2021-02-28-accounts - Low Cost Living Limited

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

COMPANY REGISTRATION NUMBER: 6502018 CHARITY REGISTRATION NUMBER: 1125677

LOW COST LIVING LIMITED

Company Limited by Guarantee

Financial Statements

For the year ended 28 February 2021

COHEN ARNOLD

Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Financial Statements

Year ended 28 February 2021

	PAGES
Trustees' Annual Report (Incorporating the Director's Report)	1 to 3
Independent Auditor's Report to the Members	4 to 9
Statement of Financial Activities (Including Income and Expenditure
Account)	10
Statement of Financial Position	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 to 19

DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 28 February 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 28 February 2021.

Reference and administrative details

Registered charity name Low Cost Living Limited Charity registration number 1125677 Company registration number 6502018 Principal office and registered 4A Manor Road office London N16 5SA The trustees S Gross M Lew Mr I Hochhauser AUDITOR Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

Structure, governance and management

Governing Document

Low Cost Living Limited is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Organisation

The charity and its day-to-day affairs are administered by the trustees. Every trustee holds office until he/she shall die or shall cease to hold office by virtue of the Articles of Association.

Risk Management

The trustees have identified and reviewed the risks to which the Charity is exposed, in particular those related to the operations and finance of the Company. To mitigate those risks systems have been put in place, which the trustees are satisfied provide reasonable assurance against fraud and error.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

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LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 28 February 2021

Objectives and activities

Objectives and Aims for the Benefit of the Public

The objective and principal activity of the charity is that of relief of poverty, in particular financial hardship amongst people living or working in London by provision of low cost household goods and food which they could not otherwise afford through lack of means.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.

Grant Making

Grants are made by way of selling goods at low cost.

Achievements and performance

Charitable Achievements

The charity's principal charitable activity is buying goods at wholesale prices and passing the savings to people undergoing financial hardship by selling the goods to them at low cost. Demand has continued to grow over the past year as demonstrated in the financial statements.

Financial review

The financial position of the charity is satisfactory. The trustees are satisfied that the charity's financial situation is stable and its charitable activities sustainable.

Plans for future periods

The trustees hope and expect to continue the charity's activities and meet the demands for the service provided.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 28 February 2021

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 24 December 2021 and signed on behalf of the board of trustees by:

S Gross Trustee

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited

Year ended 28 February 2021

Opinion

We have audited the financial statements of Low Cost Living Limited (the 'charity') for the year ended 28 February 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charity's affairs as at 28 February 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2021

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2021

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity through discussion with the trustees and identified financial reporting legislation, landlord legislation and charity legislation as being most significant to these financial statements.
We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.
We discussed with the trustees the policies and procedures regarding compliance with these legal and regulatory frameworks.
We assessed the susceptibility of the charity's financial statements to material misstatement due to non-compliance with legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low.
Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2021

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2021

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

24 December 2021

Moshe Broner-Cohen FCA (Senior Statutory Auditor) Date

For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Financial Activities (including income and expenditure account)

Year ended 28 February 2021

		2021	2021	2020
		Unrestricted
		funds	Total funds	Total funds
	Note	£	£	£
Income and endowments
Donations and legacies	5	–	–	20,000
Charitable activities	6	4,888,390	4,888,390	4,483,686
Investment income	7	109	109	99
Other income	8	31,990	31,990	–
		``	``	``
Total income		4,920,489	4,920,489	4,503,785
		``	``	``
Expenditure
Expenditure on charitable activities	9,10	(4,755,859)	(4,755,859)	(4,632,712)
		``	``	``
Total expenditure		(4,755,859)	(4,755,859)	(4,632,712)
		``	``	``
		``	``	``
Net income/(expenditure) and net movement in funds		164,630	164,630	(128,927)
		``	``	``
Reconciliation of funds
Total funds brought forward		30,067	30,067	158,994
		``	``	``
Total funds carried forward		194,697	194,697	30,067
		``	``	``

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 13 to 19 form part of these financial statements.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Financial Position

	28 February	28 February	2021
			2021		2020
	Note	£		£	£	£
Fixed assets
Tangible fixed assets	15			19,652		24,825
Current assets
Stocks	16	353,472			397,045
Debtors	17	110,891			42,228
Cash at bank and in hand		580,351			246,285
		``			``
		1,044,714			685,558
Creditors: amounts falling due
within one year	18	(869,669)			(680,316)
		``			``
Net current assets				175,045		5,242
				``		``
Total assets less current liabilities				194,697		30,067
				``		``
Net assets				194,697		30,067
				``		``
Funds of the charity
Unrestricted funds				194,697		30,067
				``		``
Total charity funds	19			194,697 ``		30,067 ``

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 24 December 2021, and are signed on behalf of the board by:

S Gross Trustee

The notes on pages 13 to 19 form part of these financial statements.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Cash Flows

Year ended 28 February 2021

	2021	2020
	£	£
Cash flows from operating activities
Net income/(expenditure)	164,630	(128,927)
Adjustments for:
Depreciation of tangible fixed assets	7,723	9,858
Other interest receivable and similar income	(109)	(99)
Interest payable and similar charges	314	835
Accrued expenses	1,330	350
Changes in:
Stocks	43,573	(27,138)
Trade and other debtors	(68,663)	5,200
Trade and other creditors	188,023	294,635
	``	``
Cash generated from operations	336,821	154,714
Interest paid	(314)	(835)
Interest received	109	99
	``	``
Net cash from operating activities	336,616	153,978
	``	``
Cash flows from investing activities
Purchase of tangible assets	(2,550)	(7,916)
	``	``
Net cash used in investing activities	(2,550)	(7,916)
	``	``
Net increase in cash and cash equivalents	334,066	146,062
Cash and cash equivalents at beginning of year	246,285	100,223
	``	``
Cash and cash equivalents at end of year	580,351	246,285
	``	``

The notes on pages 13 to 19 form part of these financial statements.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements

Year ended 28 February 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 4A Manor Road, London, N16 5SA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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 (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are key assumptions or other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

Income tax

The Charity is not liable to direct taxation (Income Tax) on its income which falls within the various exemptions available to registered charities. As a result no Deferred tax is provided on timing differences.

The Charity is registered for Value Added Tax (VAT) and therefore pays output tax on sales and reclaims input tax it suffers on its purchases. Income and expenditure on charitable activities is shown exclusive of VAT where appropriate.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

3. Accounting policies (continued)

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes of the financial statement.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
income from donated goods is measured at the fair value of the goods unless this is impracticle to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliabily measured. No amounts are included for the contribution of general volunteers.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

3. Accounting policies (continued)

Tangible assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures & fittings - 25% reducing balance Motor vehicles - 25% straight line Equipment - 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

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

4. Limited by guarantee

Low Cost Living Limited is a company limited by guarantee. The liability of each member in the event of winding up is limited to £1.

5. Donations and legacies

Donations and legacies
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Donations
Donations	–	–	20,000	20,000
	``	``	``	``

- 15 -

DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

6. Charitable activities

6.	Charitable activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Sale of goods	4,888,390	4,888,390	4,483,686	4,483,686
		``	``	``	``
7.	Investment income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Bank interest receivable	109	109	99	99
		``	``	``	``
8.	Other income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Covid-19 grant income	31,990 ``	31,990 ``	– ``	– ``

During the year, the charity received £25,000 from Hackney Council to overcome the adverse effect of the coronavirus pandemic on operations. A further £6,990 was received as part of the governement's coronavirus 'Job Retention Scheme'.

9. Expenditure on charitable activities by fund type

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Charitable activities	4,748,720	4,748,720	4,626,747	4,626,747
Support costs	7,139	7,139	5,965	5,965
	``	``	``	``
	4,755,859	4,755,859	4,632,712	4,632,712
	``	``	``	``
Expenditure on charitable activities by activity type
	Activities
	undertaken		Total funds	Total fund
	directly	Support costs	2021	2020
	£	£	£	£
Charitable activities	4,748,720	–	4,748,720	4,626,747
Governance costs	–	7,139	7,139	5,965
	``	``	``	``
	4,748,720 ``	7,139 ``	4,755,859 ``	4,632,712 ``

10. Expenditure on charitable activities by activity type

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DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

11. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

Net income/(expenditure) is stated after charging/(crediting):
	2021	2020
	£	£
Depreciation of tangible fixed assets	7,723	9,858
	``	``
Auditors remuneration
	2021	2020
	£	£
Fees payable for the audit of the financial statements	4,250	4,250
	``	``

12. Auditors remuneration

13. Staff costs

The average head count of employees during the year was 23 (2020: 23). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020 No. No. Staff involved in charitable activities 11 11  

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

14. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

15. Tangible fixed assets

Tangible fixed assets
	Fixtures and	Motor
	fittings	vehicles	Equipment	Total
	£	£	£	£
Cost
At 1 March 2020	108,930	4,690	15,473	129,093
Additions	–	–	2,550	2,550
	``	``	``	``
At 28 February 2021	108,930	4,690	18,023	131,643
	``	``	``	``
Depreciation
At 1 March 2020	86,945	3,518	13,805	104,268
Charge for the year	5,496	1,173	1,054	7,723
	``	``	``	``
At 28 February 2021	92,441	4,691	14,859	111,991
	``	``	``	``
Carrying amount
At 28 February 2021	16,489	(1)	3,164	19,652
	``	``	``	``
At 29 February 2020	21,985	1,172	1,668	24,825
	``	``	``	``

- 17 -

DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

16. Stocks

16.	Stocks
		2021	2020
		£	£
	Raw materials and consumables	353,472	397,045
		``	``
17.	Debtors
		2021	2020
		£	£
	Trade debtors	84,277	6,653
	Other debtors	26,614	35,575
		``	``
		110,891	42,228
		``	``
18.	Creditors: amounts falling due within one year
		2021	2020
		£	£
	Trade creditors	811,081	671,183
	Accruals and deferred income	5,580	4,250
	Social security and other taxes	3,008	4,550
	Other creditors	50,000	333
		``	``
		869,669	680,316
		``	``

19. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
					At
		At		28	February
	1	March 2020	Income	Expenditure	2021
		£	£	£	£
General funds		30,067	4,920,489	(4,755,859)	194,697
		``	``	``	``
					At
		At		29	February 2
	1	March 2019	Income	Expenditure	020
		£	£	£	£
General funds		158,994	4,503,785	(4,632,712)	30,067
		``	``	``	``

- 18 -

DocuSign Envelope ID: 2105CC7D-BB81-4491-BAC0-1858E001D98B

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2021

20. Analysis of net assets between funds

20.	Analysis of net assets between funds
			Unrestricted	Total Funds
			Funds	2021
			£	£
	Tangible fixed assets		19,652	19,652
	Current assets		1,044,714	1,044,714
	Creditors less than 1 year		(869,669)	(869,669)
			``	``
	Net assets		194,697	194,697
			``	``
			Unrestricted	Total Funds
			Funds	2020
			£	£
	Tangible fixed assets		24,825	24,825
	Current assets		685,558	685,558
	Creditors less than 1 year		(680,316)	(680,316)
			``	``
	Net assets		30,067	30,067
			``	``
21.	Analysis of changes in net debt
		At		At
		1 Mar 2020	Cash flows	28 Feb 2021
		£	£	£
	Cash at bank and in hand	246,285	334,066	580,351
		``	``	``

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