## LIVERPOOL CHARITY AND VOLUNTARY SERVICES
Trustees **’** Report and Consolidated Financial Statements for the year ended 31 March 2022
Company Registration No. : 181759
Charity Registration No.: 223485
## Liverpool Charity and Voluntary Services Trustees’ Report and Accounts for the year ended 31 March 2022
## CONTENTS
- 1 Trustees' Report
- 17 Independent Auditor’s Report
21 Statement of Financial Activities (including Income and Expenditure Account)
- 22 Balance Sheets
- 24 Cash Flow Statement
- 25 Notes to the Accounts
The following page does not form part of the financial statements:
54 Affiliated Organisations
_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
The trustees present their report and the consolidated financial statements of the charity and its subsidiaries for the year ended 31[st] March 2022.
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 Charities Act 2011, 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 in the UK and Republic of Ireland – FRS 102 (effective 1 January 2019) and the charity’s governing document.
## **THE CHARITY**
Liverpool Charity and Voluntary Services (LCVS) is a company limited by guarantee without share capital governed by its memorandum and articles of association dated 13 April 1922, last amended 25 April 2006. It is a registered charity number 223485 and company number 181759.
LCVS is a charitable trust corporation, administering funds and trusts on behalf of donors and charities from across the UK. It is the umbrella organisation for the nonprofit organisations in Liverpool providing specialist business support and community engagement.
## **OBJECTIVES AND MISSION**
## **Charitable Objects**
1. To promote, assist and encourage charitable endeavour in Liverpool and its vicinity and beyond, and the effective and economical management of charitable funds, and
2. To promote the voluntary sector for the benefit of the public.
## **Mission Statement**
We work to improve the wellbeing of individuals and communities in Liverpool.
We do this through supporting, encouraging and developing **voluntary action** and **charitable giving** and bringing people, organisations and resources **together.**
We believe that everyone deserves opportunities to have a good life: a quality education that leads to a stable job, enough income to support a family through retirement, and good health.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
**______________________________________________________________**
That’s why we want all of our work to support or be **focused on these four key pillars for a good life and improved wellbeing. All aim to address poverty of:**
- Education – helping children and young people achieve their potential
- Income – reducing inequality and supporting Financial Stability and Independence, and initiatives which tackle or reduce poverty
- Health – improving people’s health
- Arts & Culture – promoting the benefits of arts and cultural activities in terms of health, education and community cohesion
We want to **create long-lasting change by addressing the underlying causes of these problems.** We believe that supporting, encouraging and developing **voluntary action** and **charitable giving** and bringing people, organisations and resources **together** will help us achieve this.
## **STRUCTURE, GOVERNANCE & MANAGEMENT**
The Board of Trustees meets bi-monthly to monitor the charity’s activities and performance, to determine strategy and to attend to all other matters of governance.
The Board of Trustees has the following sub-committees:
The **Recruitment Committee** oversees trustee recruitment, induction and training.
The **Governance Committee** monitors compliance.
The **Finance, Audit and Risk Committee** scrutinises financial performance against set budgets and presents this to the board, identifies methods to enhance financial performance and helps develop the longer term financial model for the organisation. It also ensures that there is a framework for accountability, for examining and reviewing all systems and methods of control both financial and otherwise including risk analysis and risk management, and for ensuring the charity is complying with all aspects of the law, relevant regulations and good practice.
The **Investment Committee** implements the investment strategy set by the board and monitors the performance of the investment manager.
The **Grants Committee** decides the allocation of grants from Trusts where it is sole Trustee or where it has delegated discretion. It also makes recommendations to a small number of Trusts that have their own grant making arrangements.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
LCVS has a trustee recruitment policy that aims to maintain a diverse mix of skills and experience that supports the governance and management of the charity. Trustees are recruited to fill gaps identified by the trustee skills audit. There is a balance between representation from ‘communities of interest’ and individuals with business acumen. The induction procedure for new trustees includes distribution of background information, access to all records and attendance at bi monthly induction sessions. New trustees formally sign a declaration of willingness to serve.
The Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance and employment.
LCVS’s’ subsidiaries, UW Giving and United Trusts contribute to the services available to donors (Note 4) and the Settlors’ Trust Fund provides the opportunity for pooled investment of funds over which LCVS has control (Note 26). In delivering its programmes LCVS works alongside other voluntary and public sector partners.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities.
## **ACTIVITIES, ACHIEVEMENTS, IMPACT & FUTURE PLANS**
The trustees, as company directors, present this report on activities, achievements, and impact during 2021/2022.
During the year LCVS continued to support the sector through the extended period of the pandemic, as we returned to the ‘new normal’ and in preparing for a challenging year ahead in terms of the economic climate.
LCVS discharges its mission in a variety of ways, and these are grouped as follows:
## **1. Programmes**
Whether it is sharing best practice and resources or delivering community programmes, we believe working together is better for everyone.
Bringing charities, businesses, organisations and individuals together to tackle specific problems or issues is a dynamic and cost-effective way of working, tapping into the skills, energy and expertise that exists within communities.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
By harnessing this collective power and passion, we can improve the lives of people, community by community. The best way to develop effective local policies is through working in partnership with a range of stakeholders to ensure any policy is relevant to those it is looking to support.
That’s where LCVS comes in. We bring together all relevant stakeholders, ensuring the provision of information, support and guidance to policymakers. LCVS can provide a link between policymakers and the wider sector so there is open and honest dialogue, enabling local knowledge and understanding of need to fully inform any new policy development.
LCVS has established networks at grass roots level across the City of VCFS organisations with whom we work in partnership to tackle issues facing their communities. We also work closely with our colleagues in the Public Sector and we represent the sector on a number of strategic bodies, from the Liverpool Strategic Partnership, the Liverpool Integrated Care Partnership, the Health Protection Board and others. We are a signatory to the One Liverpool Plan.
In 2021/2022 we worked in a number of key areas:
**Grants** - LCVS has extensive experience in the management of multiple grants programmes to support voluntary organisations and communities in Liverpool and beyond. We offer a friendly, supportive service that aims to enable organisations applying for funds to maximise their chances of success.
As well as our own Community Impact Fund grants programme, LCVS administers funds on behalf of other trusts and organisations including The Skelton Charity and the Rushworth Trust.
Applications are assessed by the team and during the assessment process we are able to advise and guide applicants not just on their grant application but on other aspects of their organisation; for example, we may signpost a group to our Capacity Building Team to get additional support around their strategy, policies and procedures if the Grants Team feel that this is an area of weakness.
During the year the team at LCVS worked with our public sector partners to manage a number of key programmes of funding out to the sector, including but not exclusively:
**Healthy Activities and Food:** having laid the foundations for healthy activities and food programmes through the development of the Play Partnership 12 years ago, LCVS were commissioned to manage the initial £2million funding for HAF funding on behalf of Liverpool City Council. This funding enabled over 100 delivery
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
organisations to provide safe activities and healthy food to children in the school holidays. Over 10,000 children were engaged in activity as a result of this programme.
LCVS were able to bring added value to this programme through its Health and Wellbeing Network and linking student nurses from LJMU to the programme who could work with organisations to speak to families about wider health topics.
**Integrated Community Mental Health Programme:** Working with colleagues in Liverpool City Council Public Health department, LCVS co-developed a grant funding programme to distribute £485,000 to the sector to support individuals and families who may be experiencing low level poor mental health following the Covid pandemic. The focus was on the following interventions:
- Mental health promotion in youth outside of educational settings.
- Addressing financial insecurity and debt.
- Addressing loneliness to protect the mental health of vulnerable groups.
- Bereavement support.
This is a strategic, preventative, investment approach with the aim of preventing the need for increased mental health referral through clinical pathways.
**Community Renewal Fund:** During the year LCVS also won funding from the Liverpool City Region Combined Authority for a pilot programme of support to the sector. The Innovation in Communities programme provided a package of targeted support to entrant and established VCS organisations, specifically where projects worked to:
- Improve places/spaces that matter to communities
- Plan/deliver community-based cultural regeneration projects
- Increase employment opportunities within the cultural sector
- This was achieved by:
- Bringing organisations together, identifying/sharing best practice, targeting communities impacted by identified issues:
- Funding projects, promoting engagement and long-term changes
- Empowering VCS groups to identify needs and shape/deliver a grant programme
- Promoting/increasing engagement within excluded communities, empowering them to develop ideas/projects
- Increasing organisation resilience and sustainability
**My Clubmoor** – LCVS is the Locally Trusted Organisation (LTO) for the MyClubMoor project (funded by the Big Local Trust). Big Local is a long-term innovative programme that aims to achieve lasting change in 150 areas in England. It provides a mixture of funding, finance and support. Each area is awarded £1Million to spend over ten years on community development which is planned and implemented by a
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_**Liverpool Charity and Voluntary Services**_ **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
**______________________________________________________________**
partnership board comprising local tenants who represent the community. This board is not a legal entity in its own right and therefore, as LTO, LCVS is responsible for all legal contracts, including employment of staff and rental of premises.
## **2. Services to charities and voluntary organisations**
2021/22 remained another extremely busy year for capacity building services as community groups required assistance as they sought to recover from and emerge from Covid-19. This was done in a challenging operating environment where clients remained reluctant to fully engage in face-to-face support services, with many opting for assistance delivered online or remotely.
We were able to continue delivering the range of support available to maximise the effectiveness and sustainability of local community organisations across a range of critical issues such as fundraising, good governance, project delivery and impact measurement.
Organisations continued to receive capacity building support from LCVS. This included:
- Supporting new organisations to establish, and to begin meeting the emerging needs in their communities
- Providing opportunities for groups to meet each other and provide peer support, exchange ideas for service development, test new models for delivery and to share learning of their experiences during Covid19
- Providing support to groups to develop their governance and management systems
- Assisting groups to develop a business case for support and to measure the impact of their work, which in turn, makes the case for future investment
The capacity building team also provided income generation and sustainability support to established organisations in the community and continued the provision of
- Income generation mentoring
- bid writing support
- bid reviews and draft feedback
- income generation strategy assistance
Leading to the generation of an additional £4.6m in income for local community groups within the 12-month period.
In additional to this, 77 organisations were supported through an additional £500,000 Community Renewal Fund funded Innovation in Communities Project, which
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**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
**______________________________________________________________** combined a grant programme with capacity building support to bring groups together to improve the local environment and support people towards work.
## **3. Services to donors**
We have a range of services to make it easy for individuals, companies, and our public sector partners to give or invest in programmes and activities which improve the wellbeing of individuals and communities in Liverpool. We encourage donors to align giving with our priority areas, because we believe that is where they can make the maximum difference – health, income stability, education, and arts & culture.
## **4. Enablers**
There are a range of activities which are vital to support our aims: for example, providing networking opportunities and bringing people together to address problems; developing an evidence and research base and providing a policy function so we know where to put our efforts and we can encourage others.
We facilitate a number of networks and Communities of Practice (CoPs) that bring together groups and individuals who have a specific interest in an issue.
**Health and Wellbeing Network:** This is a network, facilitated by LCVS, which comprises 300 voluntary, faith and community organisations which are involved in delivery of health and wellbeing services or programmes in the city. It meets quarterly to share experiences and knowledge and network and develop a strategic response to health inequalities in the city.
**One Liverpool Partnership Board:** The year saw huge changes arising from the demise of the Clinical Commissioning Groups and the formation of the Merseyside and Cheshire Integrated Care Partnership.
In Liverpool, LCVS strategic work on behalf of the sector gained it a position on the One Liverpool Partnership Board, the place based ICP Board. The overarching role of the board is to be responsible for setting local heath and care priorities, pooling and aligning NHS and social care spending, allocating budgets to local providers or local provider alliances, ensuring delivery of key programmes set out in the One Liverpool Strategy, plans and programmes.
**The Good Food Plan:** LCVS was one of the partners working with Feeling Liverpool to support the development of the Good Food Plan for the city and continue to support work in this area.
The Good Food plan is a plan to address key issues in the Liverpool around food including:
- food insecurity
- access to and take-up of healthy, nutritious food
- impact of the food we eat is having on our planet
- the practices by which the food we eat is made.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
LCVS also contributed a £15,000 grant from its own funds to support the development of this plan.
We continue to support a strategic approach to tackling food inequality in the City through partnership working.
**Volunteer Hub:** As part of our partnership with VS6 (www.vs6partnership.org.uk) funding was secured from the Liverpool City Region Combined Authority to facilitate each of the 6 CVS’s in the Liverpool City Region to purchase the same digital volunteer platform. This platform, run through ‘Team Kinetic’ provides the facility for a single hub for volunteering across the LCR, supported at place by each CVS. Development of this hub will be undertaken during 2023/24.
**VS6:** LCVS continues to work with partners in VS6 to deliver its manifesto for the sector across the City Region and to coordinate activity across the region where appropriate.
## **5. Solid foundations**
Our biggest asset is and has been since the organisation was founded back in 1909, the staff, trustees and volunteers who have worked so hard to make LCVS the organisation it is today. We believe that as the current custodians of the organisation it is up to us to maintain the culture of support and compassion that has stood us in such good stead over the years. We believe that we have a responsibility to ensure that our staff have the best possible working conditions and that we have a positive and consistent approach to employee wellbeing throughout the organisation.
## **Planning Ahead**
It is clear that the pandemic lasted much longer than originally anticipated, impacting our work across 2020-2022. The after effects are still being felt and the collective shock and trauma will continue to be felt for some time to come.
Against this backdrop we find ourselves in a cost-of-living crisis which is hitting those most deprived in our communities the hardest.
At the same time, it would be fair to say that the VCFSE sector is struggling to keep up with increased demand at a time when it itself has been decimated by Covid and is experiencing increased costs both in terms of delivering services and demand for increased wages from it staff.
Against this backdrop, LCVS is working with its strategic partners and funders to develop a new strategy for 2023 and beyond. This is likely to focus on LCVSs role in enabling an end to poverty (in all its forms) in Liverpool.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
## **FINANCIAL REVIEW**
During the period, the charitable group's net assets increased in value from £7,756,199 to £8,794,188 of which unrestricted funds totalled £7,585,954 (£7,776.722: 2021). This level of reserves is considered by the Trustees to be necessary to generate income, which, along with other income earned each year, enables the Charity to maintain financial independence essential for its charitable work.
Income from charitable activities (Note 6) is augmented by donations and legacies and investment income to enable the expenditure on charitable activities as detailed in Note 8.
In many cases new activities take time to generate sufficient funds to cover their costs and, in other areas, resources have been applied to continue delivery of services in the short and medium term where external funding is no longer available. Such expenditure is monitored on a regular basis.
Total income for the period for the charitable group was £6,833,704 compared with £2,834,110 in 2021. Expenditure totalled £5,816,150 (£2,798,426: 2021).
Prior to investment gains & losses, there was a net surplus of £1,017,554 (£35,684 surplus: 2021).
## _**Reserves Policy & Investment Objective**_
## **Unrestricted Funds**
The _**General Fund**_ is the accumulated reserves of LCVS (charity). These total £1,560,292 at the year end (2021: £1,751,060) which include LCVS’s investment in its fixed assets for own use.
The long term objective of the Trustees is to build up free reserves to a minimum of £450,000 which would represent approximately 3 months’ running costs based on unrestricted fund expenditure in 2021/22. At the year end the Trustees are aware that free reserves did not meet this target and are looking to develop further opportunities to generate surpluses. Free reserves are considered to be unrestricted reserves net of LCVS’s investment in its fixed assets for own use.
In addition, the trustees previously designated reserves as a ‘ _**151 Dale St Fund** ’_ being initial funds (£6,019,538 at 31[st] March 2021 & 31[st] March 2022) used to acquire the building and is fully held in fixed assets as a Programme Related Investment; it is the intention that this will be held for this purpose in the long-term.
The Trustees have the same full and unrestricted powers of investment in all respects as if they were the beneficial owners. The charity has £1,113,204 (2021 : £1,092,769) invested in the Settlors’ Trust Fund. The Investment Objective in this ,regard is to maintain liquidity and the monetary value of the fund to facilitate withdrawal. Whilst the capital sum is subject to market conditions, the performance of
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
the Settlors Trust Fund is monitored quarterly by the Investment Committee and the Trustees are satisfied that its objectives have been achieved throughout the period.
**Restricted funds** of the charitable group stood at £1,208,234 surplus at the periodend (£20,523 deficit: 2021). The 2021 total included a deficit balance of £70,000 on LCVS Community Impact Programme Play Partnership being funds expended on the programme prior to confirmation and receipt of funding from Liverpool City Council in April 2021. Restricted funds are funds received and expended in furtherance of LCVS’s own charitable objectives but as directed by external funders. The balances comprise cash and other current balances held to support delivery of the programmes and are not intended to be held in the long term. Expenditure for specific projects can be scaled up or down in accordance with the funding available.
## _**Settlors’ Trust Fund**_
The charity administers a pooling scheme fund, the Settlors’ Trust Fund, approved by the Charity Commission under the Charities Act 2011 as Common Investment Schemes for funds of which it is Trustee (see note 26).
## _**Use of assets**_
The Trustees consider the value of assets to be fairly stated. The fixed assets of the charitable company and major changes therein during the period are recorded in the notes to the accounts.
## _**Balance sheet in light of future plans**_
The Trustees consider that the balance sheet is strong enough to fulfil the short-term plans of the core activities and committed projects.
## **FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS**
In assisting voluntary organisations, LCVS acts as Custodian Trustee of the property of several unincorporated (or previously unincorporated) Merseyside charities (see note 31). LCVS securely holds the title deeds of such properties. There are no cash funds held but should this be the case they would be held in segregated bank accounts.
Assets held as custodian trustee are not included in these accounts.
## **RISK MANAGEMENT**
The Board has a documented Risk Management Strategy and risk assessments are reviewed by the Finance Audit & Risk Committee with top level risks being highlighted in reports to the full Board.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **______________________________________________________________**
Risks are identified together with an analysis of their impact and likelihood; the effectiveness of systems and procedures to mitigate those risks is considered and trends monitored. The overall level of risk is considered to be low–medium with only isolated activities and areas considered to be high. Below is a summary of the main areas of risk:
## _**Property**_
This is separately reported on since it is the single most significant asset on the balance sheet and its ability to cover its costs and generate a return is pivotal. In particular the Trustees consider the diversification of funding streams of tenant organisations and closely monitor, wherever possible, the financial sustainability and plans of each tenant.
## _**Financial**_
The charity relies on the income from its investments to fund elements of operational activity. Some of these funds have been withdrawn from equities and invested in the property and therefore there is a need to replace the foregone income. Risks include maintaining occupancy at appropriate rates particularly in light of changes in market conditions and working practices arising from the impact of the COVID-19 pandemic. Many tenants are smaller organisations on short term licences and existing tenants are continuing to face funding pressures which may lead to ‘downsizing’ or even vacating the premises. However, LCVS responds to enquiries from potential tenants, working with them to develop accommodation solutions which meet their needs and thus maintains LCVS’s own income stream.
A fundamental risk to any charity is cashflow and the timing of receipts and payments. It is recognised that this is a particular issue for LCVS to ensure long term sustainability; currently the funds previously received by way of a £750,000 legacy are held in readily accessible investments and therefore can be called upon in the event of the need to support current cashflows.
## _**Operational**_
LCVS is facing new challenges to deliver services and support for organisations and individuals affected by the impact of the COVID-19 pandemic. This has required the organisation to adapt current working methods and work in new areas which gives rise to operational risks. Following an initial trial period ‘hybrid’ working is now adopted where appropriate and systems put in place to accommodate this.
The building gives rise to many issues - both legislative and operational. Apart from legal issues of ‘getting it wrong’, operational approach is the key to attracting and retaining tenants. In addition to outsourcing some property management roles, maintaining the standards and expectations of tenants is time consuming. A further consideration is the need to manage the service charge such that it is attractive for current tenants but, at the same time, allowing provision for major items which will need upgrade in the longer term.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
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## _**Investments:**_
Investment Income, either directly or through grants received from other charities, has a significant impact on the financial results and sustainability of LCVS. In particular, through the Settlors’ Trust Fund, LCVS is responsible for the investment of funds of other charities. There are two specific areas of risk – the risk of poor performance (whether by the markets generally or our portfolios in particular) and risk of mal-administration leading to loss of funds. A further concern which has been addressed in the past year has been to undertake a detailed ethical review which clarified instructions to our investment managers. An updated Statement of Investment Principles has been reviewed and approved by the Board.
## _**Covid-19**_
The changed working methods necessitated by the Covid-19 pandemic have been reviewed with a now more flexible ‘hybrid’ pattern of many staff working both from the office and remotely. Systems have further been developed to facilitate this. The pandemic helped to strengthen our relationship with the sector as we all faced new challenges. Most of our traditional services and activities have returned to prepandemic levels.
The trustees are aware of the particular longer term risks of lower investment returns and the potential effect on building occupancy and these have been taken into account in the current strategic plan with associated financial forecasts.
## _**Reputational Risk:**_
One of LCVS’s main strengths is its reputation – hard won, but very easy to tarnish. The main issues here are LCVS’s direction of activity or particular approach to specific events and external communications. In particular LCVS has reviewed its policies and activities in light of ethical and diversity considerations (for example, agreeing a position on ‘Black Lives Matter’ and review of investment policies.)
Also important is that as a service organisation LCVS is largely reliant on the actions of its employees in carrying out activities in a manner consistent with the organisation’s missions and values.
## _**Pension Fund Shortfall:**_
LCVS is an employer member of a scheme of The Pensions Trust which could give rise to a liability in the event of a ‘triggering’ action such as withdrawal, merger or other structural change. This would not be envisaged whilst the charity remains an operational going concern.
Since 1[st] April 2013, LCVS has made additional contributions; however, there is no guarantee that the debt on withdrawal will decrease, either as a result of market conditions or the effects of ‘last man standing’. LCVS provides for the present value of future minimum payments agreed with the trustees of the scheme. This has resulted in a liability of £29,919 (2021: £130,579).
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
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## _**Internet / IT Security:**_
There is increased reliance on IT systems both internally and also our provision to third parties (tenants). LCVS is constantly upgrading systems in light of new developments and the need to ensure the integrity of the systems.
LCVS has security policies in place to protect personal details of individuals. Risk is mitigated through adoption of a Business Continuity Plan and outsourced support for our IT personnel.
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees & Directors**
The Charity’s Board of Trustees are also its Directors who are elected by Annual General Meeting of the members of the Charity. Casual vacancies are filled, as required, by the Board of Trustees in accordance with the Charity’s Articles of Association.
Members of the Board of Trustees during the year were:
_Chair_ Heather Akehurst (Resigned 25[th] November 2021) Sonia Bassey (From 25[th] November 2021) _Honorary Treasurer_ Michael Thomas _Other Members_ Dorcas Akeju Sonia Bassey (Appointed 20[th] May 2021) Maxine Ennis (Appointed 20[th] May 2021) Jonathan Hesketh (Resigned 16[th] November 2021) Michael James (Resigned 28[th] April 2021) Kenneth Perry John Price Michael Salla Louise Scholes Gemma Shone (Co-opted 20[th] September 2022) James Sloan
Neil Sturmey (Appointed 20[th] May 2021) Henry Terefenko (Appointed 20[th] May 2021, Resigned 27[th] July 2022) Susan Williams (Resigned 23[rd] June 2022)
## **Other Information**
**Chief Executive**
Clare White
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_**Liverpool Charity and Voluntary Services**_
## **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
**______________________________________________________________**
**Legal and Administrative Information (contd../)**
**Company Secretary** Graham Wright
**Charity Number** 223485 **Principal (&** 151 Dale Street, Liverpool L2 2AH **Registered) Office:** Telephone 0151 227 5177 E-mail info@lcvs.org.uk **Auditor:** DSG Chartered Accountants, Castle Chambers, 43 Castle Street, Liverpool L2 9TL, **Bankers:** HSBC, City Branch, 99 -101 Lord Street, Liverpool L2 6PG The Co-Operative Bank, 1 Balloon Street, Manchester M60 4EP **Solicitors:** Brabners Chaffe Street, Horton House, Exchange Flags, Liverpool L2 3YL Hill Dickinson LLP, No.1 St Paul's Square, Liverpool L3 9SJ **Investment Managers:** Rathbones Investment Management, Port of Liverpool Building, Pier Head, Liverpool L3 1NW Investec Wealth & Investment, 100 Old Hall Street, Liverpool L3 9AB
## **Pay Policy for Senior Staff**
The Board of Trustees and the senior management team comprise the key management personnel of the charity. Trustees, who are directors of the charitable company, receive no remuneration. The pay of senior staff is set at market rates at the time of recruitment and reviewed regularly by the trustees in line with all other staff in the organisation.
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_**Liverpool Charity and Voluntary Services**_
**TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
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## **DISCLOSURE OF INFORMATION TO AUDITOR**
The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the directors has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
## **AUDITOR**
DSG have agreed to offer themselves for re-election and a resolution proposing their re-appointment, at a remuneration to be determined by the Board of Trustees, will be placed before the Annual General Meeting.
## **SMALL COMPANY PROVISIONS**
These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of Liverpool Charity and Voluntary Services for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
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## **TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31[ST] MARCH 2022**
**______________________________________________________________**
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to a any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **By order of the board of trustees,**
## **Sonia Bassey, Chair Date: 26 January 2023**
16
_**to the members of Liverpool Charity and Voluntary Services Group**_
## **INDEPENDENT AUDITOR’S REPORT**
___________________________________________________________________________
## **Opinion**
We have audited the financial statements of Liverpool Charity and Voluntary Services (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and parent charitable company Balance Sheets, the Consolidated Statement of Cash Flows and the 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 the parent charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, 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 group 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 relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on group 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
17
## **INDEPENDENT AUDITOR’S REPORT**
_**to the members of Liverpool Charity and Voluntary Services Group**_
___________________________________________________________________________
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 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors’ report prepared for the purposes of company law, is consistent with the financial statements; and
- the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' 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 parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' 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 trustees' report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the parent charitable company for the purpose 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 and the 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
18
## **INDEPENDENT AUDITOR’S REPORT**
_**to the members of Liverpool Charity and Voluntary Services Group**_
___________________________________________________________________________ unless the trustees either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **Capability of the audit in detecting irregularities, including fraud**
Irregularities, including fraud, are instance of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and Charity Law.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the group and parent charitable company and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movement in account balances which may be indicative of fraud.
No instance of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that
19
## **INDEPENDENT AUDITOR’S REPORT**
_**to the members of Liverpool Charity and Voluntary Services Group**_
___________________________________________________________________________ material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter**
The financial statements for the year ended 31 March 2021 were not audited by DSG.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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.
Jean Ellis BA FCA CTA (Senior Statutory Auditor)
for and on behalf of DSG Chartered Accountants Statutory Auditor Castle Chambers 43 Castle Street Liverpool L2 9TL 26 January 2023
20
_**Liverpool Charity and Voluntary Services**_
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31[ST] MARCH 2022 (including Consolidated Income and Ex enditure Account p )**
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**Funds**|**Funds**|**2022**|**2021**|
||**Notes**|**£**|**£**|**£**|**£**|
|**INCOME FROM:**||||||
|Donations and legacies|**5**|25,877|-|25,877|23,578|
|Charitable activities|**6**|1,161,485|5,618,450|6,779,935|2,786,545|
|Investment income|**7**|27,892|-|27,892|23,987|
|||----------------|----------------|----------------|----------------|
|Total income||1,215,254|5,618,450|6,833,704|2,834,110|
|||----------------|----------------|----------------|----------------|
|**EXPENDITURE ON:**||||||
|Charitable activities|**8-10**|1,507,889|4,308,261|5,816,150|2,798,426|
|||----------------|----------------|----------------|----------------|
|Total expenditure||1,507,889|4,308,261|5,816,150|2,798,426|
|||----------------|----------------|----------------|----------------|
|**Net (expenditure) / income**||**(292,635)**|**1,310,189**|**1,017,554**|**35,684**|
|**before gains and losses**||||||
|Net gains / (losses) on|**16**|20,435|-|20,435|178,612|
|investments||||||
|||----------------|----------------|----------------|----------------|
|**Net (expenditure) / income**||**(272,200)**|**1,310,189**|**1,037,989**|**214.296**|
|**Transfers between funds**|**22-23**|**81,432**|**(81,432)**|-|-|
|||----------------|----------------|----------------|----------------|
|**Net movement in funds**||**(190,768)**|**1,228,757**|**1,037,989**|**214,296**|
|**Reconciliation of funds**||||||
|Fund balances brought||7,776,722|(20,523)|7,756,199|7,541,903|
|forward||||||
|**Fund balances carried**||**----------------**|**----------------**|**----------------**|**----------------**|
|**forward**|**21-23**|**7,585,954**|**1,208,234**|**8,794,188**|**7,756,199**|
|||**=========**|**=========**|**========= **|**=========**|
The net income / (expenditure) for the year was derived from continuing activities. The Statement of Financial Activities includes all gains and losses in the year.
21
_**Liverpool Charity and Voluntary Services Company No.: 181759**_
**CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2022**
|**MARCH 2022**||||||
|---|---|---|---|---|---|
||||**At**|**At**||
|||**31st March 2022**||**31st March**|**2021**|
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Programme Related Investments|**11**||7,618,783||7,618,783|
|Tangible fixed assets|**12**||1,271,369||1,303,635|
|Intangible fixed assets|**13**||12,624||9,736|
||||--------------||--------------|
||||8,902,776||8,932,154|
|**Current assets**||||||
|Debtors|**15**|1,168,261||771,263||
|Current Asset Investments|**16**|1,113,204||1,092,769||
|Cash at bank and in hand||2,002,552||1,160,334||
|||--------------||--------------||
|||4,284,017||3,024,366||
|**Current liabilities**||||||
|Creditors falling due within one
year|**17**|(3,768,855)||(3,368,869)||
|||--------------||--------------||
|**Net current assets / (liabilities)**|||515,162||(344,503)|
||||--------------||--------------|
|**Total assets less current**|||9,417,938||8,587,651|
|**liabilities**||||||
|Creditors falling due after more
than one year|**19**||(593,831)||(700,873)|
|Provisions for liabilities|**25**||(29,919)||(130,579)|
||||--------------||--------------|
|**Net Assets**|**21**||**8,794,188**||**7,756,199**|
||||========||========|
|**Funds:**||||||
|**Unrestricted funds**|**21,22**||7,585,954||7,776,722|
|**Restricted funds**|**21,23**||1,208,234||(20,523)|
||||--------------||--------------|
|**Total Consolidated Funds**|||**8,794,188**||**7,756,199**|
||||========||========|
The notes on pages 25 to 53 form part of these accounts.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements were approved by the trustees and authorised for issue on the 26th January 2023 and are signed on their behalf by:
**Sonia Bassey** Chairman **Michael Thomas** Honorary Treasurer Date : 26 January 2023
22
_**Liverpool Charity and Voluntary Services Company No.: 181759**_
**CHARITY BALANCE SHEET AS AT 31[ST] MARCH 2022**
||||**At**|**At**||
|---|---|---|---|---|---|
|||**31st March 2022**||**31st March 2021**||
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Programme Related Investments|**11**||7,618,783||7,618,783|
|Tangible fixed assets|**12**||1,271,369||1,303,635|
|Intangible fixed assets|**13**||12,624||9,736|
||||--------------||--------------|
||||8,902,776||8,932,154|
|**Current assets**||||||
|Debtors|**15**|1,168,269||771,271||
|Current Asset Investments|**16**|1,113,204||1,092,769||
|Cash at bank and in hand||1,989,841||1,149,833||
|||--------------||--------------||
|||4,271,314||3,013,873||
|**Current liabilities**||||||
|Creditors falling due within one
year|**17**|(3,762,276)||(3,364,500)||
|||--------------||--------------||
|**Net current assets / (liabilities)**|||509,038||(350,627)|
||||--------------||--------------|
|**Total assets less current**|||9,411,814||8,581,527|
|**liabilities**||||||
|Creditors falling due after more
than one year|**19**||(593,831)||(700,873)|
|Provisions for liabilities|**25**||(29,919)||(130,579)|
||||--------------||--------------|
|**Net Assets**|**21**||**8,788,064**||**7,750,075**|
||||========||========|
|**Funds:**||||||
|**Unrestricted funds**|**21,22**||7,579,830||7,770,598|
|**Restricted funds**|**21,23**||1,208,234||(20,523)|
||||--------------||--------------|
|**Total Charity Funds**|||**8,788,064**||**7,750,075**|
||||========||========|
The charity has taken advantage of the exemption permitted by s408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities and related notes. The company’s result for the period was a surplus of £1,037,989 (2021: surplus of £214,296). The notes on pages 25 to 53 form part of these accounts. The trustees have prepared Group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
These financial statements were approved by the trustees and authorised for issue on the 26thJanuary 2023 and are signed on their behalf by:
**Sonia Bassey** Chairman
**Michael Thomas** Honorary Treasurer
Date : 26 January 2023
23
_**Liverpool Charity and Voluntary Services Company No.: 181759**_
## **CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] MARCH 2022**
|||**Year**|**ended**|**Year ended**|
|---|---|---|---|---|
|||**31st March 2022**||**31st March 2021**|
||**Notes**
|**£**|**£**|**£ £**|
|**Operating activities**|||||
|Cash generated from operations|**32**||968,310|131,997|
|Interest paid||(8,919)||(17,265)|
||||--------------|--------------|
|**Net cash from operations**|||959,391|114,732|
||||--------------|--------------|
|**Investing activities**|||||
|Purchase of tangible fixed assets||(4,221)||(1,655)|
|Purchase of intangible fixed||(5,910)||(-)|
|assets|||||
||||--------------|--------------|
|**Net cash used in investing**|||(10,131)|(1,655)|
|**activities**|||||
||||--------------|--------------|
|**Financing activities**|||||
|Repayments of borrowings||(107,042)||(105,564)|
||||--------------|--------------|
|**Net cash (used in) / generated**|||(107,042)|(105,564)|
|**from financing activities**|||||
||||--------------|--------------|
|**Net increase in cash and cash**
**equivalents**|||842,218|7,513|
|**Cash and cash equivalents at**|||**1,160,334**|**1,152,821**|
|**beginning of the year**|||||
||||-------------|-------------|
|**Cash and cash equivalents at**|||||
|**end of the year**|||**2,022,552**|**1,160,334**|
||||========|========|
|**Represented by:**|||**31 March**|**31 March**|
||||**2022**|**2021**|
||||**£**|**£**|
|Cash at bank and in hand|||2,022,552|**1,160,334**|
||||========|========|
24
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **1. Limited Liability**
Liverpool Charity and Voluntary Services (“LCVS”) is a private company limited by guarantee, incorporated in England and Wales (registration number 181759) and a registered charity (registration number 223485). In the event of the charity being wound up each member’s liability is limited to £1. The registered office is 151 Dale Street, Liverpool L2 2AH.
## **2. Accounting Policies**
## _**Basis of Accounting**_
The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland – FRS102 (effective 1 January 2019) – (Charities SORP FRS102) and the Companies Act 2006.
LCVS meet the definition of a public benefit entity under FRS 102.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The accounts are presented in Sterling and rounded to the nearest £1.
## _**Reduced disclosures**_
In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements in relation to its individual financial statements;
- Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures
- Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
The financial statements of the company are consolidated in these group financial statements.
## _**Going Concern**_
The Trustees acknowledge that the unprecedented level of uncertainty caused by Covid-19 followed by the current and forecast increases in cost of living mean that the judgements and estimates required by management continue to be more challenging than under normal circumstances.
The Trustees have given due regard to the increased pressure on income streams and have concluded that the positive level of general reserves, utilisation of available cash balances and additional funding mean that the going concern basis remains appropriate for the preparation of these financial statements.
The current three year forecasts indicate that, despite planned investment in growth of services, the Group and Charity will maintain sufficient liquidity to continue in operation for at least 12 months from the approval of these financial statements.
Initial forecasts prepared at the start of the year show deficits since, at this stage, many sources of potential income cannot be recognised with a degree of certainty. However, the Trustees are committed to ensuring that the organisation achieves at least break-even both in terms of reserves and cash generation prior to the planned investment in service development.
25
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
Management results are reviewed on a quarterly basis to ensure that the organisation is working to achieve this goal in each financial year.
The only external borrowings of the organisation are a bank loan in respect of the acquisition of 151 Dale Street and the trustees are confident that this loan can be serviced from the current level of income arising from the property; thus the going concern basis of accounting in preparing the annual financial statements has been used.
## _**Consolidation**_
The consolidated financial statements incorporate those of the charity and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits) as under:
U W Giving (Registered Charity Number 516612; Registered Company Number 1925069) and United Trusts (Registered Charity Number 327579; Registered Company Number 2185697).
All financial statements are made up to 31[st] March except for United Trusts and UW Giving, whose financial year ends on 4[th] April 2022. No significant transactions or events occurred in the period between 31[st] March and 4[th] April 2022.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
## _**Income**_
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Income from donations is recognised in the accounts when received, with the exception of known legacies which are accounted for when their receipt is certain.
The accounts exclude income, grants and other expenditure in respect of Deeds of Covenant, Gift Aid and other monies to be passed on to charities, since, under these arrangements, collectively known as Charity Cheques schemes, the Charity acts in general at the direction of the donor.
Investment income is recognised on an accruals basis. Any realised gains and losses are dealt with through movements on the appropriate funds.
Income from charitable activities are recognised on an accruals basis. If it is specified that grants must be used in future accounting periods, the income is deferred until those periods.
The charity did not engage in fundraising in the period.
## _**Government Grants**_
Income from charitable activities includes government grants which are recognised when the appropriate work has been completed and specific conditions have been met.
26
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## _**Expenditure**_
Expenditure is recognised once there is a legal or constructive obligation to make a payment.
Expenditure is allocated directly to the appropriate heading and general overhead apportioned based on an estimate of staff time applied to each activity. Management and governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## _**Grants Payable**_
Grants payable are charged to the Statement of Financial Activities when they have been approved by the Board of Trustees.
## _**Pension Costs**_
LCVS contributes to a multi-employer pension scheme, The Pensions Trust’s Growth Plan (The Plan), operated by The Pensions Trust. Since the assets are co-mingled for investment purposes, it is not possible in the normal course of events to identify on a reasonable and consistent basis, the assets and liabilities of the scheme which are attributable to the charity. In accordance with FRS 102, the scheme is therefore accounted for as a defined contribution scheme. A liability is recognised for contributions arising from an agreement with the multi-employer plan that determines how the Group will fund a deficit. Contributions are discounted when they are not expected to be settled wholly within 12 months of the period end. No other post retirement benefits are provided to employees.
## _**Taxation**_
The income and gains of the funds are exempt from taxation as they are applied for charitable purposes only.
## _**Programme Related Investments**_
Fixed Assets which are acquired directly in order to further the objects of the charity are classified as Programme Related Investments. Whilst these assets may generate a financial return on the funds invested, they also provide a physical means of achieving the mission of the charity. Such assets are included at historical cost and are reviewed for any indications of impairment on an annual basis. Since the building, 151 Dale Street, is occupied by the charity itself for its own administrative purposes, it is classified as a mixed use investment under FRS102 and the portion of the building that is occupied by LCVS, as determined by square footage, is included within tangible fixed assets and depreciated accordingly.
## _**Investments**_
Investments are classified as current assets where there is an intention to realise them in the short term and are initially measured at net transaction price and subsequently measured at fair value at each year end. Fair value is taken as mid-market price at the close of business on the valuation date. Changes in fair value are recognised as net gains / (losses) in the Statement of Financial Activities.
27
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## _**Tangible Fixed Assets**_
Fixed assets (excluding investments) are initially measured at cost less accumulated depreciation and impairment losses. All capital expenditure of £1,000 and above and other significant items are treated as a fixed asset and depreciated on a straight line basis over its useful life as follows:
Furniture, fixtures and fittings – over 5 years Electrical equipment (including computers) – over 3 years Buildings – over 50 years Land (included in Land & Buildings) is not depreciated.
The gain / (loss) arising from the disposal of an asset is determined as the difference between the net sale proceeds and the carrying value of the asset and is recognised in the Statement of Financial Assets.
## _**Impairment**_
At each year end, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## _**Intangible Fixed Assets**_
Computer software is included at cost less accumulated amortisation and impairment losses. From 1[st] April 2016 all capital expenditure of £1,000 and above and other significant items have been treated as a fixed asset and amortised at 25% per annum on a reducing balance basis to reflect the period over which benefits are expected to arise.
## _**Cash at bank and in hand**_
Cash at bank and in hand includes cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less.
## _**Financial Instruments**_
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.
28
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
## _**Funds Structure**_
The accounts include both unrestricted funds and restricted funds which are detailed in notes 22 and 23 respectively.
- **Unrestricted funds** comprise reserves which have been built up over a number of years to finance the Charity’s general activities, the use of which is at the discretion of the trustees. Unrestricted funds can be designated if they have been set aside at the discretion of the trustees for specific purposes; where this is the case the purposes and uses of the designated funds are set out in the notes to the accounts. Unrestricted funds are primarily held in the form of fixed assets rather than cash balances and, to this extent, are not realisable in the short term.
- **Restricted funds** are those funds which have been granted to the trustees to be expended for specific purposes as outlined in Note 23.
## _**Employee Costs**_
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when there is a clear decision or commitment to terminate the employment or provide such termination benefits.
## **3. Key estimates and judgements**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## _**Critical accounting estimates and assumptions**_
The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
## _**Key sources of estimation uncertainty**_
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
## _**Useful life of fixed assets**_
29
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
In making decisions regarding the depreciation of fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged in the statement of financial activities in each year.
## _**Discount rate – pension commitments**_
In determining the provision for pension commitments management must estimate the discount rate at which to calculate the present value of future minimum payments, using an appropriate index as the base. The impact of a change in the assumption could have a significant impact on the provision.
## _**Critical areas of judgement**_
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
## _**Valuation of programme related investments –**_
The property 151 Dale Street is included in the accounts at cost and reviewed annually for any indications of impairment. Given the special nature of this property in that it is integral to the charity meeting its objectives, and the fact that there are special relationships with tenants, typical value in use calculations are not reflective of the true value to the charity. In making a decision regarding the potential impairment of this asset, management consider the purpose for which it was originally acquired and apply judgement as to how the property is meeting those defined objectives.
## **4. Subsidiaries**
LCVS is a member of and controls U W Giving (Registered Charity Number 516612; Registered Company Number 1925069) and United Trusts (Registered Charity Number 327579; Registered Company Number 2185697). The registered office of each company is 151 Dale Street, Liverpool L2 2AH.
United Trusts was dormant throughout the year.
U W Giving operates as a payroll-giving agency charity and promotes (i) donations from the payroll to charities chosen by individuals, and (ii) donations made by employees acting together. From 5[th] April 2019 the charity only recognises those contributions which it receives directly.
30
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
Below is a summary of results for the subsidiaries:
||**U W**|**Giving**|**United**|**Trusts**|
|---|---|---|---|---|
||**2022**|**2021**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|Total Incoming Resources|112,462|119,199|**-**|**-**|
|Total Resources Expended|(112,462)|(119,199)|**-**|**-**|
||--------------|--------------|---------------|--------------|
||-|-|**-**|**-**|
|Total funds brought forward|6,124|6,124|**-**|**-**|
||--------------|--------------|--------------|--------------|
|**Total funds carried forward**|**6,124**|6,124|**-**|**-**|
||========|========|========|========|
|**Represented by:**|||||
|Debtors|6,124|6,124|**-**|**-**|
|Cash at bank|5,096|2,233|**7,615**|**8,268**|
|Creditors : amounts falling due|(5,096)|(2,233)|**(7,615)**|**(8,268)**|
|within 1 year|||||
||--------------|--------------|---------------|--------------|
|**Total funds carried forward**|**6,124**|6,124|**-**|**-**|
||========|=======|========|========|
United Trusts is exempt from audit by virtue of s.477 of the Companies Act 2006.
## **5. Income from Donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|**_Total_**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2022**|**_2021_**|
||**£**|**£**|**£**|**£**|
|Donations & sundry grants|25,877|-|25,877|23,578|
|Legacies|-|-|-|-|
||--------------|------------|--------------|--------------|
||**25,877**|**-**|**25,877**|**23,578,**|
||========|=======|========|========|
The income from donations and legacies in 2021 was all included within unrestricted funds.
31
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **6. Income from Charitable activities**
|**. Income from Charitable activities**|||||
|---|---|---|---|---|
||**Unrestricte**|**Restricted**|**Total**|**_Total_**|
||**d Funds**|**Funds**|**2022**|**_2021_**|
||**£**|**£**|**£**|**£**|
|Programmes|-|4,944,608|4,944,608|447,267|
|Services to Charities and Voluntary|804,053|59,459|863,512|967,877|
|Organisations|||||
|Services to Donors|129,508|-|129,508|105,756|
|Enablers|118,225|-|118,225|317,220|
|Strong Foundations|109,699|614,383|724,082|948,425|
||--------------|----------------|--------------|--------------|
||**1,161,485**|**5,618,450**|**6,779,935**|**2,786,545**|
||========|=========|========|========|
The income from charitable activities in 2021 was £2,786,545 of which £1,983,680 was unrestricted and £802,865 was restricted funds.
_**Government Grants:**_ Income from charitable activities (Services to Charities and Voluntary Organisations and Programmes) includes the following grants from local authorities:
- £39,459 (2021: £39,457) Community Resource Grant received from Liverpool City Council to fund infrastructure support by LCVS and another infrastructure delivery agency, Equality and Employment Law Centre Ltd .
- £10,000 (2021: £10,000) from Liverpool City Council to fund support for organisations working with young people.
- £3,865,001 (2021: £190,000) funding from Liverpool City Council for organisations delivering activities as part of the LCVS Community Impact Programme, The Play Partnership.
- £6,500 (2021: £13,000) in various grants applied for by the MyClubMoor committee from Liverpool City Council to undertake specific projects.
- £76,000 (2021: £25,000) funding from Liverpool City Council to support the establishment of a new project to tackle food insecurity
- £614,383 (2021: £584,000) from Liverpool City Council to support LCVS Covid-19 response costs and support for the voluntary sector
- £500,000 (2021 : £nil) from Liverpool City Council for a grants programme for Voluntary Sector delivery of projects to support mental health and wellbeing to counter the effects of Covid and support people coming out of lockdown
- £250,000 (2021 : £nil) Social Model of Health Administration to run a grants programme
## **7. Investment Income**
|**. Investment Income**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**
|**_Total_**|
||**Funds**|**Funds**|**2022**
|**_2021_**|
||**£**|**£**|**£**|**£**|
|Interest on Cash Balances|-|-|-|2|
|Income from Settlors Trust Fund|
27,892|-|27,892|23,985|
32
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
------------------------------------------ **27,892 27,892 23,987** ====== ======= ====== ======
The investment income in 2021 was £23,987 of which £23,986 was unrestricted and £1 was restricted funds.
## **8. Expenditure on Charitable activities**
||**Activities**|**Grant**|**Allocation**|||
|---|---|---|---|---|---|
||**undertaken**|**funding of**|**Of Core**|**2022**|**2021**|
||**directly**|**activities**|**Costs**|**TOTAL**|**TOTAL**|
||**£**|**£**|**£**|**£**|**£**|
|Programmes|129,363|4,139,949|-|4,269,312|1,391,908|
|Services to Charities and Voluntary|824,547|-|-|824,547|714,774|
|Organisations||||||
|Services to Donors|90,092|-|-|90,092|76,917|
|Enablers|118,566|-|-|118,566|118,347|
|Strong Foundations|-|-|513,633|513,633|496,480|
||--------------|------------|------------|---------------|---------------|
||**1,162,568**|**4,139,949**|**513,633**|**5,816,150**|**2,798,426**|
||========|========|=======|=========|=========|
The expenditure on charitable activities was £5,816,150 (2021: £2,798,426) of which £1,507,889 (2021: £1,896,113) was unrestricted and £4,308,261 (2021: £902,313) was restricted funds.
Included within Expenditure on Charitable Activities (Services to Charities and Voluntary Organisations) is an amount of £8,919 (2021: £17,265) relating to interest on the bank loan.
|Grant funding of activities:|**2022**|**2021**|
|---|---|---|
||**TOTAL**|**TOTAL**|
||**£**|**£**|
|Liverpool & Merseyside Charities Funds|10,000|10,000|
|Play Partnership (HAF)|3,153,394|260,000|
|Violence Reduction Unit|-|285,169|
|The Ellie Trust|64,330|-|
|Covid Response|573,338|-|
|AoP Micro Commissioning Grants|12,000|-|
|VCF Mental Health Grant Scheme|211,425|-|
|Emergency CIF Grant|3,000|-|
|Ways to Wellbeing|-|3,000|
|Pen Natal Grants|-|19,180|
|Wirral Council MAMHS|-|41,753|
|UW Giving – distributed by Charities Aid Foundation|112,462|119,199|
|in accordance with individual donors’ direct|||
|instructions|||
||---------------|---------------|
|Group Total|**4,139,949**|**738,301**|
||========|========|
33
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
Grants made under the Liverpool & Merseyside Charities Funds are paid directly to individuals as part of the LCVS hardship grants programme. All other grants are paid to institutions, as under:
**----- Start of picture text -----**
Play Partnership (HAF) Approximately 400 individual £3.153.394
grants
The Ellie Trust South Liverpool Domestic £19,375
Abuse Services
HEAT £44,955
Covid Response Approximately 70 individual £573,338
grants
AoP Micro Commissioning 6 grants x £2,000 £12,000
Group
VCF Mental Health Grant 20 grants £211,425
Scheme
Emergency CIF Grant 1 grant x £3,000 £3,000
**----- End of picture text -----**
No core costs or support costs are allocated to grant giving.
Governance costs are included under ‘Strong Foundations’ and comprise:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Core costs|90,742|62,957|
|Audit|33,000|35,814|
||----------|----------|
|**TOTAL GOVERNANCE COSTS**|**123,742**|**98,771**|
||======|======|
Core costs relate wholly to Corporate Overheads, comprising a percentage recharge of the salary costs of the Chief Executive Officer and Director of Finance and Resources.
## _Allocation of Core Costs_
Only overheads relating directly to each delivery area are charged as expenditure. LCVS’s general core costs are classified under ‘Strong Foundations’ and are separately identified. These comprise:
|
hese comprise:|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Core Salaries|158,918|187,014|
|Unwinding of Pension Fund Commitment|33,976|32,986|
|Property Costs|97,106|99,186|
|Marketing|5,562|900|
|IT Provision|11,510|7,814|
|Audit|33,000|35,814|
|Administration|72,599|38,590|
|Provision for Doubtful Debts|61,453|53,754|
|Depreciation|36,487|37,176|
|Amortisation|3,022|3,246|
34
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
||------------|------------||
|---|---|---|---|
|**TOTAL CORE COSTS**|**513,633**|**496,480**||
||=======|=======||
|**9. Net Expenditure for the Year**||||
||**2022**||**_2021_**|
||**£**||**£**|
|This is stated after charging :||||
|a. Depreciation|**36,487**||**37,176**|
|Amortisation|**3,022**||**3,240**|
||======||======|
|b. Auditor’s remuneration||||
|- audit|33,000||35,814|
|- other services|-||-|
||----------||----------|
||**33,000**||**35,814**|
||======||======|
|c. Operating lease costs|**2,025**||**2,025**|
||======||======|
|**10. Staff Costs and Numbers – Group & Charity**||||
||**2022**||**_2021_**|
|Staff costs were as follows:|**£**||**£**|
|salaries|582,518||609,327|
|social security|47,915||50,090|
|pension costs|61,898||60,599|
||--------------||--------------|
||**692,331**||**720,016**|
||========||========|
The average number of employees during the year was as follows:
||**2022**|**_2021_**|
|---|---|---|
||**Number**|**_Number_**|
|Direct charitable activities|12|14|
|Management and administration|13|12|
||-----|-----|
||**25**|**26**|
||===|===|
1 employee received emoluments of more than £60,000 during the year (2021: none, as under: £65,001 - £70,000 1 -
The Trustees, being also the Directors of the company, are not remunerated for their services. No trustees have claimed expenses (2021: £nil); trustees are not included in the above number of employees.
35
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
|**11. Programme Related Investments – Group & Charity**|||
|---|---|---|
||**2022**|**_2021_**|
|_Property Investment:_
|£
|£|
|Cost at beginning of the year|7,618,783|7,618,783|
|Additions during the year|-||
||--------------|----|
|**Cost at end of the year**|**7,618,783**|**7,618,783**|
||=========|=========|
LCVS purchased the freehold property of 151 Dale Street which has become a resource centre for the voluntary sector in Liverpool, providing facilities and office accommodation at an affordable cost to organisations. The provision of this accommodation and associated services assists LCVS in meeting its charitable objectives.
LCVS itself is located in the building which has led to efficiency improvements and also the benefit of becoming more accessible to the sector. Refurbishment work has been completed and the building currently runs at approximately 90% occupancy; LCVS receives income in the form of rent from tenants and also users of the conference and meeting facilities.
In February 2019, a valuation of the building was undertaken by BNP Paribas Real Estate for the purposes of the Co-Operative Bank. The market value for security purposes was considered to be £3million. This figure was based upon the commercial value of the existing licences and tenancies and therefore takes no account of the special circumstances and relationships with occupiers.
The Programme Related Investment is reviewed annually for any indications of impairment. A decision has been made not to impair the property since it is still being used for the purpose for which it was acquired and developed, and this is not expected to change going forward. The property is integral to the charity meeting its objectives and is therefore classified as a Programme Related Investment. The property is included in these accounts at historic cost.
36
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **12. Tangible Fixed Assets - Group & Charity**
||**Freehold**|**Computer**|**Total**|
|---|---|---|---|
||**Land &**|**& Other**||
||**Buildings**|**Equipment**||
|**Cost**|**£**|**£**|**£**|
|Balance at 1stApril 2021|1,710,978|231,330|1,942,308|
|Additions during the year|-|4,221|4,221|
||--------------|-----------|--------------|
|Balance at 31stMarch 2022|1,710,978|235,551|1,946,529|
||--------------|-----------|--------------|
|**Depreciation and impairment**||||
|Balance at 1stApril 2021|409,982|228,691|638,673|
|Charge for the year|34,220|2,267|36,487|
||--------------|-----------|--------------|
|Balance at 31stMarch 2022|444,202|230,958|675,160|
||--------------|-----------|--------------|
|**Carrying amount at 31st March 2022**|**1,266,776**|**4,593**|**1,271,369**|
||========|======|========|
|**Carrying amount at 31st March 2021**|**1,300,996**|**2,639**|**1,303,635**|
||========|======|========|
All tangible fixed assets are used in the direct charitable activities of the charity.
## **13. Intangible Fixed Assets - Group & Charity**
||**Computer**|**Total**|
|---|---|---|
||**Software**||
|**Cost**|**£**|**£**|
|Balance at 1stApril 2021|22,477|22,477|
|Additions during the period|5,910|5,910|
||-----------|-----------|
|Balance at 31stMarch 2022|28,387|28,387|
||-----------|-----------|
|**Amortisation and impairment**|||
|Balance at 1stApril 2021|12,741|12,741|
|Charge for the period|3,022|3,022|
||-----------|-----------|
|Balance at 31stMarch 2022|15,763|15,763|
||-----------|-----------|
|**Carrying amount at 31st March 2022**|**12,624**|**12,624**|
||======|======|
|**Carrying amount at 31st March 2021**|**9,736**|**9,736**|
||======|======|
37
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
All intangible fixed assets are used in the direct charitable activities of the charity.
## **14. Distribution Funds – Group & Charity**
These are charitable monies given to LCVS, as trustee, to be passed on to charities in accordance with the donors’ instructions. Ordinarily LCVS has no power to spend these monies and therefore these balances are not included on the charity or consolidated balance sheets. However LCVS and the Distribution bank funds are amalgamated to maximise returns on the money market.
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Funds held at the end of the year|**755,061**|**820,126**|
||=======|=======|
|_Represented by:_|||
|Cash balances held by LCVS|452,000|452,000|
|Bank balance|282,716|356,615|
|Other Debtors|20,345|11,511|
||------------|------------|
||**755,061**|**820,126**|
||=======|=======|
## **15. Debtors**
||**2022**|**2022**||**_2021_**||
|---|---|---|---|---|---|
||**Group**|**Charity**|**_Group_**||**_Charity_**|
||**£**|**£**|**£**||**£**|
|Trade debtors|255,019|255,019|91,941||91,941|
|Prepayments and accrued income|242,755|242,755|269,719||269,719|
|Other debtors|670,487|670,487|409,603||409,603|
|United Trusts Intercompany|-|8|-||8|
|Account||||||
||------------|------------|------------||------------|
||**1,168,261**|**1,168,269**|**771,263**||**771,271**|
||=======|=======|=======||=======|
Trade debtors are stated net of a provision for doubtful debts of £144,845 (2021: £83,392)
## **16. Current Asset Investments – Group & Charity**
||**2021**|**2021**|
|---|---|---|
|_Quoted Investments:_|**£**|**£**|
|Carrying amount as at 1stApril 2021|1,092,769|914,157|
|Additions during the period|-|-|
|Net unrealised/realised gains on investment assets|20,435|178,612|
||---------------|---------------|
|**Carrying amount as at 31st March 2022**|**1,113,204**|**1,092,769**|
||=========|=========|
38
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
|**Historic cost at 31st March 2021**|**969,666**|**969,666**|
|---|---|---|
||=======|=======|
|_At market value:_|||
|Share of Settlors’ Trust Fund (see note 26)|**1,113,204**|**1,092,769**|
||=========|=======|
## **17. Creditors falling due within one year**
||**2022**|**2022**|**_2021_**|**_2021_**|
|---|---|---|---|---|
||**Group**|**Charity**|**_Group_**|**_Charity_**|
||**£**|**£**|**£**|**£**|
|Bank Loan|100,000|100,000|100,000|100,000|
|Trade Creditors|526|526|2,604|2,604|
|Accruals and deferred income|841,430|841,430|774,733|774,733|
|Tax and social security costs|901|901|15,001|15,001|
|Other creditors|2,825,998|2,813,295|2,476,531|2,466,038|
|Intercompany Accounts|-|6,124|-|6,124|
||--------------|--------------|--------------|--------------|
||**3,768,855**|**3,762,276**|**3,368,869**|**3,364,500**|
||========|========|========|========|
Amounts due to Trust and Distribution funds held by LCVS for distribution are included in Other creditors £2,453,000 (2021: £2,453,000) and accruals £263,342 (2021: £263,342).
## **18. Deferred income – Group & Charity**
||**2022**|**_2021_**|
|---|---|---|
||**£**|**£**|
|Balance at beginning of period|-|-|
|Additional amounts deferred|2,000|-|
|Release of deferred income|(-)|(-)|
||--------------|--------------|
|Balance at end of period|**2,000**|**-**|
||========|========|
## **19. Creditors falling due after more than one year – Group & Charity**
||**2022**|**_2021_**|
|---|---|---|
||**£**|**_£_**|
|Bank loan|593,831|700,873|
||--------------|--------------|
||**593,831**|**700,873**|
||========|========|
A loan facility of £1.7 million was arranged with The Co-operative Bank plc to assist in the acquisition and refurbishment of 151 Dale Street. This has been fully drawn down and capital repayments commenced in the 2012 year end. Interest is calculated at The Co-operative Bank
39
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
plc Base Rate plus 1.5%. The security for this loan is a first legal charge over the premises, 151 Dale Street, Liverpool.
## _**Analysis of debt maturity:**_
|**_Analysis of debt maturity:_**|||
|---|---|---|
||**2022**|**_2021_**|
|**Amounts payable :**|**£**|**£**|
|In one year or less or on demand|100,000|100,000|
|In more than one year but not more|100,000|100,000|
|than two years|||
|In more than two years but not more|300,000|300,000|
|than five years|||
|In five years or more|193,831|300,873|
||--------------|--------------|
||**693,831**|**800,873**|
||========|========|
|**20. Financial instruments – Group**|||
||**2022**|**_2021_**|
||**£**|**£**|
|Financial assets measured at|1,075,329|538,653|
|amortised cost|||
|Equity instruments measured at fair|1,113,204|1,092,769|
|value through income and|||
|expenditure|||
||--------------|--------------|
||**2,188,533**|**1,631,422**|
||========|========|
||**2022**|**_2021_**|
||**£**|**£**|
|Financial liabilities measured at|4,361,785|4,054,741|
|amortised cost|||
||--------------|--------------|
||**4,361,785**|**4,054,741**|
||========|========|
40
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **21. Analysis of Net Assets between Funds**
## **2022**
||**Programme**||||||
|---|---|---|---|---|---|---|
||**related**|**Fixed**|**Net current**|**Long term**|||
||**investments**|**assets**|**liabilities**|**liabilities**|**Provisions**|**TOTAL**|
|**Charity**|||||||
|**Unrestricted Funds**|**£**|**£**|**£**|**£**|**£**|**£**|
|General Fund|1,599,245|1,283,993|(699,196)|(593,831)|(29,919)|1,560,292|
|151 Dale Street Fund|6,019,538|-|-|-|-|6,019,538|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||7,618,783|1,283,993|(699,196)|(593,831)|(29,919)|7,579,830|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Restricted Funds**|||||||
|Wirral Council|-|-|47|-|-|47|
|MAMHS|||||||
|MyClubMoor|-|-|15,978|-|-|15,978|
|LCVS Community|-|-|641,607|-|-|641,607|
|Impact Programme:|||||||
|Play Partnership|||||||
|Feeding Liverpool|-|-|41,964|-|-|41,964|
|VCF Mental Health|-|-|251,188|-|-|251,188|
|Social Model of Health|||||||
|Administration|-|-|250,000|-|-|250,000|
|John Moores|||||||
|Foundation|-|-|7,450|-|-|7,450|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||-|-|1,208,234|-|-|1,208,234|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Charity Total**|**7,618,783**|**1,283,993**|**509,038**|**(593,831)**|**(29,919)**|**8,788,064**|
|UW Giving -|-|-|6,124|-|,-|6,124|
|Unrestricted|||||||
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Group Total**|**7,618,783**|**1,283,993**|**515,162**|**(593,831)**|**(29,919)**|**8,794,188**|
||**=========**|**=========**|**========**|**========**|**=========**|**=========**|
|Group Unrestricted|7,618,783|1,283,993|(693,072)|(593,831)|(29,919)|7,585,954|
|Group Restricted|-|-|1,208,234|-|-|1,208,234|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||**7,618,783**|**1,283,993**|**515,162**|**(593,831)**|**(29,919)**|**8,794,188**|
||**=========**|**=========**|**========**|**========**|**=========**|**=========**|
41
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **21. Analysis of Net Assets between Funds (continued…)**
## **2021**
|**21**|||||||
|---|---|---|---|---|---|---|
||**Programme**||||||
||**related**|**Fixed**|**Net current**|**Long term**|||
||**investments**|**assets**|**liabilities**|**liabilities**|**Provisions**|**TOTAL**|
|**Charity**|||||||
|**Unrestricted Funds**|**£**|**£**|**£**|**£**|**£**|**£**|
|General Fund|1,599,245|1,313,371|(330,104)|(700,873)|(130,579)|1,751,060|
|151 Dale Street Fund|6,019,538|-|-|-|-|6,019,538|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||7,618,783|1,313,371|(330,104)|(700,873)|(130,579)|7,770,598|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Restricted Funds**|||||||
|Wirral Council|-|-|47|-|-|47|
|MAMHS|||||||
|MyClubMoor|-|-|24,430|-|-|24,430|
|LCVS Community|-|-|(70,000)|-|-|(70,000)|
|Impact Programme:|||||||
|Play Partnership|||||||
|Feeding Liverpool|-|-|25,000|-|-|25,000|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||-|-|(20,523)|-|-|(20,523)|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Charity Total**|**7,618,783**|**1,313,371**|**(350,627)**|**(700,873)**|**(130,579)**|**7,750,075**|
|UW Giving -|-|-|6,124|-|,-|6,124|
|Unrestricted|||||||
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
|**Group Total**|**7,618,783**|**1,313,371**|**(344,503)**|**(700,873)**|**(130,579)**|**7,756,199**|
||**=========**|**=========**|**========**|**========**|**=========**|**=========**|
|Group Unrestricted|7,618,783|1,313,371|(323,980)|(700,873)|(130,579)|7,776,722|
|Group Restricted|-|-|(20,523)|-|-|(20,523)|
||**---------------**|**---------------**|**--------------**|**--------------**|---------------|---------------|
||**7,618,783**|**1,313,371**|**(344,503)**|**(700,873)**|**(130,579)**|**7,756,199**|
||**=========**|**=========**|**========**|**========**|**=========**|**=========**|
42
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **22. Unrestricted Funds – Group & Charity**
The General Fund is used to finance the Charity’s general activities as outlined in the Trustees’ Report.
Trustees have designated the funds which were originally realised and used to purchase the charity’s programme related investment as a separate ‘151 Dale Street Fund’. This fund is held entirely as a fixed asset. This is intended to recognise the long term nature of such reserves and will be re-visited in later years if more general funds are permanently applied for this purpose.
**2022 Movements in the year**
||**Resources**||||**Gain) on**|**Resources**|
|---|---|---|---|---|---|---|
||**at beginning**||||**Investment**|**at end**|
||**of year**|**Income**|**Expenditure**|**Transfers**|**Assets**|**of year**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|General Fund|1,751,060|1,215,254|(1,507,889)|
81,432|20,435|1,560,292|
|151 Dale Street Fund|6,019,538|-|-|-|-|6,019,538|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Charity Totals**|**7,770,598**|**1,215,254**|**(1,507,889)**|**81,432**|**20,435**|**7,579,830**|
|UW Giving|6,124|-|-|-|-|6,124|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Total Funds**|**7,776,722**|**1,215,254**|**(1,507,889)**|**81,432**|**20,435**|**7,585,954**|
||========|========|========|======|=====|========|
_**Transfers:**_ Transfers from restricted funds represent elements of grant attributable to LCVS for administering programmes; transfer to MyClubMoor represents a grant awarded to this programme.
**2021 Movements in the year**
||**Resources**||||**Gain) on**|**Resources**|
|---|---|---|---|---|---|---|
||**at beginning**||||**Investment**|**at end**|
||**of year**|**Income**|**Expenditure**|**Transfers**|**Assets**|**of year**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|General Fund|1,456,497|2,031,244|(1,896,113)|
(19,180)|178,612|1,751,060|
|151 Dale Street Fund|6,019,538|-|-|-|-|6,019,538|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Charity Totals**|**7,476,035**|**2,031,244**|**(1,896,113)**|**(19,180)**|**178,612**|**7,770,598**|
|UW Giving|6,124|-|-|-|-|6,124|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Total Funds**|**7,482,159**|**2,031,244**|**(1,896,113)**|**(19,180)**|**178,612**|**7,776,722**|
||========|========|========|======|=====|========|
43
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
_**Transfers:**_ Transfers from general fund represent contribution to delivery of the Play Partnership (LCVS Community Impact Programme).
## **23. Restricted Funds – Group & Charity**
|**2022**||**Movements in the year**|**Movements in the year**||||
|---|---|---|---|---|---|---|
||**Resources**|||**(Losses) on**||**Resources**|
||**at beginning**||||**Investment**|**at end**|
||**of year**|**Income**|**Expenditure Transfers**||**Assets**|**of year**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Liverpool City Council|-|39,459|(39,459)|-|-|-|
|CRG|||||||
|Liverpool City Council|-|10,000|(10,000)|-|-|-|
|Youth Funding|||||||
|LCVS Community|||||||
|Impact Programme:|||||||
|- Play Partnership/HAF|(70,000)|3,865,001|(3,153,394)|-|-|641,607|
|The Ellie Trust|-|67,330|(64,330)|(3,000)|-|-|
|AoP Micro Grants|-|12,000|(12,000)|-|-|-|
|Feeding Liverpool|25,000|88,500|(71,536)|||41,964|
|VCF Mental Health|-|500,000|(211,425)|(37,387)||251,188|
|Wirral Council MAMHS|47|-|-|-|-|47|
|MyClubMoor|24,430|49,315|(62,767)|5,000|-|15,978|
|LCC Covid Support|-|614,383|(568,338)|(46,045)|-|-|
|Social Model of Health|-|250,000|-|-|-|250,000|
|Administration|||||||
|John Moores|-|10,000|(2,550)|-||7,450|
|Foundation|||||||
||--------------|-------------|--------------|-----------|---------|--------------|
|**Charity Totals**|**(20,523)**|**5,505,988**|**(4,195,799)**|**(81,432)**|**-**|**1,208,234**|
|UW Giving distributions|-|112,462|(112,462)|-|-|-|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Total Funds**|**(20,523)**|**5,618,450**|**(4,308,261)**|**(81,432)**|**-**|**1,208,234**|
||========|========|========|======|=====|========|
_**Transfers:**_ Transfers to general fund represent elements of grant attributable to LCVS for administering programmes; transfer to MyClubMoor represents a grant awarded to this programme.
44
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
|**2021**||**Movements in the year**|**Movements in the year**||||
|---|---|---|---|---|---|---|
||**Resources**|||**(Losses) on**||**Resources**|
||**at beginning**||||**Investment**|**at end**|
||**of year**|**Income Expenditure Transfers**|||**Assets**|**of year**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Liverpool City Council|-|39,457|(39,457)|-|-|-|
|CRG|||||||
|Liverpool City Council|-|10,000|(10,000)|-|-|-|
|Youth Funding|||||||
|LCVS Community|||||||
|Impact Programme:|||||||
|- Play Partnership|-|190,000|(260,000)|-|-|(70,000)|
|Ways to Wellbeing|-|3,000|(3,000)|-|-|-|
|Violence Reduction|-|285,169|(285,169)|-|-|-|
|Unit|||||||
|Feeding Liverpool|-|25,000|(-)|||25,000|
|Peri Natal Grants|-|-|(19,180)|19,180||-|
|Wirral Council MAMHS|41,800|-|(41,753)|-|-|47|
|MyClubMoor|17,944|131,041|(124,555)|||24,430|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Charity Totals**|**59,744**|**683,667**|**(783,114)**|**19,180**|**-**|**(20,523)**|
|UW Giving distributions|-|119,199|(119,199)|-|-|-|
||--------------|-------------|--------------|-----------|---------|--------------|
|**Total Funds**|**59,744**|**802,866**|**(902,313)**|**19,180**|**-**|**(20,523)**|
||========|========|========|======|=====|========|
_**Transfers:**_ Transfers from general fund represent contribution to delivery of the Play Partnership (LCVS Community Impact Programme).
## _**Description of Funds**_
These are monies given to the Charity to be spent at the discretion of the Charity’s Board of Trustees for specific charitable purposes, as follows:
## _**a. Liverpool City Council CRG**_
Funding is received from Liverpool City Council Community Resources Grants team towards the costs of providing capacity building services to Liverpool organisations. Funding for the year was £39,459 (2021: £39,457) which has been fully spent.
## _**b. Liverpool City Council Youth Funding**_
Funding received from Liverpool City Council to provide capacity building support services to organisations working with and benefitting young people.
45
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## _**c. LCVS Community Impact Programme: Play Partnership / HAF**_
Programme to tackle specific areas of local need. Significant funds received via Liverpool City Council to support holiday activities. At 31 March 2021 Play Partnership funds were in deficit by £70,000) due to grant funding expended prior to confirmation and receipt of funding from Liverpool City Council in April 2021.
## _**d. The Ellie Trust**_
A grants programme to provide support to domestic abuse organisations
## _**e. AoP Micro Grants**_
Small grants programme administered on behalf of Citizens Advice Bureau
## _**f. Ways to Wellbeing**_
Small grants programme administered on behalf of Citizens Advice Bureau
## _**g. Violence Reduction Unit**_
Funding received to support LCVS’s lead role in delivering a grants programme to tackle knife crime.
## _**h. Feeding Liverpool**_
Funds from Liverpool City Council and other sources received on behalf of a newly established project to tackle food insecurity in Liverpool.
## _**i. Peri Natal Grants**_
Distribution of funding on behalf of a third party.
## _**j. VCF Mental Health**_
Grant programme for Voluntary Sector delivery of projects to support mental health and wellbeing to counter the effects of Covid and support people coming out of lockdown
## _**k. Wirral Council MAMHS**_
Funding received to deliver a grants programme to tackle mens’ mental health / suicide programme.
## _**l. MyClubMoor**_
Funding received from various sources, primarily Local Trust, to LCVS as the Local Trusted Organisation for the MyClubMoor project for running costs and specific projects.
## _**m. LCC Covid Support**_
Funding received from Liverpool City Council to support local trusted organisations through the financial effects of the Covid pandemic.
## _**n. Social Model of Health Administration**_
Social Wellbeing grant programme for groups focusing on CCG priorities around key issues.
## _**o. UW Giving distributions**_
Donations received by the subsidiary company, UW Giving, fully distributed by Charities Aid Foundation (CAF) in accordance with individual donors’ direct instructions. From 5[th] April 2019 only those contributions received directly by the charity are included in these accounts; other contributions are received and distributed directly by CAF with no reference to UW Giving.
46
_**Liverpool Charity and Voluntary Services**_
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## _**p. John Moores Foundation**_
Contribution to the general activity of the capacity building team.
## **24. Guarantees and Other Financial Commitments**
Financial commitments under non-cancellable operating leases relating to office equipment for both the company and the group were as follows:
||**2022**|**_2021_**|
|---|---|---|
|**Total future minimum lease**|**£**|**£**|
|**payments :**|||
|Not later than one year|1,503|1,503|
|Later than one year and not later than|-|-|
|five years|||
||--------------|--------------|
||**1,503**|**1,503**|
||========|========|
At 31[st] March 2022, LCVS was a member of United Trusts and U W Giving. These are companies limited by guarantee and therefore, in the event of insolvent winding up, LCVS would be required to make a nominal guarantee payment in respect of each. The maximum liability would be £2.
## **25. Pension Obligations: TPT Retirement Solutions – The Growth Plan**
LCVS participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
47
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation
||31 March|31 March|31 March|
|---|---|---|---|
||2022|2021|2020|
||(£s)|(£s)|(£s)|
|Present value of provision|29,919|130,579|158,419|
showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit contributions**
From 1 April 2022 to 31 January £3,312,000 per annum (payable monthly) 2025:
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit contributions**
|From|1|April|2019|to|30|September|£11,243,000 per annum (payable monthly|
|---|---|---|---|---|---|---|---|
|2025:|||||||and increasing by 3% each on 1st April)|
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Period Ending Period Ending
48
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
|**YEAR ENDED 31ST MARCH 2022**|||
|---|---|---|
||31 March|31 March|
||2022|2021|
||(£s)|(£s)|
|Provision at start of period|130,579|158,419|
|Unwinding of the discount factor (interest expense)|2,444|3,811|
|Deficit contribution paid|(33,976)|(32,986)|
|Remeasurements - impact of any change in assumptions|(335)|1,335|
|Remeasurements - amendments to the contribution
schedule|(68,793)|-|
|Provision at end of period|29,919|130,579|
## INCOME AND EXPENDITURE IMPACT
|INCOME AND EXPENDITURE IMPACT|||
|---|---|---|
||Period Ending
31 March 2022
(£s)|Period Ending
31 March
2021
(£s)|
|Interest expense|2,444|3,811|
|Remeasurements – impact of any change in assumptions|(335)|1,335|
|Remeasurements – amendments to the contribution
schedule|(68,793)|-|
|Contributions paid in respect of future service*|-|-|
|Costs recognised in income and expenditure account|-|-|
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
## ASSUMPTIONS
|ASSUMPTIONS||||
|---|---|---|---|
||31 March|31 March|31 March|
||2022|2021|2020|
||% perannum|% perannum|% perannum|
|Rate of discount|2.99|2.15|2.71|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the company and the
49
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
scheme at each year end period:
## DEFICIT CONTRIBUTIONS SCHEDULE
|**Year**|**ending**|**31**|**March**
**(£s)**|**2022**
|**31**|**March 2021**
**(£s)**|**31 March 2020**
**(£s)**|
|---|---|---|---|---|---|---|---|
|Year|1|||10,993||33,976|32,986|
|Year|2|||10,993||34,995|33,976|
|Year|3|||9,161||36,045|34,995|
|Year|4|||-||30,939|36,045|
|Year|5|||-||-|30,939|
## **26. Pooling Scheme Funds**
The Charity administers a pooling scheme fund, the Settlors’ Trust Fund, approved by the Charity Commission under the Charities Act 2011 as Common Investment Schemes for funds of which it is Trustee.
At 31[st] March 2022 the assets of the Settlors’ Trust Fund had a total market value of ,£33,341,352 (£31,069,480 at 31[st] March 2021) of which £1,113,204 (£1,092,769 at 31[st] March 2021) is an asset of the Charity. Total income earned on the assets of the Settlors’ Trust Fund was £766,848 for the year ended 31[st] March 2022 (£676,814 for the year ended 31[st] March 2021) of which the Charity’s income was £27,892 (£23,985 for the year ended 31[st] March 2021).
## **27. Personal Charitable Trusts**
_The Charity is Trustee of Personal Charitable Trusts which are listed below. These are all registered charities and a separate Annual Report is prepared for each of them._
_N.L. Arthurson Fund John Behrend Fund Richard Behrend Charitable Trust Edward Bibby Fund J.B. Bibby Fund Leslie Bibby Fund The Peter Bibby Charitable Trust Susan Bibby Fund Henry Birch Fund Mrs. R.J. Bradley’s Charity Derek & Chris Bunting Foundation Mrs. M.J. Cunnah’s Charity Dove Charitable Trust William Edmonds Fund Emerald Charitable Trust Fellowship Farm Guest House Trust David Fryer Charitable Trust_
_Fulton Charitable Trust The Kelly and Bernard Gadney Fund A.L. Grant 1[st] Charitable (Fund) Harding Charitable Trust Miss A.M. Harding Charity M.E. Hawkes Charitable Trust R.G. Hetherington Fund Hobhouse Fund Harvey Hughes Jones Fund Brian James Fund B.R. Jardine Charitable Trust Andrew Jones Charitable Trust Neil Jones Charitable Trust Penelope Jones Charitable Trust Mrs F.M Kaye-Krzeczkowski Charitable Trust Kitchen Table Charities Trust_
50
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
_Mrs. E.C. Lanceley’s Charity Macamish Trust The Claire McKeever Trust Margaret E. Moss Fund Adam C.I. Naylor Charitable Trust R.Christopher Naylor (Harriet) Fund R. Christopher Naylor (Thomas) Fund T.P. Naylor Trust Helen Nilsen Fund John & Shenagh Norman Charitable Trust Nutmeg Charitable Trust Sir Harry Pilkington Fund Pilkington Jones Charitable Trust Fund H.J Rawlings Trust M.J. Ridges Charitable Trust Sansaw and Hardwicke Charitable Fund_
_Sheba Charitable Trust Sharples Charitable Trust Shone No. 2 Charitable Trust Standfield Charitable Trust The Stoddart Charitable Trust Surrey Square Charitable Trust Sutcliffe Family Charitable Trust The Tavener Charitable Trust Cecil Taylor Family Charitable Trust Caroline Tod Charitable Trust Topaz Charitable Trust Trefula Trust Fund Whinlatter Fund Whitlock Blundell Charitable Trust_
## **28. Charitable Trusts of which the Charity is Co-Trustee**
The Charity is also a Trustee of the following charitable trusts. In these cases it shares trusteeship with a number of individuals. These are all registered charities and a separate Annual Report is prepared for each of them.
_The Anber Fund The Amelia Chadwick Trust Sir Andrew Martin Trust for Young People The Rushworth Trust The J A Shone Memorial Trust_
_The David and Ruth Behrend Fund The David Lewis Association The Mushroom Fund The Selwyn Lloyd Charitable Trust The T.I.F Tod Charitable Trust_
## **29. Other Funds**
The Charity is also Trustee of a number of small charitable trusts and funds as listed below. A separate Annual Report is prepared for each of these.
_Aged Women’s Pension Charity Robert Orr Crichton Memorial Fund Robert Davies Trust Liverpool Auxiliary Pension Fund Liverpool Dispensaries Fund_
## **30. Related Parties**
The remuneration paid to the senior management team, who are considered to be the key management personnel for the group was £129,421 (2021: £133,379).
LCVS is a corporate trustee of the charitable trusts listed in notes 27 to 29 and provides administration services on an arms-length basis to these trusts. At 31[st] March 2022, LCVS held £2,001,000 (2021: £2,001,000) as an other creditor on the balance sheet representing undistributed income on these trusts, The nature of LCVS’s activities is such that it undertakes many operational activities, e.g. room hire, training courses, memberships, etc. with other local charity and voluntary organisations, with which it is possible that some LCVS trustees have connections. However, such connections have no effect on these transactions and the
51
_**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
relationship with any LCVS trustee is unlikely to be known to either party involved in arranging such transactions.
There is a balance owing from United Trusts of £8 (2021: £8) and an amount owing to UW Giving of £6,124 (2021: £6,124); both entities are subsidiaries of LCVS. During the year an amount of £31,450 (2021: £33,291) was distributed by UW Giving carrying with it the restrictions placed on it by the original donor; LCVS will distribute the funds at a later date in accordance with the donor’s wishes.
## **31. Custodian Trusteeship**
At the year-end the Charity acted as Custodian Trustee of assets of the following local charities. This property includes investments, land and buildings. These assets are segregated from the Charity’s own.
_**Investments:**_
_T.I.F Tod Charitable Trust_
## _**Land & Buildings:**_
_Organisation Asset Ironbridge Youth Centre 127 Beresford Rd, Liverpool 8 RSPCA Cross Lane, Wallasey Wallasey Age Concern 55 & 57 Seabank Road, Wallasey_
## **32. Reconciliation from net income to cash from operations**
|Net income / (expenditure)
**Adjustments for:**
Finance costs recognised in profit or loss
(Gain / Loss on investment assets
Depreciation of tangible fixed assets
Amortisation of intangible fixed assets
(Decrease)in provisions
**Operating cash flows before movements**
**in working capital**|**Group**
**2022**
**£**
**2021**
**£**
1,037,989
214,296
8,919
17,265
(20,435)
(178,612)
36,487
37,176
3,022
3,246
(100,660)
(27,840)
965,322
65,531|
|---|---|
52
## _**Liverpool Charity and Voluntary Services**_
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
|**R ENDED 31ST MARCH 2022**|||
|---|---|---|
|(Increase) / Decrease in trade and other debtors
Increase / (Decrease) in trade and other creditors
Movement in working capital
Cash generated from operations|(396,998)
399,986
2,988
968,310|(39,585)
106,051|
|||66,466|
|||131,997|
## **Reconciliation of net debt**
||**Balances at**|**Cashflows**|**Balances at**|
|---|---|---|---|
||**1st April**||**31st March**|
||**2021**||**2022**|
||**£**|**£**|**£**|
|Cash at bank and in hand|1,160,334|842,218|2,002,552|
|Loans falling due within one|(100,000)|-|(100,000)|
|year||||
|Loans falling due after more|(700,873)|107,042|(593,831)|
|than one year||||
||**----------**|**-----------**|**-----------**|
|TOTAL|**359,461**|**949,260**|**1,308,721**|
||**=======**|**=======**|**=======**|
53
The following page does not form part of the financial statements
54
_**Liverpool Charity and Voluntary Services**_
## **AFFILIATED ORGANISATIONS**
_**At 01 January 2023**_
_ADHD Foundation Age Concern Liverpool and Sefton Alzheimer’s Society Liverpool Anfield Sports & Community Centre Asylum Link Merseyside Autism Initiatives UK Birkenhead Youth Club Bradbury Fields Brook Liverpool Calder Kids Adventure Playground Catholic Blind Institute Channel Clock Community Centre Compass Cullen Street Green Harmony Faiths4Change FNF Both Parents Matter Merseyside Health Energy Advice Team Health Equalities Group Interchange Liverpool City Centre Methodist Church / Somewhere Else Liverpool Community Advice Liverpool Community Spirit Liverpool International Nordic Community Liverpool Merchants Guild Liverpool Parish Church Merseyside Civic Society Merseyside County Scout Council Merseyside Jewish Community Care Merseyside Somali and Community Association Moving On With Life & Learning Netherley Youth & Community Initiative Norris Green Youth Centre Ltd North End Writers North Liverpool CAB Nugent Care Options for Supported Living People First Merseyside_
_REACH Merseyside The Reader Organisation Relate Cheshire & Merseyside Roots Trust Rotunda Ltd Salvation Army Sefton Park Palm House Preservation Trust Shrewsbury House Youth and Community Centre South Liverpool Domestic Abuse Services St James in the City St John Ambulance St Michael’s & Lark Lane Community Association Sudley Area Residents Association Support After Murder & Manslaughter Merseyside Vauxhall Community Law and Information Centre Writing on the Wall YMCA Liverpool Zoe’s Place Trust_
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