2023-03-31-accounts - Luton Cultural Services Trust

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CoMY no. 06373488 Charity no. 1122W Luton Cultural Services Trust Annual R•port and Financlal Statem•nts For th• year •nded 31 March 2023

LUTON CULniRAL SERVICES TRUST REPORT OF THE TRUSTEES FOR THE YEAR lDED 31 MARCH 2023 P•g• No. Tfu$t¢es' Rort Indepgndwl Auditorfs Rfjpryt 20-24 ConsolKlaled Ststement of FInCIal ktr¥ili8S 25-26 ConsolKlaled BalarKe She 27 Consolhlated C8sh Flow Statement 28 No*s tr) the financHI statements 29- 41

Re rt of thè Bo Trustees for the ¥ ended 31 M rch 2023 The Trustees are pleased to present their annual directors, report together wlth the consolldated financial statements of the charity and its subsidiary for the year ending 31 March 2023 which are also prepared to meet the requirements for a directors, report and accounts for Companies Att purposes. The financial statements comply with the Charlties Act 2011, the Companies Art 21Ki6. the Memorandum and Articles of A550Ciatlon and Accountln8 and Reporting by Charities: Statement of Recommended Practlce appllcable to charities preparin8 thelr accounts In accordance with the Financlal ReportinB Standard appllcable in ihe UK and Republlc of Ireland IFRS 1021 leffectlve l January 2019). Chlles Report and 5treik Report We are delighted to report a busy and actlve year across èll our sltes wlth audiences lust about returnln8 to Pre-COVID levels. This year we have adopted two Important plans, our Creatlve Plan12022-51 and our Commerclal Plan12022-51. These provlde a framework for tactlcal changes that will 8fOW audlences, Impacts and Incomes. Adopted towèrd5 the end of thls financlal year. we built up a slgnlflcant pro8r4mme of actlvSty to Inform them and test ideas with partners. collaborators and customers. The followln8 actlvitles demonstrate the type of work we dellvered thls year across our sites. Hat Factory Arts Centre & Hat Distrirt BIKk Hlstory Month: thls year we presented a lar8e and dlverse pro8ramme across one of our three core sites at the Hat Dlstrlct welcomlng over 21JXI people. We collaboratively presented fllm, chlldren's event5, communlty theatre, an outdoor Cultu market, panel discusslons, and Ilve music from local and internatSonal muslclans. We were honoured to host Ni8erian-Brltlsh muslcal legend Deli S05imi. who participated In a pre-show Q&A about hi5 experiences tourlng wlih Fela KLSti. Events such as 'Bein8 Black in Luton. and the 'Culture Markev resonated with audiences and we have commltted to bulldln8 these into our year-round pro8ramme. Comments Included. It hos been qrectfor me to have the opportunity to work with The Culture Trust. The Trust hos provlded occes5 and support whlch hos enobled me to develop myprartice in ways and dlrertlons I hodpreviousfy struggled to oche. Ihis hos helped to improve my confidence and ¢atIVIty.. and A tnily movlnq experience which I could connert to on a personal level. Somethlng I will cherishloreverf. We have grown our p•rtnershlps wlth IndNiduals and communltles whlch have been rewarding and valuable. Reasons You Should (n't) Love me: At the Hat Factory Arts Centre. we hosted Amy Trigg- wlnner of The Women's Prize for Playwriting 2020. Her show explored the experience of spina bffida on a young women the relatlon5hip5 she makes. A developing relationship wilh University of Bedfordshire saw 30 drama students attend the show as part of an assessed module. Comments from the staff and students included 'For o one

womon shciw it wa5 incredible how she was able to toke me on o journey through prartically every emotion. Thoroughly enjoyed it ond will definitely look ot what 15 cominq up in the Spring.. and As a 5tuden¢ it is involuoble to hove notionol work fiqht here in Luton. It really helps to be able to see work ot ofrortion of the price of London.. We are working Unlverslty tutors to see how we can embedded more work into the students, curriculum. and use our programme to support their learning. Llv• From the Hat Fartory: We commissioned two partners to curate a live music line-up for our new music programme. The events are almed at 18 30 year olds audiences and have been designed to support a developin8 Luton's night-time economy. UK producers and artist collective Forever Internotlonol brou8ht a high energy line up of rap. feStyle, and DJS to the venue. with audiences travelling from London and Bedford to see the show. Luton Urban Radio curated the second event and hosted Luton's Youngest Female DJ alon85ide oiher new radio and DJ talent. A dress code (wear all black!) and stron8 social media built a buzz around the event and brought a new and young crowd to the Hat Factory and Luton Town Centre. Thls new muslc nl8ht fills a 8ap in town and we plan to grow and developlng the event. LGBTQ+ HIMory Month: 8uildln8 on the success of our LGBTQ+ programme across the last 12 months. we marked LGBTQ+ History Month with programme of film. theatre. vlsual arts and events. We launched Hot District Lotes In collaboration wlth 'PRIDE in Luton,. It included live paintin8 from award-winning international artist Vishal Joshi. lino-println8 sessions with Snall . the Luton artist famed for their deslgn of London Trans+ Prlde banner. and Q&As with LG8TQ+ communlty or8anlsations. In response to 5tron8 and supportive feedback, are developing more re8ular LG8TQ+ programmes outside of thls month, startlng wlth our first Dra8 Club Night at the end of March, hosted by Asifa Laho, the first out Muslim Dra8 Queen. Lounie d¢v¢lopm•nt: Oesi8ner Lauren Connolly has been selected to develop and design the new LGBTQ+ friendly space In the Hat Factory Basement. As part of BLCF grant, we commlssloned a soft-touch redesign of an under-used space ahead of it's launch a5 a new'loun8e' in 2023. Lauren has designed for The Royal Shakespeare Company, Watford Palace Theatre and Greenwich Theatre. She has also been lead stylist on events for companies including Sky and NOW TV. Youn8 men's Mèntal Healih Th••tr• prol•ct: In June we facllitated two research and development sessions with Mandala Theatre ar young males a8ed 16- 25, These focused on men's mental health. The workshop includes creative wrltlng and spoken word ta5k5 With a professional practitioner. Mandala Theatre will return to Luton in October for a shared readin8 and then with the full produrtion in Sprin8 2023. Mandala Theatre stated that we had brou8ht tQ8ether the most diverse and en8a8ed group of young people of all their R&D sessions conducted across the UK. World Alds Day for Mat Dlstrlrt Lat.. in December we partnered with Luton Sexual Health and Pride in Luton to mark World Aids Day. Alongslde DJ and food from Monstera Canteen. the evening programme consisted of networkln8 and speakers from Industry professionals. an arthouse film screening with links to the AIDS pandemic in the 80$, and an exhibition of dresses from nationally celebrated de518ner Mandy Webb inspired by her HIV posltlve status. The co-chair of PRIDE and employee of Luton Sexual Health said The continued 5UPPOrtfor the LG8TQ+ community thot The

Culture Trust hos given is invaluable and being oble to roise oworeness of themes and tOPlC5 of importonce to the community within o pmfessionol venue in the town isfontostic. l om lookinoforword to watching the next developments of this relotlOn5hip.' Producers Hub: as part of our regular creative socials In the Hat Dlstrirt, Luton's Creative People and Places programme. Revoluton, and l Degree East hosted the flrst sesslon of thelr new Producer Hub which we co-hosted. Some attendees were new to the Hat Factory and were not aware of Its Potential as creative and cultural ambassador for theSr work. We invited the partners to develop the Producer Hub at the Hat Factory and offÈred support In developing Its scope. Creatlv¢ and cultural careers: In June. the trust hosted a Creative Network event to support the Local Cultural Education Partnershlp ILCEP) In sharin8 information about CreatNe and Culturnl Activities across the Trust. and we shared experiences on how to effectivety and engagingly desl8n new cultural learning sesslons. The cohort of 20 teacher5 from Luton Primary schools were shown the site and examples of hands on, object focussed sessions Insplred by our collectlons as well as a sneak preview of the new 360 Virtual tour and Arts Award Dlscover log book Inspired by the portraits of Theodore Kern In the hall way. Workln8 wlth the Careers advisor from The Chiliern Academy we desl8ned and co-produced a programme of tultural skills and career5 5UPPOrt. Wellbeinz Art Therapy: We are continuing to work wlth Morlom Grlllo from the Butterfly Prolert and the Recovery College to dellver Art Therapy at the Hat Factory. The current 3-month course has 10 particlpants benefiting in depth. Feedback has been positive and the sessions have had clear Imparts on partlclpant's lives, with the Hat Factory now being referred to as'5afe space.. We arealso plloting a series of li8ht.touch wellbeing Inltlatlves at our publlc pro8rammes The inienientions arè desb8ned to provlde an accessible taster of Art Therapy and to reduce the soclal stigma of vokln8 concems and seeklng help. From October- December we wlll use the Hat Dlslrlrt Late5 platform to Introduce these dlscreet arts-based ctivities Youth Theatrn: Our longstandln8 partner Next Generatlon Youth Theatre INGYn celebrated their 10-year anniversary Sn July. Acr055 2022-23 they have already supported 5LY)O young people to acee55 their provision. The celebration included public performances from their Young Dance and Theatre companies and a debut from their new Musical Theatre company. Three of the events were sell outs with the others achieving Stron8 numbers. Public feedback included comments such as hat on amazlng nightlll and . so much talent in one room.. We are working Wlth NGYr Dlrectors to develop new strate8ic models of partnership Includlng a bursary programme, the pllot of a technlcal production course. and shared fundraisin8 bids to increase reach and scope. From Aprll NGYf Frlday Muskal Theatre classes wlll also be hosted with us which In total means all of NGYf5 town centre activity will be held at the Hat Factory.

Stockwood Discovery Centre: Young Poopl•'s creatlv• wkshops: The third iteration of this project has been adapted to further benefit the young people takin8 Part, with multiple interventions In School and on 51te at Stockwood Discovery Centre. Thi5 time. participating Students have been put foThvard by Stockwood Park Academy. All partlcipants are at being at risk of excluslon due to Emotional Based School Avoidance IEBSAI. Students have participated in creative workshops with sound producers MakeAmpllfy and choreographers BEEE Creailve. Students a supported to produce di8ital, projettion and movement responses to our collections, this time with an added focus on illumination and the importance of the site's trees and greenery. LGBTQ picnic: In September we hosted the '8ig Gay Picnic,. As part of the Trust's commitment to improvin8 LGHBTQ+ visibility in Luton. we worked with the PRIDE in Luton committee to promote the community'5 first public 8et together since the success of PRIDE in June. The event was open to all featUd INe music and performance, and a food and drink from our cafe. The partnership event helped demonstrate Stockwood as safe and friendly space for the communlty and a contribution of £600 has been pledged to the Trust for programming in LGBTQ Hlstory Month In February 2023. Schools Llnkln8 Networks: We recently hosted the annual briefln8 for the khoo15 Linklng Network ISLNI at Stockwood Discovery Centre, welcoming siaff representatives from the partnering schoo15. The SLN aims to help youn8 people bulld relatlonships with chlldren they mlght otherwise not meet- children of different ages, ethnicitie5. religions and back8rounds. Thls year the SLN are fundin8 all partner schools 'neutral' visits to Stockwood. This brought over a ILXKI children from 10 dlfferent schools between January and February 2023 lo our 51te. This was an Incredible opportunity to make new cultural learnSn8 partnershlps and the team and developin8 a plan that can support and encourage repeat ttendance from the schools and their families through the year. Slockwood Illumlnated.. in December we opened our annual wlnter light trall. Produced In-house, the trall celebrates the beauty of the hlstorle Grade11 listed gardens. The trail includes many Interactive elements whlch we know from prevlous evenis are popular with younger audiences. Data from 2021,5 record breaking event showed that the later slots tended to be less busy: so thls year we trialled 'llluminated Lates, each Satufday evenlng to brlng some of the popular'Hat DistrSrt Lates, energy to Stockwood. featuring live music and an increased hospitality offer. The openin8 weekend saw over l(KN) people. with tlckets for the rest of the run continuing to sell at a pace of approximately 6W a day. Feedback has been extremely posltSve and included: You have totolly surpossed yourselves, this is the best one everf and This Is excellent value und such a good show thonk you. we will l)e bock.. Hortlculturn Student Placements: With Central Bedfordshire College we hosted three Horticulture Placement student5 for a period of 5 months. Students were based at Stockwood Discovery Centre and worked directly alon8side our Gardeners 3 days a week. This is a allY valuable partnership and with Placement managers we ensured both students and trust Staff feel supported to deliver and participate constructively. Febfest: as part of our annual collal)oration with Bedfordshire producers and theatre makers. Full House Theotre, Stockwood Discovery Centre hosted four February Half-term shows- each of them a sell-out. This Included a Samba Drumming Workshop for children aged S- 12 to explore

Brazilian Camival percussion, and an interactive theatre show for children a8ed 3+ titled Curious Investigators, Whe the audience helped the cast investigate their recyclin8. Wardown House Museum & Gallery wel¢omed Up on the Roof took audiences to explore the rarely seen ornate tsrickwork. chSmneys and WWI 8raffiti on top of Wardown House Museurn and Gallery, 8 fully booked tours took place acr055 the day with queues building before the doors opened. Programmed as part of National Heritage Open Days, we learned there is huge appetite for'behind the scenes, activity and are plannin8 more Curators day5, talks, and archive tours. ActivSty Is being designed with our l-mlle community to ensure it's relevant and appeallnB to our local Bangladeshi. Pakistani and polish communities. Hat fte$eah Centre: In November. the students of Morley College's Milllnery Course- one of just a few remainlng In the UK- visited Wardown House to look at objects from our coSlectlon. We presented a history of the collectlon, the hlstory of Luton's hat industry. and object-specific Inforrnation on the thirteen headdresses they had selected for research. Afterwards the students were exclted to look at the Straw Plait collection and Brltish Mlllinery ma8azines, before v151ting the permanent galleries. The Head of Morley Colle8e and mlllneT Vesna Peslc sald 'Thonk you very muchfor showinq us oll the beoutiful treo5ures. Everyone enjoyed very much., Durin8 the Sprin8 semester the students created a hat insplred by the collectlon, which featured as a small dlsplay. Musk In th• Mus•um programme presented classlcal Harplst Gabriella Oall'ollo {BBC, R•dlo France. RAI, Bayerlscher Rundfunk and Radlo Suissél, and the multl-lnstrumentallst Clare Hoffiman ILoDdon Symphony Orchestra, Philharmonlo, 88C Symphony Orchestral on the violin and vlola. Social media feedback Included ft's on obsolute dellqht to Ilsten to beoutiful muslc In such on intlmote ondperfect setting. Thank yow. Tlcket trends for these events continue to be positive with almost every event sold out. Collectlon Dev•lopment: We received a donation of artwork from Grodon de la Mothe. In the late 19705 Gordon de la Moihe wa5 a member of the 'Rainbow Art Group,, an intrl8uin8 new initiative involving a number of London artlsts in promoting the art of minority communities. Born in Carrlacou, Grenada, Gordon moved to the UK and studied at Luton College of Art. Our Curator is in contsct wlth Gordon and we hope to bring an exhibition of hls work to Luton alon8 wlth other p*ces currently on dlsplay at Maidstone Museums. We also welcomed artlst Judit Czimer-szendrel as part of Hat Distrlct Lates Jubllee Cefebralion as part of the official donatlon of her artwork Godsave the Queen. The event was attended by Katalin Oroszl, Cultural Attsché for Hungarian Embassy. Dlverslfyln8 ¢)ur collo¢tlon: As part of curatorial and Equity. DNerslty and Inclusion strate IEDII we are increasin8 representation and diversity In the Museum collections. we have secured the donation of a Lucy Barlow'speaker Hat,. Lucy Barlow first became interested in creatin8 hats for men with locks while visitin8 the reggae record store Daddy Cool. Thls piece was in5plred by the way music can lift the splrlt and was made for musician Klaywithak. We have also acquirèd a ralnbow headdres5 wom by Asifa Lahore, the flrst out Musllm Dra8 Queen. We plan to proflle a ran8e of

emhibition Items across South Asian Heritage Month (July- August). and Black History Month Iortoberl with an additional speakers programme and digital highlights. Wlndrush: We worked with with local group5 Including the ACCDF and ULCAC to acknowledging the 75th anniversary of Windrush. Part of this ncluded supportin8 RUSH75, a new fllm project by local Caribbean artiSt5 aiming to celebrate the influence of the Windrush generation on Luton. We are also lookin8 to develop new narratlves across the Museum with objects that tell new narratives. which is an Arts Council NPO fvnded development area for the Museum. La¢e in Fashlon temporary exhibitlon opened at Wardown, hlghl*hting a selection of lace from our extenSNe collection and demonstratin8 how lace was used In fashion. The chronological display runs from the 16C(Js to the 20th century including costurne, acce550ries and trlmmin8s. Over 5CW people have seen the exhibition, and we know from soclal media that multl.slte Lace Projects approach Is successful, with audiences posting pittures onllne •nd commenting. One online visitor posted a plcture wlth comment The [Lace Treesj artlst sold her inspifotion camefrom the loce ot Wordown House Museum. Well here is the proofl The loce Is port of the exhlbitlon Loce in Foshion... Schools ¥lslts.' We hosted Ecton Brook Primary School from Northampton. who brought a lar8e 8roup of 90 chlldren lo Wardown House. They came specifically to experience the Stone A8e to Iron Age sessions, which we tallored to suit thelr needs. The Head Teacher lolned the trlp and wrote to pass on their thanks.. "We would Ilke to thank youfor o morvellou5 day yesterday. We thorouqhly enjoyed the trip. It WO$ 0 9odsend havinq the schedule and o room thot had eosy occess to toilets ondfor storinq our thing5. We loved the sessions ond they were well tlmed ond paced. The children olso enloyed the museum a greot deol. Af teochers. welelt that the orqonisotion wos stronq and thot thef(Kilitie5 were perfectly suited to our needs. We lookfonvord to seelno you in 2023". Thls reiterates the importance of the 360 experience for schools. who value easy plannlng as well as a robust cultural offer. Thls type of feedback Is beln8 used to attract new schools and Increase our reglonal profile. Hal Distrlrt Creative Cluster Hats Made Me... dan¢e: NG were commissioned to Create a pop-performance for Hot DistrKt Late5 in March. The performance was Insplred bv the Hat and Headwear Exhibition, In particular a visor worn by Beyoncé on the cover of Vogue. The commission featured 9 young dancers from NGYfs award-winnin8 dance company Meraki. The performances took place in the windows of Hat Factory and Storefront Gallery, as well as outside on Bute Street. Performed four tlmes across the evenin& the dancer5 brought re8ular Crowds to the Hat District, wlth some being encouraged inside to explore the wider event. A pa55er-by commented Thot hos made my day ond really put a smile on myfoce. It is $0 lovely to see young people hoppy and doing 5t)methinq they love rother than just hcnging oround on street corners... Oancers will now work with up to 10 local schools to hearSe play8round-flèshmobs to be performed on the opening week of Hats Made Me in April.

Hat Distrirt Tours: In July we partnered with local Civil Engineering contractor Reybridge to show 90 pvpils from w18m0 Primary School around the Hat District and Plaiters Lea area. Ryebridge are constructin8 the neighbourin8 'Hat Gardens. and engaged u5 to share our vision for the area. As part of the tour we introduced pupils to theatre and exhibition spaces and worked with teachers to design a quiz on their Hat District knowled8e. The Headteachef at Wigmore Prlmary commenled "it was o great opportunltyfor the children, thonk5 to everyone who helped orgonlse it-. He also invited our Cultural Learnlng team io the school to glve a follow arts-based learning session on Luton's hat makin8 heritage Preacher. Punlsher and Judz• Dredd, the works of Brftlsh Comlc Book LeKend Steve Dlllon: Workin8 Wlth the Dillon family and our team curated an exhibitlon of 54 artworks spanning four decades. The artist is internationally celebrated and over 300 free tickets We booked in first 2 weeks. This exhibiton featured in the Guardian's Culture Magazine in late June. with an interview from Garth EnnSs Icfeator of Amazon Prime's The 8oys'l who was one of Steve'5 best friends. Steve'5 brother Gtynn attended the launch of the exhibition and gave Q&A about his own work a5 a costurne deslgner for ihe Star Wars and 8atman franchises. Thls exhlbition In a non-gallery context worked well. Hat House basement provides a platform for more urban. experimental and eclectk exhlbition5 and new audlences. Herltage Lates: learnin8 from our successful monthly creative socials, the Hat Dlstrlct celebrated National Heritage Open days with a stacked programme of heritage inspired artlstlc Interventions. The pro8ramme featured live mlxed moving ima8e projected and INe streamed around the building* looped social herita8e films from Holding Space collective, the launch of 'On the Wlngs of a Wirebird, by Sophie Greswell, artist led- discusslon explorln8 cultural identlty. and Luton Urban Radio's Nlv Hammond playlng herltage Jazz recordlnss, Over 540 people attended the event demonstratln8 a $58nlfkant appetlte for a socially led Intersectional herltagelarts offer in the Hat Dbstrlct, Hat Dlstrlct CapFtal Prolert- publicatlon: To conclude this six year re8eneration projert adaptin8 three fomer fattories for contemporary use, we wrote a book about the slx yearjourney which has now beln8 published. Authored by our CEO Marie Klrbyshaw and our Head of Collections and Heriage Elise Nalsh this book sets out the vision and the journey of chan8e, funding partnerships. herlta8e transformations. It wa5 illustrated malnly with by loc•1 photO8rapher Shaun Am)stron8 who was commi55ioned over four years to document the building and area transformation. A copy of the book was presented to funders at the fornial Opening Event. A lecture serles followed where we were Invlted to speak al)out the project at national ft)rum and or8ani5ation5. Wilh such bredth to our work, we welcome opportunities to share knowledge and skills and our passion for art5 and culture. We welcomed a delegation from Kashmir to explore the Hat Dlstrlct and Sha ideas about exchanges, mutual promotion and tourism. The conversatlon was engineered by Cllr Aslam Khan IDeputy Leader Luton Borough Council) and we formally greeted Tehzeeb Un Nisa (Dlrector General of Tourlsm & Archaeology) Malik Flyyai IDeputy Dlrector of Tourism & Archaeolo8yI and their party. Our CEO Marie Kirbyshaw was also honoured to be invited by HM Lord-Lieutenant of Bedfordshire Susan Lousada and Luton Borough Council, as a representative of ihe Trust to meet His Majesty Kln8 Charles on his visit to Luton on 6 December 2022. This was a good opportunity to tell him that his motherf5 hats were dyed in Luton and he showed an interest in the history of Hat Maklng.

l am particular thankful to the Officers and Councillors for their artive and contineud support in the Culture Trust,. our partnership with Lulon Borough Council and donation from Luton Risin8 enables us to contribute significantly towards Luton 2040 ambitions and specifically towards deliverin8 Outcomes aligned with the Arts and Cultural Strategy 'Harnessing momentum. and the Heritage Strategy 'Curating Luton,. We also, through our Hat District and Hat Factory programme5. creative Workspa and actNity. contribute significantly towards town centre regeneration. tourism. Inward investment and the local and nryht time econorny. I would also like to thank Arts Council England. who support our National Portfolio Delivery ènd have approved a further investment of £760,746 {over three years) to support the continuation ofour exemplary museum actNity at Wardown House Museum Galley untll the 2023-2026. We look for4¥ard to continuing our rewarding work through this three year fundln8 agreèment. In addition, Arts Cauncil awarded us additional fundlng of £237,167 lover three years) to deliver new programme in the Hat District called Yalent. Alumni and Progression. to connect local people wSth creative career opportunities, mentors and for us to map progresslon. We are very excited about launching this programme and workin8 in partnershlp with the Cultural and EdutIOn Sector5 in Luton to map out routes In and out of formal education and cultural provision. I reco8n15e thls has been another challengln8 year for the Trust the c05t of Ilvlng pressures Impacl on operatlonal costs and customer prlorltles on spend, but our funders and partnershlps, staff and trustees have enabled us address these challenges and support our users, partners. volunteers and tenants. Of course It15 wlth on8oin8 thanks and pralse that I commend our Culture Trust slaff team. the leadershlp team and CEO for their commltment and drlve to achleve mission to connect communities wlth cutture. Andrea Stark Chalr of Trustees

r Purposes Artlvltles The oblects of the Charity are as follows: The Charity has been established for the benefit of the publlc primarily for the community and visitors to Luton and the wider area of the East of England for not limited to ihe following oblert5. Ibl The advancement and support of education, culiure, arts. herltage and hlstory includin8 the provision of museums. galleries. learning and infom)ation centres. archives and other related servlces; andlor The provision or assistance In the provision of facilities for recreation or other leisure tlme occupation in the Interest of soclal welfare such facllities being provided to the public at large save that special facllitles may be provided to person5 who by reason of their youth, age. infimiity or disability, povertv or soclal or economic clrcumstances may have need of special facilities or services; and/or Idl Such other charltable purposes beneficial to the public consistent with the objects above as the Dlrectors shall in thelr •blute discretion determine. How our •rtlvltl•s d•lfver publlc benefit The Trustees confirm thai they have had regard to the Charlty Comm155ion's guidance on Publlc Benefit, Thè Trustees belleve that they meets the two key prlnclples of publlc beneflt as defined by law, beln8: There must be an Identifiable benefit or benefits Beneflt must be to ihe publlc, or a sectlon of the publlc Th• followln8 exampl•s demonstrat• how we dellv•rto these two key prlnclpl•J of publ1¢ b•n•fft: As Cultural Venue experts we widen publlc partlclplon In exemplary arts and cultural •¢tivity. We do thls by: Welcomin8 over 2,0[1) cultural vi51tors to en8age with heritage, museurn5, art5 and culture at our three sltes. Removing social and poverty barriers by providing free to access museums and heritage sites for all. o Ensuring Customer satisfaction. Wardown and Stockwood are Trip Advisors 2 3, top 'things to do in luton, Wrest Park Is number I (which is not in Lutonl. As 0d custodlans. we advocate for and ure for herftage. museum collectlons and h15torlc buildlngs: Over the last ten years we have raised £13m to Invest In Improvin8 local and publicly owned herita8e buildings. sites and Museums o We (leliver accredlted Museum services and collect?n care with specialist curatorial expertlse and free public access

o We raise awareness of our environment. SU5tainability and commit to becomin8 Net Zero at Stockwood Dlscovery Centre playing our part In Luton o We invest in the runnin8 and operation of our Luton's heritage sites annually contributing to their upkeep and ensurin8 free public access to safe and insplrln8 venues. As one of the larwt Creatlve Industrles In Luton we 5igniflcantly to contribute to the economy by.. o Employing 45 staff and provide si8nificant work for industry freelances, tech, duty officers. artisis, producers, securlty and bar/caterlng staff. o Supportin8 19 creatlve bu51ne5s•s & •ntr•pr•n+uvs with bespoke creative workspace. Delivering £3.6 million of GVA Impacts through the Hat District Cultural Economy o Committing £1.2rn Into the local economy each year for local services/trade/contracts As Investots In Luton Town Centro Culturnl Reynerntlon bv: o Developing historic former hat industry buildin85 that have been neglected or abandoned. We inve51 In high quallty herlta8e consepiation and improve the hlgh street creatin8 community pride and tourism to Luton Town centre Growln8 our Hat District town centre cative workspace provision from 17,¢xI)sqft to 30,(KJOsqft o Anlmating our town centre wlth innovative, excitin8 and stlmulatln8 art, public art, window display and outdoor projectlons creating a desSrable town cenire de5tinatlon. o Contrlbutin8 to the nlght tlme economy throu8h our year-round venue pro8ramme of live muslc, Hat Dlstrlct Lates, fblm comedy and café entertainment. As promoters of the ¥kllls and tal¢nt In youni p•opl• w•. o Enable 15,000 youn8 people125 years) to participate In cultural skllls workshops and provide them with carer advlce and a plpellne for creative careers. o Nurture 75 cr•atlv• Industry mlcrtrbusinesses with affordable hot-desklng space En8age with Schools in Luton, supportin8 teachers and students wlth curriculum delivery and out of school actlvitie5. Provide a platform for creative people to perforni. practice and nurture their talents in professional venues in front of Ilve audlences to develop their confidence and communlcation skills. o We invest in skills. develop taleni, commisslon research and collaborate in order to foster 8rowth Flnancl4 Review Ouring the year, turnover decreased by 28.9% to £2.838m1202V22. £3.991ml due mainly to the loss of £1,327,168 of cultural recovery fund and furlough support. Thi5 reduction in income was partly offset by a slight Increase in fundraisin& museum and library oncome and an increase in tradlng Income. The io

total resources expended increased by 18.36% to £4.304m12021122. £3.636ml reflectlng the increased expenditure for the £230k increase in premises costs, bein8 the Increase in utility bills and the increase in the cost of livin8 pay award. The principal fundlng sources of income to the Trust itself is Brants of £1,913.23212021122, É2,095,3481 for arts and culture. We also generate income from ticketed events. donations and rentslhire of spaces. The requirement under FR5102 to provide for beneflts accrued and the net interest cost of the defined benefit pension scheme in the Trust5 SOFA ha5 reduced the reported net Income (before actuarial movements) by £772,0<2021l22, £798.OCKII to a net expenditure of £1,471,487 12021122 net income of £355,852). In addltion £112,204-12021122. £39,800) is held a5 restricted fvnds in respect of unspent funding received for specific projects at the year end. The defined beneflt penslon deflclt decreased from £7.351.LThJ to Nil at the balance sheet date in accordance with the actuarial valuation report for FRS 102 purposes. The overall actuarial galns from the pension scheme We £8.123,OLKI. Thls has produced a consolidated net liabilities position of £18,816,iX 12021122, £29,577,OCY)l. The Trustees conslder that the pension deficit is based on lon8 term projections of future investment returns and demographic experlence many years into the future and thus are unlikely to reflert the actual eventual cost of providing the pension benefiis in the lon8 term. In additlon the last triennial fvll valuation carried out by the fund managers in March 2019 produced a fundln8 surplu5 value of £2.395k. Accordlngly. the Trust contlnues to adopt the 80in8 concern basls in preparln8 the financial statements. Prlcln8 Pollcy Our pricing pollcy reflects our Strate of enabling fe access to Museums at Wardown House Museum and Gallery and Stockwood Dlscovery Centre. We also Provide an annual programme of free and subsidlsed arts and cultural artivities and event5 where tlcketed event prices ran8e from £5 to £20 In the Hat Factory Arts Centre. All of our museum exhibitions, collections and public art mmmissions are accessed freely. Slnce 2019120 we have conducted a ticketing strategy called Culture for a Ffver where many of our arts events are prlced at £5 to allow our audience to attend high quality arts that are affordable. particularly for the younger demographic of Luton as well as a Pay It Fornard spon50rshlp scheme to encourage buslnesses to sponsor tickets for targeted groups and individuals In most need. Investment powe and Pollcy The Trustees. having regard to the liquidity requirement5 of runnin8 the busine55. keep available funds in Interest-bearing deposit accounts and seek to achieve a rate on deposit whlch matches or exceeds inflation as measured by the retail prlces index. Due to the increasing interest rates the trust was able to produce a modest amount of investment income in the year although the ability to generate a higher tUrn was depressed due to the reduced cash balan5. li

Reserves Polky and Golnz Concern Resevves are needed to bridge the 8ap between the spending and receiving of income and to cover unplanned emergency expendlture or reductions in fundln8. The Trustees note that at the year-end. a total of £5.553.511120121122. £6,561,526) is held in the general fund reserves, which includes fixed assets and investment properties. and £112.20412021122. £39.8001 as restricted funds. The restricted funds are not available forgeneral purposes at the end of the reporting perlod and the general funds are held in fixed assets properties and can only be realised through the disposal of these assets. The Trustees conslder thal the ideal level of seThes as at 31st March 2023 would be £60J,OCO representlng two months operational expenditure. The Trust has fallen below the level identified in the reserves policy during the period. The Trust 5 year plan includes a 8radual restofation of the Trust selves. In accordance with their responsibilities, the Trustees have considered and concluded upon the appropriateness of the going concern basls, whlch has been used in the preparation of these financlal statements. In making this goin8 concern asse55ment, the Trustees have had re8ard to the matters highli8hted in Note I section b in the accounts. After considering the uncertainties described in the note. the Trustees have a reayjnable expectation that the charitable company will have sufficient resources to contlnue in operatlonal existence for the foreseeable future. For Ise reasons, the Trust has conllnued lo adopt the going concern basis in preparing the flnanclal statements. Plans for Future Perfods Bulldlng on our newly adopted Creatlve Plan and Commercial Plan we have been developln8 a new Trust-wide Buslness Plan which wlll come Into action fmm April 2024-6. It is being built out of a series of workshops and activities with board, staff and the leadership team. Nine emer8in8 priorities will form the key structure of the document for dellvery. reco8nisin8 that we need to focus on our specialisms and grow existln8 Stren8ths. 12

Ref¢ren¢e and Admlnlstrative Detalls Charlty number: 1122964 Compary Nmber: 06373488 IEn8land and Wales) Rezlstered Offlu: The Hat Factory Arts Centre 65-67 Bute Street Luton LUI 2EY Our Advlsers Audltors: Moore Kln8Ston Smlth LLP Devonshire House. 60 Goswell Rd, Barbican, London ECIM 7AD Bankers: Co-operatlve Bank pl¢ 2 Alma stet Luton LUI 2PL Sollcltors,. Freeths LLP Routeco Office Park Davy Avenue Knowlhill Milton Keynes MKS 8HJ 13

Dlrectors and Trustees The Trustees, who are a150 directors under company law, who served during the yeaf and up to the date of this report were as follows: Mr Nicholas Gibson Ichair until 24103120221 Mr Geoffrey Mulgan Ms Andrea Stark Mr Safeer Ahmed Ms Joanne Prlor Mr Bilal Hussain Mr Sufian Sadiq Mr Robert Smallev Mr Andrew Stran8e Dr Carlola Larrea Msjulma Be8um (Appolnted as Chalr from 15112120221 (Appointed 291091221 Key M•naiement P•rsonMI Ms Marle Klrbyshaw Mr Samuel Javid MrGuy Smith Mr Ashley Bishop Ms Vanessa Penzo Ms Tracey Sa8e Ms Gillian McKay Chief Executlve Creative Dirertor (resigned 1618120231 Dirertor of Operatlons and Busines5 Performance IRe5igned 151071221 Director of Customer Experience (Appointed 051121221 Dlrector of Flnance & Resources/Company Secretary Ires18ned 8 September 20231 Interlm Creative D1clOr lappolnted 3118120231 Interim Finance Oirettor lappointed 7 September 20231 14

Struciure GOn nce and Man Goveming document Luton Cultural Services Trust is a re8lStered charlty and a company Ilmlted by guarantee. Its governing document Is Memorandum and Articles of Association. The Board of Trustees comprlses the Dirertors of the compary. Members of the charitable company guarantee to contribute an amount not exceedin8 £10 to the assets of the charltable company in the event of winding up. The total number of such guarantees at 31 March 2023 was 12. Appolntment of Trustees As stated above. the Board of Trustees are a150 Directors of the Company. Directors are recrulted throu8h public advertisement, contacts of the current Board members and throu8h business contarts of the charity. They are assessed for suitabillty u51ng a skills and interests matrix and are Interviewed by the Chair and Chief Executive. In normal circumstances one thlrd of the Directors retire at eaeh Annual General Meetln8 and are eligible for reappointment. Trustee Inductlon and tr•lnlng Trustees have an induction pro8ramme comprIn8 8overnance, the Trust vlslon and prlorftles. anaty5is of the charlvs buslness plan, actlvlty programme, staffin8 and resources. They also take part in a programme of visltS to operational sites of the Trust Whe they leam MO about our operation and meei staff and volunteers. Trustees are able to undertake trainin8 specific to thelr role, attend look and see vislts and partlclpate In an In.depih away4ay each year with the Chief Executive and Leadershlp Team to review prloritbes and to forward plan. Ory•nlsation The organlsatlon was established under a Memorandum of Association which established the objerts and powers of the organisatlon and is governed undef Its Artlcles of Association. The Trustees who have served durln8 the period and those appointed before the date of this report are listed on pa8e 10. No member of the Board or sub-committees receives any remuneratlon for their services a5 Trustees. The Board meets four times a year wlth additional extraordlnary meetings if required. sub.committees report quarterly to the Board and comprise ihe Flnance sub-comrnittee. HR sub<ommittee. The Nomlnations Committee and task and finish 8roups which are established to consider relevant Issues from time to time and report back to the Board. The Leadershlp Iwhlch comprises the Chlef Emecutive and the senior staff reporting to the Chief Executlvel meet every month to monitor performance, activity and operations and to review flnances. policy and practlce. The or8anlsation is a charltable company limlted by guarantee, incorporated on 17 September 2txi7 and re8lstered as a charfty on 27 February 2OJ8. 15

Related Partie$ and Cowoperatl¢)n wlth other Organlsatlons Any connectlOD between a trustee and senior manager of the charity with a production company, contracted actor. performer or exhibitor must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Details of lated party transactlons are shown in note 19 to the accounts. Luton Cultural Servlces Tmst Is a member of the Museums Assoclation, The Association of Independent Museums and The En811sh CNIC Museums Network. The Trust takes part in networking, advice, funding and strategic plannin8 Wlth Arts Council England, Heriia8e Lollery, Museums Assoclatlon, Hlstoric England, South Easi Midlands Local Enterprise Partnership and the Museums East of England Group. Pay poll¢y for wnlor staff The director5 consist of the Board of directors, who are the Trust's Trustees, and the senlor management team comprSse the key mana8ement personnel of the charity in char8e of directing and controlling, running and operatlng the Trust on a day to day basis. All director5 give their time freely and no dirertor received remunefation in the year. Details of d1CtorS. expenses are disclosed in note 7 to the accounts. The Trust adopts the NJC for Local Government pay scales for all staff, Including the Chlef Executive and leadershlp team. All posts are evaluated to all8n with the Local Authority job evaluation scheme to ensure fairne55 across the Trust and parity with similar Local Authority lobs. Staff penslons are provided throu8h the Local Government Penslon Scheme. Rlslt manaiement The Trustees have examined the major strate8lc. buslness and operational risks whl¢h the charlty faces and confirm that systems have been established to enable regular reports lo be produced so that the necessary steps can be tsken to evaluate ènd manage these rlsks. The Trust's rlsk register is reviewed on a regular basls by the corporate management team and at each Board meetln8. The key risk faced by the charity remalns the ImpKt of reductions from its major funderlsl, the Increase In costs resultln8 from hi8h inflation and the Impacl of reduced income resultin8 from lower footfall due to the challenges in the economic environment. A5 a cultural charity, the Trust is able to take advantage of opportunities in the wider cultural environment and actively apply for funds from call on other funders such as the National Lottery, Trusts and Foundation5 to go alongside core funding from Arts Council England INPOI whith includes inflation and the annual donation from London Luton Rlslng Iwhlch does not include inflation). Post COVID. the charity is focuslng on growing its trading and commercial activities. developing the Hat District to diversify income5 and will also be implementlng Sustainable practices and ongoin8 efficiencies. The Company'5 operation5 expose it to limited financial risks that include employee costs, prlce rlsk, credlt rlsk, Ilquldlty rlsk and interest rate risk. Given the size of the Company. the Directors have delegated ihe responsibility of moniloring financial risk to a sub-committee of the Board. The polic$ set by the Finance sub-committee are implemented by the Company's flnance department. 16

Employee Costs Rl$k: The Trust spends 62.5% of its bud8et on staff salaries and onC0sts. There is a risk that these costs will rise In line with inflation and above that included in oui medium term financial plans. The Trust sets its salary pay scales and annual pay awards in line with the Local Authority, which are subject to the government's public sector pay constraints. Prlce Rlsk: The Company has exposure to cornmodity prlces particularty for utility costs, building maintenance and offlce costs. Strong working relatlonships with its princlpal suppliers and framework agreements have aided the Trust to alleviate part of thls risk. Cr•dlt Rlsk: The Company h45 Ilmited exposu to credit risks. Most of Its fees and char8es are not subject to credit and those that are, are short tem. Credlt checks are not nomially carried out on customers. The Trust carries a rlsk of bad debts ad vacancies as potential and existin8 tenants are affected by the cost of1Svln8 crlses. Uqyldlty Rlsk: The Trust Is prlmarily funded through 8rants and donations which are usually received in advance of expenditure. The Company hJs suffered from cash flow challen8es due to the COVIO 19 pandemic but is carefully managin8 Its funds, optimising its current operations and re-pha5ing its planned expanslons. Intsvest Rat• •nd Cash Flow Rlsk: The Charity ha5 £1,$63k of borrowin8 and therefore exposure to Interest rate T15ks. The Trust has flxed the Interest rate for these loans for flve years In order to reduce the Interest rate risk. The reductlon in the Trusys cash reserve5 and the complem Post COVID-19 tr•dln8 envlronment e¥acerbated by the rise In Ilvln8 costs and energy prlces contlnues to adversely Impact cash flow and continue5 to present challen8es which are being carefully managed. statement of responslbllltl•s of Ihe Trustees ol Luton Culturnl Servlces Trust In re$pKt of the Tru$tee¢ annual report and the flnanclal statements: The Trustees are responsible for preparin8 the Trustees, Annual Report and the flnancial statements in accordance with applicable law and re8ulotions. Company law requires the Trustees to ppare financial statements for each financlal year. Under that law they have are required to prepare the group and parent company financial statements in accordance with UK Accountin8 Standards and applicable law IUK Generally Accepted Accountin8 Practice). including FRS 102 The Financlol Reporting Stondord appllc¢yble in the UK and Republic ollreland. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 8roup and charitable company and of ihe group's excess of income over expenditure for that period. In preparin8 each of the 8roup and charitable company financial statements. the Trusteès are required to: select suilable accountin8 policles and then apply them consisteDtIy- make judgements and estimate5 that are reasonable and prudent,. 17

stste whether applicable UK Accounting Stsndards have been followed. subject to any material departures disc105ed and explained in the financial statements; and assess the group's and the charitable companvs ability to continue as a going concern, disclosing, as applicable, matters related to going concern. and use the 80ing concem basis of accounting unless they either Intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do 50. The Trustees a responsible for keeping adequate accountSng records that are sufficient to show and explèin the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its finanaal statements comply with the Companies Act 2CfJ6. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. and have general responslbillty for taking such steps as are feasonably open to them to safe8uard the assets of the 8roup and to prevent and detect fraud and other irre8ularities. The Trustees are responsible for the maintenance and inte8rity of the corporate and flnanclal Infomiation Included on the charitable company's web51te. Le8lslation in the United KlnBdom governin8 the preparation and dlssemination of the financlal statements may dlffer from leglslation in otherjurlsdkilons. In so far a5 the Trustees ère Jware: There15 no relevant audit informatlon of which the charltable compan5 auditorls unaware: and The Trustee5 have taken all steps that they ought to have taken lo make themselves aware of any relevant audit Information and to establlsh that the auditor Is aware of that infomiatlon. Volunt•er support Luton Cultural Services Trust beneflts from the time dedicated by volunteers, includlng by our Trustees. These donated ser41ce5 have not been evaluated for inclusion in the financial statements. Our volunteers support us by working in venues. fundraising, helpin8 Wlth event5 and helping With documentation an(1 curatorial work. Lcsf Tradlng Ltd Funds are contributed to the charity through our subsidiary, LCST Trading Llmited and in 2022123. arose from the sale of merchandlse at ourvarlou5 locations. room hire, events managernent. weddlngs, café and bar sales. LCST Trading had income of £641,33612021122 £495.9S91 and there was a surplus of £254.163 on tradlng1202V22 £108,508) $0 a donation of that surplus was made to the Trust. 18

r key perfomiance Indicators Jr• sumrnJrlsed in the table below (number of customets engaging wlth the Trnsvs xtlvliles durlng 2022123 as compared to the prevlous year): For actfvltle5• please refer to the actlvities autllned in the Chalrfs report. 5efvlce 2021- 22 2022-231kl oi Tar8et qi Output Full Year Tary¢t Full Actual Target Output Targot Output Year Target Output Output Arts. 56.392 20.738 16,023 18,750 14.707 2S,523 16,854 15,240 14.031 80,251 61.615 Museums •• 97.981 58,999 36,969 75.960 52,453 37.307 28,762 32,067 25.655 204,333 143,839 Total IS4,310 79,737 52.992 94,710 67.160 62.830 45,716 47.307 39,686 284.584 Audltors A resolutlon to re.appolnt Moore Kin8Ston Smlth LLP as the chaflvs auditors wis proposed at the AGM meetlng held on 26 September 2023, Approv•d by the Board of Trustees on 26 S•pt•mber 2023 and sl8n¢d on Its behall by Andrea Stark Chair of Trustees 19

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUTON CULTURAL SERVICES TRUST Opinion We have audited the financial statements of Luton Cultural Services Trust Ithe'parent charitable companrfl and its subsidiaries Ithe'group'l for the year ended 31 March 2023 which comprlse the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements. including 518nificant accounting pollcles. The flnanclal reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includin8 Financial Reportlng Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accountlng Practlcel. In our oplnlon the flnanclal statements: '8ive a true and fair view of the state of the group's and the parent charltable company's affairs as at 31 March 2023 and of the 8roup's Incomln8 resources and appllcatlon of resources, Including Its income and expenditure, for the year then ended: •have been properly ppared in accordance with United Kin8dom Generally Accepled Accountlng Practice; and .have been prepared in accordance with the requirements of ihe Companies Act 2CI)6. Basls for oplnlon We conducted our audit in accordance with International Standard5 on Auditing IUKI IISASIUKII and applicable law. Our responsibilities under those standards are further descrlbed in the Auditorfs Responsibilities for the audit of the financial statements section of our report. We a Independent of the charitable company In accordance with the ethical requirements that are relevant to our audit of the financial 5tatement5 in the UK, including the FRC'S EthScal Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We belleve that the audit evidence we have obtalned Is sufflclent and appropriate to provide a basi5 for our opinion. Concluslons relatln8 to 8oin8 ¢on¢ern In auditin8 the financial statements, we have concluded that the trustees. use of the golng concem basis of accountln8 in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertaintles relating lo events or condllions that, individually or collectNely. may cast significant doubt on the group's and parent charitable company's ability to continue as a going concern for a period of at least twelve Months from when the financial statements are authorised for i55ue. 20

Our responsibilitie5 and the spOnSibl11t1eS of the trustees with respect to going concem are described in the relevant sections of this report. Other Inforniatlon The other information comprises the InfOatIOn Included In the annual report. other than the financial staiements and our auditorfs report thereon. The trustees are responslble for the other informatlon contained in the annual report. Our oplnion on the financial statements does not cover the other Informotion and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other Information and. in doin8 so. consider whether the other infomiation is materially inconsistent with the flnanclal statements or our knowledge obtained in the course of the audii or othenvise appears to be materially misstated. If we identify such materlal inconsistencles or apparent materlal misstatement5. we are required to determlne whether there is a material misstatemeni In the financial ststements themselves. If. based on the work we have performed. we conclude that there is a materlal rnisstatement of ihis other infomatlon, are quId to report that fact. We have nothln8 to report in thi5 regard. Oplnlons on other matters prescrlbed by the Companles •*t 2006 In our oplnion. based on the work undertaken in the course of the audlt: •the Informatlon 8lven In the strate8lc report and the twstees. annual report for the flnanclal year for whlth the flnanclal statements a prepared Is conslstent wlth the flnancial statements: and •the Strategic report and the trustees, annual report have been prepared In accordance wlth appllcable le8al requlrements. Matters on vthlch w¢ are rnqulred to report by •xc•ptlon In the light of the knowledge and understandlng of the group and parent charitable company and thelr environment oblalned in the course of the audlt, we have not identlfied material mlsstatements in the strate8ic report or the trustees. annual report, We have nothin8 to report In respect of the following matter5 where the Companles Act 2(MJ6 requires us to report to you if. in our opinlon.. •the parent charitable Company has not kept adequate ind sufficlent accounting records. or returns adequate for our audit have not been received from branches not vlsited by us; or •the parent charitable compan$ financial statements are not in agreement with the accounting records and returns; or •certain disclosures of trustees. remuneratlon specified by law are not rnade.. or •we have not received all the Information and explanations we require for our audlt. 21

Responslbilities of tru5te¢5 As explained more fully in the trustees, responsibilities statement set out on page 13, the trustees Iwho are also the directors of the charilable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they 8Ne 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 mlsstatement. whether due to fraud or error. ID preparing the financial statements, the trustees are responsible for assessin8 the 8roup and parent charitable companV5 ability to continue as a going concern, disclosin8, as applicable, matters related to going concem and using the 80in8 concern basis of accounilng unless the trustees either intend to Ilquidate the 8roup or parent charItae company or to cease operations. or have no reallstic alternative but to do so. Audltorfs re5pon$lbllltl•s lor the audlt of the financial statements Our objectives are to obtain reasonable assurance about whether the flnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable a55urance Is a hl8h level of assurance, but is not a 8uarantee that an audlt conducted in accordance with ISAS IUKI wlll always detect a materièl misstatement when It exists. Misstatements can arise from fraud or error and are considered materlal If, indlvidually or in aggre8ate. they could reasonably be expected to influence the economic decisions of users tsken on the basis of these flnanclal statements. As part of an audli Sn accordance wlth ISAS IUKI we exerclse professional judgement and maintaln professional 5ceplicSsm throushout the audlt. We also: •ldentify and assess the rlsks of materlal misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responslve to those rlsks, and obiain audit evidence that IS sufficient and appropriate to provide a basls for our opinlon. The rlsk of not detecting a materlal misstatement resulting from fraud is higher than for one resultlng from error, as fraud may involve colluslon, foryery, Intentlonal omisslons. mlsrepresentation5. or the override of internal control. •Obtain an understandin8 of internal control relevant to the audit in order to design audit procedures that are appropriate In the clrcumstances, but not for the purp05e5 of expressing an opinion on the effectiveness of the group and parent charitable company's internal control. •Evaluate the appropriateness of accountin8 policies used and the reasonableness of accounting estimates and related discbsures made by the trustee5. •Conclude on the appropriaieness of the trustees. use of the going concern basis of accountin8 and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast Significant doubt on the group and parent charitable companls ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statement5 or, If such disclosures are inadequate. to modify our opinion. Our conclu5ion5 are based on the audit evidence obtained up to the 22

date of our auditorfs report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a 80in8 concern. •Evaluate the overall presentation, structure and content of the financial ststements, Sncluding the dlsclosures. and whether the financial 5tstements represent the underlying transactions and events In a manner that achieves fair presentation. •Obtain sufficlent appropriate audit evidence regarding the financial information of the entities or buslness artivltles wlthln the group to express an oplnlon on the consolidated financial statements. We are responslble for the direction, supeprfision and performance of the 8roup audit. We remain 501ely responsible for our audlt report. We communlcate with those charged with governance regardin8, among other matters, the planned scope and tlmln8 of the audll and si8nifKant audit findin8s. includin8 any s18nificant deficiencies in internal control that we identify durin8 our audit. Explanation as to what ext•nt the Judlt was ¢onsldered capable of d•t•rtlw Irre8ularltle$. In¢ludlni fraud Irregularities, including fraud. are Instances of non-compliance with law5 and re8ulaiions. We desi8n procedures In Ilne wlth our responsibillties, Outllned above, lo detect material misstatements In respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irre8ularltles, IncludSn8 fraud 15 detalled below, The oblectNes of our audit in respect of fraud. are; to identify and asse55 the risks of material mi55tatement of the financial statement5 due to fraud,. to obtaSn sufficlent appropriate audit evldence regarding the assessed risks of materlal mlsstatement due to fraud, throu8h deslgnin8 and Implemeniln8 Ipproprlate responses to those assessed risks,. and to respond appropriatety to instances of fraud or suspected fraud identified durin8 the audit. However, the primary responsibllSty for the prevention and detectlon of fraud rest5 Wlth both management and those charged wbth governance of the charitable company. Our approach was as follows: •We obtained an understandin8 of the legal and regulatory requirements applicable to the charilable company and considered that the most Si8nifKant are the Companles Act 2006, the Charities Act 2011. the Charlty SORP, and UK financial reportin8 Standards as Issued by the Financial Reportin8 Councll •We obtalned an understandln8 of how the charitable company complies with these requirements by dixu5sions wlth management and those charged with governance. •We asse55ed the risk of malerial mlsstatement of the financial statements. includlng the risk of material mlsstatement due to fraud and how It mlght occur, by holding discussions with manaBement and those charged with governance. •We inquired of mana8ement and those charged wlth 8overnance as to any known in5tance5 of non-wmpliance or susperted non<0mpllan with lav and regulations. 23

•Ba5ed on thls understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged wlth governance and obtaining additional corroborative evidence as required. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instsnces of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial Statements. Also, the rlsk of Th)t detecting a material misstatement due to fraud 15 hi8her than the risk of not deiectln8 one resultlng from error. a5 fraud may involve dellberate concealment bvi for example. forgery or intentlonal misrepresentatlons. or through collusion. Use of Our report Thi5 report 15 made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audlt work has been undertaken $0 that we might state to the charitable company's members those matters whlch we are reqUId to state to them In an audltor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charltable company and charitable company's members as a body, for our audlt work. for thls report, or for the opinions we have fom)ed, Date 22 November 2023 James Saunders Isenlor Statutory Auditor) for and on behalf of Moore Klngston Smith LLP. Statutory Audltor Devonshire House 9 Appold St London EC2A 2AP 24

Luton Cultural Services Trust Consolidated Statement of Financial Activities (including an income and expenditure account) For the year ended 31 March 2023

£ 1,550,919 276,107 641,625 821 Unrestricted Funds	£ 362,313 300 - - Restricted Funds	£ 2,095,049 1,400,768 495,971 - Total Funds 2022
2,469,472	362,613	3,991,788
543,356 3,430,353 32,454	- 297,409 -	387,462 3,213,313 35,160
4,006,163	297,409	3,635,935
(1,536,691) (7,200)	65,204 7,200	355,853 -
(1,543,891) (137,859) 8,123,000	72,404 - -	355,853 (417,860) 3,222,000
6,441,250 (738,091)	72,404 39,800	3,159,993 (3,858,284)
5,703,159	112,204	698,291

Luton Cultural Services Trust Consolidated Statement of Financial Activities For the year ended 31 March 2022

£ 1,459,307 1,400,468 495,971 - Unrestricted Funds	£ 635,742 300 - - Restricted Funds	£ 2,095,049 1,400,768 495,971 - Total Funds 2022
3,355,746	636,042	3,991,788
387,462 3,034,832 35,160	- 178,481 -	387,462 3,213,313 35,160
3,457,454	178,481	3,635,935
(101,708) 463,780 362,072 (417,860) 3,222,000 3,166,212 (3,904,303)	457,561 (463,780) (6,219) - - (6,219) 46,019	355,853 - 355,853 (417,860) 3,222,000 3,159,993 (3,858,284)
(738,091)	39,800	(698,291)

Luton Cultural Services Trust Consolidated Balance Sheet As at 31 March 2023

Note 2023 2022 £ £ Fixed assets Tangible fixed assets 9 4,637,561 4,796,548 Investment property 10 2,967,501 3,105,360 7,605,062 7,901,908 Current assets Stock 12 14,120 15,351 Debtors 13 184,599 449,994 Cash at bank and in hand 82,120 549,064 280,839 1,014,409 Creditors:Amounts falling due 14 (595,616) (551,192) within one year Net current liabilities (314,777) 463,217 Creditors:amounts due after 15 (1,474,922) (1,712,416) one year Net assets excluding pension 5,815,363 6,652,709 scheme (Asset)/liabilities Defined benefit pension scheme Asset/(liability - (7,351,000) Net Liabilities including pension 5,815,363 (698,291) scheme liabilities Funds Restricted funds 17 112,204 39,800 Unrestricted funds General funds 17 5,703,159 6,612,909 Pension reserve 17 - (7,351,000) Total funds 5,815,363 (698,291) The Group	Note 2023 2022 £ £ Fixed assets Tangible fixed assets 9 4,637,561 4,796,548 Investment property 10 2,967,501 3,105,360 7,605,062 7,901,908 Current assets Stock 12 14,120 15,351 Debtors 13 184,599 449,994 Cash at bank and in hand 82,120 549,064 280,839 1,014,409 Creditors:Amounts falling due 14 (595,616) (551,192) within one year Net current liabilities (314,777) 463,217 Creditors:amounts due after 15 (1,474,922) (1,712,416) one year Net assets excluding pension 5,815,363 6,652,709 scheme (Asset)/liabilities Defined benefit pension scheme Asset/(liability - (7,351,000) Net Liabilities including pension 5,815,363 (698,291) scheme liabilities Funds Restricted funds 17 112,204 39,800 Unrestricted funds General funds 17 5,703,159 6,612,909 Pension reserve 17 - (7,351,000) Total funds 5,815,363 (698,291) The Group	2023 2022 £ £ 4,637,561 4,796,548 2,967,501 3,105,360 7,605,062 7,901,908 - - 64,136 497,788 - 408,496 64,136 906,284 (528,561) (494,449) (464,425) 411,835 (1,474,922) (1,712,417) 5,665,715 6,601,326 - (7,351,000) 5,665,715 (749,674) 112,204 39,800 5,553,511 6,561,526 - (7,351,000) 5,665,715 (749,674) The Charity	2023 2022 £ £ 4,637,561 4,796,548 2,967,501 3,105,360 7,605,062 7,901,908 - - 64,136 497,788 - 408,496 64,136 906,284 (528,561) (494,449) (464,425) 411,835 (1,474,922) (1,712,417) 5,665,715 6,601,326 - (7,351,000) 5,665,715 (749,674) 112,204 39,800 5,553,511 6,561,526 - (7,351,000) 5,665,715 (749,674) The Charity
7,605,062	7,901,908	7,605,062	7,901,908
14,120 184,599 82,120	15,351 449,994 549,064	- 64,136 -	- 497,788 408,496
280,839	1,014,409	64,136	906,284
	(551,192) 463,217 (1,712,416) 6,652,709 (7,351,000)	(528,561) (464,425) (1,474,922) 5,665,715 -	(494,449) 411,835 (1,712,417) 6,601,326 (7,351,000)
5,815,363	(698,291)	5,665,715	(749,674)
112,204 5,703,159 -	39,800 6,612,909 (7,351,000)	112,204 5,553,511 -	39,800 6,561,526 (7,351,000)
5,815,363	(698,291)	5,665,715	(749,674)

These accounts were approved and authorised for issues by the Board on 26 September 2023 and signed on their behalf by:

……………………………………..

Andrea Stark Chairman

Luton Cultural Services Trust Consolidated Statement of Cash Flows For the year ended 31 March 2023

Note Net cash flow from operating activities (a) Cash flows from investing activities Interest received Interest element of finance lease repayments Interest element of loan Expenditure on fixed assets (including investment property) Net cash used in investing activities Cash flows from financing activities Repayment of capital element of finance leases Bank loan drawn down Net cash inflow (b) Cash and cash cash equivalents at beginning of the year Cash and cash cash equivalents at the end of the year	2023 £ (182,665) 821 (7,240) (67,259) -	2022 £ 902,193 - (13,215) (38,923) (246,659)
	(73,678) (61,619) (148,981)	(298,797) (61,751) (69,732)
	(210,600) (466,943) 549,064	(131,483) 471,913 77,151
	82,121	549,064

Notes to the cash flow statement

a) Reconciliation of (outgoing)/incoming resources to net cash flow from operating activities

Net (outgoing)/incoming resources before other gains/(losses) Loss on disposal of fixed assets Defined Benefit Scheme movements Decrease in stock Decrease in debtors Increase in creditors Depreciation Interest paid on finance leases Interest paid on loans Interest received Net cash flow from operating activities	2023 £ (1,471,487) - 772,000 1,231 265,395 17,531 158,987 7,240 67,259 (821)	2022 £ 355,852 - 798,000 1,953 51,945 (503,984) 146,289 13,215 38,923 -
	(182,665)	902,193

Analysis of changes in net debt

Cash and cash equivalents Loans falling due after more than one year Finance lease obligations Total net debt	At 31 March 2022 549,064 1,645,268 128,766	Cashflows (466,944) (148,981) (61,619)	New finance leases - - -	At 31 March 2023 82,120 1,496,287 67,147
	2,323,098	(677,544)	-	1,645,554

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and therefore the consolidated financial statements have been prepared in accordance with the 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 (The FRS 102 Charity SORP), the Companies Act 2006 and the Charities Act 2011.

The results of the subsidiary entities are consolidated on a line by line basis. A summary of the results of the subsidiary entities is shown in Note 11. The functional currency of the charity and its subsidiaries is sterling; amounts are rounded to the nearest pound.

Luton Cultural Services Trust has taken advantage of the exemption in section 408 of the Companies Act 2006 from disclosing its individual statement of financial activities. The Charity only surplus (net movement in funds) was £929,749 (2022: surplus of 1,127,900).

The group accounts consolidate the accounts of Luton Cultural Services Trust and its subsidiary undertaking, LCST Trading Limited, made up to 31 March 2023. The acquisition method of accounting has been adopted.

b) Going concern

In accordance with their responsibilities the Directors have considered and concluded upon the appropriateness of the going concern basis, which has been used in the preparation of these financial statements. In making this going concern assessment, the directors have had regard to the following matters:

Budgets and cash flows to March 2025
Relationships with the bank
Sale of land and continued negotions for further funding with Luton Airpost Authority

The directors have assumed that sufficient funding will be made available to the company in the 12 month period following the approval of these financial statements. The LLAL and Arts Council revenue funding has been confirmed and this provides £1.5m secured income for the Trust in 2023/24.

During COVID-19, an overdraft facility was put in place to help the Trust manage cash-flow and this remains in place until February 2024. It is anticipated that the facility may still be required beyond this period and so an extension will be sought. The Trust is active in seeking opportunities to fundraise and to date has been very successful.

Nevertheless, after making these enquiries, and considering the uncertainties described above, the Directors have a reasonable expectation that the charitable company will have sufficient resources to continue in operational existence for the foreseeable future. For these reasons, the charitable company has continued to adopt the going concern basis in preparing the financial statements.

c) Income

Total incoming resources as shown in the Statement of Financial Activities is the total income of the group. All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income, the receipt is probable, and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

ci) Voluntary income

Voluntary income is included in the Statement of Financial Activities when receivable.

cii)

Grants receivable

Revenue grants are credited to the Statement of Financial Activities when the Charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably.

d) Allocation of costs

Central salary costs are apportioned on the basis of staff time attributable to each activity. Overhead costs are allocated to activities on a headcount basis.

e) Costs of charitable activities

The costs of each category of charitable activity are the costs directly attributable to that activity and allocated central costs.

f) Governance costs

Governance costs include all costs of compliance with constitutional and statutory requirements, including legal and audit fees and the costs of meetings.

g) Depreciation

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Long leasehold property improvements	10 - 50 years
Plant & equipment	5 - 10 years
Office furniture and equipment	5 years
Computer software	3 years

Items of equipment are capitalised where the purchase price exceeds £5,000. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Freehold property has been capitalised and included in fixed assets at cost. Depreciation has not been provided after taking into account the value of the land, the residual value of the property and the estimated useful life of the asset. The property is reviewed annually for any potential impairment.

h) Stock

Stock is valued at the lower of cost and net realisable value.

i) Restricted funds

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of management and support costs.

j) Unrestricted funds

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. In accordance with FRS102, a pension reserve is included within unrestricted funds representing the defined benefit pension scheme. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

k) Resources expended

Resources expended are recognised in the period in which they are incurred and include attributable VAT which cannot be recovered.

l) Costs of generating funds

The costs of generating funds relate to the costs incurred by the group and charitable company in raising funds for its charitable work.

m)[Pension costs]

The pension liabilities and assets are recorded in line with FRS102 and relate to the defined benefit scheme set out in note 18. A valuation for accounting purposes is undertaken by an independent actuary. The value of benefits accrued and the net interest costs is used to determine the pension charge in the SOFA. The change in value of assets and liabilities, changes in benefits and changes in actuarial assumptions are recognised in the SOFA within "actuarial gains/(losses) on defined benefit pension scheme".

n) Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost, and subsequent to development works will be adjusted to their fair value at period ends.

o) Accounting estimates and key judgements

In the application of the company’s accounting policies, the Trustees are required to make judgements, 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 to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

i. Useful economic live of tangible assets

The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are reassessed annually. These are amended where necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying value of assets and note 1g for the useful economic lives.

p) Accounting estimates and key judgements

ii. Valuation of investment property

The carrying value of the investment properties at 31 March 2023 is based on a valuation carried out in August 2022 by an independent valuer who has the necessary skills and proficiency to undertake the valuation in a competent manner. The valuation was made on an open market basis and in determining the market value the valuer has drawn upon comparable market transactions in the local area. The valuation has been prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation - Global Standards 2017. The trustees continue to keep the market value of the property under regular review.

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

2 Income from charitable activities

Income from charitable activities
	2023	2023	2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Library related income	12,465	-	12,465	4,505
Museum related income	96,318	300	96,618	68,794
Community Centres related income	-	-	-	-
Other income	167,324	-	167,324	1,327,469
Total	276,107	300	276,407	1,400,768

3 Donations and Legacies

Donations and Legacies	Donations and Legacies
2023 Unrestricted £ London Luton Airport 1,454,000 NLHF - Arts Council England - NPO museums - Architectural Heritage - Hat Works Projec - Historic England - Hat Works Project - Linbury Trust - Hat Works Project - SEMLEP - Hat Works Project - Manhead Archaelogical Society 90,000 Royal Opara House Bridge - Sch for Social Heritage Income - Bedfordshire & Luton Grant - LGBTQIA - Other Museums related - ACE- Lace Tree project - Misc Grants - Hat Works Project - Visitor donations 6,919 1,550,919		2023 Restricted £ - - 306,509 - 200 - - - 7,000 15,725 2,775 30,104 - - -	2023 2022 Total Total £ £ 1,454,000 1,454,000 - 224,320 306,509 208,643 - - 200 18,000 - - - 122,000 90,000 - 7,000 - 15,725 - 2,775 - 30,104 28,300 - 24,778 - 10,000 6,919 5,307
	1,550,919	362,313	1,913,232 2,095,348

4 Investment income

Investment income
	2023	2023	2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Bank interest	821	-	821	-
	821	-	821	-

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

5 Total resources expended

Total resources expended
Staff costs (Note 7) Pension adjustment (Note 7) Premises costs Equipment Library resources Office Costs Events, Exhibitions & Programmes Marketing and Publicity Legal & Professional Fees Archive and records services Depreciation Bank Charges Other costs Interest payable Bad debts written off Unallocated Non reclaimable VAT Total resources expended Support Costs Total resources expended	Learning and Skills costs £ 56,675 28,534 - - 2,294 - 3,124 - - - - - - - -	Arts costs £ 97,082 48,877 153,525 1,069 - 7,576 154,882 - - - - - - - -	Museum costs £ 577,376 290,686 264,272 23,629 - 7,594 7,382 - - - - - - - -	Cross-trust projects £ 115,675 58,238 - - - 3,585 143,014 27,439 (1,202) - - - 8,898 - -	Governance costs £ - - - - - - - - 32,454 - - - - - -	Support costs £ 686,578 345,665 8,345 7,823 - 70,916 12,725 60,568 107,602 - 158,986 - 15,445 67,251 66,907 38,727	2023 Total £ 1,533,386 772,000 426,142 32,521 2,294 89,671 321,127 88,007 138,854 - 158,986 - 24,343 67,251 66,907 38,727	2022 £ 1,259,876 798,000 196,450 131,291 2,135 100,520 355,652 67,473 124,918 - 161,587 - (37,669) 43,288 44,952
	~~90,627~~ 70,674	~~463,011~~ 361,072	~~1,170,939~~ 913,138	~~355,647~~ 277,346	~~32,454~~ 25,309	~~1,647,538~~ (1,647,538)	3,760,216 -	~~3,248,473~~ -
	161,301	824,083	2,084,077	632,993	57,763	-	3,760,216	3,248,473

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

6 Net incoming resources for the year

This is stated after charging: Depreciation Trustees' indemnity insurance Auditor's remuneration - Audit fee for current year - Additional fee for extended audit work - Other services - Under Accrual for prior year 7 Staff costs and numbers Staff costs were as follows: Salaries and wages Social security costs Pension contributions Other pension costs Redundancy and termination costs	2023 2022 £ £ 158,987 146,289 1,386 22,730 20,625 6,563 12,974 2,272 420 4,072 - 2023 2022 £ £ 1,403,997 1,185,761 138,161 105,007 148,226 123,073 772,000 798,000 60,000 8,908 2,522,384 2,220,749

The Trustees received £nil remuneration in the year (2022: £nil). The trustees received reimbursement for expenses totalling £53 (2022: £35). 1 employee received emoluments in the range £100,000 - £109,999 (2022: 1). 2 employees received emoluments in the range of £70,000 - £79,999 (2022: 2). The total remuneration for the key management personnel and the Chief Executive totalled £327,812 (2022: £306,744). Total employer pension contributions for key management personnel were £30,523 (2022: £28,380).

The average number of employees (full-time equivalent) during the period was as follows:

Chief Executive, finance and administration Marketing ,business development and trading Libraries, Learning and Skills Museums Arts Community Centres Operations Casual staff Average total headcount	2023 No. 9 7 1 15 3 - 4 6 45 45	2022 No. 8 8 1 14 3 - 4 3
		41
		50

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary LCST Trading Ltd donates available profits to the charity.

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

9 Tangible Fixed Assets Group and Company

Group and Charity

Group and Charity
Freehold property £ Cost At 1 April 2022 2,374,631 Additions Disposals - At 31 March 2023 2,374,631 Depreciation At 1 April 2022 - Eliminated on disposa - Charge for the year - At 31 March 2023 - Net Book Value At 31 March 2023 2,374,631 At 1 April 2022 2,374,631	Long leasehold property £ 2,698,713 - - 2,698,713 528,086 - 98,635 626,721 2,071,992 2,170,627	Office furniture & equipment £ 174,394 - - 174,394 169,094 2,485 171,579 2,815 5,300	Plant & equipment £ 844,514 - - 844,514 598,524 - 57,867 656,391 188,123 245,990	Total £ 6,092,252 - -
				6,092,252
				1,295,704 - 158,987
				1,454,691
				4,637,561
				4,796,548

10 Investments

The Group continues to develop its investment properties and will undertake an annual revaluation on completion.

Market value at 1 April Capital additions at cost Impairment during the year Market value at 1 April	2023 £ 3,105,360 - (137,859) 2,967,501	2022 £ 3,523,220 - (417,860)
		3,105,360

The Charity has two investments properties, Hat House and Hat Studios both of which have been externally valued by an examiner in August 2022. The Hat Studios land is currently under offer to be sold and the valuation in the accounts reflects this offer.

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

11 Subsidiary Undertaking

The charitable company owns the whole of the issued ordinary share capital of LCST Trading Limited, a company registered in England and Wales (Company Number 06373488). The subsidiary is used for nonprimary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. A summary of the results of the subsidiary is shown below:

External Income Cost of sales Gross profit Administrative expenses Operating profit Interest receivable and similar income Retained profit for the year Accumulated profit The Balance Sheet comprised: Fixed assets Current assets Current liabilities Creditors due after more than one year Charitable distribution to Luton Cultural Services Trust	2023 2022 £ £ 641,336 495,959 (414,729) (283,854)
	226,607 212,105 (128,627) (103,608)
	97,980 108,497 289 11 - -
	98,269 108,508
	- - 170,147 107,826 (71,878) (56,739) - -
	98,269 51,087

Stock
	Group			Charity
	2023	2022	2023		2022
	£	£	£		£
Merchandise and Bar stock	14,120	15,351		-	-

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

13 Debtors

Debtors and prepayments VAT costs Amount due from subsidiary Creditors: amounts due within 1 year Bank overdraft Trade creditors Accruals and deferred income Social security costs Finance leases due within 1 year Bank loan due within 1 year	2023 2022 £ £ 173,390 422,309 11,209 27,685 - - 184,599 449,994 2023 2022 £ £ 43,119 - 214,072 290,129 211,711 155,267 38,202 44,178 43,151 61,618 45,361 - 595,616 551,192 Group Group	2023 2022 £ £ 173,390 422,309 11,209 27,685 - - 184,599 449,994 2023 2022 £ £ 43,119 - 214,072 290,129 211,711 155,267 38,202 44,178 43,151 61,618 45,361 - 595,616 551,192 Group Group	2023 2022 £ £ 51,411 360,756 11,202 27,685 1,523 109,347 64,136 497,788 2023 2022 £ £ 43,119 - 196,028 172,258 162,700 216,395 38,202 44,178 43,151 61,618 45,361 - 528,561 494,449 Charity Charity	2023 2022 £ £ 51,411 360,756 11,202 27,685 1,523 109,347 64,136 497,788 2023 2022 £ £ 43,119 - 196,028 172,258 162,700 216,395 38,202 44,178 43,151 61,618 45,361 - 528,561 494,449 Charity Charity
	595,616	551,192	528,561	494,449

14 Creditors: amounts due within 1 year

15 Creditors: amounts due after 1 year

Creditors: amounts due after 1 year
Finance leases due within 1 to 5 years Bank loan	2023 2022 £ £ 23,996 67,148 1,450,926 1,645,268 1,474,922 1,712,416 Group		2023 2022 £ £ 23,996 67,148 1,450,926 1,645,269 1,474,922 1,712,417 Charity
	1,474,922	1,712,416	1,474,922	1,712,417

The bank loan was taken out in September 2019 and is repayable in instalments by March 2043. Interest of £41,420 (2021: £43,288) was charged during the year. There is a first legal charge on the freehold property of 32 Guildford Street over the bank loan.

A CIBL loan was taken out in February 2021 and is repayable in instalments by March 2024. Interest of £Nil was charged during the year. Interest will be charged at 6.5% in subsequent years. The loan is not secured. There is a capital repayment holiday of 12 months.

16 Analysis of group net assets between funds

Pension scheme liability £ - - -	Current asset/(liability) £ (314,777) - -	Long term creditors £ - - (1,474,922)	Net assets at 31 March 2023 £ 112,202 - 5,703,160
-	(314,777)	(1,474,922)	5,815,364
Pension scheme liability £ - (7,351,000) -	Current asset/(liability) £ 463,217 - -	Long term creditors £ - - (1,712,416)	Net assets at 31 March 2022 £ 45,720 (9,775,000) 5,871,758
(7,351,000)	463,217	(1,712,416)	(698,291)

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

17 Movements in funds

At 1st April 2022 Restricted funds: Arts Council England - NPO museums 37,249 Sch for Social Heritage Income - Historic England - Hat Works Redevelopment - NLHF - Hat Works Redevelopment - Royal Opara House Bridge - Bedfordshire & Luton Grant - LGBTQIA - Museum Development Fund 2,551 ACE- Lace tree project - Total restricted funds 39,800 Unrestricted funds: General funds 6,612,909 Pension reserve (7,351,000) Total unrestricted funds (738,091) Total funds (698,291)	Incoming resources 306,509 15,725 200 - 7,000 2,775 30,404 - 362,613 2,469,472 - 2,469,472 2,832,085	Outgoing resources (241,643) - - - (5,265) (2,775) (28,613) (19,112) (297,409) (3,234,163) (772,000) (4,006,163) (4,303,572)	Gain/(loss) - - - - - - - - (137,859) 8,123,000 7,985,141 7,985,141	Transfers 23 (10,000) (200) (1,735) 19,112 7,200 (7,200) - (7,200) -	At 31st March 2023 R 102,138 5,725 - - - (0) 4,342 - 112,204 5,703,159 - 5,703,159 5,815,363

Purposes of restricted funds

The charity's funds comprise amounts restricted to specific activities and not yet spent.

Creative People & Places-Arts Council England

Arts Council England allocated funds to support the development and increase participation in creative arts activities in Luton.

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

17 Movements in funds (continued)

NPO Museum-Arts Council England

The Arts Council England awarded Luton Culture National Portfolio Organisation status on 1st April 2019. Luton Cultures museums have now become a leader in their area with a collective responsibility to protect and develop the national arts and culture. The grant income received in the year is year 1 of a 3 year programme of funding and investment to help deliver ACE's strategic objectives.

18 Pension scheme

Luton Cultural Services Trust contributes to the Bedfordshire Pension Fund, a defined benefit pension scheme, to secure present and future pensions for its staff. For staff, employer contributions were 10% of pensionable salary from 1 April 2022 to 31 March 2023 (12.2% - 2022). Employee contributions were between 5.5% and 9.9% of pensionable salary dependent on salary.

The assets of the Scheme are held as part of the Bedfordshire Pension Fund. The valuation of the scheme is based on the most recent triennial funding valuation, updated by the scheme actuaries in May 2019, based on the provisions of FRS102. Investments have been valued, for this purpose, at fair value.

The principal assumptions used by the actuary to calculate the Scheme liabilities under FRS102 were as follows:

ws:
	2023	2022
	%pa	%pa
Pension Increase rate	2.85	3.20
Rate of increase in salaries	3.85	4.20
Discount Rate	4.80	2.60

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. Although the post retirement mortality tables adopted are consistent with the previous accounting date, the mortality improvement projection has been updated to use the latest version of the Continuous Mortality Investigation’s model, CMI_2020, which was released in March 2021. This update has been made in light of the coronavirus pandemic and reflects the latest information available from the CMI. The new CMI_2020 Model introduces a “2020 weight parameter” for the mortality data in 2020 so that the exceptional mortality experienced due to the coronavirus pandemic can be incorporated without having a disproportionate impact on results. The assumptions are that a member aged 65 will live on average until age 86.9 if they are male and on average until age 89.3 if female. For a member aged 45 the assumptions are that if they attain an age of 65 they will live on average until age 87.8 if they are male and on average until 91 if female.

A building block approach is adopted in determining the expected rate of return on the scheme’s assets. Historic markets are studied and assets with high volatility are assumed to generate higher returns consistent with widely accepted capital market principles. Each different asset class is given a different expected rate of return. The overall rate of return is then derived by aggregating the expected return for each asset class over the actual asset allocation of the scheme at year end.

	Asset category as a	Asset category as a
	percentage of plan assets
	2023	2022
Equities	64%	61%
Bonds	18%	25%
Property	13%	12%
Cash	4%	2%

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

18 Pension scheme (continued)

Amounts recognised in the SOFA Current service cost Interest costs on defined benefit obligation Administration expenses Remeasurements: Changes in financial assumptions Change in demographic assumptions Experience gain/(loss) on defined benefit obligation Other actuarial gains/(losses) on assets Liabilities assumed / (extinguished) on settlements Settlement prices received / (paid) Return on assets excluding amount included in net interest Suprlus restriction per FRS102 Employer Contributions Total amounts recognised in the SOFA Amounts recognised in the balance sheet Fair value of scheme assets Present value of funded obligations Suprlus restriction per FRS102 Net Asset/ (liability) recognised in the balance sheet Changes in fair value of scheme assets Scheme assets at start of period Interest income on plan assets Return on assets excluding amount included in net interest Other actuarial gains/(losses) Administration expenses Contributions by employer Contributions by scheme participants Benefits paid Settlement prices received / (paid) Scheme assets at end of period Changes in present value of scheme liabilities Scheme liabilities at start of period Current service cost Interest costs on defined benefit obligation Changes in financial assumptions Contributions by scheme participants Actuarial (gain) / losses Changes in demographic assumptions Liabilities assumed / (extinguished) on settlements Past service costs Benefits paid Scheme liabilities at end of period	2023 £ (565,000) (189,000) (18,000)	2022 £ (580,000) (194,000) (24,000)
	(772,000)	(798,000)
	12,910,000 466,000 (1,586,000) 99,000 - - (779,000) (3,136,000)	1,856,000 - (65,000) - - - 1,296,000
	7,974,000	3,087,000
	149,000	135,000
	8,123,000	3,222,000
	£ 21,952,000 (18,816,000) (3,136,000)	£ 22,226,000 (29,577,000)
	-	(7,351,000)
	2023 £ 22,226,000 576,000 (779,000) 99,000 (18,000) 149,000 83,000 (384,000) -	2022 £ 20,930,000 415,000 1,296,000 - (24,000) 135,000 73,000 (599,000) -
	21,952,000	22,226,000
	2023 £ 29,577,000 565,000 765,000 (12,910,000) 83,000 1,586,000 (466,000) - - (384,000)	2022 £ 30,705,000 580,000 609,000 (1,856,000) 73,000 65,000 - - - (599,000)
	18,816,000	29,577,000

Luton Cultural Services Trust Notes to the Financial Statements For the year ended 31 March 2023

18 Pension scheme (continued)

History of defined benefit scheme

History of defined benefit scheme
2023 £ Fair value of scheme assets 21,952,000 Present value of scheme liabilities (18,816,000) Net defined benefit asset/(liability) 3,136,000 Experience gains/(losses) (779,000) on scheme assets Experience gains/(losses) (1,586,000) on scheme liabilities	2023 £ 21,952,000 (18,816,000)	2022 £ 22,226,000 (29,577,000) (7,351,000) 3,156,000 211,000	2021 £ 19,791,000 (24,824,000)	2020 £ 21,116,000 (27,780,000)
			(5,033,000)	(6,664,000)
	(779,000) (1,586,000)		(1,764,000) 1,451,000	716,000 (1,770,000)

The estimated contribution for 2022/23 is £149,000

19 Related parties

There were no related party transactions undertaken by the charity in the year. (2021: £Nil)

20 Capital commitments

Contractual commitments for professional fees and to refurbish the Hat District properties at the year end were £Nil (2022: £Nil).

21 Operating leases

Non-cancellable operating lease rentals payable in the year were £nil (2022: £nil). There are no contractual commitments for non-cancellable lease rentals at the year end.