THE_ASSOCIATION_OF_LOCAL_ - Accounts

The directors present their annual report and financial statements for the year ended 31 July 2019.

The principal activity of the company continued to be that of promoting energy efficiency, affordable warmth, and renewable energy implementation.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Overview

Leadership:

John Kolm-Murray continued in the role of ALEO National Chair throughout the period from August 2018 to July 2019, with David Colbourne as National Vice Chair.

For this period, the company had two directors – David Colbourne and Rachel Jones

Executive:

Four Executive meetings were held during the period August 2018 to July 2019. These meetings enable the executive to plan work and respond to relevant consultations

During this period, ALEO responded to consultations run by BEIS and OFGEM.

Secretariat:

Act on Energy took over the running of the Secretariat in July 2018 and Joanne Gittings took on the role as the Company Secretary and the main contact for the ALEO National Secretariat. The ALEO National Secretariat’s role includes maintaining and updating the ALEO website; producing the ALEO magazine and the ALEO e-bulletin; delivering ALEO conferences as well as handling enquiries and many other administrative and financial duties.

ALEO published two editions of its ALEO News magazine during the period, and the regular ALEO e-bulletin continued to keep members up to date on developments in domestic energy efficiency, fuel poverty and climate change

ALEO Conferences:

ALEO held two national conferences during the period – the first in Birmingham in November 2018 and the second in London in May 2019. The Birmingham Conference focused on ECO 3 and delivery of ECO Flex, this conference also included our national awards, highlighting the excellent work across the regions. The second conference was held at the BEIS Conference centre in May 2019 and looked at ways of ‘Refreshing the Energy Agenda’ to deliver outcomes for those in fuel poverty.

Partner Organisations:

ALEO continued to work closely with key stakeholders, including the End Fuel Poverty Coalition, National Energy Action, the Association for the Conservation of Energy, the National Insulation Association, the Local Government Association, Ofgem and the Department for Business Energy and Industrial Strategy.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

For the financial year ended 31 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Association of Local Energy Officers is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 1.4, Lauriston Business Park, Pitchill, Evesham, WR11 8SN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the company cannot reclaim it.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The average monthly number of persons (including directors) employed by the company during the year was 4 (2018 - 4).

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.