FEARON COMMUNITY ASSOCIATION LTD
(A COMPANY LIMITED BY GUARANTEE)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company Number: 6852232 Charity Number: 1130457
Cound & Co LLP
Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
Tel: 01509 214163
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FEARON COMMUNITY ASSOCIATION LIMITED
TRUSTEES ANNUAL REPORT
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2024.
1) REFERENCE AND ADMINISTRATIVE DETAILS
a) REGISTERED CHARITY NUMBER
1130457
b) COMPANY NUMBER
6852232
c) REGISTERED OFFICE
Fearon Hall Rectory Road Loughborough Leics, LE11 1PL
d) BANKERS
Metro Bank One Southampton Row London WC1B 5HA
e) SOLICITORS
Moss Solicitors LLP 80-81 Woodgate Loughborough LE11 XE
f) ACCOUNTANTS AND INDEPENDENT EXAMINERS
Cound & Co LLP 1 Princes Court Royal Way Loughborough Leics, LE11 5XR
DIRECTORS AND TRUSTEES
The directors of the charitable company (the charity) are its trustees for the purpose of the charity law and throughout this report are collectively referred to as the trustees.
The trustees who served during the period were as follows:
R E Thorpe M L Welbourne A B Rhodes R M M Cant G L Thomson (Resigned 3 September 2023) P J Goodman (Resigned 30 July 2024) D R Gough
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FEARON COMMUNITY ASSOCIATION LIMITED
TRUSTEES ANNUAL REPORT
2) OBJECTIVES AND ACTIVITIES
The Memorandum of Association dated 19 March 2009 states that the objects of the charity are to provide educational, social and recreational facilities for people living in the North East area of Loughborough and to maintain and run the building known as the Fearon Hall as a centre offering such opportunities.
The Association’s income comprises grants from local authorities, rental income from the hire of the Hall’s function rooms and the sale of lunches.
3) STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
Fearon Community Association Ltd is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19 March 2009. It is a charity registered with the Charity Commission. Membership is open to any affiliated group using the community centre, each of whom agree to contribute up to £10 in the event of the charity being wound up.
Appointment of Trustees
As set out in the Articles of Association, the Association has a minimum of three trustees and it is not subject to a maximum number. One trustee retires in rotation at each Annual General Meeting, but may be re-appointed. Members are invited to nominate trustees prior to the AGM.
Trustee Induction and Training
New trustees are advised of their obligations under charity and company law, the content of the Memorandum and Articles of Association as well as the structure and decision-making process of the committee.
Public Benefit
The trustees have had regard to the guidance published by the Charities Commission in respect of public benefit when exercising any powers or duties to which the guidance is relevant.
4) RISK MANAGEMENT
The management committee confirms that the major risks to which the charity is exposed have been reviewed and systems have been established to mitigate those risks.
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(a) The properties are properly insured and well maintained.
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(b) Staff are properly trained in the care of children and in Health and Safety procedures.
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(c) All significant bank transactions have to be authorised by two trustees or senior employees.
5) ACHIEVEMENTS AND PERFORMANCE
Centre Manager’s Report
Space for everyone
It’s been an exciting year developing relationships with new groups and strengthening our connection with existing ones. Partnership working was one of our key priorities for the year, increasing our capacity to deliver on the identified needs within our community. For example, working alongside The Walk & Talk Project and LPT’s Charnwood Mental Health Neighbourhood Lead we were part of a really successful men’s event to tackle issues of loneliness and isolation which is a priority in Charnwood.
Our relationship with the Communities Food and Wellbeing Hub continues to go from strength to strength. We’re delighted to support the work they do in providing health and wellness services directly into the community.
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FEARON COMMUNITY ASSOCIATION LIMITED
TRUSTEES ANNUAL REPORT
5) ACHIEVEMENTS AND PERFORMANCE (continued)
Centre Manager’s Report (continued)
I’m super proud that we are part of the Incredible Edible Loughborough journey. The UK wide network with a vision to create kind, confident and connected communities through the power of food. They use Fearon Hall as the base for delivering their vision throughout various sites across Loughborough.
Our belief in providing a safe and trusting environment that gives people access to a wide variety of opportunities is strengthened through these and other partnerships.
In addition to nurturing these partnerships, we continue to be a centre that delivers. Whether that’s through Good Food Doing Good in the Café in the Hall; Community Arts that help to address personal challenges and community issues through a range of creative projects; identifying needs for regular activities like our food surplus supermarket, and Grief Café for adults who have lost a loved one; or simply in providing a local space for people to celebrate life events and special occasions.
None of this would be possible without the amazing team of staff and volunteers whose hard work and commitment enable these good things to happen. We are only as strong as the sum of our parts.
Increasingly, we are seeing people coming to us who require help or support in some way. We provide a refuge, an ear, guidance and signposting to more relevant organisations. This is specialist work and puts additional pressure on our small team. Moving forward this will be a focus for development with the appropriate partners in the coming year.
Behind all this great work there is the need to maintain the Association as a viable business and provide a building that is fit for purpose. It is the balance between cost and benefit that is never far from my mind, alongside the desire to reach out further into our wide and varied community.
Chair of FCA Ltd’s Report
Celebrating Partnerships
At Fearon Community Association we truly believe that when we come together, great things can happen; so this year we have a focus on celebrating partnerships. We have many wonderful long-standing community connections and partnerships and this year has brought a renewal of these established connections, as well as building new collaborations too.
We are proud to continue our partnership with Transition Loughborough and our developing one with Incredible Edible Loughborough. Their work delivering sustainable solutions as well as growing beautiful (and delicious!) corners of our community really connects to the ethos and community spirit of the Association.
Our long-standing partnership with Anand Mangal Ladies Group continues to be an important part of life at Fearon Hall. Connecting communities through food and activity such as Diwali breakfast, Asian lunches and International Women’s day, amongst others.
The staff team and volunteers have worked tirelessly this year to achieve some really great work, which is well and truly embedded in our wonderful community. The power of partnerships is at the heart of that work and we are proud to be connected to so many fantastic community organisations.
6) FINANCIAL REVIEW
We are pleased to report that our income has continued to increase in the year to March 2024. Additional grant funding has been successfully won and the Café in the Hall continues to go from strength to strength. Like all organisations, the cost of living is having an impact. We have seen rises in gas, electricity and rent alongside an increase in minimum wage. Depreciation has risen as we write off the ballroom refurbishments. Moving forward the Association has taken steps to increase income and manage costs. We are confident this will increase our surplus in the forthcoming year.
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FEARON COMMUNITY ASSOCIATION LIMITED
TRUSTEES ANNUAL REPORT
7) RESERVES POLICY
The charity’s reserves policy is to hold, if possible, reserves equivalent to six months expenditure.
…………………………………………… RMM Cant Chair
6 November 2024
…………………………………………… ML Welbourne Treasurer
6 November 2024
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF
FEARON COMMUNITY ASSOCIATION LIMITED
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2024 which are set out on pages 6 to 13.
Responsibilities and Basis of Report
As the charity 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 requirement 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 company’s accounts as carried out under section 145 of the Charities 2011 Act (‘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 that in any material respect:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
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.
D R Gradon MA FCA Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
6 November 2024
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FEARON COMMUNITY ASSOCIATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2024
| INCOME FROM: Generated Funds Activities for generating funds Investment Income Charitable Activities Miscellaneous Income Cafe Income Council Grants Fundraising Events Other Grants Donations TOTAL INCOME EXPENDITURE: Charitable Activities Cafe Expenses & Wages Fundraising Event Expenses Operating Costs Pension provision adjustment Governance Costs Classes and Groups expenditure Pension Scheme Administration TOTAL EXPENDITURE Net Income (Expenditure) and Net Movement in Funds RECONCILIATION OF FUNDS TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD |
Unrestricted Unrestricted Funds Funds Notes 2024 2023 2 80958 80124 3 675 208 1616 1242 65066 44322 4a 32366 44024 699 4195 4b 122603 111638 2597 1187 __ _ £306580 £286940 5 78798 60559 776 2380 6 191060 168181 15 100 8 7 10282 10003 43231 26479 1712 1663 £325959 £269273 (19379) 17667 78667 61000 __ _ £59288 £78667 ___ |
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FEARON COMMUNITY ASSOCIATION LIMITED
BALANCE SHEET AS AT 31 MARCH 2024
FIXED ASSETS CURRENT ASSETS Debtors Cash Bank CREDITORS - Due within one period TOTAL NET ASSETS PROVISIONS FOR LIABILITIES AND CHARGES TOTAL ASSETS LESS CURRENT LIABILITIES UNRESTRICTED FUNDS Accumulated Fund |
Notes 2024 2023 10 28168 8 3245 10800 2019 287 43101 51797 _ 48365 62884 9 16029 32336 24086 _ 60504 15 1216 £59288 _ 13 £59288 ___ |
42472 38798 _ 81270 2603 £78667 __ £78667 ______ |
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For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
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The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts;
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These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.
These financial statements were approved by the Board on 6 November 2024 and signed on its behalf by
………………………………………
RMM Cant (Chair)
The information on pages 8 to 14 form an integral part of these financial statements.
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
1 ACCOUNTING POLICIES
a) Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the Charities SORP (FRS102): “Accounting and Reporting by Charities, Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS102, the Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS102”) (effective 1 January 2015), FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective September 2015), The Charities Act 2011 and the Companies Act 2006. The disclosure requirements of section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.
The Charity constitutes a public benefit under FRS102.
b) Company Status
The charity is a company limited by guarantee. The trustees of the company are named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
c) Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are to be used for specific purposes as laid down by the donor and expenditure which meets these criteria is charged to the fund.
d) Incoming Resources
All incoming resources are included in the SOFA when the charity is legally entitled to the income and can be quantified with reasonable accuracy.
e) Resources Expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs to that category. Resources expended include attributable VAT which cannot be recovered.
f) Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at a rate calculated to write off the cost of each asset over its expected useful life as follows:
Fixtures, Fittings and Equipment - 3 Year Straight line
g) Stock
Stocks are valued at the lower of cost and net realisable value, after making due allowances for slow and obsolete moving items.
h) Pensions
The pension costs charged in the accounts represent the contributions payable by the charity during the year.
i) Foreign Currency
Currencies are translated at the conversion rate on the balance sheet date.
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
| 2 3 4a 4b |
ACTIVITIES FOR GENERATING FUNDS Unrestricted Unrestricted Funds Funds Rents and Lease Income Comprise: 2024 2023 Room Rental Income 61918 61890 Photocopying 1162 1630 Classes and Groups 15763 14847 Community Shop 2115 1757 _ £80958 £80124 _ INVESTMENT INCOME 2024 2023 Bank Interest £675 £208 COUNCIL GRANTS Unrestricted Unrestricted Funds Funds 2024 2023 CBC - Core Grant 29727 29727 CBC - BBQ 450 - CBC – Stair Lift - 7797 CBC – Navigating Recovery - 500 LCC – Arts Group - 5000 LCC – Moving Together - 1000 CBC – Exercise Classes 2189 - __ _ £32366 £44024 OTHER GRANTS 2024 2023 Lottery Grant 105150 100554 Peoples Health - 11084 Leicestershire Police 9900 - Peoples Health Grant – Gaming group 7053 - Asylum Project 500 - £122603 £111638 ___ |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
| 5 6 7 |
CAFE COSTS Unrestricted Unrestricted Funds Funds 2024 2023 Wages 51154 38572 Purchases & Cleaning 27644 21987 _ £78798 £60559 _ OPERATING COSTS Unrestricted Unrestricted Funds Funds 2024 2023 Advertising & Marketing 1348 1576 Repairs and Refurbishment 19218 31606 Cleaning Materials & Wages 28740 27735 Salary (Assistant Manager) 29082 25678 Salary (Manager) 36720 31891 Staff Pension 2780 2400 Licences 3042 2978 Light and Heat 17690 12452 Insurance 4845 5010 Water 3076 2621 Telephone 2682 2036 Postage and Stationery 1423 1325 Photocopying 2531 2125 Miscellaneous (canteen, volunteers’ lunches etc) 4067 2609 Rent 8098 5250 Loss on Exchange 127 (197) Depreciation 17595 7962 Health & Safety 6021 1958 Computer Expenses 1094 1166 Bank Charges 738 - Bad Debt 143 - _ £191060 £168181 GOVERNANCE COSTS 2024 2023 Accountancy 1740 1680 Bookkeeping 5827 5399 Legal and Professional Fees 2715 2924 _ £10282 £10003 __ |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
| 8 9 |
DEBTORS 2024 Hiring of Hall (395) Prepayments 3640 _ £3245 CREDITORS- Amounts falling due within one year 2024 Room Hire in Advance 4207 Accruals 3667 Other Creditors 8155 __ £16029 _____ |
2023 956 9844 _ £10800 2023 1810 8152 14124 __ £24086 ______ |
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10 FIXED ASSETS
- a) Leasehold Property Fearon Hall is owned by the PCC of All Saints with Holy Trinity with the Leicester Diocesan Board of Finance.
Under a lease agreement dated 9 July 2021 the hall is let to Fearon Community Association Ltd for 25 years at the following rent: -
Year 1: £3,000 Year 2: £6,000 Year 3: £9,000
From Year 4 onwards the rent is increased in line with the Retail Price Index.
| b) | Tangible Fixed Assets Cost at 1 April 2023 Additions in Year At 31 March 2024 Depreciation At 1 April 2023 Charge for the Year At 31 March 2024 Net Book Value at 31 March 2024 Net Book Value at 31 March 2023 |
Fixtures Fittings & Equipment Total £68825 £68825 3291 3291 _ £72116 £72116 _ 26353 26353 17595 17595 £43948 £43948 _ £28168 £28168 _ £42472 £42472 |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
11 TRUSTEES REMUNERATION & RELATED PARTY TRANSACTIONS
M L Welbourne is a director of Coalraven Ltd, which provided bookkeeping services to the charity. None of the other trustees received any fees or expense payments.
| 12 13 |
STAFF COSTS Salaries Pension Costs Average number of full time equivalent employees No. of staff earning over £60000 per annum STATEMENT OF FUNDS At 31 March 2023 B/Fwd Unrestricted Funds £78667 _____ |
Income 306580 ______ |
Expenditure 325959 _ |
2024 2023 131531 112653 2780 2400 _ £134311 £115053 _ 7 7 - - _ At 31 March 2024 Transfers C/Fwd - 59288 _ ___ |
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14 CONTROL
The Charity is controlled by its Members.
15 THE PENSIONS TRUST – THE GROWTH PLAN
The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
Deficit Contributions
From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit Contributions
From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
| 31 | March 2024 | 31 March 2023 | 31 March 2022 | |
|---|---|---|---|---|
| (£s) | (£s) | (£s) | ||
| Present value of provision | 1,216 | 2,603 | 4,082 |
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| Period Ending | Period Ending | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| (£s) | (£s) | |
| Provision at start of period | 2,603 | 4,082 |
| Unwinding of the discount factor (interest expense) | 99 | 78 |
| Deficit contribution paid | (1,487) | (1,487) |
| Remeasurements - impact of any change in assumptions | 1 | (70) |
| Remeasurements - amendments to the contribution schedule | - | - |
| Provision at end of period | 1,216 | 2,603 |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2024
INCOME AND EXPENDITURE IMPACT
| Period Ending | Period Ending | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| (£s) | (£s) | |
| Interest expense | 99 | 78 |
| Remeasurements – impact of any change in assumptions | 1 | (70) |
| Remeasurements – amendments to the contribution schedule | - | - |
| Contributions paid in respect of future service* | * | * |
| Costs recognised n income and expenditure account | * | * |
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
ASSUMPTIONS
| 31 March 2024 | 31 March 2023 | 31 March 2022 | |
|---|---|---|---|
| % per annum | % per annum | % per annum | |
| Rate of discount | 5.31 | 5.52 | 2.35 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details and deficit contributions agreed between the company and the scheme at each year end period:
| Year | ending | 31 | March 2024 | 31 March 2023 | 31 March 2022 |
|---|---|---|---|---|---|
| Year | 1 | 1,239 | 1,487 | 1,487 | |
| Year | 2 | 1,239 | 1,487 | ||
| Year | 3 | - | 1,239 | ||
| Year | 4 | ||||
| Year | 5 | ||||
| Year | 6 |
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.