L￿KE LVND RTS Company re8lStration number.. 8162578 Charity re8iStration number: 1153¢XIl Lakeland Arts Trust Annual ReF)Ort and Financial Statements forlhe Year Ended 31 March 2025 Lakeland Arts Trust Content5 of the Financial Statements for the Year Ended 31 March 2025 Reference and Admlnlstratlve Detalls................................................................................................. Trustee'5 Report......................................................................... .............................................................. Statement of Trustees. Responsibilities ..... Independent Examlner's Report to the trustees of Lakelond Arts Trust..............-...-................. .. Statement of Finqnciol A¢tivitie$ for the Yeor End•d 31 March 2025........................................10 Statement of Flnanclal Actlvltles for the Year Ended 31 March 2024........................................11 Balance Sheet as at 31 March 2025....................................................................................................12 Lokeland Arts Trust Reference and Admlnlstrallve Detalls Trustee Lakeland Arts. Sole corporale Trustee Truslees A Block SA Crewe (Term ended June 20251 K M Howcrth AJ Karwa E Kentley K J S Kni8ht T A Leach A M Lyles {Resi8ned November 20251 D Reid MCIOF G F Rycrolt EJScott M Z Benjamin Charity Re8i¥tration Number 526980 Prlncipol Offl¢e Abbot Holl Kendal Cumbria LA9 SAL Independent Examlner Crossley & Dovis Chartered Accountant5 & Statutory Auditors Ground floor. Seneca House Llnks Point. Amy Johnson Woy Blackpool Loncoshire FY42FF Lakeland ArtsTrust Soll¢ltors Simpson Millor (to June 20201 5/7 Skiplon Street Morecombe Lancoshire LA4 4AW Bonkers Borcloys Bonk Pl¢ 9 Hi8h8ate Kendol Cumbria LA9 4DF Lakelond Arts Trust Trustee's Report The Irustee pre5ent5 Ihe annual report tO8ether with Ihe finonciol stotements of the charity for the year ènded 31 March 2025. Obje¢tive¥ and Aetivltles Obje¢ts ond Alms The principol object5 of ihe Tru51 are a} The establishment ond maintenance of a public art 8allery and museum for the town of Kendol ond surroundin8 districts (formerly the Borou8h of Kendol. the County ol Westmorlond ond surroundin8 dislrictsl. b) Any other public choritoble purposes tendin8 lo advonce ortislic. historic or intellectual int&rests in the area which can conveniently be promoted in combinotion with the purpose ot ol obove. Oblectlves, Strate8le5 and Actlvltles All activities ol Lokelond Arts Trusl were Ironsferred as a 80in8 concern and from l Au8usI 2013 were corried out by the new charity. Lakeland Arts. The collection held by the Trust was looned to Lokeland Arts throu8hout the year, and the Blockwell endowment lund$ 8eneroted investment incomg which was paid across to Lokelond Arts for Ihe moinlenance of the Blockwell buildin8. Public B•nefit Abbot Hall was opened as an art 8ollery in September 1962 and h05 since built up an out5tondin8 art collection and created one ol the stron8e51 exhibition pro8romme5 Outside London. In 1971 the Lakeland Museum wos op&ned in tha cooch house ond stoble block at Abbot Hall and developed an importont and extensive collection relotin8 to the 50¢ioI ond industrial history ol Ihe Lake District ond Kendal. In July 2(X)l Blockwall was opened. o Grade l Listed house. in a stunnin8 Posltion above Lake Windermere. lookin8 ocross lo the Coniston Fells. Desi8ned by MH Baillie Scott ond completed in 19(K), Ihis is one of the mosl important Arts and Craft5 houses in the UK with a nalional reputation for ils pro8romme ol exhibitin8 historic and conlemporary craft5. In March 2019Windermere Jetty Museum was opened. o world-class museum ond touristottroction. The trustee conlirms that they have complied wilh the requiremenls of section 17 01 the Charities Acl 2011 to hove due re8ord lo the public benèfit 8uidcnce published by the Chority Commission for En8land and Wale5. Flnanclal Revlew The charity hod income of £55,125 in the yeor12024'. £28.7761 and expenses of £37.99312024.. £82.579). This created o surplu5 of £17,132 before unrealised 8ains on the value of investments of £4,293. This increased reserves by £21.425. plus an actuarial 8ain of £83.CDJ on the pension scheme. resultin8 in on overall surplus and increase in reserves of £104,425. Of the £104,425 inereose in reserve5, £63.ClXS relates to ihe actuarial 8ain on the defined benefit pension scheme. Lakeland Arts Trust Pollcy on Reserves In oddition to Ihe permanent endowment, the Tru51 now holds unreslricted reserves of £109,296. These . ore ovoiloble to support the Trust's obli8Otions, in¢ludin8 Stewordship ol the heritQ8e collection5, and provide o buffer 080insl investment volotility- No formol reserves tar8et hos been Set 8iven the Trust's limiled on80in8 activities, but the truslee reviews the level ol free resetves annuolly. Chun8e$ in Fund$ As ot 31 Morch 2025. unrestricted funds increosed from £4.8710131 Morch 2024 to £109,296. This reflect5 Q 518nificont irnprovernent in unrestricted reserves. primorily due to on actuarial 8ain of £83,IX on the delined benelil pension Scheme. The improvement is mainly ocluariol. nol operotional.. LAT'S activities remoin minimol ond lor8ely invgslment-bosed. Investment Policy and Objectives The Trust ha5 the power to make inve51ments that it 5ee5 fit. The inve51ment policy determined by the Trustees for the endowment funds is to provide a balanced return from a broad spread of medium risk inve5tment5, and for 8eneral funds to provide a hi8her income from a spread of lower risk investments. The investmenl policy 15 implemented by professional investmenl mana8ers Sorasin & Portners LLP. Siructure, Governance and Mana8ement Nature of Go¥ernin8 Document The Lakeland Arts Trusl (the Tru511 is an unincorporated trust, constituted under o trust deed datèd 19 Au8USt 1957 ond is o re8l$tered Chority. number 520980. The Trust wo$ formed to save Abbot Hall. an importonl mid ei8hteenlh century Grode l Listed house on the bonks of the River Kenl in Kendal, and to convert il inlo an art 8ollery. Durin8 2013 an important and 5ub5tantial chan8e in the constilution under which the activities of the Trust are carried out was compleled. The Truslees determined Ihat it 15 in the bast intarasts ol the Trust to restructure in order to minimise risk to its ossets whi15t enoblin8 the Trust to achieve its charitable objectives. The Trust in¢orporated Lakeland Arts. a company limited by 8uorantee (Compony number 8162578) and Completed its re8lStrotion os o chority Ichority number 1153C()11 with similar object5 to the Trusl so os to reploce thg Trust as the operator ol the voriou5 venuas for use by the publlc ond to corry foNard Ihe redevelopment ¢1 the Windermere Jatty Museum. At the c105e of business on 31 July 2013 the funds. ossels ond liobililies of Lokelond Art5 Trust were transferred io the new charity. Lakeland Arts Trusl continues to hold the Blackwell Endowmant which is o permanent endowmenl. and the collections which are loaned Fo the new chority. All individual Trustees of the Trust resi8ned on 31 July 2013 ond were oppointed a5 Directors and Trustee5 of Ihe new chority. Lokelond Arts. which become sole Corporote Trustee of Lakeland Art5 Trust. There is no limit to the durotion of the term of the sole corporate Trustee provided thaf it remains an incorporaled entity and re8lStered as a charity with the Chority Commission. Re¢rultment ond Appolntment of Trustee Lokelond Arts is the sole corporate trustee. Lakeland Arts Trust Relatlonshlps wllh Related Partles Lakeland Arts Lakeland Art5 15 the 501e corporote trustee. The ¢haritoble compony 1$ Sot5ned the colleclions owned by Lokelond Arts Trust ond operates Abbot Hall, the Lakelond Museum, the Windermere Jetty Museum. and the Blackwell Arts & Crofts House in conjunction with its trodin8 subsidiory Lokelond Arts Enterprises Limited. Lakeland Arts Trust pay5 the incorne orisin8 on the Blockwell endowmenl across to Lakeland Arts for Ihe maintenonce of Blackwell Arts & Crafts House ond Lakeland Arts covers any operational expenses by woy of donation. Lokelond Arts SupportTrust The Lokeland Arts Support Trust, a charitable company lormed in 1998 for the purpose of 8enerotin8 income lo provide financial 5UPPOrt for Lakelond Art5 Trust land now Lokeland Arts) at it5 Abbot Hall site in Kendal. Westmorlond and Furness Councll Westmorland ond Furness Council own5 Ihe Abbot Hall buildin8 and a150 makes an annual 8ranl tow(2rds Lokelond Arys costs. Malor Risks and Mana8ement of Rlsks Risk Mano8em•nt All si8nificont activitie5 undertoken ore $ubje¢t to o risk review as port of the initiol project osse55ment and implementation. Major r15k5 are identified and ranked in terms of their potential impact and likelihood. Mojor risks, for thi5 purpose, are those that may hove a si8nilicanl eflect on.. operolionol performanca, includin8 risks to staff, volunteers and visitors achievement of aims and objectives meetin8 the expe¢totions of beneficiaries or supporlers. The Truste&s review ihese risk5 on an on80in8 basi5 and 5at15fy itself that adequale sy5tem5 and procedures arè in ploce to mana8e the risks identilied. Where appropriate. risks are covered by insurance. The followin8 fromework is central to ensurin8 adequote risk mana8ement.. re8ular monilorin8 of mojor risks ond development of disostèr recovèry plons embeddin8 risk identification and assessmenl within operalin8 procedures o cleor structure of dele8ated authority and control mointoinin8 re5erve5 in line with sel policies. In 055e55in8 risk, the Trustees reco8nise that some areos of work require ihe occeptonce ond mana8ement of risk if key objectlves ore to be ochigved. The Trustees hove reviewed the major risks to which the Trust is exposed. under the heodin8s of.. fire, flood ond major disasler security hèolth and safety financial controls. Lakeland Art$ Trust Flnanclal Instruments Objectives and Policies The Charity'5 activilies are now restricfed to holdin8 investments ond lognin8 Its colleclion. These activities expose it lo o number of finonciol risks Sncludin8 Credit risk, cash flow risk and liquidity risk. The charity doe5 not Use derivative financial instruments. Cash Flow Risk The Charity'5 oclivilies expose il primarily to Ihe financial risks of chon8es in investment values and investment income. The investments are mono8ed lo provide o bolonced return from a brood spreod of medium risk investments. and lor 8enerol funds to provide a hi8her income from o spraod of lower risk investments. Credll Rlsk The Charity's principol finoncial ossets are investments. The credil risk is not moteriol 0$ operation5 are conducted by Lokelond Arts. Liquidity Risk As operotions ore conducted by Lakelond Art5 liquidity risk 15 not malerial. The onnuol report wos opproved by the trustee of the charity on 19" December 2025 ond 518ned on it5 behalf by.. f L'g D Reid MCIOF Chair and Truslee. Lakeland Arts Lakelond Art$ Trust Statement of Trustees. Responslbllltles The Iru51ec is responsible for prèporin8 Ihe trustee's report and the finonciol statemènts in occordance wilh the United Kin8dom Accountin8 Stundords (United Kin8dom Generally Accepled Accountin8 Practice} ond applicable low and re8ulotions. The law applicable lo Chorities requires Ihè trustee to pr8pore financial statements lor each financial year which 8ive a true and fair view of the stote ol offoirs of the chority ond of the incomin8 resources ond opplication of resource5 of the charity for thol period. In preparin8 these financial statements, the trustee is required to.. select suitable accountin8 polieies ond then opply them consistently observ8 the methods and principles in the Charities SORP rnoke jud8èmenls and estimates that are reasonable and prudenl state whether applicable accountin8 Standards have been followed, Subject to ony maleriol deportures disclosgd ond explained in the financiol statemenls prepare the financial statements on the 80in8 concern basi5 unless il is inappropriale to prasume Ihol the charity will continue in busines5. The Irustee is responsibl8 for keepin8 proper accountin8 records that disclose with r8osonoble accuracy at any tirne the finonciol position ol thè chority ond enoble them to Ènsure thul the financial Stotements comply with the Chorities Act 2011. the Charitie5 (Accounts ond Reports) Re8ulotions 2W8. ond the provisions of th8 constitution. The Iruslee are also responsible for safe8uordin8 the ossets of the charity and hence for takin8 reosonoble Steps for Ihe prevention ond detection of fraud and olher irre8ularities. The trustee is responsibla for the maintenance and inte8rity of rha corporate and finonciol informotion included on the choritoble company's websile. Le8islotion 8overnin8 the preparotion ond di55emination of finonciol statemenfs may differ from le8151ation in other jurisdictions. Approved by ihe truslee ol rhe charity on 19 December 2025 ond si8ned on its behalf by= D Reid MCIOF Chair and Trustee, Lakeland Arts Lokelond Art5 Trust Independenl Examlner's Report lo the Irustees of Lakeland Arts Trust I report to the trustees on my examinalion of ihe occounts of Lokelond Arts Trust for the year ended 31 March 2025. Responsibilities and basis of report As the charity trustees of Lakeland Arts Trust. you ore rasponsiblè lor the preparation of Ihe accounts in accordance with ihe requiremenls of the Charities Act 20111.the Act"). I roport in respect of my axaminotion of the Lokelcnd Art5 Trust'5 account5 corried out under section 145 ol the 2011 Act ond in carryin8 Out my exominotion I have followed all the applicobla Directions 8iven by the Chority Commission under Section 145151{bl of the Act. Indopendent examiner's slotgment I hovè completed my exominotion. I confirm thot no material matter5 hove come to my ottention in connection wlth the examlnation 8ivin8 me eau5e to believe that in any moterial respect- l. Accountin8 records were noi kept in respact of Lokelond Arts Trust a5 required by saction 130 of the Act,. or 2. The accounts do not accord with those records,. or 3. The account5 do not cornply with the accountin8 requirements con¢ernin8 the form and content ol accounls set oul in the Chorities IAc¢ounts ond Reports) Re8ulations 2QX)8 other than ony requirernent Ihal the accounls 8ive a "true and fair view- which is not o matter considered os part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which altention should be drown in this report in order to enoble o proper understandin8 of the accounts to be reached. Peter G.C. Riley FCA Chortered kcountants & Stotutory Auditors ICAEW Cr0551ey & Davi5 Ground floor. seneca House Links Point, Amy Johnson Way Blackpool Loncoshire FY4 2FF Lakeland Arts Trust Statement of Flnanclal Actlvltles for the Year Ended 31 March 2025 Unrestrlrted fund5 Restrlcted Endowment funds Tthal 2025 fvnds Note In¢ome and Endowments from.. Donations and legao 31.704 31.704 Investment income 10.596 12.795 23.391 Other income 30 30 Total Income 42,330 12,795 55,125 Expenditure on: Raising funds 1831 1831 125,1151 112,7951 137.9101 Total expenditurè 12S,1981 112.7951 137,9931 Gains/losses on investment assets 4.293 4,293 Net expenditure 17,132 4.293 21,425 Gr055 transfers between funds 4.293 14,2931 Other ￿¢0￿MISed galns and losses.. Actuarial gains/l1055e51 on defined ben￿lt pension schemes 83,0(K) 83,000 Ac;iJarial Ilo¢sl/gain recognised in pension reserve Net movement in funds 104,425 104.425 Reconcil￿1¢￿ of luhds Total fund5 brought forward 4.871 515,(K)O 519,871 Total funds carried forward 18 109.296 515,000 624,296 The notes on po8es 13 to 25 form an inte8ral part of Ihese financial stalèmenls. io Lakeland Arts Trust Statement of Flnon¢lo1 A¢tlvltles for the Year Ended 31 March 2024 Unrestricted fvnds Restrirted fvnds Endowment fvnds Toto12024 Note Income ondEndowmentsfrgm.' Donations ond legocies 6.705 6.705 Investment incoffle 2.214 19,827 22,041 herincome 30 30 Total income 8,949 19,827 28,776 Eypenditure on.. Roisingfund5 1,128 1,128 ChuritLTble ortivfftie5 {13,707J 119.8271 (50,173) 183,707) Total expendlture {12.579J 119,8271 (50.173) 182,579) G¢yins/losses on investment assers 500 28,290 28.790 Net expenditure (3,1301 {21,883J 125.013? Gross trunsfers betweenfunds 10,977 110,977) Otherrecognised goins ondlosses Actuoriol goins/llossesl on defined benefit penslon schemes 22,000 22.000 Artuoriol (lossl/4oin retognised in pension reserve 122,tXX)J 122,OOOJ Net movement infvnds 7.847 132,8601 (25.0131 Reconciliutioft olfvnds rotolfund5 broughtforword 12,976) 547,860 544,884 Totolfunds corriedforword 18 4.871 515,000 519,871 Allolrhe chority's uctivities derivefrom continuing operotions during the obove two period5. Thefunds breokdown fvr2034 15 shown in note 18. Tha notes on po8es 13 to 25 form an inte8ral part of these finonciol stotements. li Lakeland Arts Trust Lakeland Arts Trust (Re8lstratlon number: 526980) Balance Shggt Q5 Qt 31 March 2025 2025 2024 Note Flxed assets Investments 12 569.288 552,283 Current assets Debtors 13 12.678 2,196 Cash at bank and in hand 14 209 300 12.887 2,496 Is Credltors.. Amounts fallln8 due wlthln *)ne year 140.8791 (34,908) Net current liabilitie$ 127,9921 (32.412) Net as$ets excludlng penslon asset 541,296 S19,871 Pension $¢hemÈ asset 16 83.000 Net ossets Intludlng penslon asset 624,296 519.871 Funds of the charity: Endowment fvnds sis.000 515.000 Unrestrrcted income fvnd5 Unrestricted funds 26.296 4,871 Pension reserve 83.000 Total unrestTlCted funds 109.296 4,871 Total funds 18 624.296 519,871 The financial statemenls on pa8e5 9 to 23 were approved by the trustee. and outhorised for issue on lglh December 2025 ond 518ned on their &ehalf by-. D Reid MCIOF Chair and Trustee, Lokelond Arts The notes on pa8es 13 to 25 form an inte8ral port of these financial 5tatement5. 12 Lakelond Arts Trust Notes to the Financial Statements for the Year Ended 31 Mor¢h 2025 l. Accounlin8 Poli¢i85 Statament of Compllane• The finonciol stolements hove been prepared in accordonce with Accountin8 and Reportin8 by Chorilles- Statement ol Recommended Proctice opplicoble to choritie5 preparin8 their accounts in accordance wilh the Finoncial Reporlin8 Stondard applicable in the UK and Republic of Irelond {FRS 1021 lelfective I Jonuory 2019 - IChoritie5 SORP (FRS 102)), the Finonciol R&portin8 Standard applicable in the UK ond Republic ol Ireland {FRS 102) and the Chorities Act 2011. B4$1$ of Pr•pororfon Lakeland Arts Trust meets the definition ol a public bènèfit entity under FRS 102. The accounts Ifinoncial statements) have been prepared under the historicol cost convention with items reco8nised ol cost or transoction value unless otherwise slatad in thè rèlevont note{sl lo these accounls. The account5 are presented in sterlin8 ¢nd rounded to the nearest £. Goln8 Concern The financial 51otements have been praporad on 0 80in8 concern bas1S. Thg Finonce Committee hos dele8Oted re5pon5ibility to 05se55 whether the use of 80in8 concern is oppropriote i.e. whether there ore any material uncertainlies reloted to èvont5 or conditions that may cost Sl8nificont doubt on the ability of the chority to continue as a 80in8 concern. The Irustee5 make this assessment In respect of a period of one year frorn the date of approval of the financial 51alements. The chority 15 Part of the Lakeland Arts Group and a luller explanotion of the 80in8 concern position lor the 8roup can be found in the 8roup accounts. Income und Endowment5 Volunlary income includin8 donations, 8ilts. le8acies ond 8ronls thot provide core fundin8 or or8 of o 8eneral nature is reco8nised when the charity has entitlement to the income, it is probable thol the income will be received and the amount Con be meosured wilh sufficient reliobility. Donotlons ond L•8oei•s Donalion5 and le8acies are reco8nised on o receivoble bosis when receipt 15 proboble ond the omounl can be reliably measured. Investment income Interest on lunds held on deposit is included when receivable ond Ihe amount can be meosured reliably by the charity.. this is normally upon nofification of the interest poid or poyoble by the bonk. Dividends are reco8ni5ed once the dividend hos been declared and notificotion has been received of the dividend due. 13 Lakeland Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Exp•ndltur• All expenditure 15 reco8nised once there is o le801 or constructive obli8Otion to that expèndilure, it 15 probable settlement is required ond the omount Con bè meosured reliobly. All ¢osls ore ollocoted to the opplicable expenditure headin8 thot Q88re8Ote similor costs to thot cote80ry. Where costs cannot be directly altributed to porticulor heodin85 they hove been ollo¢oted on o bosis cons1Stent with the use of resources. with central staff costs ol1oc(7ted on the bos15 of time spent. ond depreciation char8es oliocoted on the portion of the as5eVs use. Other 5UPPOrt C0515 are allocated based on the spread of staff cost5. Ralsln8 Funds These orè costs incurred in attractin8 voluntary income, the mana8ement ol investment5 and those incurred in trudin8 Octivilies that roise funds. Charltable Actlvltles Choritoble expendilure comprise5 those costs incurred by the ¢hority in the delivery of it5 Octivities and service5 for its beneficiaries. It includes both costs that can be allocated directly to such octivities ond Ihose costs of an indirect nature nece55ary to 5UPPOrt them. Governance Costs Thèse include the costs ottributable lo the charify's compliance with constitutional and statutory requirements. in¢ludin8 oudil. slrate8ic mona8ement ond trustees, meetlll8s and reimbursed expenses. Toxtstlon The charity is considered to poss the tests sel out in Pora8raph I Schedule 6 of the Finonce Acl 2010 ond Iherelore, it meets the definition of o choritoble compony for UK corporation tox purposes. Accordin81y, the charity is potentially exempt from toxation in respect of income or copital 80ins received within cote8ories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Seclion 256 of the Taxation of Char8eoble Goins Act 1992, to the extènt thot such incom& or 80ins ore oppligd exclusively to charifoble purposes. H•rlta8e Assets The Lok8l0iid Arts Trusys primary purpose 15 lo establish a public orl 8allery and museums for th8 town of Kendal and surroundin8 oreos, and to advonce artlStic ond historic interest5 in the areo. In thi5 eonneclion the Trust holds collections at Abbot Hall, Lakeland Museum, Blackwell ond Windermere Jetty Museum. These are inalienable herita8e assets in the sense that it is o fundomentol part of the Trusys purpose lo hold and preserve Ihem permonèntly. ond the Trust is &ffaclivaly prohibited from disposin8 of them for any other purpose, not only by the terms of its Trust Deèd, but olso by extèrnal ¢on5iderotion5 includin8 conditions applied by fundin8 bodies. These collections ilems ore not ossets in the normal sense of the word becous8 under the irrevocoble terms of their present use, they have no market value. To provide o market value based on an impermi55ible ehon8e of use would be misleodin8. The Trustee considers that the collections are herita8e 05sets and that because of the above information on their cost or valuation is not ovoiloble or would be misleadin8 and such information cannot be obtained al a cost commensurote with the benefit to the users of the account5 ond to the charity and the Trust does not, 14 Lokeland Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 therelore, represent them on the Balance Sheet. The Trust insteod makes the disclosures required by 18.26 to 18.31 of the Choritie5 Stotemenl of Recommended Practicg IFR51021. Fixed Asset Investments Fixed osset investments. other than pro8ramme related investments. ore included at market value ol the bglance sheet date. Reali5ed 8ains and losses on inveslmants are col¢uloled as the difference belween sales proceeds and their market value al the start of the year. or their subsequent cost, and ara chor8ed or crediled to the Statement of Finon¢iol Activilles In the period of di5P05oI. Unreolised 80ins and1055es represent the movemenl in market values durin8 the year and are cr&ditèd or char8ed to the Statement ol Financial Activities bosgd on the market value at the year end. Cash and Cash Equ1¥al￿ts Cosh and cash equivalents comprise Cosh on hond and call dep051t5, and other short-terrn hi8hly liquid investments that are readily convertible lo a known amount of wsh and ore subject to an insi8nificont risk ol chan8e in value. Trade Cr•dltors Trade cr8ditors ore obli8otions to poy for 8ood5 or services ihai hovo been ocquired in the ordinory course of business from suppliers. Accounts poyoble are classified 05 current liabililies if Fha does nol hove on unconditionol ri8h*. at the end of the reportin8 period, to deler settlement of the credilor for ot lèost twelvè months ofter the reportin8 dale. If there is on unconditional ri8ht to defer Settlement for at leost fv4elve months ofter the reportin8 dale, they are presenled as non-current liobililies and aro reco8nised initially at the Iransaction price and subsequently me05ured at amort15ed cost usin8 the eflective inlerest method. Fund Stru¢turtr Unrestricled funds are availoble for use ot the discrètion ol the Iru51ee5 in furtherance of the 8enerol objectives of the charity ond which hove not beèn desi8naled for other purposes. De518noted fund5 comprise unre51ricted funds thol have been set osida by the trustees for particular purposes. The oim and use of eoch desi8naled fund is sèt out in the notes to the financiol statemenls. Restricted funds ore funds which ore lo be used in occordance with specilic restrictions imposed by donor5 or which have been raised by ihe charity for particulor purposes. The cost of raisin8 ond administerin8 such funds ore ¢hor8ed o8QlnSt the specific fund. The aim and use ot eoch restricted fund is set out in the notes to the finoncial statements. Endowment funds represent those assets which must be held permonently by the charily. in this case to 8enerole income to maintain Blackwell the ArPs & Crafts House. Income arisin8 on the endowment funds con be used in accordance with the objects ot the chority and is included u5 unrestricted income. Any capital 8ain5 or105ses arisin8 on the investments tomi porl of the fund. Investment mana8ement char8es and le8al advice relatin8 to the fund ar* ¢hor8ed 08oinst Ihe fund. 15 Lakeland Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Pensions and Other Post-R¢tlr•m•nt Obll8atlons The charity operates a defined benetil penslon scheme. Typicolly defined benefit plons define an omount of pension benefit that on employee will recèive on retiremènt. usuolly dependent on one or more factors such as a8e. yeors ot service ond compensotion. The liability reco8nised in the Balance Sheet in respecl of delined benefit pension plans is the present value of the defined bènèlil obli8ation at the reporlin8 date minus the fair value of plan ossets. Thè defined benefit obli8Otion is measured usin8 the projected unit credit method. The present volue of the defined benefit obli8ation 15 determined by discounlin8 the e5timoted fulure poymen15 by reference to market yields al the reportin8 dotè on hi8h-quality corporate bonds that are denominated in Ihe currency in which the benefits will be poid. ond that hove terms to molurity opproximotin8 to the term5 of the reloled pension liability. Actuarial 8ains and losses are chor8ed or crediled lo other comprehensive income in the period in which they arise. Flnanclal inslrum•nts ClassilicatioTh Financiol assets and financial liabilitie5 are re¢o8nised when tha ¢hority becomes o porty lo the ¢ontroctual provisions of the instrumenl. Financiol liabilities and equity in5trument5 are classified occordin8 to the 5ub5tance of Ihe ¢ontro¢tuol orron8&ments entered inlo. An equity instrument is any contract that evidences o residual interesl in the assets of the charity after deductin8 011 of ils liabilitie5. fteco8nition and M•asur•m•nt All financial ossets ond liobilitias ore initially measured ot Iransaction price lincludin8 Ircnsaclion cost5}, except lor those linonciol ossets clossified os at tair value throu8h profit or loss. which ore initiolly meosured ot foir value (which is normally the transaction price excludin8 transaction costs). unless the arron8ement constilut8s o financin8 Iranscction. If an arran8ement conslitutes o finoncin8 tron5action, Ihe financial o55et or linonciol liobility is measured ot the presènt voluè of the future poyments discounted at o market rale of interest for a similar debt instrumenl. Financial assels and liabilitie5 ore only offset in the Statement of financial position when, and only when there exists o le8ally enforceable ri8hr to set off ihe reco8nised amounls and ihe charity intends either to setlle on a net bosis, or to reolise the ossat ond s8Mle th& liability simullanaouslv. Finonciol ossets are dereco8nised when and only when a) the contractual ri8hts lo the cash flows from Ihe financial 055et expire or ore settled, bl thg chority transf8rs to another porty substontiolly oll ol Ihe risk5 and rewards of ownership of the finonciol osset. or c) the chority. despite havin8 retoined some, but nol all, si8nificanl risks ond rewords of ownershSp, hos tronsferred control of the asset to onother porty.Financial liabilifies are dereco8nised only when the obli8ation Specified in the contract 15 dischar8ed, cancelled or expires. Investment5 Invesfments in non-convertible preference shores ond non-puttoble ordinory or preference shares (where shares are publicly traded or their fair value is reliably me05uroblel are measured at lair value throu8h profit or10sS. 16 Lokeland Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Where foir volue connot be meosured reliobly, investments ore measured at C05t less impairmenl. Investments in subsidiaries and associates are measured at Cost less impoirment. For investments in subsidiories acquired for consideration includin8 thè issue of shores quolifyin8 for mer8er relief. cost is measured by reference to the nominal value of the shares issued plus lair value of other ¢onsideration. Any premium is i8nored. Fair Value M•asur•m•nt The besl evhdence ot toir volve is o quoted price for on identical asset in active market. When quoted price5 ore unavailoble, the price of a recent transaction for an identical 055et providgs gvidence of foir volu¢ os lon8 0$ there has nol been o si8nilicont chon8e in economic circum5tonce5 or a 518nificant lopse of time since the tronsoction took ploce. If the morket is not active ond recent transactions of on identical asset on their own are nol a 8ood eslimale of fair value, the tair value is estimoled by usin8 a valuotion technique. 17 Lokeland Art$ Tru$t Notes to the Financial Stotements for the Year Ended 31 March 2025 2. Ineome from donatlons and I￿a(leS Unrestrlcted funds General Total 2025 Donations and legacies., Donations from Individuals 26,574 5,130 31,704 26,574 5,130 31,704 Regular giving and capital donations Unrestrirted funds Totul Genefftrl 2024 Oonotions ondlegacie5,' Dontsrionsfmm individuals Regulor giving und copitol donations 1,775 4,930 1.775 4.930 6.705 6.705 Investment Intome Unre5trtcted General Restrfcted funds Total 2025 Incorne from dividends.. Dividends receivable frorn other listed iTrve5tment5 Interest receNable and similar income., Interest feceivable on bank deposits 12,795.00 12.795 10,596 10,596 10,596 12.795 23391 Uhre5trrrted 6eneml Restrirted lunds rotol 2024 INKomefrom dividends,. DividerJd5 receivablefrorn otherli5ted investments Interestreceivoble und similor income,. Intèrest receivoblÉ on bonk deposlts 19,827 19,827 2,214 2.214 2,214 19,827 22,041 18 Lakeland Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 4. Expend￿￿￿ on ralslnK fund5 al Invesiment management costs Unrèstricted funds General Toial 2025 Other investment management costs., Costs of obtainin8 investment advice Administration of the investments 83 83 un￿$t￿¢￿d funds General 83 Total 2024 Other investment management costs: Costs of obtaining investrnent advice Administration of the investments 22 1,150 11.1281 22 11.1281 5. Expendrture on charitable acthtltles VnresMcted funds General Restricted fund5 Endowment fund5 Expendable TLltal 2025 Donations to Lakeland Arts Support costs 19,606 12,795 32,401 5,509 25,115 Unre5trirted Junds Geneml 12,795 37,910 Endowmeni Aunds Expendoble Restrfrted TotGI fund5 2024 Donotions to LJkelondArts Supportcosts 29,251 19,B27 30,522 79,6L 33.358 19,827 Adivity undertaken directly 30,522 83,707 Actfvtty support Costs 2025 Donations to Lakeland Arts Support costs 32,401 32.401 5,509 5,509 32.401 Artfvfty undertuke 5,509 37,910 5UPPOrt costs 2024 DOn0t￿n$ to LokelondArts Support costs 79,6 4,107 4,107 4,107 83,707 19 Lokelund Arts Trust Notes to the Finoncial Statements for the Year Ended 31 March 2025 6. Anaty515 of governance and support Costs Goveman¢e costs Unrestrkted funds General Total 2025 Staff costs Pension c05t5 Independent examiner fees Examination of the financial statements 2.239 2239 2.712 1,020 2.712 1,020 Le8al fees 5,971 UnrestrKted lunds Gentrnl 5.971 rotol 2024 Stoff costs Pension cosrs Independent exuminerfee5 Exuminjtion ol thelinonciolstotements Legalfees 2,318 2318 1.250 539 1250 539 4.107 4.107 7. Trustee remuneration and expenses No trustee, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year. Staff costs The a88￿eate payroll costs were as lollows.. 2025 2024 Staff costs durlnK the yearWe￿. Pension cost5 2,239 2.318 111024- 11 of the above ernployees partlClP3ted in the Defir￿d Benefit Pension Schemes. No employee received emolLtments of more than £60,000 during the year 2015 2024 9. Independent txaminer's remuneratlon Examination of the financial ststements 2,712 1.250 10. Taxatlon The charity is a registered charity and is therefore exernpt from taxation. 20 Lukelond Art$ Trust Notes to the Financial Statements for the Year Ended 31 March 2025 11. Herftage assets Summary of transacthns 2025 2024 2023 Z022 2021 Purchases and èddilions Ephernera Conteffjporary Craft Furniture Paintings Orawing5 Maritime 50 38,600 19.258 900 650 17,344 io,( 100 Donatlons Books Cer3mic5 Costume Craft Drawings Engraving Ephemera Furniture Painting5 Photographic prin15 Phottsgraphs Sculpture Social history Textiles Maritime H<>rology Totsl additions 130 L240 30 50 100 5.430 50 20 10S,Q80 14,LXKI 3( I,ioo 1.500 214.(X)O 3.100 750,000 100 4.571 200 7.31Q 35,015 16.000 59,608 3,650 7,615 193,160 983.200 12. Flxed asset InveMments 2025 2024 Loan5 to group undertaking5 and participating inlerests Other investments 175.478 393,810 569.288 125,478 426,805 552,283 Loans to group undertakin¢s and participating interests 2025 2024 Loan to Porent Cornpanv: Cost At 31 March 2024 Additions 125,478 50,OLKI 175,478 125 478 At 31 March 2025 125,478 Net book value Lakeland Arts (the parent companyl has borrowed £17S.478 from the endowment fund investments and will repay thi5 Over 20 year5 paying interest at 7.4%. 21 Lakelond Arts Trust Notes to the Finoncial Statements for the Year Ended 31 March 2025 oiherln¥estments Llsted Investments Ttstsl CostorVa￿at￿n At l April 2024 RÈvaluation Additions Dlsposals 426,805 3,605 426W)5 3,605 136,6LKII 136,6001 At 31 Marth 2025 393,810 393,810 Net book value At 31 March 2025 393,810 393,810 At 31 March 2024 426,805 426.805 Atl fixed a55et investments ère held wlthin the United Kin8dom. 13. D¢btors ZOZ5 20Z4 Accrued intome 12,678 12,678 2,196 2,196 14. Cash and cash equNalEnts 2025 2024 Cash at bank Short-term deposits i(K) 109 209 ILX) 200 300 15. CredllOVS'. amounts falllnE due within one year 2025 2024 Owed byllfroml group undertaki Accrua15 39,199 1.680 33,708 1,200 40,879 34,908 16. Pension and otherschemes Defined benefft penslon schemes Cumbria Lotèl Government PenS￿n Scheme L3ke1and Arts Trust is a member of the Cumbri3 Local Government Pension SchÈrne. This is a mthti-ernFloyer scheme and the figure5 in these account5 3re from the latest Mercer report on Lakeland Arts Trust's share of the scheme. The last actuarial valuatlon was 31 March 2025. Reconollution olscheme tlSsetsondWtJbilities to gssets gnd1itib￿itiÈ$ recognised The amounts recoEnised in the staternent of financial posftion are as follows.. 2025 2024 Fair value of scheme assets 1,328,IN)O 11.230,0001 11.352,0001 (15,￿0) 83.(K)O 1.374,000 Present value of defined benefit obligation Impact of 35set ceiling Defined benefit pension s£heme surpluslldeficitl 22,(1 22 Lokelond Arts Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Ikflned benesltobligotlon Changes in the dèfined benefit obligaiion are as follows.. 2015 Present value at start of year Current servité cost 11.352.000) 11,0001 164.0001 105.000 82.000 11,230.0001 Actuarial gain5 and105ses Benefit5 paid Presenr value at end of year Foirvulue oA5chenJe u55ets Chanees in the fairvalue of scheme èssets ère as folbw5'. 2025 Falr value at start of year Interest income Return on plan assets. excluding amount5 included in interest incomellexpensel Einployer contributions Benefit5 paid 1,374,1) 65,OCK) 131.OCK)I 2,0(K) 82,0(X) Falr value at end of year 1,328.(MJO Anulysls of ossets The major categories of scheme as5et5 afe a5 follow5.. 2025 2024 Cash and cash equivalents Equity instrumerits Government bonds Property Other 20.000 459,000 193.000 104,000 552,000 1,328,IKK> 21,000 509,000 183.000 iio,000 551.000 1.374.000 Retum on stheme ossets 2015 2024 Return on scheme assets The pension scheme has not invested In any of the charity's own financial in5trument5 or in properties or other assets used by the charity. Printipal actuarial assumptlons The principal actijarial assumptions at the statement of financial position date are a5 follow5.. 2025 3024 Mortaiiry raie Discount rate Future salary increases Future penslon increases i.so 1.50 5.70 4.20 4.20 2.80 2.80 2.70 3.70 Postretlrementmortallty47ssumpdon$ Current UK per15ioners at retirement 38e- male Current UK pensioners at retirement age- female Future UK pengloners at retlrement 38e- male Future UK pensioners at retirement ate- female 21.50 22.00 24.00 24.00 22.80 23.00 15.70 26. m￿￿￿eMPlOyer plans This is a defined benefit plan. 23 Lakeland Art5 Trust Note5 to the Finan¢iol Statements for the Year Ended 31 March 2025 17. Reserves Pension Total reserve At l April 2024 Surplus on actuarial revaluatlon At 31 March 2025 83,t))O 83,OCM) 83,￿0 83,000 The trustee5 have considered accountingfor an LGPS pension surplus and the asset ceiling. The gross surplus of £98,000 has been reduced by the impact of the asset ceiling1£15,OiYJI, ￿$￿Iting in a nei surplus of É83,000 being reeo8nised. The trustees have reviewed the report provided by Mercer, whSch provides additional information relatingto accounting surplus as of 16 July 2025. The present value ol futu￿ accounting service cost exceeds the present value ol primary contributions. therefore a surplus of £83,000 is retognised as an asset. Peftsk*n reserye Total At l Apri12023 Actuori?I goin/llossl on pefr7sion scheme PenS￿n scheme income/(expenseJ At31 Morch 2024 122,0(Xll 22.000 I220,0￿) 22,0( 18. Funds Balance at l April 2024 other reco8nlsed 8aiThslllos5esl Balance at 31 March 2025 Incoming Resou￿t$ resources expended Transfefs Unrestricted funds Genernl Unrestricted general funds Restricted funds Restricted Blackwell IrKorne Endowment funds 4,871 42330 125,1981 4.293 83,(KK) 109,296 12,795 112,7951 Pern7unent Blackwell Endowment Fund 515,000 519,871 14,2931 4,293 87,293 515,0(K) 624,296 Total funds 55,125 137.9931 Bolonce #t l Aprfl 1023 oiher rrt4gnised rrnnsfr￿ galns/(10$s￿j 8t71on¢e 131 202 Incomlng Resources resour￿5 expended Unrestrirtedfvnds Geneml Unrestrictedgenerolfunds Restricted 12,976J 8,949 (12,579) 10,977 500 4,871 Funds Endowmentfvnds PemTonent Blockwell Endowrnent Fund 19,827 (19,827) 547,860 {50,1731 (82.5791 (10,9773 28,290 515,Q(k7 TotJlAunds 544,884 28,776 28.790 519,871 24 Lukeland Arts Trust Notes tro the Financial Statements for the Yeor Ended 31 March 2025 The specific purpose5 for which the fund5 are to be applied 3Te as follows.. The 81ackwell Endowment Eenerates incorne for the upkeep o181ackwell which is transferred to Lakeland Arts a5 the operating company for that purw>se. In 2023124, £70.000 of enESowment capital was released to Lakeland Arts to fund essential roof repa￿rS at Blackwell, reducing the permanent endowment from £58S,000 to £515,￿0. Trustees determined this use was consistent with the purposes ol the endowment. Separately, a loan of £125.478 was advanced from the endowment fund to Lakeland Arts In November 2023 under a 2( Year loan a8reement at an interest rate 017.4% per annum. In February 202S, an additional É50,0(K) was advanced as a short-term loan, bringing total borrowlnBsto £175,478 at the balance sheet date. Subsequent to the year end. the Trustees aEreed to Consolidate the two loans into a sIn￿e arrangement. Vnder the re¥ised terrns, interest accrues until 31 March 2026. with monthly repayments of E2.065 commencing in April 2026 overthe remaining term. with the loan repayalAe in full by November 2043. 19. Anatysis of net a$5ets between funds Unrestricted funds General Endov4Thent funds Permaneni Total funds at 31 March 2025 Fixed asset investments Current assets 54,288 95.887 40,879 109.296 sis.000 569,288 95.887 140,8791 624,296 Total net assets 515,000 Unrestrl¢ted funds Geneml Endowment funds Pemwnent Aunds •t31 Mtsrch 2024 Fixeda55et investments Current tsssers Currertt liobilities 37,283 2,496 34,908) 515,t 552,283 2,496 34,908 TotulnetU55etS 4,871 515,OLk7 519,871 20. Related party transactions Duringthe year the charity made the followlng related party transactions-. Lakeland Arts Lakeland Arts Icharsty number 11531JOI, company nurnber 81625781 is the 501e corporate trustee and the￿fore is conlsdered to be the parent eompanv. Operations are managed by Lakeland Arts which funds any expense5 incurred by the charity and is also entitled to the restricted income from rhe endowment fund to cover maintenance o1813ckwell in line with the terms of the endowment. The group account5 can be obtained from Lakeland Arts. Abbot Hall Gallery, Kirkland, Kendal LA9 SAL. At the ￿lance sheet date the arnount due to Lakeland Art5 was £37.33912024- £33,708). 25