REGISTERED CHARITY NUMBER". 521712 West Lancashire County Scout Council Report of the Trustees and Audited Financial Statements For the year ended 31 March 2024 Mcmillan & Co LLP Chartered Accountants and Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
West Lancashire County Scout Council Contents of the Financial Statements for the year ended 31 March 2024 Page Report of the Trustees 1 to 13 Report of the Independent Auditors 14 to 17 Statement of Financial Activit1&8 18 Balance Sheet 19 Cash Flow Statement 20 Notes to the Cash Flow Statement 21 Notes to the Financial Statements 22 to 30
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 The trustees present their report with the financial statements of the charity for the year ended 31 March 2024. The tiustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charits-es preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims The aim of West Lancashire County Scout Council {"WLCSC") is that of The Scout Association; the purpose of Scouting is to contribute to the development of young people in achieving their full physical, intellectual, social and spiritual potential., as individuals, as responsible citizens and as members of their local, national and international communities. These benefits are available to all young people and are therefore considered to be a public benefit under Section 4 of the Charities Act 2011. The method of achieving the Aim of the Scout Association is by providing an enjoyable and attractivé scheme of progressive training, based on the Scout Promise and Law, guided by adult leadership. 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. Page 1
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 OBJECTIVES AND ACTIVITIES Significant activities ICSC are an ambitious and forward-thinking county whose heritage has provided solid foundations and a proud track record. We continue to focus on our Strategic Plan "Scouting in 2025" as this Pfovides a unique opportunity to galvanise our talents and offer a shared vision of Scouting that continues to be exciting and relevant. Having a plan does not stifle us but empowers us to know that our efforts are aligned and we combine our efforts to achieve more. In achieving our outcomes, we can be proud that more young people in West Lancashire are able to enjoy the "Everyday Adventure" To achieve the plan we aim to focus on the following areas., to provide a fun, enjoyable, high quality programme to our members,. to ensure that we have appropriate Safeguarding training processes and structure in place for all who participate in Scouting, to continually look to improve our Safety policies and procedures to provide a safe environment for all who participate in Scouting., to have more well trained, better supported and motivated adult volunteers., to provide good quality, practical locations to support our Scouting programme across West Lancashire., to ensure Scouting is clearly understood, more visible, trusted, respected and widely seen as playing a role in today's society. After a decline in membership caused by COVID the County has continued to grow with membership increasing by 2.9 /0 this year12023.' 60/0) taking us closer to our pre-pandemic numbers and only 900 below our highest ever year back in 2017. This overall performance compares favourably to other results across the UK and has been an area of focus for the operational team and trustees. We now have 2,400 more members since the pandemic with very strong growth in the Scouts and Network sections. The increase in the newest Scouting provision, Squirrels is encouraging with an additional 26 Dreys opened in the year tsking our youngest section up to 593 {2023'. nil). Neork (our 18-25 age group for young adults) has seen the highest growth this year with an increase of 11.40/0 and we have also seen an increase in female members, especially in the older sections, which has been a trend for a couple of years now. Like many other Counties, our challenge is growing numbers in Beavers and Cubs which were particularly affected by the Pandemic. There are now 146 groups in West Lancashire offering a wide range of opportunities and adventures for our members. It has been an incredibly busy year for our members, with many of them tsking part in an overseas camp for the very first time. A contingent from West Lancashire attended the World Scout Jamboree in South Korea which despite all the major problems was still an amazing experience for our members. A group of Cub Scouts enjoyed a camp in Austria whilst older Scouts learnt how to sail in Croatia and enjoyed mountain activities in Slovenia. We have continued to see more young people achieve their top awards and it is wonderful to get everyone together again at special awards ceremonies to celebrate these incredible achievements. Our County site at Waddecar has had a very successful year which saw the highest ever revenue and the campsite made a surplus for the second consecutive year. This year saw the opening of tMo new activities, the 'Norwegian Crane, and 'Tin Can Alley,, as well as the opening of our first 2 camping pods, offering an alternative basic indoor accommodation targeted at group leaders. Activity days for schools have continued to grow in popularity and increase mid-week income. To allow more young people to enjoy a wide variety of activities at Waddecar we have run 26 adult courses in bushcraft, archery, rifle shooting, climbing, high ropes and crossbows and 227 adults have not only learnt new skills but are now qualified to run these activities for the young people visiting our campsite. As well as our own members we have welcomed 1,560 school children from 25 primary schools and 19 secondary schools who have all enjoyed spending time at Waddecar. We have also welcomed 1,440 people for their D of E award expeditions. Waddecar isn't just for Scouts in West Lancashire and 2,369 Scouts from outside our county have visited and enjoyed our picturesque setting and explored the local area. Page 2
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 OBJECTIVES AND ACTIVITIES Significant activities - continued We hope to see an increase in "Nights Away" in the year ahead and look fomard to building on the success of recent years with further improvements to our Activity Centre. Waddecar has exciting plans for the future as it celebrates its, 70th birthday in 2024. Planning permission has been secured for a new stste-of-the-art accommodation block, with the aim of delivering 1 million nights away for young people during the lifetime of the building. Fund raising for this opportunity is now gathering momentum. Safety and Safeguarding The trustees recognise the overriding consideration is the safety and security of young people, and their continued development in accordance with the Purpose and Values of the Scouting Association. Section 2.5 of the March 2024 edition of POR sets out the Safety Policy which the trustees have adopted as part of their wider commitment to POR. Social investments Whilst no actual monetary financial investment has been made to non scouting projects, the trustees would like to point out that the charity supports all young people, not just those in Scouting, and Waddecar is used by a wide range of organisations which help and encourage young people from all sorts of backgrounds. Consequently the "investment" made by WLCSC in young people, Scouting or other, should not simply be viewed in monetary terms and nor should it be undersold. The Importance of Volunteers WLCSC would not be able to provide the outstanding Scouting opportunities and experiences we do without all the voluntary help that is freely given, we are extremely fortunate to have so many volunteers giving their time selflessly for the benefit of Scouting in West Lancashire and we thank them all for their support this year. Our County would not thrive as it does without the large team of people that are not involved in "front line" Scouting and work tirelessly behind the scenes to ensure that young people in West Lancashire get the best Scouting experience possible. WLCSC continues to adopt the clear Equal Opportunities Policy of The Scout Association in that no young person or person volunteering their service shall receive less favourable treatment on the basis of, nor suffer disadvantage by reason of.. ethnicity gender -age sexual orientation additional needs nationality religion WLCSC continues to embrace the objectives set down in the Disability Discrimination Act 1995. There is an ongoing commitment to enhance access to all areas of the charity's facilities and to make available specialised equipment within permitted resources. The charity believes that no member with any form of support needs has been disadvantaged by access to accommodation or other facilities within the overall context of the potentially hazardous nature of some of the activities. WLCSC welcomes membership from disabled persons. bearing in mind the aptitudes of the individuals concerned. ACHIEVEMENT AND PERFORMANCE Charitable activities The charity has once again supported West Lancashire Scouts World Scout Youth Event contingents and is carrying forward a sum of £15,794 (2023.. £19,214) to meet future commitments. Page 3
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 ACHIEVEMENT AND PERFORMANCE Grants and fundraising activities As a charity we are always looking for fundraising and grant opportunities for our members. In these financially difficult times we are especially grateful to all those who help in sourcing and completing grant applications. This year these have allowed us to maintain and replace adventurous land and water activity equipment and offer new facilities to those using Waddecar. Investment performance We reproduce below an edited summary of a report which our investment managers, Brooks MacDonald, have helped to prepare for this annual report and which summarises our portfolio performance over the year and the outlook for the future-. Over the 12 months to the 31st March 2024, the portfolio returned 9.860/0 net of fees {2013: reduction of The best performing sectors were international & thematic, driven higher by investments in Fidelity Global Technology and Fundsmith Equity. These investments which large contributors to most value of the year. This was followed by North American equities, with Fidelity US Index adding significant value to the portfolio over the period. The portfolio held Ferguson which was the best performing UK equity of that period. All sectors added value over the period. However, there were some negative contributors over the year to the 31 st March 2024. One of these the Ardtur Continental European fund was consequently sold within the year. The following chart shows the split of investment by type at 31 March 2024.. Portfolio composition 64.83% 11 Equities 16.17% Fi.xed Interest 8.020/0 l Alternatives 7.86% Structured Return Property Cash 1.20 % Page 4
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 ACHIEVEMENT AND PERFORMANCE Investment perforniance - continued The start of 2024 has seen increasing confidence in an economic 'soft-landing', where interest rates curtail inflation without unduly impacting economic growth Inflation, both in terms of the speed of the fall in rates as well as the final 'landing zone, for inflation still remain uncertain, presenting some risk. We continue to advocate a global balance between value and growth investment. Within fixed income, to manage interest rate sensitivity we have maintained a short-duration fixed income positioning, with a preference for shorter dated weighted-average maturities. We now have an equal balance between government bonds and corporate credit. Within credit, we prefer investment grade over high yield however, wary that the yield premium for the latter is not in our view providing sufficient reward for the additional risk inherent. In summary, we are keen for our fixed-income exposures to provide a counterbalance to the equity risk that we have elsewhere in our asset allocation mix. Balancing this, we continue to have exposures to structured return products which provide diversification to our expected returns across more vanilla equity and bond asset classes. At the end of March 2024, the portfolio value was £1,711,329 (2023.. £1,557,489} (which includes cash funds held by the investment managers). Investment properties The investment properties were formally revalued in MarGh 2023 by Charles Parker Bennett & Co Ltd, Chartered SuNeyors, for the sum of £1,020,000 in line with our triennial valuation policy. This compared to a valuation of £895,000 for the same properties at March 2020. The next valuation is scheduled for March 2026. Whilst there have been interest rate rises in the past 12-24 months, interest rates still remain relatively low compared to long term historic levels so, in the opinion of the Trustees, the rental properties continue to remain a worthwhile investment and the rental income achieved in the year of some £58,100 (2023.. £56,600), before agents commission and costs of upkeep etc. gives a very good return and is a very useful income stream in the current economic climate. Internal and external factors There are many internal and external factors which will affect the future performance of the charity, our trustees and County Management Team meet regularly and conduct regular reviews to safeguard our County In a difficult year we are very fortunate that our investments are in a stable position despite worldwide uncertainties and the income from these have helped to reduce our expected deficit for the year. The effects of the wars in the Middle East and Ukraine, inflation, commodity prices, economic performance and the cost of living crisis will no doubt affect our income streams in the coming year and we will continue to monitor our income and cost base closely on a frequent basis. Page 5
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 FINANCIAL REVIEW Principal funding sources In the year the charity generated income of some £927,000 (2023: £988.000). No one year is ever qurte the same as the previous one and when comparing this years, results to last year you need to consider, amongst other things, the following., The income for the current year includes International Event Income of £470,000 compared to £577,000 for the previous year. As part of International Event Income we include 'Red Rose and this normally takes place every 4 years. In the 2023 fi'nancial statements this gener2ted £343,000 on income which is included in the amount of £577,000. There is no such similar Red Rose income for 2024. Many of the Charities activities, including the trips and events noted above, are intended to run at a break even result, with support from the charity in the event of unforeseen costs or subsidies such as hardship funds. In previous years the objective for our Waddecar site has also been to break even. One of the principal costs of the charity is investment in supporting districts and groups within the county, with assistance for recruitment and training of leaders and event planning. These costs, together with the costs of running the charity are funded by rental income and in the longer tem, income from investments. The results for 2024 generated an overall of a surplus of £161,627 (2023.. deficit of £16,305) and is due principally to improved performance on investments in the year and follows some variable performances in recent years due to the uncertain economic climate referred to under Internal and External factors above. Excluding the gains I108ses on the investrnents the surplus for the year is £21,800 (2023.. deficit £48,004). Taking the result for the year into account, the total funds of the charity have increased from £3,717,000 to £3,878,000 this year, a 4.30/0 increase. This follows years where total funds fell due principally to weaker investment performance. Total funds are now 1.40/0 higher than their 2021 levels but remain behind earlier historic levels when adjusted for inflation. The notes to the financial statements provide a more detailed analysis of the incoming resources and expenditure. Page 6
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 FINANCIAL REVIEW Investment policy and objectives The charity holds investments of some £2,896,000 (2023.. £2,834,000). This is split as., £1,691,00012023-. £1,482,000) in tradeable securities at market valuation, cash held by investment managers of £21,000 {2023.' £76,000), £1,020,000 {2023'. £1.020,000) of investment properties at valuation, and £164,000 (2023.. £256,000> of bank bonds held as current assets. The trustees have the power to invest in such stocks, shares, investments and propety in the UK as they see fit and in accordance with the Policy, Organisation and Rules { POR") of The Scout Association and Charities, legislation. The trustees engaged Brooks Ma¢Donald as investment managers who operate within guidelines agreed with the trustees. The trustees have asked the investment managers to consider social, environmental and ethical criteria when managing the portfolio. They would not wish to hold any investments that knowingly could be to the detriment of Scouting, although they are mindful that their prime duty is a financial one. The performance of the portfolio and the investment managers is reviewed against the investment objectives on a regular basis. The investment objective is to provide sufficient growth to protect the fund against the effects of inflation in the medium to long term. This is subject to change should there be any requirement for large capital outlay. The trustees accept that to achieve the long term capital growth and a real return over inflation the fund must be subjected to the risks associated with asset backed investments and investing in business through loans and equity holdings. The trustees are not averse to the concept of an element of investment risk but wish the fund to be balanced to reduce the overall effect of that risk. It should be noted that in arriving at the above, the trustees and investment managers are aware that WLCSC holds further cash for its short term needs and investment properties. The trustees have engaged an independent propety advisor to manage the investment properties, collect the rents and supervise any necessary maintenance work etc. on behalf of the charity in accordance with guidelines agreed with the trustees. The investment properties are held both to provide income through the rents and also for their long term capital growth. Page 7
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 FINANCIAL REVIEW Reserves policy The County has reviewed and updated the reserves in the year and will continue to review this on a regular basis. The charity's unrestricted funds are held in the General Fund and in the Adventure Trust Fund as set out on the balance sheet and notes to the financial statements. Amounts in the General Fund are primarily tied up in propety and equipment used in the County programme or tied up in assets to generate income in order to meet expenses incurred in running the County. The Adventure Trust fund is held to promote the challenging expeditions organised periodically by the county for young people in the groups and units within the county. At the year*nd the unrestricted funds in the balance sheet are categorised as follows., 2024 2023 Propety and equipment used in providing scouting activities Adventure Trust Amounts set aside in income generating assets such as rental properties and stock market investments to provide a notional investment return 755,002 21,260 778,875 18,528 2,297 778 2,232,500 Assets "tied-up" in generating income and activities Balance of other reserves available to cover general running costs and the replacement of county assets I free" assets} 3,074,040 3,029,903 804,458 686.968 Unrestricted Funds 3,878,498 3,716,871 The balance of other reserves available has increased in the year due to the improved performance of the investment assets. A substantial part of these reserves is expected to be committed to the redevelopment of accommodation at Waddecar which has recently received planning permission. Funds Held as Custodian The charity does not hold any funds as a custodian. FUTURE PLANS The charity has numerous strategic goals and objectives to achieve in the medium to long term. This is a very comprehensive programme and it would not be practicable to list all the objectives, but the main ones are to increase membership (both young people and adult leaders) and to make improvements to Waddecar Activity Centre such that the facilities set very high standards. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document and charity constitution WLCSC is registered as a charity in England number 521712. The rules of the charity are stipulated by the POR of The Scout Association, itself a charity registered in England {No. 306101 } and incorporated by a Royal Charter dated 4 January 1912. A substantially revised constitution for WLCSC was approved at the Annual General Meeting held on 13 September 2018 and this is due to be reviewed and revised, as appropriate, in the coming year. Page 8
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure and decision making For ease of administration and when analysing the financial performance of the charity. WLCSC is split into o "divisions" One is the "County" which deals with the governance of the charity and the wide range of support it offers to its members. The other is "Activity Centre" which deals with the operation of the activity centre and where the operation is significant enough to be identified separately. The management of the business of WLCSC is vested in the trustees which make up the County Executive. These consist of.. Ex officio members.. County Chair (nominated annually. by the County Commissioner, at the AGMI County Commissioner County Youth Commissioner County Secretary (elected at each County AGM) County Treasurer (elected at each County AGM) Nominated members.. Persons nominated annually by the County Commissioner, in consultation with the County Chair, and approved by the County AGM (usually those to be appointed sub-committee Chairs and Deputy County Chairl. No more than four can be nominated. Elected members.. Six members elected by the members of the Scout Council, such that each serves for a period of three years and may seek re-election for one further period of three years. The elections are phased such that o members are elected each year so as to provide continuity. Co-opted members.. Additionally, the Executive Committee has powers to co-opt additional members (who will have particular skills needed by the Committee's). The County Executive is accountable to the WLCSC which is established in accordance with the Scout Association's POR and meets annually at the AGM. The WLCSC is chaired by the County President. The County Executive meets at least four times a year. Much of the business is delegated to the Executive sub committees through agreed terms of reference. Reports are presented from these committees to the County Executive to highlight key items of business and when required, Executive approval. The management of Operational Scouting within West Lancashire is vested in the County Commissioner, supported by the County Team comprising the Deputy County Commissioners, Assistant County Commissioner and District Commissioners. Post year end Changes to POR, Structure and Governance Amendments to POR were issued in March 2024 by The Scout Association which provide new processes and definitions for Charity Governance. This includes changes to the Constitution, the composition and roles on the Trustee Board and to the Operational Structure. The WLCSC board of trustees is in the process of updating its, structure and constitution of the charity and composition of the trustee board in line with changes to POR and proposals are expected to be adopted at the AGM which is planned for September 2024. Changes include that the trustee board will decrease in size as recommended to become a maximum of 12 trustees. There are also a number of title changes such as the County Commissioner becomes the County Lead Volunteer. Induction and training of new trustees Vvhen inducting and training new trustees, the charity follows the detailed procedures as set out in the POR of The Scout Association. The charity also provides a "new trustee" training event upon appointment and all new trustees are required to complete a Trustee Declaration. Page 9
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties The charity has a 28_570A share in thè land at Bispham Hall campsite in Billinge, Lancashire which is owned jointly with a number of other scout counties. WLCSC has no responsibility for the operation of this campsite (which is administered by Greater Manchester West) but a representative of WLCSC attends the Bispham Hall AGM along with a representative from each of Greater Manchester West, Merseyside and Cheshire Scout Councils. The value of this interest on a going concern basis is deemed to be negligible and therefore has not been included in the financial statements. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 521712 Principal address County Scout Office Waddecar Scout Activity Centre Snape Rake Lane Goosnargh. Preston Lancashire PR3 2EU Page 10
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 REFERENCE AND ADMINISTRATIVE DETAILS- continued OFFICIALS County President Mrs Gail S Stanley MBE, JP, DL County Vice Presidents Mrs Jean Frew Mr Bernard Pendlebury Trustees Mr Craig Dewar-willox Mr Richard Charnock Dr Anthony Andrews County Commissioner County Chair Nominated member of the Board of Trustees Deputy County Chair County Secretary County Treasurer County Youth Commissioner (to September 2023) County Youth Commissioner (from September 2023) Nominated member of the Board of Trustees (to September 2023) Chair Finance and Fund-Raising Committee (to September 2023) Elected member of the Board of Trustees Chair Waddecar Management Committee Elected member of the Board of Trustees Chair Digital and Data Committee Elected member of the Board of Trustees (to September 2023) Chair County Staffing Committee (to September 2023> Nominated member of the Board of Trustees (from September 20231 Chair Finance and Fund-Raising Committee (from September 20231 Elected member of the Board of Trustees Elected member of the Board of Trustees Nominated member of the Board of Trustees {from November 2023) Chair County Staffing Committee (from November 2023) Nominated member of the Board of Trustees Nominated member of the Board of Trustees Nominated member of the Board of trustees Chair Appointments Committee Mr Peter Willingham Mrs Catherine Joyce Mr Jenson Thomas Miss Emma Aggrey Mr Jonathan Abbey Mr Oliver Wood Mrs Cartharhyn Hall Mrs Jill Dean Mr Charles Bithell Mr Andrew Neville Mr Saber L'8ekkari Miss Rachael Hoyle Mr Max Lowe Miss Gabby Howson-Tax Mrs Joan Swan County Officials Mr Andrew Hobson Dr Chris Lomas Deputy County Commissioner Deputy County Commissioner Other Officials Mr Brendan Booth Interim Regional Commissioner for NW England from August 2022 Page11
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 REFERENCE AND ADMINISTRATIVE DETAILS - continued Tax exemption number X89058 Auditors Mcmillan & Co LLP Chartered Accountants and Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA Solicitors Napthens LLP 7 Winckley Square Preston PR1 3JD Principal Bankers The Royal Bank of Scotland plc 36 St Andrews Square Edinburgh EH2 2YB Investment Managers Brooks MacDonald No1 Marsden Street Manchester M2 1HW Property Advisor Mr Charles Bennett Alderfield 230 Woodplumpton Road Preston PR4 OTA PEOPLE The trustees value the contribution made to the charity by both its paid and volunteer staff and considers that good communications and relationships with its people and its members to be very important and makes relevant information available to all. The success of the charity can only be put down to its people, uniformed and non-uniformed leaders, supporters and of course its young people. Page 12
West Lancashire County Scout Council Report of the Trustees for the year ended 31 March 2024 STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financial ststements in accordan with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure. of the charity for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently., observe the rnethods and principles in the Charity SORP,. make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial ststements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the board of trustees on 11 July 2024 and signed on its behalf by: ce FCCA Trustee Page13
Report of the Independent Auditors to the Trustees of West Lancashire County Scout Council Opinion We have 2udited the financial statements of West Lancashire County Scout Council {the 'charity') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2024 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 the charity's ability to continue as a going concern for a period of at least e1ve 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 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. In connection with our audit of the financial statements, 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 othetwise 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. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities {Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Page 14
Report of the Independent Auditors to the Trustses of West Lancashire County Scout Council Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view. and for such intemal control as the trustees determine is neSSary 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 charity's abilty to continue as a going COnrn, disclosing, as applicable, matters related to going conGern and using the going conrn basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page15
Report of the Independent Auditors to the Trustees of West Lancashire County Scout Council Our responsibilities for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 a Report of the Independent Auditors 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below-. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the charity through discussions with trustees and management, and from our knowledge and experience of the sector., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities and Companies Acts and the Charities SORP, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation, particularly in relation to the safe-guarding of young persons., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of trustees and management and inspecting legal correspondence., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of trustees and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we- performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions, In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance., enquiring of trustees and management as to actual and potential litigation and claims., and reviewing correspondence with The Scout Association, Local Government bodies, HMRC, relevant regulators including the Health and Safety Executive, and the charity's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Page 16
Report of the Independent Auditors to the Trustees of West Lancashire County Scout Council A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charity's trustees, as a body, in accordan with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 aCpt or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this repor( or for the opinions we have formed. Mcmillan & Co LLP Chartered Accountants and Statutory Auditor 19 July 2024 Page 17
West Lancashire County Scout Council Statement of Financial Activities for the year ended 31 March 2024 2024 2023 Unrestricted Unrestricted Funds Funds Notes INCOME AND ENDOWMENTS FROM Charitable activitiès Activty Centre and County Investment income 2&3 827,972 99,098 901,413 86,512 Total Income 927,070 987.925 EXPENDITURE ON Raising funds Charitable activities Activity Centre and County 21,318 23,212 5&6 883,952 1.012.717 Total Expenditure 905,270 1,035,929 Surplus l (Deficit) before investment gains 21,800 (48,004) Net gains on investments 139 827 31,699 Net Surplus 1 (Deficit) for the year 161,627 <16,305) RECONCILIATION OF FUNDS Tolal funds brought forward 3,716,871 3,733,176 TOTAL FUNDS CARRIED FORWARD 3,878,498 3,716.871 The notes form part of these financial statements Page 18
West Lancashire County Scout Council Balance Sheet 31 March 2024 2024 2023 Unrestricted Unrestricted Funds Funds Notes FIXED ASSETS Tangible assets Investments Investments Investment propety 10 755,002 778,875 1,711,329 1020 000 1.557.489 1020,000 12 3,486.331 3,356,364 CURRENT ASSETS Stocks Debtors Investments Cash at bank 13 14 15 16 14,857 59,749 167,884 749,987 12.167 75,728 258,964 420,759 992,477 767,618 CREDITORS Amounts falling due within one year 17 {600.310) (407,111) NET CURRENT ASSETS 392,167 360,507 TOTAL ASSETS LESS CURRENT LIABILITIES 3.878N98 3,716,871 NET ASSETS 3 878,498 3,716 871 FUNDS Unrestricted funds: General fund Adventure Trust 18 3,857,238 3,698,343 18,528 TOTAL FUNDS 3 878,498 3,716 871 The financial slatements were approved by the Board of Trustees and authorised for issue on 11 July 2024 and were signed on its behalf by: CA Trustee CP Bithell ACA Trustee The notes form part of these financial statements Page 19
West Lancashire County Scout Council Cash Flow Ststement for the year ended 31 March 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 233.971 188,523) Net cash provided byl{used in) operating activities 233 971 188,523) Cash flows from investing activities Purchase of tsngible fixed assets Purchase of fixed asset investments Sale of fixed asset investments Movement in current asset investment5 Movement in cash funds held by broker Interest received Dividends reiVed 122,838) (364,535) 295,442 91,080 55,080 13,666 27.362 (26,441) <426,899) 442.427 14,304) 75,685 6,716 23,194 Net cash provided by investing activities 95,257 90,378 Change in cash and cash equivalents in the reporting period 329,228 (98,145) Cash and cash equivalents at the beginning of the reporting period 420,759 518,904 Cash and cash equivalents at the end of the reportlng period 749,987 420,759 The notes form part of these financial statements Page 20
West Lancashire County Scout Council Notes to the Cash Flow Statement for the year ended 31 March 2024 RECONCILIATION OF NET INCOMEI{EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net incomel(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation char9es Gain on investments Interest received Dividends reiVed Increase in stocks Decreasel(increase) in debtors Increaselldecreasel in creditors 161,627 (16,305) 46,711 (139,827 113,666) 127,362) (2,690) 15.979 193 199 44,215 <31,699) (6,716} (23,194} (2,929) (40,604) 111,291 Net cash provided byl{used in) operations 233,971 188,523) ANALYSIS OF CHANGES IN NET FUNDS At 114123 Cash flow At 3113124 Net cash Cash at bank 420,759 329,228 749 987 420 759 329,228 Liquid resources Deposits included in cash Current asset investments 258,964 91,080) 258,964 91080) Total 679,723 917,871 The notes form part of these financial statements Page21
West Lancashire County Scout Council Notes to the Financial Statements for the year ended 31 March 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charity, which is a public benefit entity under FRS 102. have been prepared in accordance with the Charities SORP (FRS 1021 '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}', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. In preparing the financial statements. there are no material uncertainties about the Charity's ability to continue as a going concern and they are presented using the Pound Sterling {£) and the amounts in the financial statements have been rounded to the nearest £1. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds. it is probable that the income will be received and the amount can be measured reliably. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Vvhere costs cannot be directly attributed to particular headings they have been allocated to activities on 8 basis consistent with the use of resources. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold propety Plant and machinery Motor vehicles at varying rates on cost at varying rates on cost 250/0 on cost Freehold land is not depreciated. Fixed asset investments Listed investments are valued at their mid-market price as at the close of trading at the year-end date. Any gain or loss on revaluation at the end of the accounting period is taken to the Statement of Financial Activities. Investment property In accordance with FRS102, the charity's properties are held for long term investment and are included in the balance sheet at their open market value. The surpluses or deficits on revaluation of such properties are transferred to the relevant fund to which those properties relate. All of the properties are freehold and depreciation is not provided in respect of these properties. This policy represents a departure from statutory accounting principles, which require deprecation to be provided on all fixed assets. The trustees consider that this departure is necessary in order that the financial statements may give a true and fair view because they consider current values are of prime importance rather than the calculation of systematic annual depreciation. Due to cost constraints revaluations are, currently, conducted every three years by suitably qualified external valuers. Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Page 22 continued..
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 ACCOUNTING POLICIES - continued Current asset investments Due to the nature of the investments these assets are stated at cost. Taxation The charity is exempt from 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. Financial instruments Financial instruments are recognised when the charity becomes paty to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial liabilities, which include creditors and accruals are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest. Realised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference beeen sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference beeen the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. Critical accounting estimates and key sources of estimation In the application of the Charity's accounting policies, the Trustees are required to make judgments, 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. Subsequently, 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above. Page 23 continued...
West Lancashire County Scout Council Notes to the Financial Ststements - continued for the year ended 31 March 2024 INVESTMENT INCOME 2024 2023 Rental income Investment income Bank interest 58.070 27,362 13,666 56,602 23,194 6,716 86,512 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity centre income Scouting activities, training and section income County and international events Miscellaneous income and donations 235,654 96,628 469,576 26,114 226,197 80,263 577,111 17,842 827,972 901,413 RAISING FUNDS Investment management costs 2024 2023 Investment managers fees Propety managers administration and valuation fees Investment properties Maintenan and other costs 11,337 6,305 3,676 14,406 5,675 3.131 21.318 23,212 CHARITABLE ACTIVITIES COSTS 2024 2023 Salaries, wages, employers national insurance and pensions Activity centre costs World Scout Youth Events Scouting activities, training and section expenses County and international events County Executive, administration and other costs Depreciation less profit on disposal of tangible fixed assets 127,201 83,472 10,700 92,600 469,552 44,326 46,711 131,220 82,634 16.000 92,614 587.153 50,755 44,215 874,562 1,004.587 Page 24 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 SUPPORT COSTS 2024 2023 Auditors remuneration Auditors remuneration for other services Legal and professional fees 6,840 2.520 30 6,480 1,650 9,390 8,130 TRUSTEES. REMUNERATION, BENEFITS AND EXPENSES There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. During the year 2 trustees (2023.. 3 trustees) were reimbursed for part of their expenses arising from attending meetings and carrying out other duties amounting to £422 (2023.. £1,717). STAFF COSTS 2024 2023 Wages and salaries 127 201 131,220 127,201 131,220 The avera9e monthly number of employees during the year was as follows.. 2024 2023 Charitable activities Admin istration No employees received emoluments in excess of £60,000. RECOGNISED REALISED AND UNREALISED GAINS OR LOSSES The realised and unrealised gains or losses included in the financial statements are as follows., 2024 2023 Realised gains I (losses) Investment properties Listed investments 34,821 43,398 34,821 43,398 Unrealised gains I (losses) Investment properties Listed investments 125.000 136,699) 105,006 105,006 11 ,699} Total gainsl(losses} 139,827 31,699 Page 25 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 10. TANGIBLE FIXED ASSETS Freehold propety Plant and machinery Motor vehicles Totals COST At 1 April 2023 Additions 1,287,177 192,938 37,062 8,000 1,517,177 22,838 At 31 March 2024 1,300 557 194.396 45,062 1540,015 DEPRECIATION At 1 April 2023 Charge for year 552,350 154,572 3q.380 1,500 738,302 At 31 March 2024 586 994 165 139 32,880 785,013 NET BOOK VALUE At 31 March 2024 713 563 29,257 12,182 755,002 At 31 March 2023 734,827 38,366 5,682 778,875 11. FIXED ASSET INVESTMENTS 2024 2023 Listed investments Cash funds held by investment managers for future dealings 1.690,747 20,582 1,481,827 75,662 1,711329 1,557,489 Listed investments MARKET VALUE At 1 April 2023 Additions Disposals Realised and unrealised gains and (losses) 1,481,827 364,535 1295,442) 139 827 At 31 March 2024 1.690,747 NET BOOK VALUE At 31 March 2024 1690,747 At 31 March 2023 1,481,827 The historic cost of listed investments is £1,415,35112023'. £1,305,664). Page 26 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 12. INVESTMENT PROPERTY FAIR VALUE At 1 April 2023 and 31 March 2024 1020 000 NET BOOK VALUE At 31 March 2024 1,020,000 At 31 March 2023 1,020,000 The investment properties were valued in March 2023 by Charles Parker Bennett & Co, Chartered Surveyors, 4 Winckley Court, Preston, Lancashire for the sum of £1,020,000 carried out in accordance with the RICS Valuation-Global Standards ("The Red Book") on an open market value basis. This is in line with our triennial valuation policy. At the previous valuation in March 2020 these same properties were valued at £895,000 by the same firm. The historical cost of these properties remains at £232,773. The Board of Trustees, having taken into consideration market and economic factors, Gonsider that there has been no material change in the March 2023 valuation to date. 13. STOCKS 2024 2023 Stocks 14,857 12,167 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 rrade debtors Olher debtors VAT Prepayments and accrued income 1,492 24,011 31,380 17,799 826 25,723 59,749 75.728 Page 27 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued forthe year ended 31 March 2024 15. CURRENT ASSET INVESTMENTS 2024 2023 Investment in rural community broadband venture Fixed and variable interest bearing bonds and deposits 3,802 164,082 3,000 255,964 167,884 258,964 16. CASH AT BANK 2024 2023 Unrestricted funds., Current accounts Deposit accounts 186.049 563,938 202,014 218,745 749,987 420,759 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Deposits for county events, courses and activity ntre Trade creditors Social security and other taxes VAT Other creditors World Scout Youth Events Accruals and deferred income 318,774 17,842 2,081 275 223,666 15.794 143,894 31,986 2,225 192,627 19,214 17,165 600,310 407.111 18. MOVEMENT IN FUNDS Net movement in funds At 114123 At 3113124 Unrestricted funds General fund Adventure Trust 3,698,343 18,528 158,895 2,732 3,857,238 21,260 3,716,871 161627 3 878,498 TOTAL FUNDS 3,716,871 161 627 3,878 498 Page 28 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 18. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows.. Incoming resources ResourGes expended Gains and losses Movement in funds Unrestricted funds General fund Adventure Trust 921,81S 5,255 (902,747) 2,523) 139,827 158,895 2,732 927 070 905,270 139,827 161,627 TOTAL FUNDS 927,070 905 270) 139,827 161627 Comparatives for movement in funds Net movement in funds At 114122 At 3113123 Unrestricted funds Gener81 fund Adventure Trust 3,717,418 15,758 (19.075) 2.770 3,698,343 18.528 3,716,871 TOTAL FUNDS 3,733,176 16.305) 3,716,871 Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Unrestrlcted funds General fund Adventure Trust 982,829 5,096 (1,033.603) 31,699 (19,075) 2,770 987,S25 1,035,929 31,699 16,305> TOTAL FUNDS 987,925 1,035,929) 31,699 16,305) Included in the General Fund is the revaluation surplus on the investment properties of £787,227 (2023.. £787,227) which is unrealised. Page 29 continued...
West Lancashire County Scout Council Notes to the Financial Statements - continued for the year ended 31 March 2024 19. RELATED PARTY DISCLOSURES There were no re12ted party transactions for the year ended 31 March 2024 (2023.. £nil). Page 30