Charity Rogi8tration No. 237056 LIGHTBOWN COTTAGE HOME TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
LIGHTBOWN COThAGE HOME TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr P Jennings Mr D J Marsden MrT Watson Mrs B Holden Mr R Done (Appointed 19 Octr)ber 20211 Charity number 237056 Princlpal addr68$ 29 Sunnymere Driv8 Darwen Lancashire BB3 1RH Accountants Hindle Jepson & Jennings Ltd 10 Borough Road Darwen Lancashire BB3 1PL Bankers National Weslminsler Bank plc 35 King William Street Blackburn Lancashire BB17DJ
LIGHTBOWN COThAGE HOME TRUST CONTENTS Pago Trustees, report Accountants, reF<Jrt Slat&ment of financial activitses Balan sheet Notes to the financial statements 5-12
LIGHTBOWN COThAGE HOME TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees present their report and financial ststements for the year ended 31 December 2021. The aOunt$ have been prepared in accordance with the accounting policies sel out in note I to the accounts and comply with the Trust's goveming doeum8nt, the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Rets)mmended Piacti¢e applicable lo charities preparing their acLounts in ac(x)rdance with the Financial Reporting Standard applieable in th8 UK and Republic of Ireland {FRS 102}" las amended for accounting periods commencing from 1 January 20161 Objoctives and activities The Trusvs objects are to provide cottage homes to aged persons of Darnven. The poliue5 adopted in furtherance of these objects are to maintain the cottages and provide comfortable accommodation at affordable price. There has been no change in these during the year. The Trustees have paid due regard lo gutdance issued by the Charity Commission in deciding what activities the Trust should undèrtake. Achlevements and perfornian¢• During the year the Trust provided 8 cottages whi¢h were fully maintained. Financial review The Trust has maintained ils level of income in the yoar. 11 is the poli of the Trust that unresliicled funds which have not been designated for a specific use should be maintained at a level equivalent to begen three and six month's expenditure. The Trustees consider that reserves at this level will ensur8 that, in the event of a signrficant drop in funding, they will be able lo continue the Trusys current activities while consideralion is given to ways in which additional funds may be raised. This level of reseNes has been maintsined throughout the year. The Trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. structur•* governanco and management The Trust was estsblished by a charitable INSI deed on 26th July 1915. from a bequest made by the late Timothy Lightbown who died September 1910. The Tfustees who served during the year and up to the date of sigftature of the financial statements were.. Mr G Holden (Deceased 25 April 20211 Mr P Jennings Mr D J Marsd8n Mr T Walson Mrs B Holden Mr R Done (Appointed 19 October 20211 Trustees shall be appointed to fill vacancies by the Twstees al a Special Meeting of their body lo be held after a lapse of one calendar month from the ¢)CrrenCe of such vacancy by a resoluts'on lo be forthwilh nolffied by them with all propgr information lo the Charity Commission. None of The Truslees has any benef81 interest in the company. The tru$lees' report was approved by Ihe Board of Truslees. Trustee Dated. aq:..l.:...?l .
LIGHTBOWN COThAGE HOME TRUST CHARTERED CERTIFIEDACCOUNTANTS. REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LIGHTBOWN COTTAGE HOME TRUST FOR THE YEAR ENDED 31 DECEMBER 2021 In order to assist you to fvlfil your duties under tha Charities Act 2011, we have prepared for your approval the financial statements of Lightbown Coltage Home Trust for the year ended 31 0mber 2021, set out on pages 3 to 12 from the eharily's accounting records and from infomialion and explanations you have givgn us. A5 a practssing member firm of the Ass¢xiation of Chartered Certified Accountants, we are Subject to ils ethical and other professional requirements which are detsiled at https.'IlvMv.accagiobal.comlgblenlmemberlslandardsl rules-and-stsndardslrulebook.hlml. This report is made lo the tharity's Trustees, as a body, in accordance with the temis of our eng8Jement letter dated 27 August 2019. Our work has been undertaken solety to prepare for your approval the financial statements of Lighlbown Collage Home Trust and slalo those matters that we have agreed lo state lo th charity's Trustèes, as a Ix)dy, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detsiled al https.'IlvMw.accaglobal.comlconlentldamlACCA Globawfechnicallfacv technal-faCtsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume re$Fonsibility to anyone other than Lightbown Cottage Home Trust and the charity's Trustees as a body, for our work or for this report. It is your duty to ensure that Lightbown Cottage Home Trust ha$ kept adequate accounting records and lo prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial posibon and surplus of Lighlbown Cottage Home Trust. You consider that Lightbown Cottage Home Trust is exempt from the statutory audit requirement for the year. and is not required lo obtain an independent oxaminorfs report. have not been instructed to carry out an audit or 8 review of the fin8ncial statements of Lighlbown Cottage Home Trust For Ihis reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. Hindlg Jep80n & Jonnlngs Ltd Chartered certifi Accountants 10 Borough Road Darwen Lancashire BB31PL
LIGHTBOWN COThAGE HOME TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Unre8ti1Ct Unrestricted funds funds 2021 2020 Other trading activities Investments Other income 18,952 6,298 200 18,548 7,652 Total incomo 25,448 26,200 Charitable activities 21,842 15.836 Net gainslllosses) on investments 10 17,997 113,392) Not movem•nl in funds 21,603 13,028) Fund balances at 1 January 2021 257.156 260,184 Fund balanc08 at 31 December 2021 278,759 257,156 The statsment of financial aclivitias indudes all gains and losses reccgnised in the year. All income and expenditure derive from continuing activitw.
LIGHTBOWN COTTAGE HOME TRUST BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notès Fixgd assets Tangible assets Investsnents 11 12 28,595 214,746 28,899 190,639 243.341 219.538 Currgnt a880ts Debtors Cash at bank and in hand 13 1,222 35,732 1,301 37.453 36,954 38,754 Croditors: amount8 falllng due wlthln ono year 14 (1,5361 (1.1361 Net current assets 35,418 37,618 Total assets l•s* curront liabllltlos 278,759 257,156 Ineome funds re Designaled funds General unreslricled funds Revaluation reserve 15 62,435 139,281 77,043 63,546 134.564 59.046 278,759 257,156 278.759 257,156 The accounts were approved by the Trustees on .. Trustee Trustee
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng pollcles Charlty inforniation Lightbown Cottage Home Trust 1$ a Trust whieh was established by a charitable deed on 26th July 1915. The principal addresg Is 29 Sunnymerè Drive, Darwen, Lancashire, BB3 1 RH. 1.1 Accounting convention The accounts have been prepared in accordance with the Trust's governing dceumenl. the Charities Act 2011 and "Accounting and Reporting by Charities: Slalement of Recommended Practice applic8ble to ehariti&s preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}° las amended ft)r accounting periods commencing from 1 January 2016). The Trust 1$ a Public Benefit Entity as defined by FRS 102. The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to Pfepaie a Statement of Cash Flows. The fi'nancial $Èalemenl8 are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been ppared under the historical cost convention, modrfied to include the revaluation of freehold properties and to include investment properties and certain finanaal instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concorn At the lime of approving the financial slalements. the Trustee8 have a feasonable expectation that the Trust has adequate resources to continue in opemlional existen for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charltablo funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their ¢haritable objectives. Endowment frjnds are subject to sp8¢ific conditv)n$ by donors that the capital must be maintained by the Twst 1A Incoming rosource8 Income is recognised when the Trust is legally entitled lo it after any performonce conditions have been met, the amounts ean be measured raliably, and it is probable that inwme will be received. Cash donations are recogni8ed on receipt. Other donations are recognised once the Trust has been notrfied of the donation, unless performance conditions roquire deferial of th8 amount. Income lax recoverable in relation lo donations received under Gift Aid or deeds of covenant is recogni58d at Ihe time of the donation. Legacies a recognised on receipt or otherwise if the Trust has been notified of an impending distribution. the 8mounl is known, and receipt is expected. If the amount is not known. Ihe legacy is treated a$ a contingent assel. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. VAT and othor sales related taxes.
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng policies (Contlnuedl 1.5 Resou9$ expondad All expenditure is aecounted for on an aLxruals basis and applied under the appropriate heading. Liabilities are recognised as resources expended as soon ag the obligation and commitment by the Charity to the expenditure arises. 1.6 Tangiblg Ilxod a888ts Tangible fixed assets are inrtially measured at cost and subsequently measured at ¢0St or valuation, net of depreciation and any impairment losses. Dgpreciation is recognised so as to write off the cost or valuation of assels less their residual values over theif useful lives on the following bases.. Land and buifdings 1% 5traighl line The gain or loss arising on the disposal of an asset is dgtermined as Ihe difference befvleen the sale proceeds and the carrying value of the asset, and is recognised in net incomellexpendilurel for the year. 1.7 Flx¢d asset Inv08tments Fixed asset investsrenls are initially measured al ttansaclion prtce oxcluding 1ransacb.on costs, and are subsequently measured al tsir value al each reporting dale. Changes in fair value are lgcognised in incomel{expenditurel for the year. Transaetion costs are expensed as incurred. 1.8 Impairni•nt of fixod assets At each reporting end date. the Trust reviews the carrying amounts of ils tangible assets to determina whether there is any indication that those assets have suffered an impairment loss. If any such indication e$ts, the recoverable amount of the asset is eslimaled in order to determine the extent of the imFRirmenl ss {rf any). 1.9 Cash and eash equivalonts Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-terni liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in ¢urcont liabilities. 1.10 Flnanclal instruments The Trust has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are rgcognised in the Trusf5 balance sheet when the Trust becomes paty to the ¢ontractU81 provisions of the instrument. Financial a58ets and liabilities are offset. with the net amounts presented in the finaneial statements, when there 15 a legally enforceable right to set off the recognised amounts and there is an intenb'on to settle on net basis or to realise the gs$et and settle the liability simultaneously. 81¢ financial assets Basic financial assets, which in¢lude debtors and cash and bank balances, are initlty measured at transaction price including transaclK)n costs and are subsequently caNied al amortised cost using Ihe effective interest method unless th8 arrangement conslilules a financing transaction, where the transaction is measured at the present value of the future receipts discounted at 8 market rate of inte8t. Financial assets dassffied as ieceivable within one year are not amortisgd.
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Aocountlng pollcl•8 (Contlnued) Basic financlal Ilabilities Basic financial liabilities, including creditors and bank loans are ini11811y recognised al transaction price unloss Ihe arrangement eonstilutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of Inte$L Financial liabilities classffied as payable within one year are not amortised. Debt instruments are subsequently carried at amortiS co$L using the effective inlergsl rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary Clr8e of operations from suppliers. Amounts payable are classif*d as current liabilities rf payment is due within one year or les8. If not. they are presented as non-current liabilities. Trade creditors are recognised ini(ially at Iransaction price and subsequently measured at amortised cost using the effectr.ve interest method. Dere¢ognition of flnancial liabilitles Financial liabilitses are derecogni8ed when the Tru8f8 contractual obligations expire or are discharged or cancelled. Critical accounting estlmate8 and judgem•nt8 In the applscation of the Trusys accounting policies. the Trustses are required to make judgements. estimales and assumptions about the carrying amount of assels and liabilities that are not readily apparent from other sources The estimates and associated assumptions are based on historical experience and other factors Ihat are considered to be relevant. Actual results may drffer from these estimates. The estimates and underlying assumptions are r8viewed on an ongoing basis. Revisions to accounting estimates are recognised in the pgriod in which the eslimalg is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Other trading activlt1•8 Unrestrictad Unrestricted funds funds 2021 2020 Maintenance Contributions 18,952 18.548
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Inv8Stments Unro$tri¢tod Unrestricted funds funds 2021 2020 Income from listed invegtments Interest retsivable 6,264 32 7,619 33 6,296 7,652 Other incom• Unrn8tricted fuThd$ Total 2021 2020 Other income 200 6 Charltable activitles Housing provision 2021 Housing provision 2020 Service costs Day lo day maintenance 2,944 15,402 2,896 9.518 18,346 12.414 Share of govem8nce costs (see note 71 3.496 3.422 21,842 15.836
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Support costs Support Gov•man costs ¢08ts 2021 2020 Basis of allocation Depreci*ion 304 304 304 Accountan Clerks honorarium Sundry Management 888 Govemance 1,466 Governan 268 Govemanee 496 Governance 1.488 659 499 1,488 659 499 3.496 3,496 3.422 Analysed between Charitable actNities 3,496 3,496 3,422 Governance $ts includes paymonts to the accountants of £546 {202 £888} for aecountsncy fees. Trustee8 None of the Trustees lor any persons connected with them) received any remuneration durin9 the year. Employees The average monthly number of employees during the year wa$: 2021 Number 2020 Number Total
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 10 Not galn81{1066e8) on invostsnents 2021 2020 Revaluation of inveslments 17,997 {13,3921 11 Tanglblo fixed a8Sfrt8 Land and bulldlnos Cost Ai 1 January 2021 30,420 Al 31 December 2021 30,420 Depreciation and Impairnlgnt Al 1 January 2021 Dgprecialion charged in the year 1,521 304 At 31 Detsmber 2021 1,825 Carrylng amount At 31 December 2021 28,595 At 31 December 2020 28,899 12 Flxed assot investments Unlistod inve#tm•nts Cost or valuatlon At 1 January 2021 Additions ValuatM)n changes 190,639 6.110 17,997 At 31 DeCemr 2021 214.746 Carrying amount At 31 Oecember 2021 214,746 At 31 t)eeember 2020 190,639 10-
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 13 Debtors 2021 2020 Amounts falllng due within one yoar: Trade debtors Prepayments and accrued income 176 271 1.030 1.222 1,301 14 Cr•dltorn: amounts falling due withln one year 2021 2020 Aral$ and deferred income 1,536 1,136 15 0g$ignatod fund$ The income fvnds of the charity includ¢ the following designated funds which have been sel aside out of unrestricted funds by the trustees for specific purposes.. B#lanc• at 1 janary 2020 Re¥ourc88 Investrn•rts Balance at R•sources Inv8stsngnts Bala+¥¢ exp•nd8d yins11088881 J2nuary 2021 •xpondod galnBlloBMs 31 DKembor 2021 Major Repair Rgserve 60,290 {4.200} 7,456 63.546 17,2211 6.110 62,435 60.290 14,2001 7,456 63,546 {7,2211 6,110 62,435 11
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 16 Value lor Mongy Mgtrfcs IVFMI: AS rnqulrod by the Regulalor of Soclal Hou8ing (June 2019) M8asurgs of Economy. Efficioncy and Effèctrvènes8 2021 2019 Reinveslmen % -Amounls spent on new properties as % of existing tangible fixed asset value New Supply %-Number of new properties acquired a5 a of existing properties owned a. Social Housing Units b. Non Social Housing Units 0% Gearlng Whow much of assets is made up of dgbl. This result may be negative where the Provider has no loan agreements in place -1.25% -1.29% EBITDA MRI Inlerest Cover %-level of eamings (before tax, depreciation, amortisats'on, major repairs included) compared to interest payable (financing Costs) 0% Headline Social Housing Cost-lotal annual running costs per Social Housing Unit owned £2,692 £1,941 Opefaling Margin %-operating surplus as a % of total income a. Social Housing Letting b. Overall 1.14% 1.14% -0.16% 1.16% Retum on Capital Employed Okn-operating surplu$ a$ a % of net current assets employed 0.07% -0.01% 17 Relatod party transaGtion8 There were no disdosable related paty transactions during the year12020 - none). 12-
Charity Rogi8tration No. 237056 LIGHTBOWN COTTAGE HOME TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
LIGHTBOWN COThAGE HOME TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr P Jennings Mr D J Marsden MrT Watson Mrs B Holden Mr R Done (Appointed 19 Octr)ber 20211 Charity number 237056 Princlpal addr68$ 29 Sunnymere Driv8 Darwen Lancashire BB3 1RH Accountants Hindle Jepson & Jennings Ltd 10 Borough Road Darwen Lancashire BB3 1PL Bankers National Weslminsler Bank plc 35 King William Street Blackburn Lancashire BB17DJ
LIGHTBOWN COThAGE HOME TRUST CONTENTS Pago Trustees, report Accountants, reF<Jrt Slat&ment of financial activitses Balan sheet Notes to the financial statements 5-12
LIGHTBOWN COThAGE HOME TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees present their report and financial ststements for the year ended 31 December 2021. The aOunt$ have been prepared in accordance with the accounting policies sel out in note I to the accounts and comply with the Trust's goveming doeum8nt, the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Rets)mmended Piacti¢e applicable lo charities preparing their acLounts in ac(x)rdance with the Financial Reporting Standard applieable in th8 UK and Republic of Ireland {FRS 102}" las amended for accounting periods commencing from 1 January 20161 Objoctives and activities The Trusvs objects are to provide cottage homes to aged persons of Darnven. The poliue5 adopted in furtherance of these objects are to maintain the cottages and provide comfortable accommodation at affordable price. There has been no change in these during the year. The Trustees have paid due regard lo gutdance issued by the Charity Commission in deciding what activities the Trust should undèrtake. Achlevements and perfornian¢• During the year the Trust provided 8 cottages whi¢h were fully maintained. Financial review The Trust has maintained ils level of income in the yoar. 11 is the poli of the Trust that unresliicled funds which have not been designated for a specific use should be maintained at a level equivalent to begen three and six month's expenditure. The Trustees consider that reserves at this level will ensur8 that, in the event of a signrficant drop in funding, they will be able lo continue the Trusys current activities while consideralion is given to ways in which additional funds may be raised. This level of reseNes has been maintsined throughout the year. The Trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. structur•* governanco and management The Trust was estsblished by a charitable INSI deed on 26th July 1915. from a bequest made by the late Timothy Lightbown who died September 1910. The Tfustees who served during the year and up to the date of sigftature of the financial statements were.. Mr G Holden (Deceased 25 April 20211 Mr P Jennings Mr D J Marsd8n Mr T Walson Mrs B Holden Mr R Done (Appointed 19 October 20211 Trustees shall be appointed to fill vacancies by the Twstees al a Special Meeting of their body lo be held after a lapse of one calendar month from the ¢)CrrenCe of such vacancy by a resoluts'on lo be forthwilh nolffied by them with all propgr information lo the Charity Commission. None of The Truslees has any benef81 interest in the company. The tru$lees' report was approved by Ihe Board of Truslees. Trustee Dated. aq:..l.:...?l .
LIGHTBOWN COThAGE HOME TRUST CHARTERED CERTIFIEDACCOUNTANTS. REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LIGHTBOWN COTTAGE HOME TRUST FOR THE YEAR ENDED 31 DECEMBER 2021 In order to assist you to fvlfil your duties under tha Charities Act 2011, we have prepared for your approval the financial statements of Lightbown Coltage Home Trust for the year ended 31 0mber 2021, set out on pages 3 to 12 from the eharily's accounting records and from infomialion and explanations you have givgn us. A5 a practssing member firm of the Ass¢xiation of Chartered Certified Accountants, we are Subject to ils ethical and other professional requirements which are detsiled at https.'IlvMv.accagiobal.comlgblenlmemberlslandardsl rules-and-stsndardslrulebook.hlml. This report is made lo the tharity's Trustees, as a body, in accordance with the temis of our eng8Jement letter dated 27 August 2019. Our work has been undertaken solety to prepare for your approval the financial statements of Lighlbown Collage Home Trust and slalo those matters that we have agreed lo state lo th charity's Trustèes, as a Ix)dy, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detsiled al https.'IlvMw.accaglobal.comlconlentldamlACCA Globawfechnicallfacv technal-faCtsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume re$Fonsibility to anyone other than Lightbown Cottage Home Trust and the charity's Trustees as a body, for our work or for this report. It is your duty to ensure that Lightbown Cottage Home Trust ha$ kept adequate accounting records and lo prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial posibon and surplus of Lighlbown Cottage Home Trust. You consider that Lightbown Cottage Home Trust is exempt from the statutory audit requirement for the year. and is not required lo obtain an independent oxaminorfs report. have not been instructed to carry out an audit or 8 review of the fin8ncial statements of Lighlbown Cottage Home Trust For Ihis reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. Hindlg Jep80n & Jonnlngs Ltd Chartered certifi Accountants 10 Borough Road Darwen Lancashire BB31PL
LIGHTBOWN COThAGE HOME TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Unre8ti1Ct Unrestricted funds funds 2021 2020 Other trading activities Investments Other income 18,952 6,298 200 18,548 7,652 Total incomo 25,448 26,200 Charitable activities 21,842 15.836 Net gainslllosses) on investments 10 17,997 113,392) Not movem•nl in funds 21,603 13,028) Fund balances at 1 January 2021 257.156 260,184 Fund balanc08 at 31 December 2021 278,759 257,156 The statsment of financial aclivitias indudes all gains and losses reccgnised in the year. All income and expenditure derive from continuing activitw.
LIGHTBOWN COTTAGE HOME TRUST BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notès Fixgd assets Tangible assets Investsnents 11 12 28,595 214,746 28,899 190,639 243.341 219.538 Currgnt a880ts Debtors Cash at bank and in hand 13 1,222 35,732 1,301 37.453 36,954 38,754 Croditors: amount8 falllng due wlthln ono year 14 (1,5361 (1.1361 Net current assets 35,418 37,618 Total assets l•s* curront liabllltlos 278,759 257,156 Ineome funds re Designaled funds General unreslricled funds Revaluation reserve 15 62,435 139,281 77,043 63,546 134.564 59.046 278,759 257,156 278.759 257,156 The accounts were approved by the Trustees on .. Trustee Trustee
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng pollcles Charlty inforniation Lightbown Cottage Home Trust 1$ a Trust whieh was established by a charitable deed on 26th July 1915. The principal addresg Is 29 Sunnymerè Drive, Darwen, Lancashire, BB3 1 RH. 1.1 Accounting convention The accounts have been prepared in accordance with the Trust's governing dceumenl. the Charities Act 2011 and "Accounting and Reporting by Charities: Slalement of Recommended Practice applic8ble to ehariti&s preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}° las amended ft)r accounting periods commencing from 1 January 2016). The Trust 1$ a Public Benefit Entity as defined by FRS 102. The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to Pfepaie a Statement of Cash Flows. The fi'nancial $Èalemenl8 are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been ppared under the historical cost convention, modrfied to include the revaluation of freehold properties and to include investment properties and certain finanaal instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concorn At the lime of approving the financial slalements. the Trustee8 have a feasonable expectation that the Trust has adequate resources to continue in opemlional existen for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charltablo funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their ¢haritable objectives. Endowment frjnds are subject to sp8¢ific conditv)n$ by donors that the capital must be maintained by the Twst 1A Incoming rosource8 Income is recognised when the Trust is legally entitled lo it after any performonce conditions have been met, the amounts ean be measured raliably, and it is probable that inwme will be received. Cash donations are recogni8ed on receipt. Other donations are recognised once the Trust has been notrfied of the donation, unless performance conditions roquire deferial of th8 amount. Income lax recoverable in relation lo donations received under Gift Aid or deeds of covenant is recogni58d at Ihe time of the donation. Legacies a recognised on receipt or otherwise if the Trust has been notified of an impending distribution. the 8mounl is known, and receipt is expected. If the amount is not known. Ihe legacy is treated a$ a contingent assel. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. VAT and othor sales related taxes.
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng policies (Contlnuedl 1.5 Resou9$ expondad All expenditure is aecounted for on an aLxruals basis and applied under the appropriate heading. Liabilities are recognised as resources expended as soon ag the obligation and commitment by the Charity to the expenditure arises. 1.6 Tangiblg Ilxod a888ts Tangible fixed assets are inrtially measured at cost and subsequently measured at ¢0St or valuation, net of depreciation and any impairment losses. Dgpreciation is recognised so as to write off the cost or valuation of assels less their residual values over theif useful lives on the following bases.. Land and buifdings 1% 5traighl line The gain or loss arising on the disposal of an asset is dgtermined as Ihe difference befvleen the sale proceeds and the carrying value of the asset, and is recognised in net incomellexpendilurel for the year. 1.7 Flx¢d asset Inv08tments Fixed asset investsrenls are initially measured al ttansaclion prtce oxcluding 1ransacb.on costs, and are subsequently measured al tsir value al each reporting dale. Changes in fair value are lgcognised in incomel{expenditurel for the year. Transaetion costs are expensed as incurred. 1.8 Impairni•nt of fixod assets At each reporting end date. the Trust reviews the carrying amounts of ils tangible assets to determina whether there is any indication that those assets have suffered an impairment loss. If any such indication e$ts, the recoverable amount of the asset is eslimaled in order to determine the extent of the imFRirmenl ss {rf any). 1.9 Cash and eash equivalonts Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-terni liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in ¢urcont liabilities. 1.10 Flnanclal instruments The Trust has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are rgcognised in the Trusf5 balance sheet when the Trust becomes paty to the ¢ontractU81 provisions of the instrument. Financial a58ets and liabilities are offset. with the net amounts presented in the finaneial statements, when there 15 a legally enforceable right to set off the recognised amounts and there is an intenb'on to settle on net basis or to realise the gs$et and settle the liability simultaneously. 81¢ financial assets Basic financial assets, which in¢lude debtors and cash and bank balances, are initlty measured at transaction price including transaclK)n costs and are subsequently caNied al amortised cost using Ihe effective interest method unless th8 arrangement conslilules a financing transaction, where the transaction is measured at the present value of the future receipts discounted at 8 market rate of inte8t. Financial assets dassffied as ieceivable within one year are not amortisgd.
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Aocountlng pollcl•8 (Contlnued) Basic financlal Ilabilities Basic financial liabilities, including creditors and bank loans are ini11811y recognised al transaction price unloss Ihe arrangement eonstilutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of Inte$L Financial liabilities classffied as payable within one year are not amortised. Debt instruments are subsequently carried at amortiS co$L using the effective inlergsl rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary Clr8e of operations from suppliers. Amounts payable are classif*d as current liabilities rf payment is due within one year or les8. If not. they are presented as non-current liabilities. Trade creditors are recognised ini(ially at Iransaction price and subsequently measured at amortised cost using the effectr.ve interest method. Dere¢ognition of flnancial liabilitles Financial liabilitses are derecogni8ed when the Tru8f8 contractual obligations expire or are discharged or cancelled. Critical accounting estlmate8 and judgem•nt8 In the applscation of the Trusys accounting policies. the Trustses are required to make judgements. estimales and assumptions about the carrying amount of assels and liabilities that are not readily apparent from other sources The estimates and associated assumptions are based on historical experience and other factors Ihat are considered to be relevant. Actual results may drffer from these estimates. The estimates and underlying assumptions are r8viewed on an ongoing basis. Revisions to accounting estimates are recognised in the pgriod in which the eslimalg is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Other trading activlt1•8 Unrestrictad Unrestricted funds funds 2021 2020 Maintenance Contributions 18,952 18.548
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Inv8Stments Unro$tri¢tod Unrestricted funds funds 2021 2020 Income from listed invegtments Interest retsivable 6,264 32 7,619 33 6,296 7,652 Other incom• Unrn8tricted fuThd$ Total 2021 2020 Other income 200 6 Charltable activitles Housing provision 2021 Housing provision 2020 Service costs Day lo day maintenance 2,944 15,402 2,896 9.518 18,346 12.414 Share of govem8nce costs (see note 71 3.496 3.422 21,842 15.836
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Support costs Support Gov•man costs ¢08ts 2021 2020 Basis of allocation Depreci*ion 304 304 304 Accountan Clerks honorarium Sundry Management 888 Govemance 1,466 Governan 268 Govemanee 496 Governance 1.488 659 499 1,488 659 499 3.496 3,496 3.422 Analysed between Charitable actNities 3,496 3,496 3,422 Governance $ts includes paymonts to the accountants of £546 {202 £888} for aecountsncy fees. Trustee8 None of the Trustees lor any persons connected with them) received any remuneration durin9 the year. Employees The average monthly number of employees during the year wa$: 2021 Number 2020 Number Total
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 10 Not galn81{1066e8) on invostsnents 2021 2020 Revaluation of inveslments 17,997 {13,3921 11 Tanglblo fixed a8Sfrt8 Land and bulldlnos Cost Ai 1 January 2021 30,420 Al 31 December 2021 30,420 Depreciation and Impairnlgnt Al 1 January 2021 Dgprecialion charged in the year 1,521 304 At 31 Detsmber 2021 1,825 Carrylng amount At 31 December 2021 28,595 At 31 December 2020 28,899 12 Flxed assot investments Unlistod inve#tm•nts Cost or valuatlon At 1 January 2021 Additions ValuatM)n changes 190,639 6.110 17,997 At 31 DeCemr 2021 214.746 Carrying amount At 31 Oecember 2021 214,746 At 31 t)eeember 2020 190,639 10-
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 13 Debtors 2021 2020 Amounts falllng due within one yoar: Trade debtors Prepayments and accrued income 176 271 1.030 1.222 1,301 14 Cr•dltorn: amounts falling due withln one year 2021 2020 Aral$ and deferred income 1,536 1,136 15 0g$ignatod fund$ The income fvnds of the charity includ¢ the following designated funds which have been sel aside out of unrestricted funds by the trustees for specific purposes.. B#lanc• at 1 janary 2020 Re¥ourc88 Investrn•rts Balance at R•sources Inv8stsngnts Bala+¥¢ exp•nd8d yins11088881 J2nuary 2021 •xpondod galnBlloBMs 31 DKembor 2021 Major Repair Rgserve 60,290 {4.200} 7,456 63.546 17,2211 6.110 62,435 60.290 14,2001 7,456 63,546 {7,2211 6,110 62,435 11
LIGHTBOWN COThAGE HOME TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 16 Value lor Mongy Mgtrfcs IVFMI: AS rnqulrod by the Regulalor of Soclal Hou8ing (June 2019) M8asurgs of Economy. Efficioncy and Effèctrvènes8 2021 2019 Reinveslmen % -Amounls spent on new properties as % of existing tangible fixed asset value New Supply %-Number of new properties acquired a5 a of existing properties owned a. Social Housing Units b. Non Social Housing Units 0% Gearlng Whow much of assets is made up of dgbl. This result may be negative where the Provider has no loan agreements in place -1.25% -1.29% EBITDA MRI Inlerest Cover %-level of eamings (before tax, depreciation, amortisats'on, major repairs included) compared to interest payable (financing Costs) 0% Headline Social Housing Cost-lotal annual running costs per Social Housing Unit owned £2,692 £1,941 Opefaling Margin %-operating surplus as a % of total income a. Social Housing Letting b. Overall 1.14% 1.14% -0.16% 1.16% Retum on Capital Employed Okn-operating surplu$ a$ a % of net current assets employed 0.07% -0.01% 17 Relatod party transaGtion8 There were no disdosable related paty transactions during the year12020 - none). 12-