DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
Registered number: 07434158 Charity number: 1139307
LGA Foundation
(A company limited by guarantee)
Annual report
5 April 2022
DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details | 1 |
| Trustees' report | 2 - 5 |
| Independent auditor's report to the members of LGA Foundation | 6 - 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Notes to the financial statements | 12 - 20 |
DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Reference and administrative details Year ended 5 April 2022
Trustees
Mr J P Reece Mrs S E Reece Mr J Flynn Ms D Mackay (appointed 9 August 2021)
Company registered number
07434158
Charity registered number
1139307
Registered office
6 Austen Way Crook County Durham DL15 9UT
Independent auditor
UNW LLP Chartered Accountants Citygate St James' Boulevard Newcastle upon Tyne NE1 4JE
Page 1
DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Trustees' report Year ended 5 April 2022
The trustees present their annual report together with the audited financial statements of the company for the 6 April 2021 to 5 April 2022. The trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).
Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
Policies and objectives
The object of the charity is to make grants for the benefit of the public for such charitable purposes as the trustees think fit. The trustees are particularly keen to support projects in the North East of England, reaching those in the region who are most disadvantaged.
The LGA Foundation supports causes helping the most disadvantaged through awarding grants across the North East of England with its main geographic focus on Tyneside and South Northumberland. During the year to 5 April 2022, its priority was supporting groups emerging from the Covid 19 pandemic and raising awareness of its activities to generate applications directly rather than via other funders. The Foundation requests feedback from its beneficiaries to assess the impact of its grant making and to inform future decisions. The Foundation does not have a formal grant making policy, with grants awarded by Trustees periodically following assessment and discussion.
The trustees confirm that they have had due regard to the law relating to public benefit and the Charity Commission's guidance on the subject.
Main achievements of the company
During the year the Foundation gave a total of 30 (2021: 32) grants to support organisations. Larger grants are detailed below in the financial review. The grants aimed to ensure that key organisations were able to make necessary changes to allow them to return to providing services after being severely impacted by the restrictions imposed during the pandemic. The trustees consider that the grants made during the year met their objectives of supporting disadvantaged people across the North East and maintaining previous commitments to some organisations. The Foundation’s investment returns were impacted by the pandemic, but the Trustees took the view that it was important to maintain its level of grant funding. The Trustees identified the need to be more flexible by offering funding extensions to organisations whose projects were delayed and, in some cases, cancelled during the pandemic. This delayed the commitment of year 2 funding in some cases, and we are still seeing projects being pushed back into 2023. All funding offers made by the Foundation will be honoured where projects can prove the aims and objectives have not changed.
Key performance indicators
The entity's key performance indicators are the number of grants given in the financial year as outlined above.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Trustees' report (continued) Year ended 5 April 2022
Achievements and performance
Going concern
The trustees have considered the ongoing impact of external environmental factors (such as Covid-19 and the war in Ukraine) and the potential impact on investment returns over the coming months and are confident that the charity has sufficient liquidity to meet existing and future committed grant awards and charitable activities.
After considering the above and making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Reserves policy
The Foundation has no fixed cost base and employs no staff. Consequently it has no need to hold reserves to cover future costs. At 5 April 2022 unrestricted reserves stood at £6,714,912 (2021: £6,705,653) of which £6,463,269 (2021: £6,514,719) are tied up in investments held for future income generation and £273,848 (2021: £220,886) is held as cash.
General reserves of £5,199,269 (2021: £6,705,653) are held at high levels at year end due to the present and future uncertainty in the investment market. The trustees have taken into account this uncertainty and consider the levels of reserves held mitigates the risk that the charity can not fulfil its charitable purpose.
Financial review
During the year the charity received donations of £nil (2021: £1,237,215) in the form of shares from trustees, investment income of £105,593 (2021: £100,168) and made grants totalling £110,161 (2021: £176,861).
Charitable causes supported include the welfare and development of vulnerable young people, carers and disadvantaged women. The following grants over £10,000 have been made in the year:
| Big River Bakery | £12,000 |
|---|---|
| Footsteps | £10,000 |
| Smart Works Newcastle | £10,000 |
| Caring Hands | £10,000 |
| Jobes Boxing & Fitness Gym | £10,000 |
As well as supporting projects known to the Foundation, the Trustees were keen to explore funding relationships with organisations that were new to them. More activity through the website, social media and the press was agreed in a bid to generate applications from new projects.
Material investments policy
The trustees work closely with their appointed investment managers in order to maximise the future returns to the charity. Investments are held for income generation to support the activities of the charity in the long term. The trustees meet with the investment managers on an annual basis to discuss the portfolio including social, environmental and ethical considerations taken into account when investing.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Trustees' report (continued) Year ended 5 April 2022
Plans for future periods
We will continue to focus on youth charities, women’s charities and other community organisations that can help us deliver our purpose of building stronger, healthier communities in deprived areas of Tyneside and the wider North East region we support. It is our aim to elevate the Foundation’s reputation to encourage more projects to come forward for funding. The trustees plan to review mental health provision and support for men and young boys in 22/23 and identify any opportunities for funding in the future.
The woodland creation project remains firmly on the agenda, although delayed in 2021 by sellers demanding very high prices for land as commercial buyers increased activity. This has moved forward in 2022 with an offer made currently on a 120-acre plot of land in Northumberland. This project has been approved to a cost of circa £1M, although government grants may be available to fund some parts of the project, the finer details of which are yet to be agreed.
A new microgrants system has been publicised to engage smaller community groups awarding up to £2k donations monthly.
Structure, governance and management
Constitution
The company is a charitable company limited by guarantee. The company was incorporated on 9 November 2010 and is governed by the Memorandum and Articles of Association. The board of directors are the charity trustees and make decisions on behalf of the charity collectively.
Method of appointment or election of trustees
The future appointment of trustees is to be made by the founding trustees during their lifetime. During the year, Dianne Mackay was appointed to the board.
Principle risks and uncertainties
The trustees consider that they have identified the major risks to the charity and have established sufficient controls to mitigate these risks.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Trustees' report (continued) Year ended 5 April 2022
Statement of trustees' responsibilities
The trustees (who are also the directors of the company 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 trustees to prepare financial statements for each financial . Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its 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;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
-
so far as that trustee is aware, there is no relevant audit information of which the charitable charity's auditor is unaware, and
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that trustee has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.
Auditor
The auditor, UNW LLP, has indicated its willingness to continue in office. The designated trustees will propose a motion reappointing the auditor at a meeting of the trustees.
Approved by order of the members of the board of trustees on 16 December 2022 and signed on their behalf by:
Mrs S E Reece Trustee
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
Independent auditor's report to the Members of LGA Foundation
Opinion
We have audited the financial statements of LGA Foundation ('the charitable company') for the year ended 5 April 2022 which comprise the statement of financial activities, the balance sheet, the 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 Financial Reporting Standard 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 charitable company's affairs as at 5 April 2022 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; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for 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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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
Independent auditor's report to the Members of LGA Foundation (continued)
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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinion 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.
-
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 our knowledge and understanding of the charitable company 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 Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
Independent auditor's report to the Members of LGA Foundation (continued)
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 identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the directors and other management (as required by Auditing Standards) and from inspection of the charity's legal correspondence and we discussed with the directors and other management the policies and procedures in place regarding compliance with the laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
Firstly, the charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, environmental law and certain aspects of company legislation, recognising the nature of the charity's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
Independent auditor's report to the Members of LGA Foundation (continued)
Anne Hallowell BSc DChA FCA (Senior Statutory Auditor) for and on behalf of UNW LLP, Statutory Auditor Chartered Accountants Newcastle upon Tyne
16 December 2022
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) Year ended 5 April 2022
| Note Income from: Donations and legacies 2 Investments 3 Total income Expenditure on: Investment management expenses Charitable activities Total expenditure Net (expenditure)/income before net gains on investments Net gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ - 105,593 105,593 40,246 147,666 187,912 (82,319) 77,358 (4,961) 6,705,653 (4,961) 6,700,692 |
Total funds 2022 £ - 105,593 105,593 40,246 147,666 187,912 (82,319) 77,358 (4,961) 6,705,653 (4,961) 6,700,692 |
Total funds 2021 £ 1,237,215 100,168 1,337,383 |
|---|---|---|---|
| 29,391 219,451 248,842 |
|||
| 1,088,541 846,823 1,935,364 |
|||
| 4,770,289 1,935,364 6,705,653 |
All funds in both years are unrestricted.
The notes on pages 12 to 20 form part of these financial statements.
Page 10
DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Balance sheet At 5 April 2022
| Note Fixed assets Intangible assets 7 Investments 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Net assets Charity funds Restricted funds 11 Unrestricted funds 11 Total funds |
- 273,848 273,848 (36,425) |
2022 £ - 6,463,269 6,463,269 237,423 6,700,692 - 6,700,692 6,700,692 |
21 220,886 220,907 (31,924) |
2021 £ 1,972 6,514,698 |
|---|---|---|---|---|
| 6,516,670 188,983 |
||||
| 6,705,653 | ||||
| - 6,705,653 |
||||
| 6,705,653 |
The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the trustees on 16 December 2022 and signed on their behalf by:
Mrs S E Reece
Trustee
The notes on pages 12 to 20 form part of these financial statements.
Page 11
DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
LGA Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are intitially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in pounds sterling which is the functional currency of the charity and are rounded to the nearest £1.
1.2 Company status
The company is a company limited by guarantee. The members of the company are the directors named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.3 Going concern
The financial statements have been prepared on a going concern basis.
Given the matters outlined in the trustees' report, the trustees have considered the additional risks presented and all factors they believe might reasonably impact upon the future outlook of the charity. The charity holds substantial investment assets but maintains sufficient cash reserves to allow it to meet its ongoing commitments. Investment values remain at strong levels consequently the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
1.4 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
1. Accounting policies (continued)
1.5 Expenditure
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity, including those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
1.6 Intangible assets and amortisation
Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following basis:
Amortisation is provided on the following basis:
Website
% 3 years straight line
1.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gains/(losses) on investments' in the statement of financial activities incorporating income and expenditure account.
1.8 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
1. Accounting policies (continued)
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.10 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
1.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the directors in furtherance of the general objectives of the company and which have not been designated for other purposes.
1.13 Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In preparing these financial statements the directors do not consider there were any significant areas of judgement or accounting estimates that were required in applying the company's accounting policies as set out above.
2. Income from donations and legacies
| Unrestricted funds 2022 £ Donations - Total 2021 1,237,215 |
Total funds 2022 £ - 1,237,215 |
Total funds 2021 £ 1,237,215 |
|---|---|---|
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
3. Investment income
| Unrestricted funds 2022 £ Dividends 105,338 Interest received 255 105,593 Total 2021 100,168 4. Grants Grants 2022 £ Grants to beneficiaries 110,161 Total 2021 176,861 |
Total funds 2022 £ 105,338 255 105,593 100,168 Total funds 2022 £ 110,161 176,861 |
Total funds 2021 £ 99,790 378 100,168 |
|---|---|---|
| Total funds 2021 £ 176,861 |
||
Further details of grants awarded, which are all to institutions, are given in the trustees' report.
5. Analysis of expenditure by activities
| Grant-making activities Total 2021 |
Direct costs 2022 £ 110,161 176,861 |
Support costs 2022 £ 37,505 42,590 |
Total funds 2022 £ 147,666 219,451 |
Total funds 2021 £ 219,451 |
|---|---|---|---|---|
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
5. Analysis of expenditure by activities (continued)
Analysis of direct costs
During the year, there were 30 grants (2021: 32) totalling £110,161 (2021: £176,861).
Analysis of support costs
| Grant- making activities 2022 £ Sundry costs 763 Grant administration and support 31,170 Audit and accountancy fees 3,600 Amortisation 1,972 37,505 Total 2021 42,590 Independent Examiner's remuneration Fees payable to the company's independent examiner and its associates for the audit of the company's annual accounts Fees payable to the company's auditor and its associates in respect of: All non-audit services not included above |
Total funds 2022 £ 763 31,170 3,600 1,972 37,505 42,590 2022 £ 2,600 1,000 |
Total funds 2021 £ 4,010 33,539 3,069 1,972 42,590 |
|---|---|---|
| 2021 £ 2,600 1,000 |
6. Independent Examiner's remuneration
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
| 7. Intangible assets Cost At 6 April 2021 At 5 April 2022 Amortisation At 6 April 2021 Charge for the year At 5 April 2022 Net book value At 5 April 2022 At 5 April 2021 8. Fixed asset investments Cost or valuation At 6 April 2021 Additions Disposals Revaluations At 5 April 2022 Net book value At 5 April 2022 At 5 April 2021 |
Website £ 5,916 5,916 3,944 1,972 5,916 - 1,972 Listed investments £ 6,514,698 3,081,024 (3,121,214) (11,239) 6,463,269 6,463,269 6,514,698 |
|---|---|
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
9. Debtors
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Prepayments and accrued income | - | 21 |
10. Creditors: Amounts falling due within one year
| Trade creditors Accruals and deferred income |
2022 £ 2,785 33,640 36,425 |
2021 £ 5,242 26,682 |
|---|---|---|
| 31,924 |
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
11. Statement of funds
| Statement of funds | Statement of funds | ||||
|---|---|---|---|---|---|
| Statement of funds - current year Balance at 6 April 2021 £ Income £ Unrestricted funds Designated funds Woodland Creation Project - - General funds General funds 6,705,653 105,593 Total Unrestricted funds 6,705,653 105,593 |
Expenditure £ - (187,912) (187,912) |
Transfers in/out £ 1,500,000 (1,500,000) - |
Gains/ (Losses) £ - 77,358 77,358 |
Balance at 5 April 2022 £ 1,500,000 |
|
| Unrestricted funds Designated funds Woodland Creation Project General funds General funds Total Unrestricted funds |
Balance at 6 April 2021 £ - 6,705,653 6,705,653 |
||||
| 5,200,692 | |||||
| 6,700,692 |
The woodland creation project is underway with an offer made on 120-acre plot of land in Northumberland. The aim of this project is to create a native woodland of at least 100 acres. This project will incur costs in addition to the purchase of the land relating to legal services, afforestation project management and grant applications. A budget of £1.5M restricted to this project will be used to purchase, the land, design the woodland, obtain all necessary approvals and available grants, facilitate stakeholder engagement processes, arrange and manage the woodland creation work on site and some future maintenance costs for ongoing upkeep.
Statement of funds - prior year
| Balance at | Gains/ | Balance at | |||
|---|---|---|---|---|---|
| 6 April 2020 | Income | Expenditure | (Losses) | 5 April 2021 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General funds | 4,770,289 | 1,337,383 | (248,842) | 846,823 | 6,705,653 |
12. Contingent liabilities
At the year end, the charity had pledged to fund £28,100 (2021: £nil) of grants in FY22/23. These grants are contingent on the receiver meeting the performance conditions attached to the grants.
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DocuSign Envelope ID: 946DF342-CD5D-4FAD-A10D-6E086F128056
LGA Foundation
(A company limited by guarantee)
Notes to the financial statements Year ended 5 April 2022
13. Related party transactions
During the year fees totalling £11,001 (2021: £10,706) were paid to J Flynn, trustee, for services to the Foundation in relation to grant assessment and administration.
During the year fees totalling £21,317 were paid to D Mackay, trustee, for services to the Foundation in relation to grant assessment and administration.
During the year donations of £nil were received from JP and SE Reece (2021: £1,237,215).
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