Llanelly House Trust Ltd - Charities report - 21.2

REGISTERED COMPANY NUMBER: 04681702 (England and Wales)

REGISTERED CHARITY NUMBER: 1106646

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31st March 2021

for

Llanelly House Trust Ltd

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

19

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objectives for the benefit of the people of Carmarthenshire and the public at large to preserve, restore and regenerate, the historical, architectural, archaeological and environmental interest.

To advance the education of the public in history, arts, culture and heritage in Carmarthenshire.

In pursuance of its objectives to promote such charities or charitable purposes as the Charity may by unanimous resolution of its members from time to time.

The Trust is now focusing primarily on preserving the heritage of Llanelly House, and has no funding opportunities for future projects, including the regeneration of the Merthyr Tydfil YMCA. The aim in this financial year has been to seek to dispose of the YMCA at Merthyr Tydfil.

Public benefit

The trustees confirm that they have complied with their duty in section 17(5) of the 2011 Charities Act with regard to the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives in planning of future activities.

The Charity has demonstrated its aims are for public benefit through the provision of activities and events which have enabled all to enjoy and experience it including activities such as the Community Engagement work that continues through the efforts of the Llanelly House team.

The Trustees would like to thank the House team for their sterling efforts, commitment, energy, and enthusiasm during the year. The diverse range of events and functions organised by the staff are helping to make the House a unique venue as well as a major player in revitalising the town centre.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

PROJECTS

Llanelly House Operation

During 2020/21 Llanelly House was unfortunately closed for a large portion of the year due to the government regulations pertaining to the outbreak of Coronavirus. During this time minor repair work was done whilst the House was unoccupied.

Llanelly House trustees successfully applied for Grants to assist the House to help cover some of the overheads incurred whilst Llanelly House remained closed as per Government Guidance. The Charity received grants from the Welsh Government, Carmarthenshire County Council and the Heritage Fund.

Additional funding for a two year period starting 2021/22 was secured jointly from Carmarthenshire County Council and Llanelli Town Council. The funding was awarded in recognition of the extraordinary overheads incurred in maintaining the historic building known as Llanelly House.

Llanelly House continued to diversify its programme of events and strongly supported Ymlaen Llanelli in its quest to deliver activities to encourage much needed footfall in the town centre.

A new Schools Project was started to extend the Children's educational school tours and to work in conjunction with the local schools curriculum.

The financial performance of Llanelly House operations is reported separately as the trading company Plas Llanelly House Cyf.

Merthyr Tydfil YMCA

Throughout the year regular contact has been made between the Charity's trustees and representatives of Merthyr Tydfil CBC to enable the transfer of this building to their portfolio. Merthyr Tydfil CBC have now obtained funding for the project, and it is expected that the transfer will be completed in 2021.

FINANCIAL REVIEW

Principal funding sources

The Charity is entirely reliant on earned income and grants and the principal sources during 2020/21 were:

- Heritage Fund - Llanelly House

- Welsh Government - Llanelly House

- Carmarthenshire County Council - Llanelly House

- Llanelli Town Council - Llanelly House

- Management Income - Llanelly House

- Merthyr Tydfil County Borough Council - YMCA

Investment policy and objectives

The Charity had no investments and there were therefore no social, ethical or environmental issues relating to the policy aspects.

Reserves policy

At 31st March 2021 free reserves were £100,881. Llanelly House has much of its reserves tied up in its Leasehold property (Llanelly House) and the maintenance thereof. This property is the crux of its operations, without which the Charity could not offer its services. Otherwise, it tries to maintain sufficient reserves to meet ongoing maintenance and other costs.

The reserves policy is reviewed annually in the light of the main risks facing the charity. Having re-examined its strategic plan, the Trustees will seek to maintain a reserve level that will enable it to carry out any repairs necessary as and when they arise.

Going concern

The Charity has secured funding from Carmarthenshire County Council and the Llanelli Town with a review after a two year period. Discussions have indicated the need for ongoing support for 2023-24 and beyond.

The trustees therefore consider it appropriate for the financial statements to be prepared on a going concern basis.

The Coronavirus pandemic has had a significant impact on Llanelly House Trust Ltd operations. To mitigate the financial impact of the pandemic additional funding has been sourced to cover running costs of the charity and implementing cost saving measures. Despite the unpredictable future development of the pandemic, the Trustees believe that this event should not impact the book value of the assets or liabilities as of 31st March 2021 and that therefore the going concern of the charity is currently not at risk and going concern is considered appropriate for the 12 months from the signing of these accounts.

FUTURE PLANS

It is clear that the main objective for the charity is to ensure its operations are sustainable in the mid to long term, and that this will require constant vigilance and review of the business plan and objectives with accurate monitoring of targets and margins. Future external funding is likely to be needed for major maintenance projects.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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

Recruitment and appointment of new trustees

New trustees are recruited from individuals who are already supportive of the charity and its objectives. The Trust follows best practice in the recruitment and training of trustees as suggested by both the Charity Commission and the Wales Council for Voluntary Associations.

Initial training includes a full briefing on the operation of the trust, details of trustee responsibilities and liabilities, health and safety and are provided with financial information together with a copy of the governing document. A skills audit is undertaken when appropriate to ensure that current trustees have the requisite skills and experience to undertake their role fully and competently and to identify potential gaps.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04681702 (England and Wales)

Registered Charity number

1106646

Registered office

Llanelly House

Bridge Street

Llanelli

Carmarthenshire

SA15 3UF

Trustees

Ms A Evans

S Rowley (resigned 31.12.20)

M B Owen

Dr K Jones

M J Carroll-Cliffe

J E Phillips

R Stephens

N Symmons

Independent Examiner

Ashmole & Co

Chartered Certified Accountants

Castle House

High Street

Ammanford

Carmarthenshire

SA18 2NB

Bankers

Lloyds Bank PLC

21 Stepney Street

Llanelli

Carmarthenshire

SA15 3YD

Approved by order of the board of trustees on 22nd November 2021 and signed on its behalf by:

Dr K Jones - Trustee

Independent examiner's report to the trustees of Llanelly House Trust Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st March 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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

Mrs Laura Joanne Craddock

FCCA

Ashmole & Co

Chartered Certified Accountants

Castle House

High Street

Ammanford

Carmarthenshire

SA18 2NB

22nd November 2021

31.3.21

31.3.20

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

428

-

428

-

Charitable activities

2

YMCA

-

4,000

4,000

4,000

Llanelly House operations

172,000

28,200

200,200

169,700

Total

172,428

32,200

204,628

173,700

EXPENDITURE ON

Charitable activities

3

Llanelly House project

-

14,356

14,356

14,808

YMCA

-

5,268

5,268

5,275

Llanelly House operations

72,520

28,200

100,720

167,998

Total

72,520

47,824

120,344

188,081

NET INCOME/(EXPENDITURE)

99,908

(15,624

)

84,284

(14,381

)

RECONCILIATION OF FUNDS

Total funds brought forward

185,812

686,776

872,588

886,969

TOTAL FUNDS CARRIED FORWARD

285,720

671,152

956,872

872,588

31.3.21

31.3.20

Notes

£

£

FIXED ASSETS

Tangible assets

10

855,808

871,813

CURRENT ASSETS

Debtors

11

27,947

2,167

Cash at bank

80,586

7,543

108,533

9,710

CREDITORS

Amounts falling due within one year

12

(7,469

)

(8,935

)

NET CURRENT ASSETS

101,064

775

TOTAL ASSETS LESS CURRENT LIABILITIES

956,872

872,588

NET ASSETS

956,872

872,588

FUNDS

14

Unrestricted funds

285,720

185,812

Restricted funds

671,152

686,776

TOTAL FUNDS

956,872

872,588

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 22nd November 2021 and were signed on its behalf by:

A Evans - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

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. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Governance costs

Governance costs include costs of preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to the trustees on governance or constitutional matters.

Tangible fixed assets

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

Freehold property

-

2% on cost

Long leasehold

-

in accordance with the property

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on reducing balance

Individual fixed assets costing £500 or more are initially recorded at costs.

Included in Fixtures & Fittings are the Llanelly House Collection of artefacts. Due to their historic value these have not been depreciated.

Taxation

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

Fund accounting

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

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

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

2.	INCOME FROM CHARITABLE ACTIVITIES

31.3.21

31.3.20

Llanelly

House

Total

Total

YMCA

operations

activities

activities

£

£

£

£

Management charges

-

42,000

42,000

37,200

Grants

4,000

158,200

162,200

136,500

4,000

200,200

204,200

173,700

Grants received, included in the above, are as follows:

31.3.21

31.3.20

£

£

Welsh Government Grants

10,000

-

National Lottery Heritage fund

28,200

12,500

Merthyr Tydfil County Borough Council

4,000

4,000

Llanelli Rural Council

-

10,000

Llanelli Town Council

60,000

55,000

Carmarthenshire County Council

60,000

55,000

162,200

136,500

3.	CHARITABLE ACTIVITIES COSTS

Direct

Grant

Support

Costs (see

funding of

costs (see

note 4)

activities

note 5)

Totals

£

£

£

£

Llanelly House project

14,356

-

-

14,356

YMCA

1,300

-

3,968

5,268

Llanelly House operations

13,340

73,779

13,601

100,720

28,996

73,779

17,569

120,344

4.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31.3.21

31.3.20

£

£

Establishment costs

12,039

18,765

Repairs & maintenance

952

1,077

Depreciation

16,005

16,573

28,996

36,415

5.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

YMCA

3,968

-

3,968

Llanelly House operations

11,851

1,750

13,601

15,819

1,750

17,569

Support costs, included in the above, are as follows:

Management

31.3.21

31.3.20

Llanelly

House

Total

Total

YMCA

operations

activities

activities

£

£

£

£

Insurance

3,968

11,591

15,559

15,465

Office expenses

-

180

180

180

Bank charges

-

80

80

71

3,968

11,851

15,819

15,716

Governance costs

31.3.21

31.3.20

Llanelly

House

Total

operations

activities

£

£

Accountancy

1,750

1,685

6.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.3.21

31.3.20

£

£

Depreciation - owned assets

16,005

16,573

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2021 nor for the year ended 31st March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2021 nor for the year ended 31st March 2020.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

YMCA

-

4,000

4,000

Llanelly House operations

157,200

12,500

169,700

Total

157,200

16,500

173,700

EXPENDITURE ON

Charitable activities

Llanelly House project

-

14,808

14,808

YMCA

-

5,275

5,275

Llanelly House operations

153,496

14,502

167,998

Total

153,496

34,585

188,081

NET INCOME/(EXPENDITURE)

3,704

(18,085

)

(14,381

)

RECONCILIATION OF FUNDS

Total funds brought forward

182,108

704,861

886,969

TOTAL FUNDS CARRIED FORWARD

185,812

686,776

872,588

9.

TAXATION

The company is a registered charity and is exempt from taxation in respect of its Charitable activities.

10.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Long

Plant and

and

property

leasehold

machinery

fittings

Totals

£

£

£

£

£

COST

At 1st April 2020 and 31st March 2021

65,000

650,000

493,781

306,433

1,515,214

DEPRECIATION

At 1st April 2020

7,800

78,000

493,780

63,821

643,401

Charge for year

1,300

13,000

-

1,705

16,005

At 31st March 2021

9,100

91,000

493,780

65,526

659,406

NET BOOK VALUE

At 31st March 2021

55,900

559,000

1

240,907

855,808

At 31st March 2020

57,200

572,000

1

242,612

871,813

If Freehold property and Long Leasehold property had not been revalued or impaired they would have been included at the following historical cost:

Freehold property

Long leasehold property

£

£

Cost

20,000

270,000

Aggregate depreciation

2,800

27,800

The Trustees consider that there may have been a diminution in value of Freehold Property since the date of the last professional valuation. However, the property is included in the Balance Sheet in accordance with the last valuation report provided by Alder King on 23 October 2015.

Long Leasehold Property was valued on an open market basis on 9th July 2021 by Rees Richards & Partners. The Trustees consider the open market valuation at this date to be a fair estimation of the valuation of Long Leasehold Property as at 31 March 2021.

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Trade debtors

5,000

-

PLH Cyf

20,755

811

Prepayments

520

595

VAT

1,672

761

27,947

2,167

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Trade creditors

-

216

Other creditors

5,000

5,000

Accruals and deferred income

2,469

3,719

7,469

8,935

13.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.3.21

31.3.20

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

£

£

£

£

Fixed assets

184,839

670,969

855,808

871,813

Current assets

108,350

183

108,533

9,710

Current liabilities

(7,469

)

-

(7,469

)

(8,935

)

285,720

671,152

956,872

872,588

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

185,812

99,908

285,720

Restricted funds

Llanelly House

577,425

(14,356

)

563,069

YMCA

57,351

(1,268

)

56,083

Big Picture Llanelly House

52,000

-

52,000

686,776

(15,624

)

671,152

TOTAL FUNDS

872,588

84,284

956,872