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2021-03-31-accounts

REGISTERED CHARITY NUMBER: 1117054

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 FOR LOWTHER GARDENS LYTHAM

Rushtons Chartered Accountants Avroe House Avroe Crescent Blackpool Business Park Blackpool Lancashire FY4 2DP

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

LOWTHER GARDENS LYTHAM

Page
Legal and Administrative Details 1
Report of the Trustees 2
Independent Auditors Report 5
Consolidated Statement of Financial Activities 9
Consolidated Balance Sheet 10
Charity Balance Sheet 11
Consolidated Cash Flow Statement 12
Notes to the Financial Statements 13
Detailed Statement of Financial Activities 23

LOWTHER GARDENS LYTHAM

LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

REGISTERED CHARITY NAME

Lowther Gardens Lytham

CHARITY NUMBER

1117054…………………………...

PRINCIPAL OFFICE

Lowther Gardens Lowther Terrace Lytham St Annes FY8 5QQ ……………………........

TRUSTEES

C R Greaney …. R T Withers T A Mallabone ……. S M Wood … M E Redfearn D F Rowe Fylde Borough Council

AUDITORS

Rushtons Chartered Accountants Avroe House Avroe Crescent ……………........ Blackpool Business Park Blackpool FY4 2DP…………………………..

Page 1

LOWTHER GARDENS LYTHAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report with the financial statements of the charity for the year ended 31 March 2021. 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 2015).

OBJECTIVES AND ACTIVITIES Objectives and aims

The relevant powers granted to the Charity by the Constitution to achieve its aims are:

ACHIEVEMENT AND PERFORMANCE Results

This is the 9th year since the Trust separated from Fylde Borough Council as an independent organisation. Fylde Borough Council maintain a single seat on the Trust and the rest of the Trustees are appointed independently coming from the Arts industry, Charity and business backgrounds. The Trust (Lowther Gardens, Lytham) are now in their second five-year Service Level Agreement with Fylde Borough Council where they receive some funding towards community involvement and provision of the arts and leisure space within the Fylde Borough. Despite trading conditions in the arts and leisure sector being difficult nationally, I am pleased to report that the Trust has maintained a strong fiscal position whilst further developing the Artistic offering and the community use of the facilities and grounds.

In Autumn 2018 the Trust received planning permission for its redevelopment in three phases of Lowther Pavilion. This far reaching redevelopment will see the addition of community and education spaces as well as extending the café to include a first-floor restaurant. This is a continuation of enablement works that have already been completed with the reroofing of the building and the replacement of seating. The completed refurbishment has added to the asset value of the property. The Trustees continued with design work for the park to compliment the building design and have continued with fund raising and started work on the first phase of the development in Autumn 2021.

Following the acquisition in 2019/2020 of a cinema and digital streaming system the trust has been able to supply, free of charge, to several thousand care home beds, live performances and tours of places of interest. This has provided a positive experience during the COVID crisis.

Whilst the COVID Crisis has presented many challenges for the charity it has remained buoyant throughout using the grounds for the benefit of the community including year round outdoor performances and events during the summer season; enabling in excess of 30,000 visitors over two festival weekends in July and August 2020. The grounds are continuing to be maintained and developed to a high standard under the Service Level Agreement with Fylde Borough Council.

The Trust continued its operation of the Pavilion theatre through an operating Company.

Page 2

LOWTHER GARDENS LYTHAM

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Constitution

The Trust and its predecessors have operated the Gardens since 1905, when the land was donated to the Lytham Urban District Council by John Talbot Clifton, a local landowner. The principal object of Lowther Gardens Lytham is to promote for the benefit of the inhabitants of Lytham and the public at large recreational and other leisure time activities.

Governance and Internal Control

The body responsible for the management of the Charity is the Trustees.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1117054

Principal address Lowther Gardens Lowther Terrace Lytham St Annes FY8 5QQ

Trustees

D J Creasey (resigned 9.3.21) C R Greaney T J Lince (resigned 9.3.21) R T Withers T A Mallabone S M Beech (resigned 14.8.20) S M Wood (appointed 20.1.21) M E Redfearn (appointed 20.1.21) D F Rowe (appointed 20.10.21)

Auditors

Rushtons Chartered Accountants Statutory Auditors Avroe House Avroe Crescent Blackpool Business Park Blackpool Lancashire FY4 2DP

Page 3

LOWTHER GARDENS LYTHAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITOR

In accordance with the articles, a resolution proposing that Rushtons Chartered Accountants be reappointed as auditor will be put at a general meeting.

STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITORS

The Trustees who held office at the date of approval of this Trustees Report confirm that, so far as they are each aware, there is no relevant audit information of which the charitable group's auditors are unaware; and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the group's auditors are aware of that information.

21/12/2021

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.......................................................... T A Mallabone - Trustee

Page 4

LOWTHER GARDENS LYTHAM

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF LOWTHER GARDENS LYTHAM FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of Lowther Gardens Lytham (the 'charity') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that 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.

Material uncertainty related to going concern

We draw attention to note 1 in the financial statements, which indicates that the entity is unsure of the how they will perform in the coming year due to the COVID-19 pandemic. The entity has shown during the year ended 31 March 2021 that they can respond accordingly to match a reduction in costs with a reduction in income, however they have received substantial government financial assistance. If COVID19 restrictions are imposed again resulting in further closures, there are no guarantees that government financial support will be available. Despite the entity having a good level of cash reserves, these conditions indicate that a material uncertainty exists that may cast doubt on the entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 5

LOWTHER GARDENS LYTHAM

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF LOWTHER GARDENS LYTHAM FOR THE YEAR ENDED 31 MARCH 2021

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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. Misstatements can arise from fraud or error 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.

Page 6

LOWTHER GARDENS LYTHAM

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF LOWTHER GARDENS LYTHAM FOR THE YEAR ENDED 31 MARCH 2021

Irregularities, including fraud, are instances 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 capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified

As a result of performing the above procedures, we did not identify any key audit matters.

In addition to the above, our procedures to respond to risks identified included the following:

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all of the engagement team, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Page 7

LOWTHER GARDENS LYTHAM

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF LOWTHER GARDENS LYTHAM FOR THE YEAR ENDED 31 MARCH 2021

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rushtons Chartered Accountants Avroe House Avroe Crescent Blackpool Business Park Blackpool Lancashire FY4 2DP

22/12/2021

Date: .............................................

8

Page 8

LOWTHER GARDENS LYTHAM

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME AND ENDOWMENTS
Charitable activities
Donations and other income
3
Investment income
Trading activity
Total
EXPENDITURE
Trading activity
Charitable activity 4
Total
NET INCOME
Transfers between funds
Other recognised gains/(losses):
Gains/(losses) on revaluation of 4
fixed assets
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Notes
INCOME AND ENDOWMENTS
Charitable activities
Donations and other income
3
Investment income
Trading activity
Total
EXPENDITURE
Trading activity
Charitable activity 4
Total
NET INCOME
Transfers between funds
Other recognised gains/(losses):
Gains/(losses) on revaluation of 4
fixed assets
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
304,444
178
151,509
456,131
(79,915)
(368,894)
(448,809)
7,322
29,857
486,792		 Unrestricted
fund
£
304,444
178
151,509
456,131
(79,915)
(368,894)
(448,809)
7,322
29,857
486,792		 Restricted
fund
£
57,072
-
-		 Year Ended
31.03.21
Total funds
£
361,516
178
151,509		 Year Ended
31.03.21
Total funds
£
361,516
178
151,509		 Year Ended
31.03.20
Total funds
£
215,087
-
1,149,635

1,364,722
(755,128)
(555,505)
(1,310,633)
54,089
-
-
54,089
1,536,848
1,590,937



57,072
-
-
-
57,072
(29,857)
-

513,203
(79,915)
(368,894)
(448,809)
64,394
-
486,792
523,971
1,590,937
2,114,908		 27,215
-
27,215		 551,186
1,590,937
2,142,123

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements Page 9

LOWTHER GARDENS LYTHAM

CONSOLIDATED BALANCE SHEET AT 31 MARCH 2021

2021
Unrestricted Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
9
1,988,501
-
1,988,501
Investment property
10
145,000
-
145,000
2,133,501
-
2,133,501
CURRENT ASSETS
Stock
5,007
-
5,007
Debtors
12
13,788
358
14,146
Cash at bank
433,582
26,857
460,439
452,377
27,215
479,592
CREDITORS
Amounts falling due within one year
13
(414,518)
-
(414,518)
NET CURRENT ASSETS/(LIABILITIES)
37,859
27,215
65,074
TOTAL ASSETS LESS CURRENT
LIBAILITIES
2,171,360
27,215
2,198,575
CREDITORS
Amounts falling due after more than one
year
14 (39,148)
-
(39,148)
PROVISIONS
(17,304)
-
(17,304)
NET ASSETS
2,114,908
27,215
2,142,123
FUNDS
15
Unrestricted funds
2,114,908
Restricted funds
27,215
TOTAL FUNDS
2,142,123		 2021
Unrestricted Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
9
1,988,501
-
1,988,501
Investment property
10
145,000
-
145,000
2,133,501
-
2,133,501
CURRENT ASSETS
Stock
5,007
-
5,007
Debtors
12
13,788
358
14,146
Cash at bank
433,582
26,857
460,439
452,377
27,215
479,592
CREDITORS
Amounts falling due within one year
13
(414,518)
-
(414,518)
NET CURRENT ASSETS/(LIABILITIES)
37,859
27,215
65,074
TOTAL ASSETS LESS CURRENT
LIBAILITIES
2,171,360
27,215
2,198,575
CREDITORS
Amounts falling due after more than one
year
14 (39,148)
-
(39,148)
PROVISIONS
(17,304)
-
(17,304)
NET ASSETS
2,114,908
27,215
2,142,123
FUNDS
15
Unrestricted funds
2,114,908
Restricted funds
27,215
TOTAL FUNDS
2,142,123		 2021
Unrestricted Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
9
1,988,501
-
1,988,501
Investment property
10
145,000
-
145,000
2,133,501
-
2,133,501
CURRENT ASSETS
Stock
5,007
-
5,007
Debtors
12
13,788
358
14,146
Cash at bank
433,582
26,857
460,439
452,377
27,215
479,592
CREDITORS
Amounts falling due within one year
13
(414,518)
-
(414,518)
NET CURRENT ASSETS/(LIABILITIES)
37,859
27,215
65,074
TOTAL ASSETS LESS CURRENT
LIBAILITIES
2,171,360
27,215
2,198,575
CREDITORS
Amounts falling due after more than one
year
14 (39,148)
-
(39,148)
PROVISIONS
(17,304)
-
(17,304)
NET ASSETS
2,114,908
27,215
2,142,123
FUNDS
15
Unrestricted funds
2,114,908
Restricted funds
27,215
TOTAL FUNDS
2,142,123		 2021
Unrestricted Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
9
1,988,501
-
1,988,501
Investment property
10
145,000
-
145,000
2,133,501
-
2,133,501
CURRENT ASSETS
Stock
5,007
-
5,007
Debtors
12
13,788
358
14,146
Cash at bank
433,582
26,857
460,439
452,377
27,215
479,592
CREDITORS
Amounts falling due within one year
13
(414,518)
-
(414,518)
NET CURRENT ASSETS/(LIABILITIES)
37,859
27,215
65,074
TOTAL ASSETS LESS CURRENT
LIBAILITIES
2,171,360
27,215
2,198,575
CREDITORS
Amounts falling due after more than one
year
14 (39,148)
-
(39,148)
PROVISIONS
(17,304)
-
(17,304)
NET ASSETS
2,114,908
27,215
2,142,123
FUNDS
15
Unrestricted funds
2,114,908
Restricted funds
27,215
TOTAL FUNDS
2,142,123		 2020
Total
funds
(as restated)
£
1,565,135
80,000
1,645,135
3,533
13,045
349,092
365,670
(381,600)
(15,930)
1,629,205
(30,220)
(8,048)
1,590,937
1,590,937
-
1,590,937
2,114,908 27,215 2,142,123
2,114,908
27,215
2,142,123

22/12/2021

The financial statements were approved by the Board of Trustees on …………………. and were signed on its behalf by:

............................................. R Withers - Trustee

The notes form part of these financial statements Page 10

LOWTHER GARDENS LYTHAM

CHARITY BALANCE SHEET AT 31 MARCH 2021

2021
Unrestricted Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
9
1,660,577
-
1,660,577
Investment property
10
145,000
-
145,000
1,805,577
-
1,805,577
CURRENT ASSETS
Debtors
12
162,667
358
163,025
Cash at bank
110,458
26,857
137,315
273,125
27,215
300,340
CREDITORS
Amounts falling due within one year
13
(50,846)
-
(50,846)
NET CURRENT ASSETS
222,279
27,215
249,494
TOTAL ASSETS LESS CURRENT
LIABILITIES
2,027,856
27,215
2,055,071
NET ASSETS
2,027,856
27,215
2,055,071
FUNDS
15
Unrestricted funds
2,027,856
Restricted funds
27,215
TOTAL FUNDS
2,055,071		 2020
Total
funds
(as restated)
£
1,265,018
80,000
1,345,018
161,749
37,700
199,449
(795)
198,654
1,543,672
1,543,672
1,543,672
-
1,543,672

22/12/2021

The financial statements were approved by the Board of Trustees on ……………….. and were signed on its behalf by:

............................................. R Withers - Trustee

The notes form part of these financial statements Page 11

LOWTHER GARDENS LYTHAM

CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2021

Notes
Net cash inflow from operating activities
16
Investing activities
Purchase of fixed assets
Net cash used in investing activities
Financing activities
Repayment of borrowings
Proceeds of borrowings
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand		 Year Ended
31.3.21
£
114,612
(57,008)
57,604
(26,258)
80,000
-
111,346
349,092
460,438
460,438		 Year Ended
31.3.30
£
197,838
(31,941)
165,897
-
-
165,897
183,195
349,092
349,092

The notes form part of these financial statements Page 12

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Reduced disclosure exemption

In accordance with FRS 102, the charity has taken advantage of the exemptions from the following disclosure requirements in respect of its individual financial statements. These disclosures are given on a consolidated basis:

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

Fund accounting

All funds are retained in a general unrestricted fund which can be used in accordance with the charitable objectives at the discretion of the Trustees.

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.

Going Concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

The entity has been significantly impacted by the COVID-19 pandemic and the imposed closures. The entity has made a surplus of £64,394 before gains from the revaluation of fixed assets but has relied heavily upon government financial support. The COVID-19 pandemic continues to provide uncertainty for the future with potential further closures and/or restrictions and with no guarantee of further government financial support.

However, the entity has successfully managed to reduce costs in line with any reductions in income and continues to have a healthy cash balance. The trustees have therefore continued to adopt the going concern basis of accounting in the preparation of these financial statements.

Page 13

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - CONTINUED

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.

Buildings - 2% on cost Improvements to property - Straight line over 30 years Plant and machinery - 10% on cost Computer equipment - Straight line over 3 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

No provision has been made for the corporation tax or deferred tax as this is a registered charity and has not carried out any activities which have given a rise to a tax liability.

2. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the accounting policies, the Trustees are required to make judgement, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

3. OTHER INCOME

Donations and gifts
Fundraising activities
Grants
Other incoming resources
Investment income		 Year Ended
31.3.21
£
-
84,837
3,500
273,179
-
361,516		 Year Ended
31.3.20
£
92,286
24,804
76,850
20,514
633
215,087

Page 14

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

4. EXPENDITURE

Notes
Fundraising expenses
Hire of plant and machinery
Wages
6
Cleaning, laundry and waste
Light, heat and water
Telephone, fax and internet
Postage and stationery
Advertising and marketing
Motor and travel
Repairs and renewals
Computer maintenance
Depreciation
5
Insurance
Staff hire/training
Sundry
Finance charges
Bad debts
Accountancy
5
Legal and professional fees
Tax
Reversal of depreciation on revaluation
Revaluation
5.
NET INCOME FOR THE YEAR INCLUDES:
This is stated after charging:
Depreciation on owned assets
Bank loan interest
Auditors remuneration:
-
Audit of the financial statements
-
Other services		 Year Ended
31.3.21
£
4,968
8,403
138,725
6,433
6,655
2,088
1,762
13,468
779
10,847
19,686
55,433
7,667
19,748
7,223
11,744
587
8,425
34,997
9,256
(392,677)
(94,115)
(117,898)
Year Ended
31.3.21
£
55,433
1,359
4,000
4,425		 Year Ended
31.3.20
£
19,610
10,542
211,567
13,208
16,524
2,154
17,250
16,279
1,028
33,044
30,715
51,953
4,866
18,217
5,474
16,649
3,138
6,019
71,924
5,344
-
-
555,505
Year Ended
31.3.20
£
51,953
1,228
4,000
2,019

Page 15

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

6.
STAFF COSTS
Wages and social security
Other pension costs
Particulars of employees:
The average number of employees during the year was as
follows:		 Year Ended
31.3.21
£
136,636
2,089
138,725
10		 Year Ended
31.3.20
£
208,409
3,158
211,567
20

No employee received remuneration of more than £60,000 during the year (2020 - £60,000).

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

The Limited Company was charged £51,787 (2020: £32,223) for services provided by Pendle Productions Ltd, a company controlled by Mr T J Lince, a director and trustee of the company during the year. At the year end the Company owed the above company £8,690 (2020: £8,000).

The Limited Company was charged £12,065 (2020: £13,627) for services provided by Mr D J Creasey, a director and trustee of the company during the year. At the year end the Company owed Mr Creasey £Nil (2020: £Nil).

8. TAXATION

Lowther Gardens Lytham is a registered charity and is therefore exempt from tax on income and gains to the extent that these are applied to its charitable objects.

The trading subsidiary is subject to corporation tax and the charge in the year is shown in the detailed consolidated statement of financial activities.

Page 16

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

9. TANGIBLE FIXED - ASSETS – GROUP

COST
At 1 April 2020
Additions
Revaluations
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
Revaluation adjustments
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
COST
At 1 April 2020
Additions
Revaluations
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
Revaluation adjustments
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Land
£
235,500
-
21,500
257,000
-
-
-
-
257,000
235,500
Plant &
Machinery
£
320,020
54,649
-
374,669
223,673
18,908
-
242,581
132,088
96,347		 Buildings
£
1,393,603
2,359
7,615
1,403,577
364,785
27,892
(392,677)
-
1,403,577
1,028,818
Computer
Equipment
£
6,925
-
-
6,925
3,304
1,939
-
5,243
1,682
3,621		 Improvements
to property
£
200,849
-
-
200,849
-
6,695
-
6,695
194,154
200,849
Totals
£
2,156,897
57,008
29,115
2,243,020
591,762
55,434
(392,677)
254,519
1,988,501
1,565,135

Page 17

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

9. TANGIBLE FIXED - ASSETS – CHARITY (restated)

COST OR VALUATION
At 1 April 2020
Additions
Revaluations
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
Revaluation adjustments
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Land
£
235,500
-
21,500
257,000
-
-
-
-
257,000
235,500		 Buildings
£
1,393,603
2,359
7,615
1,403,577
364,785
27,892
(392,677)
-
1,403,577
1,028,818		 Plant and
Machinery
£
172,284
-
-
172,284
171,585
699
-
172,284
-
699		 Totals
£
1,801,387
2,359
29,115
1,832,861
536,370
28,591
(392,677)
172,284
1,660,577
1,265,018

The land and buildings were valued by Lea Hough Chartered Surveyors on 2 September 2021. If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amount included would have been as follows:

Cost
Accumulated depreciation
Carrying value		 2021
£
2020
£
1,803,747
1,801,388
(564,961)
(536,370)
1,238,786
1,265,018

Page 18

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

10. INVESTMENT PROPERTY (restated)

INVESTMENT PROPERTY(restated)
FAIR VALUE
At 1 April 2020
Revaluation
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 £
80,000
65,000
145,000
145,000
80,000

11. INVESTMENT IN SUBSIDARY COMPANIES

The charity has a subsidiary company, Lowther Gardens (Lytham) Management Limited. This is a private company limited by guarantee without share capital. By virtue of its effective management being closely integrated to the charity, in that the Directors are also Trustees of the charity, and that its trade is for the benefit of the charity it is therefore treated as a subsidiary.

Details of the subsidiary company are disclosed below:

Lowther Gardens (Lytham) Management Ltd
Company number: 07520640
Assets
Liabilities
Capital & Reserves
Turnover
Expenditure
Profit/(Loss)		 2021
2020
£
£
668,121
626,265
(581,069)
(579,000)
87,052
47,265
151,509
1,149,635
(102,466)
(1,121,506)
49,043
28,129

Page 19

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
GROUP
Trade debtors
Prepayments and other debtors
CHARITY
Prepayments and other debtors
Intercompany debtor
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
GROUP
Trade creditors
Taxation and social security
VAT
Other creditors
Accruals
Bank Loans
FBC Loan
HP
CHARITY
Trade creditors
Accruals and deferred income
Bank Loans		 2021
£
3,311
10,835
14,146
2021
£
2,078
160,947
163,025
2021
£
13,603
1,632
-
12,171
322,298
50,000
5,000
9,814
414,518
2021
£
20
826
50,000
50,846		 2020
£
3,574
9,471
13,045
2020
£
1,823
159,926
161,749
2020
£
36,805
2,581
4,687
1,489
316,038
15,000
5,000
-
381,600
2020
£
33
762
-
795

Page 20

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

15. FUNDS
GROUP
Unrestricted funds
General fund
Fair value reserve
Property asset fund
Restricted funds
Tree Guardians Adopt a
Tree Scheme
Bobby Ball Statue
Donations
Park Benches
TOTAL FUNDS
GROUP
FBC Loan
HP		 At 1.4.20
£
245,919
-
1,345,018
1,590,937
-
-
-
-
1,590,937		 Net movement
in funds
£
62,571
94,115
364,086
520,772
5,577
21,638
3,200
30,415
551,186		 Transfers
between funds
£
841
-
2,359
3,200
-
-
(3,200)
(3,200)
-
2021
£
25,220
13,928
39,148		 At 31.3.21
£
309,331
94,115
1,711,462
2,114,908
5,577
21,638
-
27,215
2,142,123
2020
£
30,220
-
30,220

Page 21

LOWTHER GARDENS LYTHAM

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

15. FUNDS - CONTINUED

CHARITY
Unrestricted funds
General fund
Fair value reserve
Property asset fund
Restricted funds
Tree Guardians Adopt a
Tree Scheme
Bobby Ball Statue
Donations
Park Benches
TOTAL FUNDS		 At 1.4.20
£
198,654
-
1,345,018
1,543,672
-
-
-
-
1,543,672		 Net movement
in funds
£
22,784
94,115
364,086
480,985
5,577
21,638
3,200
30,415
511,399		 Transfers
between funds
£
841
-
2,359
3,200
-
-
(3,200)
(3,200)
-		 At 31.3.21
£
222,279
94,115
1,711,462
2,027,856
5,577
21,638
-
27,215
2,055,071

16. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income
Tax
Depreciation
Change in stock
Change in debtors
Change in creditors		 2021
£
64,394
9,256
55,433
(1,474)
(1,101)
(11,896)
114,612		 2020
£
54,089
5,344
51,953
(277)
41,687
45,042
197,838

17. PRIOR YEAR ADJUSTMENT

The charity has included a prior year adjustment to reclassify buildings from tangible assets to investment property which are both included within fixed assets.

The impact on the balance sheet for the year ended 31 March 2020 is as follows:

There is no impact on the Statement of Financial Activities or overall funds.

Page 22

LOWTHER GARDENS LYTHAM

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

TURNOVER
Cost of sales
GROSS SURPLUS
Other Income
Donations and gifts
Fundraising activities
Grants
Other incoming resources
Investment income
Expenditure
Fundraising expenses
Hire of plant and machinery
Wages
Cleaning, laundry and waste
Light, heat and water
Telephone, fax and internet
Postage and stationery
Advertising and marketing
Motor and travel
Repairs and renewals
Computer maintenance
Depreciation
Reversal of depreciation on revaluation
Revaluation
Insurance
Staff hire/training
Sundry
Carried forward		 Year Ended
31.3.21
£
£
151,509
(79,915)
71,594
-
84,837
3,500
273,179
178
361,694
433,288
4,968
8,403
138,725
6,433
6,655
2,088
1,762
13,468
779
10,847
19,686
55,433
(392,677)
(94,115)
7,667
19,748
7,223
182,907
616,195		 Year Ended
31.3.20
£
£
1,149,635
(755,128)
394,507
92,286
24,804
76,850
20,514
633
215,087
609,594
19,610
10,542
211,567
13,208
16,524
2,154
17,250
16,279
1,028
33,044
30,715
51,953
-
-
4,866
18,217
5,474
(452,431)
157,163

Page 23

LOWTHER GARDENS LYTHAM

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Brought forward
Finance charges
Bad debts
Accountancy
Legal and professional fees
SURPLUS BEFORE TAXATION
Tax on surplus/(deficit)
SURPLUS FOR THE FINANCIAL YEAR
OTHER COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR		 Year Ended
31.3.21
£
£
616,195
11,744
587
8,425
34,997
55,753
560,442
9,256
551,186
-

551,186		 Year Ended
31.3.20
£
£
157,163
16,649
3,138
6,019
71,924
97,730
59,433
5,344
54,089
-
54,089		 Year Ended
31.3.20
£
£
157,163
16,649
3,138
6,019
71,924
97,730
59,433
5,344
54,089
-
54,089
59,433
5,344
54,089
-
54,089

Page 24