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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 1494221 (England and Wales) REGISTERED CHARITY NUMBER: 510670

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Foster & Co Ltd Unit 16 Eastway Business Village Olivers Place Fulwood Preston PR2 9WT

LANCASTER AND DISTRICT FESTIVAL LIMITED

CONTENTS

REPORT OF THE TRUSTEES
STATEMENT OF TRUSTEES RESPONSIBILITIES
REPORT OF INDEPENDENT EXAMINER
STATEMENT OF FINANCIAL ACTIVITIES
BALANCE SHEET
NOTES TO THE FINANCIAL STATEMENTS
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
Page
1 TO 5
3
6
7
8
9 TO 12

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of the Statements of Recommended Practice (SORP) applicable to Charities preparing their accounts.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 1494221 (England and Wales)

Registered Charity Number 510670

Registered Office

The Storey Meeting House Lane Lancaster LA1 1TH

Trustees/(Directors)

J Bell (Chair) J Hope N S Charlesworth WJG Swainson S M Argent J Doherty (Resigned 19 May 2021) O R Egdell-Page E R Crighton M J Lounds (Resigned 30 April 2022)

Company Secretary N S Charlesworth

Accountants

Foster & Co Ltd Unit 16 Eastway Business Village Olivers Place Fulwood Preston PR2 9WT

Solicitors

Oglethorpe, Sturton & Gillibrand 16 Castle Park Lancaster LA1 1YG

The full name of the Charity is Lancaster & District Festival Ltd. We operate under the name of, and are hereafter referred to as, ‘Litfest’.

Page 1

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

OBJECTIVES AND ACTIVITIES

Objectives and activities

The objects for which the Company is established are to promote, maintain, improve and advance public education, appreciation and understanding of the Arts. With particular reference to literature, Litfest exists to develop, challenge and celebrate literary excellence, and the organisational aims are as outlined below.

Organisational aims

STRUCTURE AND GOVERNANCE

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The new trustees are appointed by the board of trustees.

The organisation seeks to recruit trustees with skills appropriate to the charities objectives and organisational requirements. Suitable candidates are invited to board meetings prior to being voted onto the board.

Induction and training of new trustees

Newly elected trustees are provided with copies of the written constitutions of the charity and a written copy of the aims and objectives of the charity.

Organisation structure and how decisions are made

The Board of Trustees (Directors) meet every three months. The board establishes small working parties as and when necessary to deal with particular issues. Working parties report back to the full meetings of the board. The Finance Officer provides the management accounts to the board on a quarterly basis. Decisions are made with reference to the charity’s aims and objectives.

Relationship with other groups, charities and individuals

Litfest receives core support annually from Lancaster City Council and the Arts Council.

Public Benefit

The Trustees have complied with their duty under Section 17 (5) of the Charities Act 2011 to pay due regard to the Charities Commission guidance concerning public benefit in deciding what activities the charity should undertake.

RISK MANAGEMENT

The trustees have a duty to identify and review the risks to which the charity is exposed. A risk assessment is carried out by the Trustees each year, which identifies the major risks faced by the company and reviews the systems and procedures in place to manage those risks.

Page 2

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

PERFORMANCE MANAGEMENT

In recognition of Litfest’s status as an organisation both led and run by volunteers, we have developed robust systems to maximise efficiency and to maintain and improve our ongoing standards of delivery. During the course of the coming year we will continue to revised and update all operational systems and continue to develop practices and policies, which will include:

EQUAL OPPORTUNITIES STATEMENT

Equality of opportunity is extremely important to all the work undertaken by Litfest. We value the diversity of individuals and do not discriminate on grounds of race, faith, disability, gender, sexuality, age or any other. As the cultural landscape changes we recognised the benefits to be gained by tapping into the potential and strengths in all social groups.

As an arts organisation we fully understand the need to have an equal opportunities / cultural diversity approach at the heart of our working practices. We have in place an Equal Opportunities and Diversity Policy and Action Plan that is regularly revised and developed.

FINANCIAL REVIEW

Incoming resources for the year were £73719 (2021 £57486) Resources expended for the year were £75338 (2021 £45140)

Reserves policy

The charity works to maintain an operation reserve equivalent to the cost of running the organisation for 3 full months (an amount in the region of £3,000).

Funds in deficit

The charity does not have any funds which are materially in deficit.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards applicable law).

The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of its surplus or deficit of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

CHAIR’S OVERVIEW

This year the board set an ambitious programme of activity for delivery. We delivered a Summer programme, an Autumn Festival as well as our 43rd Festival. The board also wanted to increase income through a variety of funding streams. It is very clear the board achieved the majority of the ambitions that were set out in our business plan, however, there still needs to be a focus on achieving sufficient funding so that the board is not the deliverer of the activity as well as managing the usual business of a board.

Events

The Board

The Board is in a very good position with the current membership. As a board we are diverse in terms of gender, race and age which is very positive. The Board has discussed bringing younger members alongside and this is an ambition for 2022/23. As mentioned in the opening comments whilst the Board has a brilliant set of skills and knowledge that can be readily deployed to deliver the festival this is not sustainable in the longer term, and the focus is on increasing funding to employ a project manager to manage the festival and assist with raising funds through grants and sponsorship. Board members are keen to learn and engage with new ideas and this will continue through the following year. This year it has focused on accessibility of events for both artists and audience participants to be more inclusive and we have enabled that through our online offer.

Finance

The organisation has managed to maintain funding from Lancaster City Council for which we are very grateful as it gives us a baseline to support funding applications. A total of £21,290 in additional grants funding was received from Arts Council England, the Elizabeth and Richard Wilson Charitable Trust, the Duchy of Lancaster Benevolent Fund and the Jan Michalski Foundation. The online bookshop was also very successful this year. Donations were received but this certainly dropped from last year when all our events were free. In the coming year the pricing structure for tickets will need to be reviewed.

Staffing

Litfest employs one office manager for 7 hours a week. This support has been invaluable in terms of the bookshop and updating the website. Through the Arts Council Funding we have been able to recruit a freelance Project Manager and Publicist, they have enhanced our engagement with our audiences and have managed the projects for the autumn and spring festivals.

Page 4

LANCASTER AND DISTRICT FESTIVAL LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

CHAIR’S OVERVIEW

Volunteers

The board welcomed back volunteers from 2019 and new volunteers during Festival 2022. It is important that we continue to engage with volunteers as they provide a valuable resource for us in terms of assisting with the festival and welcoming our audiences. We need to do more to engage with them outside of the festival as there are other areas of work they would be able to assist with during the year.

There was a vibrancy about the festival this year as we came together in person once again. The programme celebrated Lancaster and the rich history of the district as well as exploring our environment. The hybrid model has allowed greater accessibility and an opportunity to earn additional income as the events were available for 30 days after the festival at a low cost. Litfest is gaining recognition for its international events and inclusivity, and we will continue to build on this platform.

Thank you to all the members of the Board and to our funders.

On behalf of the board

Julie Bell

Chair of Litfest.

26 September 2022

Page 5

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF LANCASTER AND DISTRICT FESTIVAL LIMITED

I report on the accounts of the charitable company for the year ended 31 March 2022, which are set out on pages 7 to 12.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

The charity’s trustees consider that an audit is not required for this year under Part 16 of the 2006 Act and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

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

Miss JK Foster ACA Foster & Co Ltd Unit 16 Eastway Business Village Olivers Place Fulwood Preston PR2 9WT

Date 26 September 2022

Page 6

LANCASTER AND DISTRICT FESTIVAL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES For the Year Ended 31 March 2022

2022 2021
Notes Unrestricted Total
Funds Funds
£ £
INCOMING RESOURCES
Incoming resources from generated funds
Activities for generating funds 2 73717 57480
Investment income 3 2 6
_ _
Total incoming resources 73719 57486
_ _
RESOURCES EXPENDED
Charitable activities 4
Human resources 3498 3771
Physical resources 2126 2787
Running costs 3075 2673
Organisational objective 65569 34680
Governance costs 5 1070 1229
______ _
Total resources expended 75338 45140
______ _
NET (OUTGOING)/INCOMING
RESOURCES 6 (1619) 12346
RECONCILIATION OF FUNDS
Total funds brought forward 30798 18452
______ _
TOTAL FUNDS CARRIED FORWARD 29179 30798
______ _

The notes form part of these financial statements

Page 7

LANCASTER AND DISTRICT FESTIVAL LIMITED

BALANCE SHEET AT 31 MARCH 2022

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Stocks
Debtors
10
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
TOTAL NET ASSETS
FUNDS OF THE CHARITY
Unrestricted funds
12
TOTAL FUNDS
2022
£
609
_
1917
6372
34300

42589
(14019)

28570

29179

29179
______
29179
___
29179
______


_
_
2021
£
761
____
2130
1490
33461
__
37081
(7044)
_
30037

30798

30798
______
30798
___
30798
______

The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with FRS102 SORP.

The financial statements were approved by the Board of Trustees on 26 September 2022 and were signed on its behalf by;

Julie Bell – Trustee

The notes form part of these financial statements

Page 8

LANCASTER AND DISTRICT FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 March 2022

1. ACCOUNTING POLICIES

Accounting convention

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with The Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014, and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102 as applied to small entities by section 1A of the standard), the Companies Act 2006 and with the Charities Act 2011.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources expended

Expenditure is accrued for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided as the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc. – at varying rates on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operated leases are charged to the statement of financial activities on a straight line basis over the period of the lease.

Deferred Income

Transition funding has been deferred to match the funding to the periods in which expenditure is expected to occur.

2. ACTIVITIES FOR GENERATING FUNDS

Grants
Income from Activities
Other Income
2022
2021
£
£
23935
35849
14337
1556
35445
20075
_
_
73717
57480
_
_

Page 9

LANCASTER AND DISTRICT FESTIVAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 March 2022

3.
INVESTMENT INCOME
Deposit Account Interest
4.
CHARITABLE ACTIVITIES COSTS
Human Resources
Physical Resources
Running Costs
Organisational Objective
5.
GOVERNANCE COSTS
Accountancy
6.
NET INCOMING/(OUTGOING) RESOURCES
Net resources are stated after charging:
Depreciation – Owned Assets
2022
2021
£
£
2
6
_____
_
2022
2021
£
£
3498
3771
2126
2787
3075
2673
65417
34490

__
74116
43721
_____
_
2022
2021
£
£
1070
1229
_____
_
2022
2021
£
£
152
190
____
_
_

7. TRUSTEES’ REMUNERATION AND BENEFITS

During the year ended 31 March 2022 (and 2021) the trustees have calculated a notional charge for work undertaken and have included details within organisational objective costs. Payments on normal commercial terms at an arm’s length basis have also been made to a trustee for services supplied.

Trustees’ Expenses

Apart from amounts paid at an arm’s length transaction as detailed above no trustees expenses were paid for the year ended 31 March 2022 (2021 £nil).

Page 10

LANCASTER AND DISTRICT FESTIVAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 March 2022

8.
STAFF COSTS
2022
£
Wages and Salaries
3498
______
9.
TANGIBLE FIXED ASSETS
Fixtures and
Fittings
£
COST
At 1 April 2021 and 2022
15402
______
DEPRECIATION
At 1 April 2021
14641
Charge for the Year
152
__
At 31 March 2021
14793
_
NET BOOK VALUE
At 31 March 2022
609
_
At 31 March 2021
761
_
10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Trade Debtors
6372
______
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Income Received in Advance
8766
Trade Creditors and Accruals
5253
___
14019
______
2021
£
3771
______
Total
£
15402
______
14641
152
__
14793
____
609
______
761
______
2021
£
1490
______
2021
£
2250
4794
__
7044
____

Page 11

LANCASTER AND DISTRICT FESTIVAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 March 2022

12. MOVEMENTS IN FUNDS

MOVEMENTS IN FUNDS
Net Movement
At 1/4/21
in Funds
At
£
£
Unrestricted Funds
General Fund
30798
(1619)
__
_
TOTAL FUNDS
30798
(1619)

___
Net movements in funds, included in the above, are as follows:
31/3/22
£
29179
__
29179
____
Incoming Resources Movement in
Resources Expended Funds
£ £ £
Unrestricted Funds
General Fund 73719 75338 (1619)
_ _ _
TOTAL FUNDS 73719 75338 (1619)
_ _ _

Page 12

FOR TRUSTEES USE ONLY

LANCASTER AND DISTRICT FESTIVAL LIMITED DETAILED STATEMENT OF FINANCIAL ACTIVITIES For the Year Ended 31 March 2022

Notes
£
INCOMING RESOURCES
Activities for Generating Funds
Grants
A
Income from Activities
B
Other Income
C
Investment Income
Deposit Account Interest
Total Incoming Resources
RESOURCES EXPENDED
Expenditure on Activities:-
Books
4532
Project Costs and Artists Fees and Expenses
29037
Trustee Services Donated
32000
_
ADMINISTRATIVE EXPENSES
Wages
3498
Rent & Service Charges
2126
Insurance
432
Telephone & Internet
240
Postage and Stationery
496
Bank Charges
453
Sundries and Office Expenses
1302
Depreciation Less Profit on Disposals on Fixtures and Fittings
152
_
Governance Costs
Accountancy
1070
___
Total Resources Expended
2022
£
£
23935
14337
35445
_
73717
2
_
73719
_
664
18926
15090
65569
__
3771
2787
508
240
872
229
634
190
8699
_
1229
1070
_
____
75338
_
2021
£
35849
1556
20075
__
57480
6
____
57486
______
34680
9231
1229
______
45140
______

This page does not form part of the statutory financial statements

FOR TRUSTEES USE ONLY

LANCASTER AND DISTRICT FESTIVAL LIMITED ADDITIONAL INFORMATION RE YEAR ENDED 31 MARCH 2022

AGrants
Lancaster City Council
Arts Council
Duchy of Lancaster Benevolent Fund
Michalski Foundation
Elizabeth and Richard Wilson Charitable Trust
The total grant received from this foundation during the year was £10,000 and £1,234
represents the grant proportion allocated to the current year. The remaining grant,
£8,766 is shown as income received in advance.
BIncome from Activities
Book Sales
Project and Event Income
COther Income
Donation/Gift Aid
2022
£
10900
10301
500
1234
1000
_
23935
_____
4455
9882
___
14337
_____
35445
_____
2021
£
14900
20949
-
-
-
_____
35849
_____
1256
300
_____
1556
_____
20075
_____