**Charity registration number 1163955**
**Company registration number 06548122 (England & Wales) (A company limited by guarantee)**
**Liberdade Community Development Trust**
**Annual report and financial statements**
**For the year ended 31 March 2024**
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and administrative details|1|
|Trustees’ Report|2 - 9|
|Independent Auditors Report|10 – 12|
|Consolidated Statement of Financial Activities|13 - 14|
|Consolidated Balance Sheet|15|
|Charity Balance Sheet|16|
|Consolidated Cash Flow Statement|17|
|Notes to the Consolidated Financial Statements|18 - 33|
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|S Peace||
|---|---|---|
||A L Golding||
||N Forrest||
||S Ripley||
||E J Denham||
||M A Geffre||
||J Blackett|(Appointed 13 December 2023)|
||K Rhys-Jones|(Appointed 13 December 2023)|
||L Snowball|(Appointed 13 December 2023)|
||H Walkinshaw|(Appointed 13 June 2024)|
|**Company Registration Number**|06548122 (England & Wales)||
|**Charity Registration Number**|1163955||
|**Registered office**|Gosforth Civic Theatre||
||Regent Farm Road||
||Gosforth||
||Newcastle upon Tyne||
||NE3 3HD||
|**Bankers**|Lloyds Bank plc||
||London||
||63 Lincoln's Inn Fields||
||London||
||WC2A 3JW||
|**Solicitors**|Muckle LLP||
||Time Central||
||32 Gallowgate||
||Newcastle upon Tyne||
||NE1 4SN||
|**Auditors**|Robson Laidler Accountants Limited||
||Fernwood House||
||Fernwood Road||
||Jesmond||
||Newcastle upon Tyne||
||NE2 1TJ||
1
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
The trustees, who are directors for the purposes of company law, present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
Liberdade's mission is ‘To raise everyone’s expectations about what people with learning disabilities (pwld) can achieve’. We raise our own expectations and the expectations of society in general.
- Our work deliberately sets out to challenge the prejudice in society about learning disabled people and the contribution they can make.
- Setting high standards for the quality of work and the way we achieve it is central to the way we operate
- Creating opportunities for learning disabled people and the wider community to spend time together is central to our approach
- We believe our work leads to greater equality, quality of life and improved health and wellbeing for learning disabled people and the wider community
Liberdade ( _Lib – er – dar – jie)_ has a soul, it cares for people and pushes them to excel, it always goes above and beyond and doesn’t know the meaning of can’t. People with learning disabilities come to Liberdade to work, to train others, to expel old misconceptions but mostly to belong.
We work by using the arts and Gosforth Civic Theatre as tools for change. The change happens both within our participants and society as a whole, we use the process of performing, working, and being a member of a company as a mechanism for personal and social development.
## **What we do**
We deliver training and provide opportunities for young people and adults with learning disabilities, the training covers; performing arts; health and wellbeing; sport; employment skills; and more. The opportunities we provide include; work experience; community engagement; leading an organisation; volunteering; and performing in front of a public audience. We also share our learning by publishing detailed information on our organisational development, and partner with a large number of other organisations and Individuals.
We take part in regional, national and international events representing the learning disabled community and have set up and supported new organisatations to create further opportunities for people with learning disabilities across the region.
In 2016 we took on an asset via a community asset transfer, Gosforth Civic Theatre is an arts venue that is open to all.
Historically society has created places for people with learning disabilities to go, at Gosforth Civic Theatre, people with learning disabilities have created a place for everyone to come together.
_“We wanted to provide something for the community instead of it being the other way around, here people can see that we’ve got skills, that we can be useful”_ Ed (founding company member)
Gosforth Civic Theatre is an amazing place where a group of people with learning disabilities are bringing the local community together to generate understanding, creativity, and change. We believe that if you bring people together in a positive and creative way then the barriers that can exist in communities are overcome.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## Artistic values
Producing performance platform events, performing, and creating films enables our members to have a collective voice. It instils confidence and creativity, it promotes valuable life and work skills but most importantly it promotes social value. At Liberdade its not about how talented you are or what you can do, it is about belonging first and then finding and honing your skills to contribute to the organisation as a whole.
Our working practices have always strived for social change by raising our own expectations, those of our learning disabled members and members of the public we engage with. Using this very simple model we aim to demonstrate to society that learning disabled people are able, skilled and valuable members of a community whilst breaking down old misconceptions that hinder progress.
We use commonality in the creation of our artistic work to build connections between our performers and their audiences, we also use humor in our performances to further break down barriers.
## External context - summary of major changes
We closed the building in January 2023 for essential capital redevelopment. The original timeline for the capital project was 26 weeks. We partially reopened the building in late August 2023 and spent the following 4 months with builders still working at GCT to complete the works. This proved challenging and difficult for all involved. It has significantly affected our earned income for this financial year. We received a completion certificate in March 2024, 31 weeks late.
## Internal context – summary of major issues
We had been aware for some time that we had been operating in ‘survival mode’, our need to carry out planned organisational development to build resilience over the closure of the building was much needed. Unfortunately, our CEO and Development Manager’s capacity to carry these developments was taken up managing the complexity of the capital project.
They also were unable to dedicate capacity to essential fundraising to cover the shortfall left by the failure to secure NPO core support from Arts Council England. The delays in the capital project further compounded this issue. Fortunately, Youth Investment Fund who funded 65% of the build (£1.5 million) stepped in with a further £190,000 to support us to complete the project and cover core costs. However, we were still facing a significant shortfall in funding.
_Other challenges include increases in the National Living Wage, which has had a £50k negative impact on expenditure year on year, and next year the impact will be even greater. The cost of utilities and materials (Stock, etc) has also had a huge impact on our expenditure, increasing our overall expenditure by 14% year on year, and our forecast predicts it will rise again next year by a further 18%. In real terms that means we will have faced an increase of £300k per year within a 24 month period (and our output and staffing level hasn’t varied particularly)._
## **Public benefit**
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance “public benefit: running a charity (PB2)”. We endeavour to encourage all within our community to take part in our activities and to attend our theatre and workshops.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regards to the public benefit guidance published by the Charity Commission for England and Wales.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## **ACHIEVEMENTS AND PERFORMANCE**
This year we have focused on the following:
- We successfully delivered the £2.5 million capital development project of Gosforth Civic Theatre.
- Took advantage of extra support offered through YIF to work with Consultants Beeston Clarke to help us with developing our financial systems and Eastside People to support us with our organisational development.
- Started working with Goodlabs to develop a bespoke social CRM system called Cimpl based on the Salesforce platform.
- We recruited a part-time office manager in January 2024 to support with organisation development.
- • We recruited two new part-time personnel, a work placement coordinator and a work placement mentor who started in Sept 2023. They designed a work placement programme for Post 16 SEND learners within our café at GCT, built partnerships and recruited trainees.
- We have continued to provide existing company members with opportunities to volunteer at cultural events at GCT. In addition, our Gaming Social weekly activity has five young autistic people volunteering.
- We significantly increased recruitment to our SEND programmes, 16 new participants joined in Sept 2023.
- • We delivered all our platform events planned throughout the year at GCT, namely ‘Freedom Moving’, our LD dance platform, ‘Engage’, our community group platform and a Youth Showcase which are all designed to bring people to together.
- In addition to running all of our weekly SEND programmes and community activity at GCT we ran a total of 99 events since reopening: 65 cultural events, 34 private events with a total 9,949 attendees and approx 14,000 visits to our café (Sept 23 – Mar 24).
- We were invited by the National Theatre to an event at 10 Downing Street in 2023, where we met representatives of the National Youth Theatre, subsequently they gave us advice on how to develop our own Youth Board which now sits alongside our Shadow Board as an important part of our governance model.
- We continued to maintain and develop successful partnerships with regional and national organisations, these included: Working relationships with Mortal Fools, Curious Monkey, Curious Arts, Unfolding theatre, National Youth Agency and Tin Arts. We have also participated in networks including, NEIDN, North East Culture Social, Meet the programmers, Youth Investment Fund, and Locality.
## Our income streams
We generated earned income in a number of different ways, these were:
- Services delivered to people with learning disabilities
- Café and Bar sales
- Ticket Sales
- Space rental and Events
- Donations
- Grant and trust funding
The current programmes and activities we deliver for our core beneficiaries
## **Dance Outreach**
These are arts, participatory and learning projects delivered in local SEND Schools and Colleges with young people aged 12-24. The projects are usually 10 weeks long and provide opportunities for young people to create and perform artistic work. They include fun creative classes which introduce learners to dance technique and choreography. Learners are encouraged to be creative and work towards creating a performance piece.
## **Contemporary Dance and Youth Dance**
Our Contemporary Dance Class is open to young people who enjoy dance. Liberdade Youth Dance is for young people who have participated in Outreach projects and want to continue their interest outside of school. Both activities are for young people aged 16 to 24 years and offer: Weekly dance technique classes with learners from local SEND Schools and Colleges who are committed to developing their skills; Opportunities for those in Youth Dance to create higher level performance work.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## **Skills Development**
This programme is designed for young people aged 18-25 years who have participated in Liberdade Youth Dance and want to develop further, and for School and College leavers who have participated in dance elsewhere. It offers: Dance technique class - training in strength and flexibility, developing coordination and discipline; Creative tasks – learning to use bodies to express narrative, feelings and emotions, working together as a team; Choreography – making group decisions about themes and narratives to develop a dance/performance project, taking direction, inputting ideas and giving direction.
## **Performance Ensemble**
This programme is for young people aged 20+ who have completed the Skills Development programme and have shown commitment and potential to further their performance career. It includes: Professional level classes in technique, creative tasks and choreography; Opportunities to tour work and represent the company at national performances.
## **Health and Wellbeing**
These programmes for 18-30’s and 30+ are designed to support participants to lead a healthy lifestyle. They involve changing eating and exercise behaviours ln a fun and engaging way with support & encouragement from others. They include: Helping each individual to find the right balance; Learning about how well and often participants move compared to how much and what they eat; Learning about food and discovering how what is eaten affects feelings; Learning about healthy meals; Exploring new ways to get & keep fit; Using local facilities to try new activities and work with fitness professionals; Setting personal goals; Doing meditation and improving emotional well-being through stress management and mindfulness.
## **GCT Gaming Social**
Our super-relaxed gaming social is somewhere young people are welcome to come along, game, play, and socialise through their love and passion for all things video game.
## **FINANCIAL REVIEW**
## **Policy on reserves**
The calculation of free reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charity to hold free reserves those - reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose. The Trustees considered it would be appropriate to hold the equivalent of three months expenditure, which would equate to holding between £130,000 and £160,000 in free reserves.
At the year end free reserves were reported as £159,870 (2023: £64,453) an increase of £95,417 in the year. Note 22 – Analysis of net assets between funds gives the detail of the movement of free reserves.
Included within Fixed Assets are tangible capital additions of £2,155,766 and intangible (website) capital additions of £4,920 a total of £2,160,686. £1,624,728 of the capital spend in the year has been funded by restricted grants from both the Arts Council and YIF – which you can reference in the charity’s funds (note 21). Having received restricted funding the charity has carried out these capital works (which were still ongoing after the year end) and to recognise that monies have been spent - and therefore the restriction met – has made a restricted to unrestricted fund transfer of £1,942,046.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## **Key Management Personnel**
The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charity, as noted in the Reference and Administration section. Together with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis. The pay of the KMP is reviewed annually and normally increased in accordance with average earnings. The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with the budget and forecast information, ensuring that the charity can afford any proposed increases. The board then agree any uplift to remuneration.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Liberdade Community Development Trust is a Charity and Company Limited by Guarantee and not having a Share Capital, governed by its articles of association dated 05/10/2015. Prior to this the organisation was known as Liberdade North East CIC and was a community interest company also limited by guarantee and not having a share capital.
## Membership of Liberdade
We have increased the diversity of our board this year by recruiting new trustees with lived experience of a learning disability, and lived experience of being part of the LGBTQ+ community. We have recruited new members to the board this year with experience in:
- **HR** - to support our growing facility and workforce
- **Digital and Data –** To support the development of our digital systems and social impact measurement we would like to recruit someone with experience of CRM systems, and digital best practice within cultural organisations.
- **Music sector** – to support our visibility in the industry
There are a number of skills we are looking for which can strengthen our Board and enable us to continue our plans for the future. These include:
**Facilities Management (arts/hospitality)** – Although we have good skills within our staff team we would like to find a trustee who can bring facilities management skills to the board.
**Fundraising Events and Philanthropy -** To support our fundraising strategy. A greater proportion of our income will need to come from our community and we need someone on the board who can help us to build relationships with high net worth individuals and corporate donors.
- a. Persons who wish to become members of the Charity must apply for membership in a manner approved by the Trustees and the application must then be approved by the Trustees, who have in their absolute discretion to decline it and need not give reasons for doing so.
- b. The Trustees must keep a register of names and addresses of any elected Members.
- c. The Trustees may make rules which establish different classes of membership with different rights and obligations, these shall be recorded in the register of Members
- d. Membership shall terminate if, the Member dies, is convicted of a criminal offence, resigns, is in arrears to the Charity or the Trustees decide to terminate as in the best interests of the Charity.
## The Role of the Board
The Board of Trustees is the governing body of the Charity, and has overall legal responsibility for all that the Charity does. Members of the Board are the Trustees of the Charity. The Board meets at least four times a year, but will meet more frequently as required.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## Trustees Responsibilities
Trustees have ultimate responsibility for directing the affairs of the Charity, and ensuring that it is solvent, well-run, and is delivering the charitable outcomes for which it has been set up. There are three key duties as specified by the Charity Commission:
Duty of Compliance – Trustees must ensure the charity complies with all relevant laws and regulations, including charity law. They must ensure that Liberdade CDT does not breach any of the requirements set out in the Articles of Association and that it remains true to the charitable purpose and objects set out.
Trustees must also act with integrity, and avoid any personal conflicts of interest of misuse of charity funds or assets.
Duty of Prudence – Trustees must ensure that the charity is and will remain solvent. They should use charitable funds and assets reasonably, and only in furtherance of Liberdade CDT objects. They should avoid undertaking activities that might place the charities funds, assets or reputation at undue risk and take special care when investing the funds of the charity, or borrowing funds for the charity to use.
Duty of Care – Trustees must use reasonable care and skill in their work as trustees, using their personal skills and experience as needed to ensure that the charity is well-run and efficient and consider getting external professional
advice on all matters where there may be material risk to the charity, or where the trustees may be in breach of their duties.
These duties are explained further in the Charity Commission Publication CC3, - The Essential Trustee. It can be read in full at ( http://www.charity commission.gov.uk/publications/cc3.aspx )
The Board may establish committees, advisory councils or working groups as appropriate to help it to fulfil its remit.
## Membership of the Board
The minimum size of the Board is 3 and the maximum is 13
**The Trustees shall use all reasonable endeavours to facilitate the creation of an informal group of service users of the Charity. The Trustees shall ensure that the views of such group are reported back to the Trustees on a regular basis, as they shall determine.**
The first Trustees shall be those persons named in the statement delivered pursuant to Section 12(1) of CA 2006 who shall be deemed to have been appointed under the Articles of Association. Future Trustees shall be appointed as provided below.
A Trustee may not appoint an alternate director or anyone to act on his or her behalf at meetings of Trustees.
Eligibility to be a Trustee - Any person who is eligible to act as a Trustee may be appointed to be a Trustee by the existing Trustees.
No person may be appointed as a Trustee, unless he or she is a Member of the Charity and is in support of the Objects, and that person is willing to serve as a Trustee and has attained the age of 18 (eighteen) years, or if (had he or she already been a Trustee) he or she would have been disqualified from acting as a trustee by virtue of section 178 of the Charities Act 2011.
## Appointment and Retirement of Trustees
Trustees shall be appointed by a decision of the Trustees. Trustees shall serve for a term of four years but shall be eligible for re-appointment by the Trustees. There shall be no limit on the number of terms in office that a Trustee may serve.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
Disqualification and Removal of Trustees -A Trustee shall cease to hold office if:
He or she ceases to be a director by virtue of any provision in the Companies Acts or the Insolvency Act 1986 or is disqualified from acting as a Trustee by virtue of Section 178 of the Charities Act 2011, He or she is deemed by HM Revenue & Customs not to be a fit and proper person to be a manager of a charity.
The Trustees reasonably believe that he or she has become physically or mentally incapable by reason of illness or injury of managing and administering his or her own affairs and they decide to remove him or her from office.
The Trustee resigns from his or her office by notice to the Charity (but only if at least the minimum number specified ie. 3 will remain in office when the notice of resignation is to take effect).
The Trustee is absent without the permission of the Trustees from all their meetings held within a period of 6 (six) months without good reason and the Trustees decide that his or her office be vacated.
The Trustee has a bankruptcy order or an order is made against him or her in individual insolvency proceedings in a jurisdiction other than England and Wales which has an effect similar to that of bankruptcy.
The Trustee is removed from office by the Trustees on the grounds that it is in the best interests of the Charity to be so removed. A decision to remove a Trustee from office may only be passed if, the Trustee has been given at least 21 (twenty one) Clear Days' notice in writing of the meeting of the Trustees at which the decision will be made and the reasons why it is to be proposed; and the Trustee or, at the option of the Trustee, the Trustee's representative (who need not be a Trustee) has been allowed to make representations to the meeting.
The Trustee will cease to be a trustee if he or she ceases to be a Member of the Charity for any reason whatsoever, retires from office and is not re-elected or is removed from office in accordance with Section 168 of the CA 2006.
## **PLANS FOR THE FUTURE**
We have now (December 2024) settled into our new building after significantly updating the building by improving its environmental performance, internal and external aesthetics, theatrical infrastructure, and increasing its capacity.
In light of the continued increase to the National Minimum Wage, and employers NI we are again developing our income model to remain viable in the financial environment, this is increasingly important because of the competitive funding environment and continued increased expenditure in most areas.
We have a good plan to diversify our charitable and trading income sources. We will develop paid for membership schemes, corporate memberships, High Net Worth donations, and community appeals. To support this we will create a new role to manage this work. We are also working internally to maximise our earned income and find efficiencies within our expenditure.
We will continue to develop the activities and performance programme to maximise the buildings capacity to provide a service, and most importantly create positive social change.
We are looking to build financial resilience over the coming years by building on our reserves, and increasing the amount of funding we are seeking from both organisations and individuals.
We will also develop and publish the next iteration of our Theory of Change in mid 2025. This is an important project which includes the voices of our beneficiaries, staff, board, and community. It enables us to communicate with the wider sector and share everything we have learnt and plan to develop over the next five years.
Although times are challenging, we have a plan, and a continued passion to create the world our company members want to live in.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees (who are also Directors of Liberdade Community Development Trust for the purposes of company law) are responsible for preparing the Board of 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 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, of the charitable company for the year. 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 Charities SORP 2019 (FRS 102).
- ✓ Make judgements and estimates that are reasonable and prudent.
- ✓ State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- ✓ Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- ✓ There is no relevant audit information of which the charitable company’s auditor is unaware; and
- ✓ The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **DISCLOSURE OF INFORMATION TO AUDITOR**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
## **AUDITOR**
Robson Laidler Accountants Limited were elected as auditor for the ensuing year at the Annual General Meeting in accordance with section 487 of the Companies Act 2006.
Approved by the Board on …16/12/24……. and signed on their behalf by:
## **A L Golding Trustee**
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **Opinion**
We have audited the financial statements of Liberdade Community Development Trust (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Group and Charitable Company Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 group’s and parent charitable company's affairs as at 31 March 2024, and of the group’s 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 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 reIating 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 group’s and the parent 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.
## **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 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.
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**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **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 (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ 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 group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, 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 directors’ 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.
## **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 group’s and parent 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.
## **Auditors’ responsibilities for the audit of 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit be performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.
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**INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **LIBERDADE COMMUNITY DEVELOPMENT TRUST**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the charitable company operates and how the company complies with that legal and regulatory framework.
- inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know actual, suspected or alleged instances of fraud.
- discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.
The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
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 this 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Michael Thomas Moran BA FCA (Senior Statutory Auditor) For and on Behalf of Robson Laidler Accountants Limited**
Statutory Auditor Fernwood House Fernwood Road Jesmond Newcastle Upon Tyne NE2 1TJ
## **Date:** 16 December 2024
12
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)**
|**Current financial year**
**Notes**
**Unrestricted**
**funds**
**£**
**Income and endowments from:**
Donations and legacies
**2**
5,356
Charitable activities
**3**
342,949
Other trading activities
**4**
43,393
Other income
**5**
159,759
**Total income**
551,457
**Expenditure on:**
Raising funds
**6**
224,961
Charitable activities
**7**
245,089
**Total expenditure**
470,050
**Net income/(expenditure)**
81,407
**Gross transfers between funds**
**21**
1,942,046
**Net movements in funds**
2,023,453
**Reconciliation of funds**
Fund balances at 1 April 2023
**21**
613,046
**Fund balances at 31 March 2024**
**21**
2,636,499|**Restricted**
**funds**
**£**
194,813
1,819,463
-
-
2,014,276
-
150,219
150,219
1,864,057
(1,942,046)
(77,989)
538,826
460,837|**Total**
**2024**
**£**
**200,169**
**2,162,412**
**43,393**
**159,759**
**2,565,733**
**224,961**
**395,308**
**620,269**
**1,945,464**
**-**
**1,945,464**
**1,151,872**
**3,097,336**|**Total**
**2023**
**£**
22,289
1,226,874
35,189
163,864
1,448,216
138,302
633,248
771,550
676,666
-
676,666
475,206
1,151,872|
|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
13
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)**
|**Prior financial year**
**Notes**
**Unrestricted**
**funds**
**£**
**Income and endowments from:**
Donations and legacies
**2**
22,289
Charitable activities
**3**
233,466
Other trading activities
**4**
35,189
Other income
**5**
163,864
**Total income**
454,808
**Expenditure on:**
Raising funds
**6**
138,302
Charitable activities
**7**
354,739
**Total expenditure**
493,041
**Net income/(expenditure)**
(38,233)
**Gross transfers between funds**
**21**
475,800
**Net movement in funds**
437,567
**Reconciliation of funds**
Fund balances at 1 April 2022
**21**
175,479
**Fund balances at 31 March 2023**
**21**
613,046|**Restricted**
**funds**
**£**
-
993,408
-
-
993,408
-
278,509
278,509
714,899
(475,800)
239,099
299,727
538,826|**Total**
**2023**
**£**
**22,289**
**1,226,874**
**35,189**
**163,864**|
|---|---|---|
|||
**1,448,216**|
|||
**138,302**
**633,248**|
|||**771,550) **|
||||
|||**676,666**|
|||
**-**
|
|||**676,666**
**475,206**
|
|||**1,151,872**|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
14
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2024**
|**Notes**
**Fixed assets**
Intangible fixed assets
**13**
Tangible assets
**14**
**Current assets**
Stock
**16**
Debtors
**17**
Cash at bank and in hand
**Creditors: amounts falling due within 1**
**year**
**18**
**Net current assets**
**Total assets less current liabilities**
**Creditors: amounts falling due in more**
**than one year**
**19**
**Net assets**
**Reserves**
Unrestricted funds
**21**
Restricted funds
**21**
**Total reserves**|**2024**
**£**
**6,485**
**129,198**
**211,500**
**347,183**
**(171,841)**
|**2024**
**£**
**12,300**
**2,924,117**
**2,936,417**
**175,342**
**3,111,759**
**(14,423)**
**3,097,336**
**2,636,499**
**460,837**
**3,097,336**|**2023**
**£**
868
121,412
618,216
740,496
(396,859)
|**2023**
**£**
7,380
828,355
835,735
343,637
1,179,372
(27,500)
1,151,872
613,046
538,826
1,151,872|
|---|---|---|---|---|
These financial statements were approved by the Board of Trustees on 16/12/24…and are signed on their behalf by:
**A L Golding Trustee**
## **Company registration number: 06548122**
The notes on pages 18 to 33 form part of these financial statements
15
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2024**
|**Notes**
**Fixed assets**
Intangible fixed assets
**13**
Tangible fixed assets
**14**
Investments
**15**
**Current assets**
Debtors
**17**
Cash at bank and in hand
**Creditors: amounts falling due within 1**
**year**
**18**
**Net current assets**
**Total assets less current liabilities**
**Creditors: amounts falling due in more**
**than one year**
**19**
**Net assets**
**Reserves**
Unrestricted funds
Restricted funds
**Total reserves**|**2024**
**£**
**175,751**
**157,077**
**332,828**
**(164,672)**
|**2024**
**£**
**12,300**
**2,924,117**
**100**
**2,936,517**
**168,156**
**3,104,673**
**(14,423)**
**3,090,250**
**2,629,413**
**460,837**
**3,090,250**|**2023**
**£**
121,237
604,307
725,544
(459,911)
|**2023**
**£**
7,380
828,355
100
835,835
265,633
1,101,468
(27,500)
1,073,968
535,142
538,826
1,073,968|
|---|---|---|---|---|
These financial statements were approved by the Board of Trustees on 16/12/24…and are signed on their behalf by:
A L Golding Trustee
## **Company registration number: 06548122**
The notes on pages 18 to 33 form part of these financial statements
16
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **CONSILDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024**
|**Cash flows from operating activities**
Net cash provided by (used in) operating activities
**23**
**Cash flows from investing activities**
Purchase of intangible fixed assets
Purchase of tangible fixed assets
**Net cash provided by (used in) investing activities**
**Cash flows from financing activities**
Repayments of loans and borrowing
**Change in cash and cash equivalents**
**Cash and cash equivalents at the beginning of the year**
**24**
**Cash and cash equivalents at the end of the year**
**24**|**2024**
**£**
**1,765,647**
**(4,920)**
**(2,155,766)**
**(2,160,686)**
**(11,677)**
**(406,716)**
**618,216**
**211,500**|**2023**
**£**
985,213
(7,380)
(468,420)|
|---|---|---|
|||(475,800)
(9,111)|
|||500,302
117,914|
|||618,216|
All of the cash flows are derived from continuing operations during the above two periods.
17
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **1. Accounting policies**
Liberdade Community Development Trust is a private company limited by guarantee incorporated in England and Wales. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The registered office is Gosforth Civic Theatre, Regent Farm Road, Gosforth, Newcastle upon Tyne, NE3 3HD.
## 1.1 **Basis of preparation of 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, with the exception of investments which are included at market value.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on a going concern basis. The trustees consider that there are no material uncertainties about the group’s abilities to continue as a going concern nor any significant areas of uncertainty that effect the carrying value of assets held by the group.
Liberdade Community Development Trust meets the definition of a public benefit entity entry under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## 1.2 **Basis of consolidation**
The group financial statements consolidate the financial statements of the charitable company and its wholly owned subsidiary undertaking, Liberdade Trading Limited, on a line-by-line basis. A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
## 1.3 **Fund structure**
The charity has restricted funds to account for the donor requiring that the donation must be spent on a particular purpose. All other funds are unrestricted income funds. The funds held in each of these categories are disclosed in the Reserves Notes.
Unrestricted funds comprise those funds which the trustees are free to use for any purpose to furtherance the charitable objectives.
Designated funds are amounts which have been put aside at the discretion of the trustees and are therefore not available for other purposes.
Restricted funds represent grants, donations, legacies and assets which are allocated by the donor for specific purposes.
18
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## 1.4 **Income**
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.
Grants receivable are recognized when the charity has entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognized as a liability and included on the balance sheet as deferred income to release.
Donations and legacies are recognized when the charity is notified in writing of both the amount and settlement date. In the event a donation is subject to conditions that require a level of performance by the charity, the income is deferred and not recognized until those conditions are met.
Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.
Where a gift in kind is given to the charity and it can be reliably measured, the gift is shown in both voluntary income and charitable activities.
Investment income is recognized on a receivable basis, when the amount can be measured reliably. This is normally upon notification from the bank.
Income from charitable activities includes income received under advance contract or where entitlement to grant funding is subject to specific performance conditions is recognized as earned (as the related goods or services are provided). Grant income included in this category provides funding to support client service activities and is recognized where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income is deferred where related grants are received and the performance conditions relating to its entitlement are not met.
## 1.5 **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings, they have been allocated on a basis consistent with the use of resources.
- Raising funds are the costs included of commercial trading including the trading company’s activities and the letting operations, together with their associated support costs.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support the charity’s (and group’s) activities. The basis on which the support costs have been allocated are set out in the support cost note.
- Governance costs include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee’s meetings.
All expenditure is inclusive of irrecoverable VAT,
19
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## 1.6 **Intangible assets**
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website costs - 20 % straight line
## 1.7 **Fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery - 20 % reducing balance Fixtures and fittings - 20 % straight line Computer equipment - 33 % straight line Leasehold property - over the term of the lease
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the statement of financial activities.
The group has a policy not to capitalise individual assets costing under £300.
## 1.8 **Fixed asset investments**
Investments in subsidiaries at valued at cost less provision for impairment.
## 1.9 **Impairment of fixed assets**
Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in profit and loss.
## 1.10 **Stock**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.
## 1.11 **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are initially recognized at transaction price.
20
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## 1.12 **Trade creditors**
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. Trade creditors are initially recognized at transaction price.
## 1.13 **Cash at bank and in hand**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## 1.14 **Corporation tax**
As a charity, the company is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
## 1.15 **Pensions and other post-retirement obligations**
The group operated a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognized in the Statement of Financial Activities when they are due.
## 1.16 **Estimation uncertainly and judgements**
The preparation of 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.
## **2. Donations and legacies**
|Donations
Donations|**Unrestricted**
**funds**
**£**
5,356
5,356
**Unrestricted**
**funds**
**£**
22,289
22,289|**Restricted**
**funds**
**£**
194,813
194,813
**Restricted**
**funds**
**£**
-
-|**Total**
**2024**
**£**
**200,169**|
|---|---|---|---|
||||**200,169**|
||||**Total**
**2023**
**£**
22,289|
||||22,289|
21
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **3. Income from charitable activities**
|User income
Ticket income
Grants receivable
User income
Ticket income
Grants receivable
**4. Other trading activities**
Event income
**5. Other income**
Income from trading subsidiary
Rental income
**6. Expenditure on raising funds**
Trading subsidiary costs
Costs of performance/events|**Unrestricted**
**funds**
**2024**
**£**
121,265
46,684
175,000
342,949
**Unrestricted**
**funds**
**2023**
**£**
101,467
30,752
101,247
233,466
**Unrestricted**
**funds**
**2024**
**£**
43,393
43,393
**Unrestricted**
**funds**
**2024**
**£**
153,329
6,430
159,759
**Unrestricted**
**funds**
**2024**
**£**
146,245
78,716
224,961|**Restricted**
**funds**
**2024**
**£**
**-**
**-**
1,819,463
1,819,463
**Restricted**
**funds**
**2023**
**£**
-
-
993,408
993,408
**Total**
**2024**
**£**
**43,393**
**43,393**
**Total**
**2024**
**£**
**153,329**
**6,430**
**159,759**
**Total funds**
**2024**
**£**
**146,245**
**78,716**
**224,961**|**Total**
**2024**
**£**
**121,265**
**46,684**
**1,994,463**|
|---|---|---|---|
||||**2,162,412**|
||||**Total**
**2023**
**£**
101,467
30,752
1,094,655|
||||1,226,874|
||||**Total**
**2023**
**£**
35,189|
||||35,189|
||||**Total**
**2023**
**£**
153,768
10,096|
||||163,864|
||||**Total**
**2023**
**£**
75,864
62,438|
||||138,302|
22
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **7. Charitable activities**
|Charitable activities
Charitable activities
**Analysis per fund**
Unrestricted
Restricted|**Activities**
**undertaken**
**directly**
**2024**
**£**
194,890
194,890
**Activities**
**undertaken**
**directly**
**2023**
**£**
454,627
454,627|**Support**
**costs**
**(note 8)**
**2024**
**£**
200,418
200,418
**Support**
**costs**
**(note 8)**
**2023**
**£**
178,621
178,621
**2024**
**£**
**245,089**
**150,219**
**395,308**|**Total**
**2024**
**£**
**395,308**
**395,308**
**Total**
**2023**
**£**
633,248
633,248
**2023**
**£**
354,739
278,509
633,248|
|---|---|---|---|
## **8. Analysis of support and governance costs**
|General support costs
Audit fees
Other fees paid to auditors
Legal and professional|**Support**
**Costs**
**2024**
**£**
174,969
-
-
-
174,969|**Governance**
**costs**
**2024**
**£**
-
11,680
3,310
10,459
25,449|**Total**
**2024**
**£**
**174,969**
**11,680**
**3,310**
**10,459**|
|---|---|---|---|
||||
**200,418**|
23
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **8. Analysis of support and governance costs (continued)**
|**8. Analysis of support and governance**
**costs (continued)**|||||
|---|---|---|---|---|
|General support costs
Audit fees
Other fees paid to auditors
Legal and professional
**9. Net incoming / outgoing resources**
Audit fees
Other non-audit service
Depreciation
**10. Staff costs**
Wages and salaries
Social security costs
Pension contributions|**Support**
**Costs**
**2024**
**£**
165,098
-
-
-
165,098|**Governance**
**costs**
**2024**
**£**
**Total**
**2024**
**£**
-
**165,098**
7,500
**7,500**
5,248
**5,248**
775
**775**
13,523
**178,621**
**Total**
**2024**
**£**
**Total**
**2023**
**£**
**11,680**
7,500
**3,310**
5,248
**60,004**
51,356
**2024**
**£**
**2023**
**£**
**432,327**
419,478
**27,834**
27,309
**8,532**
7,840
**468,693**
454,627||**Total**
**2024**
**£**
**165,098**
**7,500**
**5,248**
**775**|
|||||
**178,621**|
||||||
||||**2024**
**£**
**432,327**
**27,834**
**8,532**
**468,693**||
|||||454,627|
## **9. Net incoming / outgoing resources**
## **10. Staff costs**
The average number of persons employed by the group during the year was as follows
|Full time
Part time|**2024**
**No**
**16**
**10**
**26**|**2023**
**No**
14
9|
|---|---|---|
|||23|
No employees received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the group were £84,647 (2023 - £78,784)
## **11. Trustees’ remuneration and expenses**
During the year, no trustees received any remuneration or other benefits (2023: £nil).
During the year ended 31 March 2024, no trustees’ expenses have been incurred (2023: £nil).
24
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **12. Taxation**
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
## **13. Intangible fixed assets**
|**Group and charity**
**Cost**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Amortisation**
At 1 April 2023
Charge for the year
Eliminated on disposals
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023|**Website**
**costs**
**£**
7,380
4,920
-
12,300
-
-
-
-
12,300
7,380|**Total**
**£**
**7,380**
**4,920**
**-**|
|---|---|---|
|||
**12,300**|
|||
**-**
**-**
**-**|
|||
**-**|
|||**12,300**|
|||
**7,380**|
25
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **14. Tangible fixed assets**
|**Group and**
**charity**
**Cost**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation**
At 1 April 2023
Charge for the year
Eliminated on disposals
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023
**15.**
**Fixed asset investments**
**Charity**
**Cost or valuation**
At 1 April 2023
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023|**Long**
**leasehold**
**property**
**£**
814,857
2,122,358
-
2,937,215
100,032
32,917
-
132,949
2,804,266
714,825|**Fixtures and**
**fittings**
**£**
89,580
25,490
-
115,070
73,138
6,311
-
79,449
35,621
16,442|**Computer**
**equipment**
**£**
28,558
7,918
-
36,476
27,223
2,972
-
30,195
6,281
1,335|**Plant and**
**machinery**
**£**
194,513
-
-
194,513
98,760
17,804
-
116,564
77,949
95,753|**Plant and**
**machinery**
**£**
194,513
-
-
194,513
98,760
17,804
-
116,564
77,949
95,753|**Total**
**£**
**1,127,508**
**2,155,766**
**-**|
|---|---|---|---|---|---|---|
|||||||
**3,283,274**|
|||||||
**299,153**
**60,004**
**-**|
|||||||
**359,157**|
|||||||**2,924,117**|
|||||||
**828,355**|
|||||||**Subsidiary**
**undertakings**
**£**
**100**|
|||||||**100**|
|||||||**100**|
|||||||**100**|
26
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **15. Fixed asset investments (continued)**
## **Subsidiaries**
The following was a subsidiary undertaking of the charity:
|**Name of undertaking**|**Nature of business**|**Class of**
**shares**|**% Held**
**Direct**|
|---|---|---|---|
|Liberdade Trading Limited|Operation of bar and cafe facilities|Ordinary|100|
|Registered office address (UK unless otherwise indicated):||||
Gosforth Civic Hall, Regent Farm Road, Newcastle Upon Tyne, Tyne And Wear, NE3 3HD
The financial results of the subsidiary were as follows:
|||||**2024**|**2023**|
|---|---|---|---|---|---|
|||||**£**|**£**|
||Income|||**153,329**|153,768|
||Expenditure|||**(146,245)**
|(75,864)|
||Profit / (loss) for the year|||**7,084**|77,904|
||Net assets|||
**7,184**|78,004|
|**16.**|**Stock**|||||
|||**Group**|**Group**|**Charity**|**Charity**|
|||**2024**|**2023**|**2024**|**2023**|
|||**£**|**£**|**£**|**£**|
||Stocks|**6,485**|868|**-**|-|
|**17.**|**Debtors**|||||
|||**Group**|**Group**|**Charity**|**Charity**|
|||**2024**|**2023**|**2024**|**2023**|
|||**£**|**£**|**£**|**£**|
||Trade debtors|**39,655**|24,543|**33,159**|24,368|
||Prepayments and accrued income|**88,701**|96,789|**88,701**|96,789|
||Amounts owed to group undertakings|**-**|-|**53,049**|-|
||Other debtors|**842**|80|**842**|80|
|||**129,198**|121,412|**175,751**|121,237|
27
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **18. Creditors: amounts falling due within 1 year**
|Bank loans
Trade creditors
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2024**
**£**
**11,400**
**18,750**
**-**
**15,665**
**5,522**
**120,504**
**171,841**|**Group**
**2023**
**£**
10,000
331,566
-
7,154
4,405
43,734
396,859|**Charity**
**2024**
**£**
**11,400**
**16,664**
**-**
**14,657**
**1,447**
**120,504**
**164,672**|**Charity**
**2023**
**£**
10,000
331,222
65,084
7,154
2,717
43,734|
|---|---|---|---|---|
|||||
459,911|
Included in accruals and deferred income is the following amount received where entitlement has not been met in the current year:
|**Group**
**2024**
**£**
Deferred income at 1 April 2023
**30,460**
Amounts released from previous
periods
**(30,460)**
Income deferred in the year
**17,637**
Deferred income at 31 March 2024
**17,637**
**Creditors: amounts falling due after 1 year**
**Group**
**2024**
**£**
Bank loans
**14,423**
**14,423**|**Group**
**2023**
**£**
-
-
30,460
30,460
**Group**
**2023**
**£**
27,500
27,500|**Charity**
**2024**
**£**
**30,460**
**(30,460)**
**17,637**
**17,637**
**Charity**
**2024**
**£**
**14,423**
**14,423**|**Charity**
**2023**
**£**
-
-
30,460|
|---|---|---|---|
||||
30,460|
||||**Charity**
**2023**
**£**
27,500|
||||
27,500|
## **19. Creditors: amounts falling due after 1 year**
## **20. Borrowings**
|Bank loans
At 31 March 2024
Payable with one year
Payable after one year|**2024**
**£**
**25,823**
**25,823**
**11,400**
**14,423**|**2023**
**£**
37,500|
|---|---|---|
|||37,500|
|||10,000
27,500|
The group entered into a bounce back loan agreement which carries an interest at a rate of 2.5% per annum with the final instalment due on 9 June 2026.
28
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **21. Statement of funds**
|**Group – current year**
**General funds**
**Designated funds**
Capital refurbishment fund
**Total unrestricted**
**Restricted funds**
Arts Council
Property Fund
NCIF
Community Funds Main
Grant
Foyle Capital Project
School For Social SESF
National Lottery Community
Fund
YIF Capital Project
The Clothworkers’
Foundation
The Wolfson Foundation
**Total funds**|**Balance at**
**1 Apr 2023**
**£**
613,046
-
**613,046**
-
259,642
-
-
75,000
3,636
2,871
197,677
-
538,826
1,151,872|**Income**
**£**
551,457
-
**551,457**
390,027
194,813
30,000
80,000
-
-
50,000
1,079,989
114,447
75,000
2,014,276
2,565,733|**Expenditure**
**£**
(470,050)
-
**(470,050)**
(23,827)
(9,090)
(30,000)
(64,528)
-
(3,636)
-
(19,138)
-
-
(150,219)
(620,269)|**Transfers**
**£**
(416,855)
2,358,901
**1,942,046**
(366,200)
-
-
-
(75,000)
-
(52,871)
(1,258,528)
(114,447)
(75,000)
(1,942,046)
-|**Balance at**
**31 Mar 2024**
**£**
**277,598**|
|---|---|---|---|---|---|
||||||
2,358,901|
|||||||
||||||
**2,636,499**|
||||||
**-**
**445,365**
**-**
**15,472**
**-**
**-**
**-**
**-**
**-**
**-**|
||||||
**460,837**|
|||||||
||||||
**3,097,336**|
## **Transfers**
Transfers amounting to £1,942,046 (2023: £475,800) were made during the year in respect of funds capitalised.
29
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **21. Statement of funds (continued)**
|**Group – prior year**
**General funds**
**Designated funds**
Emergency fund
**Total unrestricted**
**Restricted funds**
Arts Council
Property Fund
NCIF
Lloyds Foundation
Lottery – Sport Fund
Community Foundation
Grant
Community Funds Main
Grant
Percy Hedley Charitable
Trust
The Rothley Trust
Foyle Capital Project
NCC CICC Starter Grant
Power To Change
School For Social SESF
National Lottery Community
Fund
YIF Capital Project
The Clothworkers’
Foundation
**Total funds**|**Balance at**
**1 Apr 2022**
**£**
144,479
31,000
**175,479**
-
271,631
-
14,440
5,475
-
7,083
500
600
-
-
-
-
-
-
-
299,727
475,206|**Income**
**£**
454,808
-
**454,808**
109,970
-
30,000
27,250
-
12,500
-
-
-
75,000
13,135
10,000
40,000
30,000
610,000
35,553
993,408
1,448,216|**Expenditure**
**£**
(493,041)
-
**(493,041)**
(46,493)
(11,989)
(30,000)
(41,690)
(5,473)
(12,500)
(7,083)
(500)
(600)
-
(13,135)
(10,000)
(36,364)
(27,129)
-
(35,553)
(278,509)
(771,550)|**Transfers**
**£**
506,800
(31,000)
**475,800**
(63,477)
-
-
-
-
-
-
-
-
-
-
-
-
-
(412,323)
-
(475,800)
-|**Balance at**
**31 Mar 2023**
**£**
**613,046**|
|---|---|---|---|---|---|
||||||-|
|||||||
||||||
**613,046**|
||||||
**-**
**259,642**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**75,000**
**-**
**-**
**3,636**
**2,871**
**197,677**
**-**|
||||||**538,826**|
|||||||
||||||
**1,151,872**|
The specific purposes for which the funds are to be applied are as follows
30
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **21. Statement of funds (continued)**
The specific purpose for which the funds are to be applied are as follows:
## **Restricted funds:**
## **Arts Council (Capital)**
Amounts received to support the delivery of the Capital Project.
## **Property Fund**
Fund set up to account for the 50 year lease taken out on 15[th] January 2023 at Gosforth Civic Centre, the premises in which the charity operates.
## **Newcastle Cultural Investment Fund (NCIF)**
Amounts received to be used for the core costs of Gosforth Civic Theatre.
## **Lloyds Foundation**
Amounts received to be used against core costs.
## **National Lottery - sports fund**
Amounts received to be used on sporting activities within the charity.
## **Community Foundation Grant**
Amounts to be used for core costs.
## **Percy Hedley Charitable Trust**
Amounts received to be used for core costs.
## **The Rothley trust**
Amounts received to be used for core costs.
## **Foyle Foundation (Capital)**
Amounts received to support the delivery of the Capital Project, with particular focus on Theatrical Infrastructure.
## **NCC CICC Starter grant**
Amounts received to be used in creating an inclusive, confident community.
## **Power to Change**
Amounts received to be used for core costs.
## **Social Enterprise Support Fund (SESF)**
Amounts received to be used for core costs.
## **National Lottery Community Fund**
Amounts received to be used for core costs and towards the delivery of the Capital Project.
## **Youth Investment Fund (YIF)**
Amounts received to support the delivery of the Capital Project, including core costs during the project.
31
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **21. Statement of funds (continued)**
## **The Clothworkers’ Foundation**
Amounts received to support the delivery of the Capital Project.
## **The Wolfson Foundation**
Amounts received to support the delivery of the Capital Project.
## **22. Analysis of net assets between funds**
|Intangible fixed assets
Tangible fixed assets
Net current assets/(liabilities)
Creditors over 1 year
Total net assets
Intangible fixed assets
Tangible fixed assets
Net current assets/(liabilities)
Creditors over 1 year
Total net assets|**Unrestricted**
**General**
**2024**
**£**
12,300
2,478,752
159,870
(14,423)
2,636,499
**Unrestricted**
**General**
**2023**
**£**
7,380
568,713
64,453
(27,500)
613,046|**Restricted**
**2024**
**£**
-
445,365
15,472
-
460,837
**Restricted**
**2023**
**£**
-
259,642
279,184
-
538,826|**Total Funds**
**2024**
**£**
**12,300**
**2,924,117**
**175,342**
**(14,423)**|
|---|---|---|---|
||||**3,097,336**|
||||**Total Funds**
**2023**
**£**
7,380
828,355
343,637
(27,500)|
||||
1,151,872|
## **23. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income / (expenditure) for the year
**Adjustments for:**
Depreciation
Increase / (decrease) in deferred income
(Increase) / decrease in stocks
(Increase) / decrease in debtors
Increase / (decrease) in creditors
**Net cash provided by operating activities**|**2024**
**£**
**1,945,464**
**60,004**
**(12,823)**
**(5,617)**
**(7,786)**
**(213,595) **
**1,765,647**|**2023**
**£**
676,666
51,356
30,460
3,015
(101,285)
325,001|
|---|---|---|
|||985,213|
32
**LIBERDADE COMMUNITY DEVELOPMENT TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **24. Analysis of changes in net debt**
|Cash at bank and in hand
Loans due within 1 year
Loans due more than 1 year|**At 1 April**
**2023**
**£**
618,216
(10,000)
(27,500)
580,716|
**Cash flows**
**£**
(406,716)
(1,400)
13,077
(395,039)|
**Other non-**
**cash changes**
**£**
-
-
-
-|
**At 31 March**
**2024**
**£**
**211,500**
**(11,400)**
**(14,423)**|
|---|---|---|---|---|
|||||
**185,677**|
## **25. Pension commitments**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £8,532 (2023: £7,840) in the year. At the balance sheet date amounts were payable to the fund of £1,447 (2023: £1,282) which are included in creditors.
## **26. Related party transactions**
## **Charity**
During the year, the group made the following related party transactions:
## **Liberdade Trading Limited**
(The charity owns 100% of the subsidiary, Liberdade Trading Limited. The company runs the bar and cafe at the theatre.)
During the year, the subsidiary gifted its profits from the prior year totaling £77,904. At the balance sheet date, the amount due from Liberdade Trading Limited was £53,049 (2023 - £65,084 due to the subsidiary).
## **27. Capital commitments**
The charity had a capital commitment in respect of the total amount contracted for but not provided in the financial statements for a building refurbishment of £nil (2023 - £1,984,740).
33