rentals applicable to operating leases where sub5tantialty all of the benefits and risk5 of ownership remain with the ￿sOr are charged on a $traight4ine basbs over the lease temi. Ponslon costs Dofin•d benefit penslon scheme Pension scheme assets are rn6a$ured using ￿￿rket values. PenS￿n scheme liabilities are measured using the projected unit actuarial methc4a and are discounted at the CUTf8nt rate of rebjm on a high quality corp￿ate bond of equivalent term and currency to the liability. Any incr8ases in the present value of the liability'es within the ¢harity's defined benefit scheme expected to arise from employee service in the period are ¢harged to the ststerr*nt of financial activibes. The expected ietum on the scheffE's assets and the increase during the period in the present value of the scheme's liabilities arising from the passage of time are included in the statement of financial activib'es. Actuarial gains and losses a￿ recognised in the statement of financial ath"vilEs as other recognised gains and losses for the per￿. Pension scheme surpluses. to the extent that they are considered recoverable, or deficits are recognised in full and p￿ented on the face of the balance sheet. 21 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS {contlmued) FOR THE YEAR ENDED JI DECEMBER 2023 I. ACCOUTrfflNG POLICIES (Gontinu•d) Penslon co8t• Dofined beneflt Ponsion 8¢hom Lc￿￿1 Information Unit Limited has oblKJakn"ons to pay pension benefits lo ￿rtain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including,. life expe¢tsn¢y, salary increases, asset valuations and the discount rate on cOrp￿￿e bonds. Management estimatés these factors in delefmining the net PenS￿n obligation in the balan¢e sheet as advis•¢J by an independent a¢tuarral adviser. The assumptKMS Tetlect historical exFerience and current trends. Cash and cash •qulvalents Cash and cash equwalents irdude in hand. deposits held at call wrth banks, other short-temi liquid investrnents with or￿inal maturi￿$ ofthree rrmths or bss, and bank overdrafts. 8ankoverdrafts are shown within borrowings in current liability"e$. Judgemonls and sourc08 of estlmatlon un¢•rt•lnty In the application of the cOmp￿Y'S accounting pdKie$, the directors are required ￿ make judgements, estimates and assumptions about the carrying amount of assets and liabilibes that are not readity apparent from other sources. The estimates and asscxiated assumptsns are based on historical expertence and olher factors that are considered to be relevant. Actual resuts may differ from these estimates. The estimates and undertying assurnptw)ns are reviewed on an On9￿n9 basis. Revi8ions to accounting estimates a￿ recognised in the period in which the esb.mate is revised where the revision affecls onty that period, or in the peric*J of the revision and future Feriods Whe￿ the reviS￿n affects both current and future periods. The most signrficant estimates arbj assumptions wh￿h affect the Cary￿g amount of asséts and liabiliknes in the accounts relate to.. Useful economic lives - The annual depreciation charge for propety. plant and equipment and intangible assets is sensitive lo change in the estimated useful economic INes and residual value of assets. These are reassessed annualty and amended were necessary to reflect Current circum$tan¢es. Employ80 bonefits The costs of short-term employee beneffts are recogntsed as a liability and an expense. unless those costs are required to be recognised as part of the cost of sto¢k or fixed assets. The cost ofany unused h￿idaY entitlement is rwnised in the period in wh￿h the employee's services are re￿ved. Terrnination benefits are recognised immediatdy as an expense when the ¢ompany is denwi$trably committed lo terminate the ernpbyment of an employee or to provhje tem11nat￿n benefits. CredltorJ and provl$k>n8 Creditors and pn)visions are r￿gnised where the charity has a present obl￿atIon resulting from a past event that will probabty resutt in the transfer of funds to a third pafty and the amount due lo settle the obligation can be measured or estimaled reliabty. Crediiors and prov￿10n$ are normalty re¢ognised at their settlement amount after allowing for any trade discounts due. Funcoonal currency and prw•ntallon ¢urrency The indNidual financial Staterr￿nts of ead) group entrty are presented in the currency of th8 primary economic environment in whth the enbty operates (its functional currency). For the purpose of the consdidated ffinan￿aI statements. the reSU￿S and financial position are presented in Sterling {£} 22 'LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (conlinued) FOR THE YEAR ENDED 31 DECEMBER 2023 1. ACCOUNTING POLICIES (¢ontlnued) Trnn8acllon8 and balances In preparing the financ￿1 staieff￿nts of the indivKJual entiknes, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are re¢ognised at the swt rate al the dates of the transactions. or al an avewe rate where this rate approximates the actual rale at the date of the transaction. At the end of each reporting period. monetary stems denominated in foreign currencies a retranslaled at the rates prevailing al that date. Non-nTr)netary iteffts that are measured in tem)s of historical cost in a foreign cUr￿nCY are not retranslated. Exchange diffefences are recognised in profft or loss in the period in which they artse. How￿tr, in the consolidated financial statements exchange differences arising on monetary r(ems that form part of the net investment in a foreign operatKin are recognised in other comprehensive income and are not reclassified to profit or loss. Tran8latlon of group companle8 For the purpose of presenting consolidated financial statements. the assets and liabilities of the group's fo￿ KJn operations are translated from their fvn¢tional currency to Sterfing [£1 using the closing exchange rate Income and expenses are Iranslated using the average rate for the period. unless ex¢hange rates fluclualed s￿nIficant1Y during that period, in wh￿h case the exchange rates at the dates of the transactions are used. Exchange differences arising on the tranSlat￿n of group CoMpan￿S are rwnised in other comprehensive income and are not redassrfied to profit or l¢)SS. COST OF ACTIVITIES IN FURTHERANCE OF THE CHARrrrs OWECTS 2023 Tolal fund• Tr•dlng affillat•• & tr•in•ty con￿111￿ Publlcatlons A¢Uvltl¢s Staff costs Other direct o)sts Alh)cat¢cffl of support cc*ts (notè 3) 262,844 138,578 72238 81,115 121,304 265.489 161,OB8 867.330 233,328 254.438 139.786 1CV&.821 142,888 233.525 880.438 589,520 276,344 19). 284,1 e&),102 1,981,094 2022 Total fvnd• 8ernlnarn Tr4thng afflllat•s & tralnlng ConBullancy Publlcatlom Advlti•s 1LB.379 85.891 65243 91.547 123.489 269.167 155,574 640,240 333.012 Other direct oxts Allocation of support C4Jsts (note 31 230,e 116.125 116.r27 175.911 226.955 886,324 425.876 189.087 273,517 299.4r￿ 851,￿ 1,839,576 23 LOCAL INFORMATION U]YIT LIMITED NOTES TO THE FINANCIAL STATEMENTS {contiDued) FOR THE YEAR ENDED 31 DECEMBER 21)23 SUPPORT COSTS The support ￿sts and the basis of their alk>cation vRre as follows." 2023 2022 Governance co•t8 Bas18 of appolntment Auditorfs remu1)eratK￿ - statutory a￿lIt Staff ti Other governar￿e Costs Siaff b 17.61)) 7.784 17.735 8.678 25,384 26,413 Othor 8UPPOrt ¢o•ts Basil of appolntment Staff costs Premises costs Office costs Other costs rift* spent Staff time Staff time Staff time 212.C62 81.913 313.278 247,801 291,802 95.905 271.343 180.861 855,054 839,911 Total 880.438 866,324 NET INCOME Total Funds 2023 Total Fund8 2022 This is stated after charging: Staff costs Inote 5) Auditors, remuneration - statutory audit servus Depreciation Operating lease rentals 1,079,392 932,042 17,600 35,447 41,022 20,000 32,175 41,022 EMPLOYEES AND STAFF COSTS 2023 2022 Staff costs during the year were as follows.. Wages and salaries Social security costs Other pension costs Other 796.126 84,843 195,374 3,049 681.203 70.534 177.484 2.821 1,079,392 932.042 In addition, consultants were used duriTrJ the year at a cost of £69,324 {2022.' £64.334). 24 'LOCAL Ii¥FORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 S. EMPLOYEES AND STAFF COSTS qconllnu•d} The average monthty headcount of persons employed ty the LGIU during the year were.. 2023 Numb•r 2022 Number charitab￿ activities Support 16 11 18 13 The number ofemployees who earned £60,000 per annum or I￿re (including tsxabl8 benefits but excluding employer pension Contributions) during the year was as follows.. 2023 Numbor 2022 Numbor £90,001- £100.OC(I £100,001- £110,000 £120,001- £130,000 £130,001- £140.000 The total ern￿Oyee benefits irKluding pension contn"butions of the key management personnel were £330.97612022'. £337,195). The Key Manage￿￿nI Personnel are defined as the Leadership team which is made up of 2 peO￿e consi8ting of the ch￿f executwe and chief O￿ratsng officer in post in year. TRUSTEES, REMUNERATION An honorarium was paKI to the Chair of Tfustees of £4.362 {2022 - £10,972}. None of the other trustees received any remuneralion in respect of their services during the year12022 - £nil). During the year expenses alTh￿nting to £nil (2022 - £nil} We￿ pimbursed to O tn￿tee5 {2022- £nil). The cost of ￿treshmentS at Trustee meetings and the accomm(MJation costs for the ovemight Executive Board business planning meeting are mel directty by the LGIU. In 2023 this amounted to £nil12D22 - £nill. The trustees of the Charity are members of thal ￿u￿lS whth pay mmbership subscriptions to LGIU. Membership fees to these organisations are charged on an am's length basis. TAXATION Local Information Unil Limited is a wistered charity and therefore is not liable to income tax or corporation tax on income derNed from its charitabl8 actNities. as tt fal￿ wthin the varKius exemptK>ns available to registered charities. Any taxable profits generated by the subsidiary companies will be donated to the parent charity. 25 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (eontiDued) FOR THE YEAR ENDED 31 DECEMBER 2023 FIXED ASSETS Total Fixed Assets 2023 2022 Tangible Fixed Assets lal Intangible Fixéd Assets {b) 4.581 30.929 6,398 62,400 35.510 68,798 ai Tangible Fixed Assets Flxturns and Flttings Computgr4 Total Charlty and Group Cost or valuatlon At 1 January 2023 Addition$ 4.177 53,944 2,158 58.121 2.158 At 31 December 2023 4,177 56.102 60,279 Depreclatlon At 1 January 2023 Charge for the year 4,177 47.545 3.976 51,722 3,976 At 31 December 2023 4,177 51.521 SS,698 Not book values At 31 December 2023 4.581 4,581 At 31 December 2022 6,398 6.398 26 'tA)CAL INFORMATION U]YIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR EIYDED 31 DECEMBER 2023 8. FIXED ASSETS (contlnu•d) b) Intangible Fixed Assets W•bJlte Total Charlty and Group Cost or valuatlon At 1 January 2023 Addits'ons 126.214 126.214 At 31 Decemt*r 2023 126,214 126.214 Depreclatlon At 1 January 2023 Charge for the year 63,814 31,471 63.814 31.471 At 31 December 2023 95.285 95,285 Net book valu0• At 31 December 2023 30.929 30,929 At 31 December 2022 62,400 82,400 9. Investments Sham in bsidiary compani Total Charlty Cosl at 1 January 2023 & 31 December 2023 Local Information Unit Limited owns the entire Cal￿ up Sha￿ caprtal of LGIU Enterprises Limited, a ¢ompany regislered in England and Wales. which has been dommnt since incorporation. LGIU Entsrpris8s Limited was dom￿￿1 during the year and owns the ents're calw up share capital of Local Enefgy Limited and LGIU Intemational Ltd, wh￿h are trading companies registered in England and Wales. In addition LGIU Intemalional Ltd is the parent of LGIU Ireland Limited a company registered in Ireland. The Company Registration Numbers and inct)rporation dates of the subsidiary cOm￿nIeS are given below.. Company Reglstratlon number Dato of Incorporatlon LGIU Enterprises Limited Local Energy Limited LGIU Intemational Ltd LGIU I￿land Limited 7073661 7092950 7132669 Irekgnd (5979611 12 November 2009 2 December 2009 21 January 2010 8 February 2018 27 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (coptlnued) FOR THE YEAR ENDED 31 DECEMBER 21)23 9. INVESThIENTS (contlnugd) A Surn￿ry of the tfading results of the group's trading subfAdiarw for the year ended 31 D￿ember 2023 are given below. Any taxable profits generated by the subsKliaries be Gift-Aided to the parent charity. 2023 2022 Local Energy Umltsd Profil & 1088 A¢￿Unt Turnover Cost of sales {727) {1,7871 Operating loss befo￿ Gift AK 1727} {1.7871 Gift ADJ Loss for the financial year 17271 (1,7871 Balance Shoet Current as5els Current liabilities {116.9461 (116.2191 Net Liabilit {116,9461 116.2191 2023 2022 LGIU International Ltd Profit & Lom Aeeount Turnover Cost of Sales 772.242 (702.7591 748,672 {695.001 } Operating profivllossl Gift Aid 69.486 169,4861 53,671 (53.671) Corporation Tax payable ProfiV(loss> for the financial y￿r Balance Sheet Current assets Current liabilities 88,788 {54.646> 319.455 1285.3131 Net Assets 34,142 34,142 28 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (eontiDued) FOR THE YEAR ENDED 31 DECEMBER 2023 9. INVESTMENTS l¢onllnued LGIU Inlomatlonal Ltd Statement of Incomfr and rotalned eamings Total equity brought forward Total comprehensive income for the year Gift aid distribution to parent chanty 34.142 69.486 169.4861 34,142 53,671 153.6711 Total equity carried forward 34,142 34.142 LGIU Irèland Llmltod 2023 2022 Profit & Loss Account Tumover Cost of sales 57.447 147,044) 50,678 {26,4751 Operating profit Gift Aid 10,403 24.203 Profit for the financial year 10,403 24,203 Balanco Sh••t Current assets Current liabilities 140,920 1106,313) 84,384 160,1801 Net Assets 34.607 24,204 As at 31 December 2023, the capital and reserves for each cg)mpany was as follows." Issu•d $har¢ ¢apltal Retalned profiU(1088os) Totsl LGIU Enterprises Limited Local Energy Limited LGIU International Ltd LGIU Ireland Limrted (116,9461 34,141 34,606 {116.9451 34.142 34.607 29 LOCAL INFORMATION UNIT LIMITED IYOTES TO THE YINANCIAL STATEMENTS {contimued) FOR THE YEAR ENDED 31 DECEMBER 2023 10. DEBTORS: du• withln on• y•ar 2023 2022 Char Group Charlty Group Trade deblwJ Amounts due from subsidiary undertakings Prep8yments and accrued income Other Debtors VAT 58.876 38.135 24.585 104 14.298 73.058 208,600 276.391 24,585 104 30.337 23,296 23,296 1,112 11.918 135.998 128,084 233.008 311,605 11. CREDITORS: amounts falllng du• withln one year 2023 2022 Charity Group Charity Group Trade creditors and accruals Other credilors Delerred ineome {nole 12) Amount due to SubsKliarie$ 199.866 19.260 9,289 222.559 33.455 23,504 336,623 19,028 22.607 125.371 550,984 24,776 35,845 228,415 279.518 503.629 611.605 12. DEFERRED INCOME 2023 2022 Charfty Group Charlty Group Deferred Income Broughl FonNard Deferred in the year Released in the year 22,607 9.289 {22.607} 35,845 23.504 (35.845) 101,966 22.607 {101,966) 119,924 35,845 (119,9241 Deferred Income Carried Forw*d 9,289 23.504 22,607 35,845 30 .LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINAIYCIAL STATEMENTS (totst1￿lled) FOR THE YEAR ENDED 31 DECEMBER 2023 13. ANALYSIS OF ASSETS BETWEEN FUNDS G•n•rnl nds •nd non- Ch•rlt•bl• tradlng funds Pemion Ros•rv• 2023 Total Group Fund balancos at 31 December 2023 ar• reprnsented by: Fixed assets Current assets Creditors.. amounts falling due within one year Net pension liability 35,510 1,C66.689 35,510 1,C66,689 (279.518) {279,5181 Total nrt •88Ot8 822.681 822,681 General funds and non- Charltable tradlng fund• P•nslon 2022 Total Group Fund balane•s at 31 D•c•mb•r 2022 are v•pre•ented by: Fixed assets Cuff8nl assets Creditors.. amounts falling due wlhin one year Net pension liability 68,798 1,389,756 68.798 1.389.756 {611,605) 1611.605) Totsl n•t assets 846,949 846.949 14. MOVEMENT IN FUNDS 2023 Actuarial Lo8806 BIF*yl Income Expgndlturg CIFwd General Funds 785.646 1.127.138 11,230,567) 682.217 Pension Reserve 161.000 (161.000) Total net {liabilitiesl (charity) 785.846 1.127,138 {l,(￿9.567) (161,0001 682,217 Non-charitable trading funds 61,303 829,688 (750.5271 140,464 Total net (Ilablllll¢s) group) 846,949 1,956,826 (1.820.094) {161.0001 822,681 31 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 14. MOVEMEKf ￿ FUNDS Icontlnued) 2022 Actuarlal Gains Fwd Inwn• Expendliu CIFwd General Funds 780.329 1.090.269 11.084.952) 785,646 Pension Reserve <3.352,000) (122,OCMI) 3.474,000 Total net assets {charity) {2.571.671> 1,09),269 {1.206,952) 3.474,000 785,646 Non-charitable trading fvnds 40,051 775,876 1754.624) 61,303 Totsl not a$80ts (group) {2,531,6201 1,866,145 (1.￿1.578) 3.474.000 846,949 15. FINANCIAL COMMIThENTS Oporatlng l•asa8 group had coffthfments under non-Car￿lIab1e operating leases as follows.. Land and bulldlngs 2023 2022 Charity and Group Amounts due.. Less than one year Wthin to five years 63.505 190,515 61,942 190,515 254,020 252,457 16. LIABILITY OF MEMBERS The charity is constituted as a company limited by guarantee. In the event of the charity being wound up members are required to contribute an amount not exceeding £1. 17. PENSION CO•AMITMENTS The chanty is one of several employing bodies included W￿1h1n the Camden Local &Jvemmenl Pension Scheme (Camden LGPSI The Camden LGPS is a funded defined benefrt Sche￿￿. wrth the assets held in separate trustee administered fvnds. Contributions to the scheme are determined by a qualified xtuary on the basis of triennial valuab"on$ u*ng the projected unit rr*thod. A fijll actuarial valuation of the took pl¥e in 2010. The results of the valuatK)n have been made available to Ihe employers and show a SMal￿r increase in fuiure employer contribut￿n rates than previousty expected. The following information is based urM)n a full acbjarial valuatKin of the fund at 31 March 200. updated lo 31 De￿mber 2022 by a qualffied independent thry. 32 LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 21)23 17. PENSION COMMITMENTS {contlnu•d) 2023 2022 2021 Tho major as8umptlon8 U8•d by the actuarles w•rn: Rate of increase in Salary Rate of increase in pensions in payment Discount r*e Infiation assumption 3.35 2.85 4.55 3.45 3.05 4.75 Following the Chancellorfs budget Statement in June 2010. the measure of inflation used by the actuary changed from the Retail Price Index {RPI) to the conSu￿￿r Price Index ICPII. Literature provided to scheme members specrf*cally linked pension benefit increases to the RPI, The trustees Iherefore wnsider the change lo CPI to be an augmentsti¢)n of benefits, rather than a change in actuarial assumptions. The mortalty assumpkn'ons used were as follows". 2023 Years 2022 Y•or8 Longovlty at ago 66 for eurrvnt pnslonor• -men - Women Longevity at age 88 ft>r futurn ￿nsIOn•￿ -men . Women 22.2 24.1 21.8 24.1 23.3 25.5 23.2 25.9 The assets of the scheme and the wghted average expected rate of retum were.. Long t•rm Long t•rni rat• of Value at rat• of Valu• at rntum 31 rotum 31 expect￿ December oxpect•d December 2023 2023 2022 2022 £'ooo £'ooo L¢)ng l•mi rat¢ of Valuo at r•turn 31 •xp•¢t•d Dec•mbor 2021 2021 £'ooo Equities Bonds Property Cash 6,605 2.780 1.854 6,124 2.111 1.900 422 8,486 1,061 1,296 943 Total market value of assets 11.587 10,557 11,786 Present value of scheme liability (11.089) 19.314) (15,138) Net p•nslon 8urplu•llll•blllty) 1.243 (3.3521 33 L(￿AL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (eontimued) FOR THE YEAR ENDED 31 DECEMBER 2023 17. PENSION COMMITMENTS {continu•d) The amount included in the balance sheet in respect of the defined benefft pension plan is as follows: 2023 £'ooo 2022 £'ooo Fair Value of plan assets Present value of plan lthilities Surplus restriction 11,587 {11,089) (498) 10.557 {9,3141 {1,2431 Not Pon•ion• Hablllty Under FRS 102, a surplus on a defined ber￿ pension schewe can only be recognised as an asset on the balance sheet Whe￿ the entity has the right to recover that surplus either through a refund, or reduced future contributions. GNen the uncertainty regarding recoverats'lty. the pension asset ha$ been restricted to £nil al 31 December 2023. None of the fair values of the assets shthvn above indude any of the charity's Nin financial instruments or any property occupied by. or other assets used by. the charity. The equty investments and bonds which are held in scheme assets as al 31 December 2023 are quoted, and are valued at the cur￿n1 bid pr following the adoption of the amendment of FRS102. The expected long tem return on cash is equal to bank base rates. The expecied reium on bonds is determined by refe￿nCe lo UK long dated gitt and bond yields. The expected rate of retum on equities and property have been detemiined by setting an apFKopriaie risk preftuum above giluljond yElds having regaid to market conditsons. Total expendi￿re recognised in Ihe Ststerrent of Finanaal kli¥ities 2023 £'ooo 2022 £'ooo Current service cosl Interest cost Interest income on pl8n assets Contributions paid 91 436 14971 11911 224 12221 11661 Total expendlturo rncognlsed In SOFA 11611 122 Net profit I Ilossl re¢cgnised bn the SOFA 2023 2022 £'ooo Actuarial profit l (loss) on s¢hern assets and liabilrties (gc61 3.474 The cumulatNe amountofactuarial gains arKI k)sses recognised w) the SOFA to 31 De￿mber 2023 is a nel gain of £nil12022-. gain of £3,352.(MX)). LOCAL INFORMATION UNIT LIMITED NOTES TO THE FINANCIAL STATEMENTS (cmtlnlled) FOR THE YEAR ENDED 31 DECEMBER 2023 17. PENSION COMMITMENTS {contlnu•d) Reconcih"ats'on of opening and closing balaT￿ of the present value of the charity's $har8 of scheme 2023 £'ooo 9,314 91 436 47 1,619 1418) 2022 £'ooo 15,138 224 Scheme liabilities at 1 January 2023 Current service cost Interest cost Conlributicffls by scheme partKipants Actuarial (gains} I k)sses Beneffts paKI 42 16,0031 13731 Schem• Ilabllltles at 31 Docernb•r 2023 11,089 9,314 Reconaliaion of opening and closing tsalan￿$ ofthe present value of the chanty's share ofsthme assets.. 2023 2022 £'ooo £'ooo Fair value of scheme assets at 1 January 2023 Interesl income on plan assets Return on assets excluding amounts included in net interest Contributions by employer ConlribLrtions by scheffl& participants Benefits paid 10,557 497 713 11,786 222 {1,2861 191 47 1418) 166 42 (373) Falr value of sch•me ass•ts at 31 D•c•ml>or 2023 11.587 10.557 Contrfbutlon5 The total contributions made by the employer in the year were £166.OCQ. The level of contribution were ￿viewed as a result of the triennial valuation of the scheme as at 31 klarch 2019 and maintained. The best estimte of contributions to be paKI by the empbyer to the sthetre in th8 next financial yèar is £192,000. History of experience gains and losses 2023 rooo 2022 £'ooo 2021 £'ooo 2020 £'ooo 2019 Fair value of assets Present value of schemè liabilities SurplusllDeficitl in scheme Experience adjustment on scheme assets Experience adjustment on scheme liabilities 11.587 {11.089) 10.5S7 (9.314} 11.786 {15.138) 10,442 115.463) 9,847 (13.0791 498 1,243 {3,352) 15,021) (3,232) 35