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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 06666537 (England and Wales) REGISTERED CHARITY NUMBER: 1125680

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR

KENDAL MOUNTAIN SEARCH & RESCUE TEAM (A COMPANY LIMITED BY GUARANTEE)

Mitchinsons Accountants 22 Market Place

Kendal Cumbria LA9 4TN

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 15

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objects to recruit, train, maintain, equip and keep in a state of readiness a team of volunteers who are willing and able to search for and rescue any persons (or animals) in distress primarily in the Lakeland and Cumbria Fells but also in other areas as required and to respond to any request for assistance from the police and other emergency services.

Public benefit

The trustees confirm that they have paid due regard to the public benefit guidance published by the Charity Commission.

Page 1

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

STRATEGIC REPORT

Achievement and performance

The Team responded to 53 incidents in 2023, an increase on the previous year and our five-year average of 46 callouts. The wide range of locations and types of incidents that the Team can expect to deal with continued, as did the level of assistance provided to the statutory Emergency Services in support of, or beyond, their normal capabilities. In common with many Lake District Mountain Rescue teams, the demand experienced for the services the Team provide can be expected to at least be maintained, or potentially increased, as the numbers of those undertaking outdoor activities within South Lakes and the surrounding area continues to grow. Consequently, we continue to work to strengthen our operating capability to meet these demands.

Training remains a cornerstone for both mitigating the risks faced by all volunteer members during callouts as well as ensuring the operational performance of the Team is maintained to a "rescue standard". Throughout 2023 Team members have continued to train in a range of skills, including technical rope rescue, casualty care, swift water rescue, working around helicopters, winter hill-skills, and search management. Team members' training totalled over 1900 hours in 2023, with all team members expected to attend at least a minimum of 4 Wednesday and 4 Sunday training sessions in a rolling 12 month period to retain full operational team membership.

A key priority for the new Team Leader and Leader Group as we entered 2023 was a review of the Team structure and organisation, with the primary objective of further strengthening the operating culture and performance of the team. The modifications that were identified and subsequently implemented have been well supported by all Team members and whilst some work remains to fill a few open, unelected operational posts, it is the view of the Directors that the Team is in a strong position to meet our ongoing objectives. Moreover, it is also believed that this process ensures development opportunities for aspirant leaders and adds to the resilience of our Team structures.

Work has continued throughout 2023 by the Directors to review and assess the risks faced across all aspects of the Team's work and operational planning. It is anticipated that this will very shortly be formalised in a revised risk register that, once ratified by the Leader Group and Management committee, will further accelerate the development of a team culture through which there is an increased awareness of the major risks faced by all volunteer members, and a proactive response to establishing the control systems necessary to mitigate and manage these risks as far as possible.

As with all years, the membership of the Team has seen some changes with some long-standing members resigning as their personal circumstances change. We have been fortunate not to have a shortage of individuals on our official 'waiting list' for membership and a new intake of highly experienced provisional members were welcomed to the Team to ensure our membership numbers remain stable. Almost immediately, further applications have been received to keep the waiting list refreshed and healthy.

In addition to completing the refurbishment of our two Land Rovers this year, thereby extending their operating life and ensuring standardisation, the Team has been in the fortunate position to add a new response vehicle to its fleet. As well as providing greater resilience to the vehicle fleet overall, this will give the Team the ability to maintain two response vehicles in full operational readiness should the need arise; for example in the case of being tasked to support a neighbouring team whilst a Kendal Team callout is already underway.

From a financial standpoint the Team remains in a very healthy position. However, it must be recognised that the Team is likely to face significant costs in the coming years as it seeks to secure the future of the existing Base and its potential expansion onto neighbouring community land. Following the recent reorganisation of local government in Cumbria, the newly formed Westmorland & Furness Council have approved a revised Property Disposal and Capital Asset Transfer Policy. Under this policy there is finally greater clarity on the potential for the Team to explore renewing the currently expired lease on the existing Base, as well as the potential to obtain additional neighbouring land under a Community Asset Transfer agreement. It is anticipated that in 2024, amongst its other ambitions and objectives, this will be a major focus for the Teams' development planning and fund-raising activities.

Page 2

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

STRATEGIC REPORT Financial review

Financial position

The increase in income during the year is mainly due to a substantial legacy receivable of £124,950.

The Team continues to receive a tremendous level of financial support from the local community. The Team is grateful to the people of Kendal and the surrounding area, and the many visitors to South Lakeland, who continue to support us financially, in what remain difficult economic times. Team fundraising income, mainly from collection boxes, was £9,663 a decrease from £11,185 in 2022.

Donations and legacies amounted to £189,996, including Gift Aid. Once again the Lake District Search & Mountain Rescue Association (LDSAMRA) showed great support with £15,000 and legacies amounted to £135,950.

Reserves policy Operational Reserve

The Team maintained the Operational Reserve, being three years' estimated essential running costs, amounting to £150,000.

Emergency Reserve

This was maintained at £50,000 and is available should a vehicle be written off or for any other unforeseeable major expense.

Restricted and Unrestricted Reserves

Details of designated unrestricted reserves are shown in Note 18 to the accounts. There were no restricted reserves in the current or previous year.

Investments

During the year the the Team maintained the investment level on the Flagstone on-line platform, the total including interest is approximately £375,000. The United Trust Bank deposit has been maintained at approximately £85,000 and the majority of the remainder of the Team's funds are held in a current account with Virgin Money (Yorkshire Bank).

Future plans

The Team plans to continue to provide the best mountain search and rescue service that it is able to do, and to assist and support other mountain rescue teams and emergency services when requested. The Team has resolved to try to build financial reserves to a level where the running costs of the Team are covered by the interest of our reserves and dividends of any investments. This would guarantee the Team's ability to be able to assist people in distress in the the South Lakes are for the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Kendal Mountain Search & Rescue Team is a company limited by guarantee and does not have share capital; each member's contribution not exceeding £10 on dissolution. It is governed by its Memorandum and Articles of Association dated 6 August 2008, as amended by the special resolution dated 2 November 2016 which restricts the maximum number of directors to seven. It was registered as a charity with effect from 1 September 2008 and commenced its activities on 1 December 2008.

Recruitment and appointment of new trustees

The trustees are responsible for the overall management and control of the charity. The trustees are elected by the charity's members at the Annual General Meeting; one third of the trustees shall retire from office by rotation, however they shall eligible for re-election.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

06666537 (England and Wales)

Page 3

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

Registered Charity number 1125680

Registered office

Kendal MSRT Base Busher Walk Kendal Cumbria LA9 4RH

Trustees

J P Burgess Ms J N W Funnell D Winchester A Womack (resigned 1/11/23) D W Baynham-Hughes S Ohly (resigned 24/1/24) N A Davies (appointed 1/11/23) Ms J C Young (appointed 31/1/24) Ms K L Jackson (appointed 7/2/23)

Company Secretary

D Howarth

Independent Examiner

Jennifer Marshall Mitchinsons Accountants 22 Market Place Kendal Cumbria LA9 4TN

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 24 May 2024 and signed on the board's behalf by:

N A Davies - Trustee

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KENDAL MOUNTAIN SEARCH & RESCUE TEAM

Independent examiner's report to the trustees of Kendal Mountain Search & Rescue Team ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2023.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the 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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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

  4. the accounts 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 accounts to be reached.

Jennifer Marshall

The Association of Chartered Certified Accountants

Mitchinsons Accountants 22 Market Place Kendal Cumbria LA9 4TN

24 May 2024

Page 5

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

2023
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
189,996
Other trading activities
4
9,663
Investment income
5
12,502
Other income
33,022
Total
245,183
EXPENDITURE ON
Raising funds
6
1,827
Charitable activities
7
Provision of Mountain Search & Rescue
80,812
Total
82,639
NET INCOME
162,544
RECONCILIATION OF FUNDS
Total funds brought forward
589,830
TOTAL FUNDS CARRIED FORWARD
752,374
2022
Total
funds
£
91,980
11,185
3,150
-
106,315
1,643
52,974
54,617
51,698
538,132
589,830

The notes form part of these financial statements

Page 6

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

BALANCE SHEET 31 AUGUST 2023

2023
Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
14
106,048
CURRENT ASSETS
Debtors
15
163,519
Investments
16
375,611
Cash at bank and in hand
110,879
650,009
CREDITORS
Amounts falling due within one year
17
(3,683)
NET CURRENT ASSETS
646,326
TOTAL ASSETS LESS CURRENT
LIABILITIES
752,374
NET ASSETS
752,374
FUNDS
18
Unrestricted funds
752,374
TOTAL FUNDS
752,374
2022
Total
funds
£
46,368
21,448
370,479
155,647
547,574
(4,112)
543,462
589,830
589,830
589,830
589,830

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The financial statements were approved by the Board of Trustees and authorised for issue on 24 May 2024 and were signed on its behalf by:

K L Jackson - Trustee

The notes form part of these financial statements

Page 7

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All incoming resources are included in the financial statements 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:

Expenditure

Expenditure is recognised on an accruals basis as a 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:

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 activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the term of the lease on a straight-line basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Equipment

continued...

Page 8

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Motor vehicles - 25% on reducing balance

All tangible fixed assets are initially recorded at cost. Items under £500 are not capitalised and are written off to expenditure in the statement of financial activities when the asset is required.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal.

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

2. CRITICAL ACCOUNTING 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 of other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The key policy that may have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year is depreciation of tangible of tangible fixed assets.

3. DONATIONS AND LEGACIES

Donations from Patrons
Donations from LDSAMRA
Donations from LAMRT
Other donations
Gift aid tax
Legacies
2023
£
1,877
15,000
10,000
25,187
1,982
135,950
189,996
2022
£
2,260
18,000
10,000
15,674
3,637
42,409
91,980

4.

OTHER TRADING ACTIVITIES

Fundraising - collection boxes
Fundraising - sponsorship
Fundraising - flag days
Fundraising - talks
Fundraising - other
2023
£
5,656
2,840
249
56
862
9,663
2022
£
6,108
622
635
820
3,000
11,185

continued...

Page 9

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

5.
INVESTMENT INCOME
2023
£
Rental of aerial
1
Bank bond interest
1,502
Investment income
10,999
12,502
6.
RAISING FUNDS
Raising donations and legacies
2023
£
Professional fees
380
Other trading activities
2023
£
Team fundraising costs
518
Investment management costs
2023
£
Management fees
929
Aggregate amounts
1,827
7.
CHARITABLE ACTIVITIES COSTS
Direct
Support
Costs (see
costs (see
note 8)
note 9)
£
£
Provision of Mountain Search & Rescue
78,799
2,013
2022
£
1
648
2,501
3,150
2022
£
390
2022
£
390
2022
£
863
1,643
Totals
£
80,812

continued...

Page 10

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

8. DIRECT COSTS OF CHARITABLE ACTIVITIES
2023 2022
£ £
Base 11,816 9,438
Communications 2,575 1,572
Vehicles 3,654 2,969
Medical 2,702 5,402
Equipment 7,023 2,352
Training 8,988 4,465
Administration 1,021 549
Legal and professional fees 240 245
Information technology 1,474 1,774
Depreciation 39,306 22,049
Loss on sale of assets - 91
78,799 50,906
9. SUPPORT COSTS
Governance
costs
£
Provision of Mountain Search & Rescue 2,013
Support costs, included in the above, are as follows:
2023 2022
Provision
of
Mountain
Search & Total
Rescue activities
£ £
Accountancy and independent examination 2,000 2,055
Other governance costs 13 13
2,013 2,068
10. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2023 2022
£ £
Depreciation - owned assets 39,305 22,050
Surplus/(deficit) on disposal of fixed assets (33,022) 91

continued...

Page 11

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

12. STAFF COSTS

There were no staff costs in the current year or previous year.

13. INDEPENDENT EXAMINER'S FEES

2023 2022
£ £
Accountancy and independent examination 2,000 2,055
Other financial services 620 635
2,620 2,690

14. TANGIBLE FIXED ASSETS

COST
At 1 September 2022
Additions
At 31 August 2023
DEPRECIATION
At 1 September 2022
Charge for year
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022
Long
leasehold
£
141,240
-
141,240
141,240
-
141,240
-
-
Equipment
£
155,621
-
155,621
135,840
7,912
143,752
11,869
19,781
Motor
vehicles
£
187,569
98,985
286,554
160,982
31,393
192,375
94,179
26,587
Totals
£
484,430
98,985
583,415
438,062
39,305
477,367
106,048
46,368

continued...

Page 12

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Gift Aid tax recoverable
VAT
Accrued interest receivable
Prepayments
16.
CURRENT ASSET INVESTMENTS
Flagstone on-line platform
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accrued expenses
18.
MOVEMENT IN FUNDS
At 1.9.22
£
Unrestricted funds
General fund
389,830
Designated Operational Reserve
150,000
Designated Emergency Reserve
50,000
589,830
TOTAL FUNDS
589,830
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
245,183
TOTAL FUNDS
245,183
2023
£
124,950
1,931
24,960
7,198
4,480
163,519
2023
£
375,611
2023
£
1,063
2,620
3,683
Net
movement
in funds
£
162,544
-
-
162,544
162,544
Resources
expended
£
(82,639)
(82,639)

continued...

Page 13

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

18. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.9.21
£
Unrestricted funds
General fund
338,132
Designated Operational Reserve
150,000
Designated Emergency Reserve
50,000
538,132
TOTAL FUNDS
538,132
Comparative net movement in funds, included in the above are as follows:
Net
movement
in funds
£
51,698
-
-
51,698
51,698
At
31.8.22
£
389,830
150,000
50,000
589,830
589,830
Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
106,315
106,315
Resources
Movement
expended
in funds
£
£
(54,617)
51,698
(54,617)
51,698
Resources
Movement
expended
in funds
£
£
(54,617)
51,698
(54,617)
51,698
51,698

The Designated Operational Reserve is equivalent to three years essential operating costs assuming no external income and no capital expenditure.

The Designated Emergency Reserve is available should a vehicle be written off or for any other unforeseeable major expense.

19. OTHER FINANCIAL COMMITMENTS

Operating lease

The charity's lease with Cumbria County Council expired on 31 December 2018. At the time of preparing these accounts, Westmorland and Furness Council (formerly Cumbria County Council) have not offered a new lease contract. However, rent of £1,100 has been paid for each of the calendar years 2019 to 2023 inclusive.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2023.

continued...

Page 14

KENDAL MOUNTAIN SEARCH & RESCUE TEAM

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

21. OTHER INCOME

Included in other income totalling £33,022, is £32,600 insurance claim received for mobile vehicle 1. The vehicle is still held and has been fully rebuilt and £422 received on sale of vehicle parts.

Page 15