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2023-03-25-accounts

Charity number: 213651

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

INDEPENDENTLY EXAMINED UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 25 MARCH 2023

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 4
Independent Examiner's Report 5 - 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 - 15

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 25 MARCH 2023

Trustees

Councillor Hewson, Nominative Trustee Councillor Bushell, Nominative Trustee

A McNulty, Nominative Trustee (appointed 22 June 2022)

Charity registered number

213651

Principal office

PO Box 1291 Lincoln LN5 5RA

Independent Examiner

Linda Lord BSc FCA TEP Streets LLP Tower House Lucy Tower Street Lincoln LN1 1XW

Bankers

HSBC PLC Stonebow Branch 221 High Street Lincoln LN1 1TS

TSB Bank 12 Bank Street Lincoln LN2 1DP

Page 1

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 25 MARCH 2023

The Trustees present their annual report together with the financial statements of the charity for the 26 March 2022 to 25 March 2023.

Objectives and activities

a. Policies and objectives

To generate income from the assets of the Charity's funds and then apply that income principally to relieve residents of the City of Lincoln who are in conditions of need, hardship and distress.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Main activities undertaken to further the charity's purposes for the public benefit

The Trustees use the services of the Stock Brokers Brewin Dolphin to obtain the best return on the Investments for capital growth and income. They also use Jas. Martin and Co. Land Agents to ensure the best rental return on the farms. The Trustees try to ensure that aII possible income is dlstrlbuted by way of grants to the public who are in need. The Trustees have regard to the Charity Commission's guldance on public benefit.

Strategic report

Achievements and performance

a. Main achievements of the charity

The Charity achieves its only purpose, i.e. to distribute income by way of grants to the public who are in need.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity 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.

b. Reserves policy

The levels of reserves of the charity are maintained and fluctuate accordlng to the market value of the investments. A substantial part of the income of the charity is Investment Income and rental income which necessitates such a high level of reserve.

The Trustees revlew the Ievel of reserves held by the charity at regular intervals. Grants are made only in accordance with avallable funds. The fixed running costs of the charity are extremely Iow and as a result the charity could function wlth free reserves of just £5,000. Trustees conslder the amount of reserves held at the year end (unrestricted funds amounting to £2,407,477, of whlch £2,000,000 is held in investment property) to meet the requirements of the charlty.

Page 2

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 25 MARCH 2023

c. Material investments policy

Brewin Dolphln, stockbrokers provlde twlce-yearly valuatlons of the charity's investments and advise the Trustees at their meeting of any change in those investments which they think approprlate. The Trustees have opted to use Brewin Dolphin's Discretional Investment Services.

Structure, governance and management

a. Constitution

Lincoln Municipal Relief in Need Charity is a registered charity, number 213651, and is constituted under a Charity Commission Scheme.

b. Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Charity Commission Scheme.

c. Organisational structure and decision-making policies

The registered offlce and names and address of Advisers are set out on the prevlous page during the year under review, as are the trustees.

The body of trustees conslsts when complete of ten persons being three nominative trustees and seven Cooperatlve trustees. Nominative trustees are appointed by the council of the City of Lincoln for a term of four years. The person appointed may or may not be a member of the council. Co-operative trustees are persons, who through residence occupation or employment have special knowledge of the City of Lincoln. They are appointed by a resolution of the trustees passed at a special meetlng of which not less than twenty seven days notice has been given. The term of office of the co-operative trustees is at the discretion of the Council.

The Trustees during the year were Nomlnative Trustees Councillor Brothwell Councillor Hewson Councillor Bushell

Applications are accepted in a designated form by the Clerk who has authority from the Trustees to make grants of up to £300 in any case or up to £500 with the Chairman's approval. Donations in excess of £500 are approved at a full Trustees' meeting prior to being pald. Decisions are ratified at the next Quarterly meeting of the Trustees. The Trustees rely upon their stockbrokers for advice on Investment from whom they receive regular reports.The Charity does not engage in fundraising.

d. Policies adopted for the induction and training of Trustees

The clerk sends to each new Trustee a copy of the accounts, the Charity Scheme, the new sheet and the application form for grants. Those documents contaln all the relevant information for the working of the Charity and the clerk will assist with any points which need clariflcation. The clerk updates Trustees from time to time on new legislation and new practices.

Page 3

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 25 MARCH 2023

Structure, governance and management (continued)

e. Financial risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

The charity is unlikely to receive additional monies except for an occasional legacy. Any such Iegacy is treated as income for the charitable purposes. The charity does not take part in fundraising so will continue to operate in its current manner.

Statement of Trustees' responsibilities

The Trustees 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).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity Commission Scheme. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees on 6 December 2023 and signed on their behalf by:

_________ J R Hansard Chair of trustees

Page 4

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 25 MARCH 2023

Independent Examiner's Report to the Trustees of Lincoln Municipal Relief in Need Charity ('the charity')

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 25 March 2023.

Responsibilities and Basis of Report

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Page 5

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 25 MARCH 2023

Independent Examiner's Statement

Your attention is drawn to the fact that the charity has prepared the accounts 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.

Signed: Dated: 7 December 2023

Linda Lord BSc BFP FCA TEP

Streets LLP

Tower House

Lucy Tower Street Lincoln LN1 1XW

Page 6

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 25 MARCH 2023

Note
Income from:
Investments
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Net (expenditure)/income before net (losses)/gains
on investments
Net (losses)/gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
42,070
42,070
3,816
39,774
43,590
(1,520)
(60,283)
(61,803)
2,469,280
(61,803)
2,407,477		 Total
funds
2023
£
42,070
42,070
3,816
39,774
43,590
(1,520)
(60,283)
(61,803)
2,469,280
(61,803)
2,407,477		 Total
funds
2022
£
40,580
40,580
4,095
27,958
32,053
8,527
18,665
27,192
2,442,088
27,192
2,469,280

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 9 to 15 form part of these financial statements.

Page 7

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

BALANCE SHEET AS AT 25 MARCH 2023

Note
Fixed assets
Investments
8
Investment property
7
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
11
Unrestricted funds
11
Total funds		 2,491
40,390
42,881
(4,663)		 2023
£
369,259
2,000,000
2,369,259
38,218
2,407,477
2,407,477
2,407,477
-
2,407,477
2,407,477		 3,350
39,510
42,860
(5,210)		 2022
£
431,630
2,000,000
2,431,630
37,650
2,469,280
2,469,280
2,469,280
-
2,469,280
2,469,280

The financial statements were approved and authorised for issue by the Trustees on 06 December 2023 and signed on their behalf by:

J Hansard

Chair of trustees

The notes on pages 9 to 15 form part of these financial statements.

Page 8

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

1. General information

As set out in the Trustee's report, Lincoln Municipal Relief in Need Charity is an unincorporated registered charityin England & Wales. The principal office of the charity is Durrus, Scothern Lane, Dunholme, Lincoln, LN2 3QP. These financial statements have been prepared in sterling, which is the functional currency of the entity.

The principal objective of the charity is to generate income from the assets of the Charity's funds and apply that income principally to relleve residents of the City of Lincoln who are in conditions of need, hardship and distress.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Lincoln Municipal Relief in Need Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Income

All income is recognised once the charity 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 investment income is recognised at the time the investment income is receivable.

Page 9

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

2. Accounting policies (continued)

2.3 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 benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the charity 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 charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 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 the 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 presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

2.6 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.

2.7 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.

Page 10

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

2. Accounting policies (continued)

2.8 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 charity 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.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

3. Investment income

Unrestricted
funds
2023
£
Brewin Dolphin Investment Income
10,035
Line Side Farm
4,750
Birkholme Farms
27,000
K & H P Strude
12
Wayleaves
116
Bank Interest
157
Total 2023
42,070		 Total
funds
2023
£
10,035
4,750
27,000
12
116
157
42,070		 Total
funds
2022
£
8,711
4,750
27,000
-
115
4
40,580

Page 11

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

4. Investment management costs

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Investment management fees 3,816 3,816 4,095

5. Analysis of expenditure on charitable activities

Summary by fund type

Direct costs
Total 2022		 Unrestricted
funds
2023
£
39,774
27,958		 Total
2023
£
39,774
27,958		 Total
2022
£
27,958

6. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 25 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .

7. Investment property

Valuation
At 26 March 2022
At 25 March 2023		 Freehold
investment
property
£
2,000,000
2,000,000

The property was revalued in 2019 by Jas. Martin & Co. The valuations were made on an open market basis for existing use. The trustees consider the valuation of the property remains appropriate.

Page 12

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

8. Fixed asset investments

Cost or valuation
At 26 March 2022
Additions
Disposals
Revaluations
At 25 March 2023
Net book value
At 25 March 2023
At 25 March 2022
9.
Debtors
Due within one year
Other debtors
10.
Creditors: Amounts falling due within one year		 2023
£
2,491		 Unlisted
investments
£
431,630
48,746
(68,727)
(42,390)
369,259
369,259
431,630
2022
£
3,350
3,350		 Unlisted
investments
£
431,630
48,746
(68,727)
(42,390)
369,259
369,259
431,630
2022
£
3,350
3,350
2,491 3,350
Bank overdrafts
Accruals and deferred income		 2023
£
-
4,663
4,663		 2022
£
2,490
2,720
5,210

Page 13

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

11. Statement of funds

Statement of funds - current year

Balance at Balance at
26 March Gains/ 25 March
2022 Income Expenditure (Losses) 2023
£ £ £ £ £
Unrestricted funds
General Funds 2,469,280 42,070 (43,590) (60,283) 2,407,477
Statement of funds - prior year
Balance at Balance at
26 March Gains/ 25 March
2021 Income Expenditure (Losses) 2022
£ £ £ £ £
Unrestricted funds
General Funds 2,000,000 - - - 2,000,000
Property Reserve 442,088 40,580 (32,053) 18,665 469,280
2,442,088 40,580 (32,053) 18,665 2,469,280

12. Summary of funds

Summary of funds - current year

Balance at Balance at
26 March Gains/ 25 March
2022 Income Expenditure (Losses) 2023
£ £ £ £ £
General funds 2,469,280 42,070 (43,590) (60,283) 2,407,477
Summary of funds - prior year
Balance at Balance at
26 March Gains/ 25 March
2021 Income Expenditure (Losses) 2022
£ £ £ £ £
General funds 2,442,088 40,580 (32,053) 18,665 2,469,280

Page 14

LINCOLN MUNICIPAL RELIEF IN NEED CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2023

13. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Fixed asset investments
369,259
Investment property
2,000,000
Current assets
42,881
Creditors due within one year
(4,663)
Total
2,407,477		 Total
funds
2023
£
369,259
2,000,000
42,881
(4,663)
2,407,477

Analysis of net assets between funds - prior year

Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
431,630
2,000,000
42,860
(5,210)
2,469,280		 Total
funds
2022
£
431,630
2,000,000
42,860
(5,210)
2,469,280

14. Related party transactions

The charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the charity at 25 March 2023.

Page 15