OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-06-30-accounts

Charity registration number 273336

Company registration number 00135234 (England and Wales)

LETCHWORTH CIVIC TRUST

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees D P M Allen - NHDC M Iredale P M Jackson K J R Jones - LGCHF I Mantle - LGCHF M R Muir - HCC L A Needham, Chairperson C A Rogers C Sparshott, Treasurer P C Weeder - NHDC J A Williams Secretary S Jenkins Charity number 273336 Company number 00135234 Principal address 5 Gernon Walk Letchworth Garden City Hertfordshire SG6 3HW Registered office Suite 501 The Nexus Building Broadway Letchworth Garden City Herts SG6 9BL Independent examiner UHY Hacker Young Suite 501 The Nexus Building Broadway Letchworth Garden City Herts SG6 9BL

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 13

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2024

The trustees present their annual report and financial statements for the year ended 30 June 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The objectives of the trust are to promote and advance charitable purposes for the benefit of the public of Letchworth Garden City and its immediate neighbourhood. This is achieved primarily by the distribution of income, by way of grants to individuals, schools, clubs and other organisations operating in Letchworth Garden City.

The trust has continued its educational grant support to the university student and further education population and other school pupils and students in Letchworth Garden City. The trust also gives grants to a number of charitable organisations. The number and size of grant applications received from charities during the year is similar to the previous year. A website has increased awareness of the trusts's existence.

The trust has no plans to change its objectives or the means to achieve them.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

Achievements and performance

Significant activities and achievements against objectives

There has been a 3% increase in the number of 1st year students applying this year for educational support grants to help them with their further education. There has continued to be a large increase in primary school applications driven by the ongoing cost of living squeeze for families. We are very pleased that we have been able to accommodate all requests.

The trust has made a surplus in the year.

We are in the process of reviewing our investment portfolio with ethical investments being our aim.

Financial review

The trustees have noted the risks associated with changes in global markets, particularly the war in Ukraine, and are closely monitoring the returns on the trust's investments. Income via dividends for the year has been above that forecast, and also above that of the previous year. In view of general global unrest, the trust is in a healthy financial position.

Reserves policy

Under the reserves policy of the trust, the trustees aim to maintain free reserves in unrestricted funds at a level to meet the anticipated grant applications and governance costs in the period up to the receipts of significant income from investments and grants.

The balance held as unrestricted at 30 June 2024 was £241,198 all of which are regarded as free reserves, against anticipated expenditure of £75,000 up to the end of October 2024. The trustees consider that these reserves will be adequate to meet the requirements of the reserves policy.

The major investments are held primarily for their income potential and capital growth.

Structure, governance and management

The charity is controlled by its governing document, the Memorandum and Articles of Association dated 15 April 1914 as amended 14 June 2022. The trust is established as a company limited by guarantee.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 The trLtstees. who aro also the diiectors fL¥ th6 PUTPOS8 of company law. and who s&Ned durfng the year and up to the date of slgnature of th8 fin8nctal 5tatamèntS WaTe: D P MA118n- NHDC M Iiedale P M Jackson K J R Jon8s- LGCHF l Mand&- LGCHF MRMulr-HCC L A Needh8m, ch￿￿￿TS0n C A Rog8rs C Sparshott. TToasur8r P C Weeder- NHDC J A Williams R•crultnrent8nd app￿￿1 ofttuste&s TNsle¢s are 61thor 8locted as 1g¥rn tru¥1888 or 8ppoinlgd by the Letchworth Garden Clty H¢rltag¢ Foundatl¢)n ILGCHFI. North Herts o￿trICt Coun¢ll INHDCI or Herts County Councjl (HCCI. D•clslon maklng The trusteès.. Adopt a pthcy of dLgtrfbution of all inc￿ne, net of expgnses. by way of gr8nts. Tho 8ccumulaied fund$ ore rnaintain6d $0 8S to achi&ve future income at 8 levol neoded lo maintain futuro oxpendlture. Approvo grant 8pplieatiDns prior lo payment, and all in￿${MeThts policy de¢i¥lons, allhou9h th& day to day 8drninistralion is undertakcn by the secretary. Consider tha Major rlgk to bo the diminution of the v?luo of and rèlums on its invèstments. The trustees viow Ihts invostment pollcy and mit￿￿alC Ihi8 risk by foHowiTrg a wid¢sFxood tnvostmonl Olcy. The tsust8es hold lour board me8ting5 in ead) ygar. Wh8ro nacessgry, a sub committee ol tho tru8teo8 m8ets in be￿￿orD board meeting lo process addlI￿n￿l grant 8pJical¥)ns. Th& trust¥aY' TOPOrt was approved by the 8oard of TN$ts¥s. Noodhaffl. Chwirperson Trugto9 20 S&pternber2024

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LETCHWORTH CIVIC TRUST th• year 30 June 2024. R•sponslblllth• and bAsl¥ of v•port As the Iruslees of Ibe trusl18nd also its for th8 wnpary lawl yfA we respwBiblo lor the 2c￿6Actl. Ha￿￿j Satisffied mwWth81 Ihe thI•M￿lS of the ¥• to be oudk•J urthf Part 16 of the 2th)6 Ad and 8re ¢lwJiNo f¢r ir%Jepen¢ent exaThnatKJn, l ￿p(￿l in respect of rny exaM￿allOn ol thg tru#fs fjnanual slaiements rarried out unTJer 5eL1w)n 145 cl Iho Charities 2011 Ilhe 2011 A¢ll. In tarrwng oul My exominalfiM I have al th• aFfAicatrAe by th• ChBrity C(mmlMth und¢r 88ctic 14SI5Xbl of the 2011 ACL Ind•p•rrfl•rt•xamlnrf8 ¥tl•m I hav• completed my e¥orninatioTh. I Confi￿ trw¢ m•ller¥ to my att•rth l) th• •XArrinaiion glwrg m• cause to t4lM In ary malerlol ￿sPeCI.. aCCo￿￿n9 re¢£rfd• %w• kepl in resFttt ol ihe Irust 88 requrnl ty Mth1386 fAlhe 20064. Ihe ffinanc4al 8lalemen¢8 do tts)9• rec¥vds: crf Ihe Iln8ndal $tot¢M￿lS dD wlh the xc(wnlSr¥J YeqUkWn￿ts of 8O¢1th 396 01 tho 2006 Ac¢ otherth8n any requtrement that ihe arKI IS nci a mBttercuMI part c48n Ind8pWtsnlex8n￿n8tw)Th., tho flnandal slalements hav• r)t be•n pryed in th• Mel￿d& prfndfv d tho Slalement of Reeowffiarthd Prath¢• fcrf accountry * rewtirtrd by thariti•B appJ5cabk• lo dwld•s epariThJ Ihw 8ccouTrts in 8cc¥thc• th th• FinanraAI R•pu&vJ Stsndard 8PF4tcoble In the UK ¥nd RwJb4c of knk9nd IFRS 1021. I hm no wd he￿ c&vro cttw mattws In 4th th• •x•mlngkn to •ttentiM 8htyJld b• dr•wn i) tl41 rnp￿ (n •t4• • &¥opw u1th￿￿j1og cltho lknandal 8tat•mni8 to r•othed. UHY Hackwytyxwj 501 The N•xu$ BulklThJ Dat•d. .Al.IJAIk....

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income from:
Investments 3 119,889 107,151
Total income 119,889 107,151
Expenditure on:
Charitable activities 4 103,247 76,553
Total expenditure 103,247 76,553
Net gains/(losses) on investments 8 27,558 (35,501)
Net income/(expenditure) and movement in funds 44,200 (4,903)
Reconciliation of funds:
Fund balances at 1 July 2023 1,123,933 1,128,836
Fund balances at 30 June 2024 1,168,133 1,123,933

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS A T 30 JUNE 2024 2024 2023 Mot9¥ Flxed assets Investments 10 929.635 ¥YJ2.077 urrent a$tsots Dobtors C89h 81 bank and in hand 12 130 224,318 241,198 241.198 224,448 Credltorn: amounts falHng flug wlthln on•y 13 12,7001 12.5021 Net Cul￿nt ass81s 238.498 221,856 Total a••gts le¥• ¢urr•fft Ilabllltl•8 1,168.133 1,123.933 Incomo funds Unresirictod fund8 1,168,133 1.123,933 1,168,133 1,123,933 The company is entillod lo the gxemptlon froffl the audit requlremenl ¢onlain6d in sèelion 477 oflhe Compani08Ad 2￿j6, for the year ¢ndod 30 Juno 2024. The tNste88 ￿now18d96 thalf rssponslbUiti6s fLK c￿MplYIng wlh Ihe requlT8m?nts oflho Comp8nlw Act 2006 with respect lo a¢￿￿ntIng re¢ud$ an¢J lh8 pf8paration ol fiiianci¥l tslJ18rn8nl8. Th• mèn)br8 hava not r•qulrod the company ) obta1¢7 an audll of Its fln4n¢Aal st8t•ments for tho year In quosthn n aC￿rdanc￿ with s•ction 478. These financial st&temenls have been pr8P8red in 8ccDrd#rtc8 with the provisions 8ppli(*ble to CAJnp8nles to the small companies iegime. 20 September 2024 The financ481 ¥tslements wero 8pproved by th8 Trustees on........ ......... Needham, Chairparwi TNst•& ott, Treasurer Trustee Company Reglstratloft No. 00135234

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

Charity information

Letchworth Civic Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Suite 501, The Nexus Building, Broadway, Letchworth Garden City, Herts, SG6 9BL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The trust is 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 prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.

1.4 Income

Income is recognised when the trust 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.

Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

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

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The trust 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 in the trust's balance sheet when the trust 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 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The charity is exempt from corporation tax on its charitable activities.

2 Critical accounting estimates and judgements

In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate 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.

Valuation of unlisted investments

The company adopts the following policy using the principles outlined below, taking into account the specific circumstances of itself and the nature of its investment in Letchworth Housing Investments Limited.

The unlisted investment is valued on the assets basis, applying a minority interest discount of 70% reflecting the limited market for the asset. At each statement of financial position date, an impairment test is undertaken in order to determine whether any impairment is required for the investment by comparing the investment's carrying value to its estimated recoverable amount.

The recoverable amount is based on the net asset value of the underlying asset and is sensitive to the discount rate used.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

3 Investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Letchworth Housing Investments Limited 95,580 86,940
COIF Charities Investment Fund 3,477 3,464
Charifund 15,472 15,025
Interest receivable 5,360 1,722
119,889 107,151

4 Charitable activities

Honorarium
Office expenses
Bank charges
General expenses
Grant funding of activities (see note 5)
Governance costs - Audit and accountancy
2024
£
3,000
1,500
130
383
5,013
95,384
2,850
103,247
2023
£
3,000
1,500
128
307
4,935
68,884
2,734
76,553

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

5 Grants payable

Grants to institutions:
J Archer Headway Herts
St Thomas Church
Local schools
NHDC Citizens Advice Bureau
Britton School of Performing Arts
North Herts Speakers
Wymondley Wood Scout Group
Other
67 University and further education students received average grants of £500 for
educational learning materials
No individuals received average grants of £400 for educational, medical or
sporting support
1 individual received an average of £300 for miscellaneous local grants
2024
£
5,000
900
51,754
5,000
1,000
-
-
-
63,654
31,430
-
300
95,384
2023
£
-
-
9,129
5,000
-
300
12,000
500
26,929
37,185
2,000
2,770
68,884

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the trust during the year.

During the year, an honorarium of £3,000 and office expenses of £1,500 were paid to the secretary (2023 - £3,000 and £1,500 respectively).

7 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

8 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investments 27,558 (35,501)

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10 Fixed asset investments

Listed
investments
Unlisted
investments
£
£
Cost or valuation
At 1 July 2023
457,077
445,000
Valuation changes
42,558
(15,000)
At 30 June 2024
499,635
430,000
Carrying amount
At 30 June 2024
499,635
430,000
At 30 June 2023
457,077
445,000
Total
£
902,077
27,558
929,635
929,635
902,077

The unlisted investments represent the charitable company's shareholding in Letchworth Housing Investments Limited, a company registered in England (Registered number 07128548), whose registered office address is Unit 1b, Focus Four, Fourth Avenue, Letchworth Garden City, Hertfordshire, England, SG6 2TU.

Revaluation

Listed investments are revalued using market value share prices at the balance sheet date. Unlisted investments are revalued based on a calculated recoverable amount on the net asset value of the underlying asset (details of which are included in note 2).

If fixed asset investments had not been revalued they would have been included at historical cost which is £294,905 (2023 - £294,905).

11

Financial instruments 2024 2023
£ £
Carrying amount of financial assets
Instruments measured at fair value through profit or loss 499,635 457,077

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

12 Debtors

12
Debtors
Amounts falling due within one year:
Prepayments and accrued income
13
Creditors: amounts falling due within one year
Accruals and deferred income
2024
£
-
2024
£
2,700
2023
£
130
2023
£
2,592

14 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
General funds
Previous year:
At 1
General funds
July 2023
Incoming
resources
Resources
expended
Gains and
losses
At 30 June
2024
£
£
£
£
£
1,123,933
119,889
(103,247)
27,558
1,168,133
July 2022
Incoming
resources
Resources
expended
Gains and
losses
At 30 June
2023
£
£
£
£
£
1,128,836
107,151
(76,553)
(35,501)
1,123,933

15 Analysis of net assets between funds

Unrestricted
funds
2024
£
At 30 June 2024:
Investments 929,635
Current assets/(liabilities) 238,498
1,168,133

LETCHWORTH CIVIC TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

15 Analysis of net assets between funds (Continued)
Unrestricted
funds
2023
£
At 30 June 2023:
Investments 902,077
Current assets/(liabilities) 221,856
1,123,933

16 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).