Charity registration number 1123036
Company registration number 06208453 (England and Wales)
LIVERPOOL CARNIVAL COMPANY LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
LIVERPOOL CARNIVAL COMPANY LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees R Morris M M Morris J C D Wells J Buckley D R Broudie Charity number 1123036 Company number 06208453 Registered office c/o Lonsdale & Marsh 7th Floor Cotton House Old Hall Street Liverpool L3 9TX Independent examiner Lonsdale & Marsh 7th Floor Cotton House Old Hall Street Liverpool L3 9TX
LIVERPOOL CARNIVAL COMPANY LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 10 |
LIVERPOOL CARNIVAL COMPANY LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2021
The trustees present their annual report and financial statements for the year ended 30 September 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The charity's o bjects are to put on a samba parade in Liverpool in the summer of each year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
As the charity's objective is to put on a Samba Parade in Liverpool in the summer of each year, the global outbreak of Coronavirus at the beginning of 2020 and the resultant strict lockdown measures which were in place for parts of both 2020 and 2021, meant that the Samba Parades scheduled for both of these years had to be cancelled.
The funding which the charity had already received for the 2020 festival was carried over to 2021. Due to the cancellation of the 2021 festival, this funding was again carried over to 2022 and is included within the statement of financial activities (restricted funds). This funding was received from Arts Council England and from Awards 4 All.
The charity was able to secure emergency funding from the P H Holt Foundation and from DCMS Culture Recovery Fund to be used to cover the day to day running costs of the charity, and they believe that they have sufficient unrestricted funds for the next 12 months. The trustees are aware that additional funding and sponsorship for the annual festival is likely to be difficult to attain at the current time and as such they are concentrating on the popular and integral parts of the festival which can be achieved with the funding they have received to date. They have also raised additional funds to cover the day to day running costs of the charity via crowd funding and online appeals.
The trustees of the charity would like to record their thanks to the following organisations for their support: Arts Council England Awards 4 All P H Holt Foundation DCMS Culture Recovery Fund
Financial review
As explained more fully in the achievements and performance section of this report, the various restrictions in place as a result of Coronavirus have had a significant impact on the financial performance of the charity. The charity received income of £ 23,730 during the year from donations and legacies, including £8,325 of restricted funds which is still held by the charity at the year end to cover expenditure to be incurred in connection with the 2022 festival. The charity incurred expenditure of £ 15,276 during the year resulting in a surplus for the year of £129 relating to unrestricted funds. At the start of the year the charity had an unrestricted fund balance of £547 and as such at the end of the year there is an unrestricted fund balance of £676, together with a restricted fund balance of £42,625.
Notwithstanding the impact on the charity as a result of the global outbreak of Coronavirus as explained more fully in the achievements and performance section of this report, the trustees are of the belief that reserves remain at an appropriate level for the foreseeable future.
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LIVERPOOL CARNIVAL COMPANY LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year were: R Morris
M M Morris
J C D Wells J Buckley D R Broudie
The trustees of the charity were selected and appointed on the basis of their potential involvement in the carnival and for the particular skills and experience they have to offer the charity.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Board of Trustees meet on a regular basis to discuss the activities of the charity.
Supplier payment policy
The charity's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The charity's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
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pay in accordance with the charity's contractual and other legal obligations.
The charity did not have any trade creditors at the end of this financial year.
The trustees' r eport was approved by the Board of Trustees.
M M Morris Trustee
21 July 2022
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LIVERPOOL CARNIVAL COMPANY LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF LIVERPOOL CARNIVAL COMPANY LIMITED
I report to the trustees on my examination of the financial statements of Liverpool Carnival Company Limited (the charity) for the year ended 30 September 2021.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
N J O'Donovan Chartered Accountant
Lonsdale & Marsh 7th Floor Cotton House Old Hall Street Liverpool L3 9TX
Dated: 21 July 2022
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LIVERPOOL CARNIVAL COMPANY LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income and endowments from: Donations and legacies 3 15,297 8,325 Investments 4 - - Other income 5 108 - Total income 15,405 8,325 Expenditure on: Support costs 6 600 - Charitable activities 7 14,676 - Total resources expended 15,276 - Net income for the year/ Net movement in funds 129 8,325 Fund balances at 1 October 2020 547 34,300 Fund balances at 30 September 2021 676 42,625 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 23,622 11,139 34,300 - 1 - 108 660 - 23,730 11,800 34,300 600 600 - 14,676 19,954 - 15,276 20,554 - 8,454 (8,754) 34,300 34,847 9,301 - 43,301 547 34,300 |
Total 2020 £ 45,439 1 660 46,100 600 19,954 20,554 25,546 9,301 34,847 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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LIVERPOOL CARNIVAL COMPANY LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2021
| Notes Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Income funds Restricted funds 12 Unrestricted funds |
2021 £ - 44,501 44,501 (1,200) |
£ 43,301 42,625 676 43,301 |
2020 £ 1,201 35,246 36,447 (1,600) |
£ 34,847 34,300 547 34,847 |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 21 July 2022
M M Morris Trustee
Company registration number 06208453
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LIVERPOOL CARNIVAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1 Accounting policies
Charity information
Liverpool Carnival Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is c/o Lonsdale & Marsh, 7th Floor, Cotton House, Old Hall Street, Liverpool, L3 9TX.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
Not withstanding the current situation surrounding the global outbreak of Coronavirus and its impact on the charitable activities of the charity, and as explained more fully in the trustees' report, a t the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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LIVERPOOL CARNIVAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT that is not recoverable.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.8 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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LIVERPOOL CARNIVAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
2 Critical accounting estimates and judgements
In the application of the charity’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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 1,544 - Grants receivable 13,753 8,325 15,297 8,325 Investments Interest receivable Other income Other income |
TotalUnrestricted Restricted Total funds funds 2021 2020 2020 2020 £ £ £ £ 1,544 7,062 - 7,062 22,078 4,077 34,300 38,377 23,622 11,139 34,300 45,439 TotalUnrestricted funds 2021 2020 £ £ - 1 UnrestrictedUnrestricted funds funds 2021 2020 £ £ 108 660 |
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4 Investments
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5 Other income
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LIVERPOOL CARNIVAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
6 Support costs
| 7 | UnrestrictedUnrestricted funds funds 2021 2020 £ £ Trading costs Support costs 600 600 600 600 Charitable activities Carnival expenses Carnival expenses 2021 2020 £ £ Charitable activities 14,676 19,954 |
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8 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year in respect of their services as trustees.
9 Employees
The average monthly number of employees during the year, including trustees, was:
| 2021 | 2020 | ||
|---|---|---|---|
| Number | Number | ||
| 5 | 5 | ||
| There were no employees whose annual remuneration was more than £60,000. | |||
| 10 | Debtors | ||
| 2021 | 2020 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | - | 1,201 |
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LIVERPOOL CARNIVAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
11 Creditors: amounts falling due within one year
| Other creditors Accruals and deferred income |
2021 £ - 1,200 1,200 |
2020 £ 1,000 600 1,600 |
|---|---|---|
12 Restricted funds
Restricted funds represent any surplus of grants and donations received in connection with costs directly attributable to the carnival held in July each year. At the end of the current financial year these surplus funds totalled £42,625 (2020 - £34,300).
13 Analysis of net assets between funds
| Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 30 September 2021 are represented by: Current assets/ (liabilities) 676 42,625 676 42,625 |
TotalUnrestricted funds Restricted funds 2021 2020 2020 £ £ £ 43,301 547 34,300 43,301 547 34,300 |
Total 2020 £ 34,847 34,847 |
|---|---|---|
14 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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