Llanelly House Trust Ltd - Charities report - 22.2

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 2023

for

Llanelly House Trust Ltd

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

to

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

21

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 2023. 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 are for the benefit of the people of Carmarthenshire and the public at large and are to preserve, restore and regenerate, the historical, architectural, archaeological and environmental interests.

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

In pursuance of its objectives the Charity may promote such charities or charitable purposes as the Charity decide 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.

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, 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 2022/2023 Llanelly House have been engaged in hosting events, tours and promoting the history of Llanelly House.

Funding from Carmarthenshire County Council and Llanelli Town Council continued in 2022/2023, with the Llanelly House successfully securing funding for the 2023/2024 years. 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 continued in supporting Ymlaen Llanelli and other local social enterprises in its quest to deliver events to encourage much needed footfall in the town centre.

The Llanelly House Schools Project Workbook is nearing completion and we hope to roll out the new children's educational school tours in future.

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

FINANCIAL REVIEW

Principal funding sources

The Charity is entirely reliant on earned income and grants and the principal sources during 2022/23 were:

- Carmarthenshire County Council - Llanelly House

- Llanelli Town Council - Llanelly House

- Management Income - Llanelly House

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 2023 free reserves were £172,458. 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 for 2023/2024 with a review after a two year period. Discussions have indicated the need for ongoing support for 2024/25 and beyond.

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

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

M B Owen

Dr K Jones

J E Phillips

R Stephens

N Symmons

P R Piana (appointed 20.1.23)

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

POST BALANCE SHEET EVENTS

On 8th July 2023 there was a fire at Llanelly House. We consider this to be a non adjusting event after the end of the reporting period. We cannot estimate the financial effect of this event.

Approved by order of the board of trustees on 13th November 2023 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 2023.

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

Ashmole & Co

Chartered Certified Accountants

Castle House

High Street

Ammanford

Carmarthenshire

SA18 2NB

13th November 2023

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

-

-

-

500

Charitable activities

2

YMCA

-

-

-

4,000

Llanelly House operations

162,000

-

162,000

190,564

Other income

7,393

-

7,393

-

Total

169,393

-

169,393

195,064

EXPENDITURE ON

Charitable activities

3

YMCA

-

-

-

58,133

Llanelly House operations

138,156

12,763

150,919

164,199

Total

138,156

12,763

150,919

222,332

NET INCOME/(EXPENDITURE)

31,237

(12,763

)

18,474

(27,268

)

Other recognised gains/(losses)

Gains on revaluation of fixed assets

-

-

-

41,000

Net movement in funds

31,237

(12,763

)

18,474

13,732

RECONCILIATION OF FUNDS

Total funds brought forward

325,602

645,002

970,604

956,872

TOTAL FUNDS CARRIED FORWARD

356,839

632,239

989,078

970,604

31.3.23

31.3.22

Notes

£

£

FIXED ASSETS

Tangible assets

10

814,670

827,629

CURRENT ASSETS

Debtors

11

38,065

1,618

Cash at bank

147,098

156,865

185,163

158,483

CREDITORS

Amounts falling due within one year

12

(10,755

)

(15,508

)

NET CURRENT ASSETS

174,408

142,975

TOTAL ASSETS LESS CURRENT LIABILITIES

989,078

970,604

NET ASSETS

989,078

970,604

FUNDS

14

Unrestricted funds

356,839

325,602

Restricted funds

632,239

645,002

TOTAL FUNDS

989,078

970,604

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2023 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 13th November 2023 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.

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

31.3.23

31.3.22

Llanelly

House

Total

operations

activities

£

£

Management charges

42,000

42,000

Grants

120,000

152,564

162,000

194,564

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

31.3.23

31.3.22

£

£

The Architectural Heritage Fund

-

28,564

Merthyr Tydfil County Borough Council

-

4,000

Llanelli Town Council

60,000

60,000

Carmarthenshire County Council

60,000

60,000

120,000

152,564

3.	CHARITABLE ACTIVITIES COSTS

Direct

Grant

Support

Costs (see

funding of

costs (see

note 4)

activities

note 5)

Totals

£

£

£

£

Llanelly House operations

51,224

85,000

14,695

150,919

4.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31.3.23

31.3.22

£

£

Establishment costs

25,262

17,226

Legal & professional fees

-

3,400

Repairs & maintenance

10,823

26,908

Project costs

2,180

-

Depreciation

12,959

13,279

Loss on sale of assets

-

55,899

51,224

116,712

5.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

Llanelly House operations

12,605

2,090

14,695

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

Management

31.3.23

31.3.22

Llanelly

House

Total

operations

activities

£

£

Insurance

12,329

13,441

Office expenses

192

180

Bank charges

84

84

12,605

13,705

Governance costs

31.3.23

31.3.22

Llanelly

House

Total

operations

activities

£

£

Accountancy

2,090

1,915

6.	NET INCOME/(EXPENDITURE)

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

31.3.23

31.3.22

£

£

Depreciation - owned assets

12,959

13,279

Deficit on disposal of fixed assets

-

55,899

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2023 nor for the year ended 31st March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2023 nor for the year ended 31st March 2022.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

500

-

500

Charitable activities

YMCA

-

4,000

4,000

Llanelly House operations

162,000

28,564

190,564

Total

162,500

32,564

195,064

EXPENDITURE ON

Charitable activities

YMCA

-

58,133

58,133

Llanelly House operations

122,618

41,581

164,199

Total

122,618

99,714

222,332

NET INCOME/(EXPENDITURE)

39,882

(67,150

)

(27,268

)

Other recognised gains/(losses)

Gains on revaluation of fixed assets

-

41,000

41,000

Net movement in funds

39,882

(26,150

)

13,732

RECONCILIATION OF FUNDS

Total funds brought forward

285,720

671,152

956,872

TOTAL FUNDS CARRIED FORWARD

325,602

645,002

970,604

9.

TAXATION

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

10.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1st April 2022 and 31st March 2023

600,000

493,781

306,433

1,400,214

DEPRECIATION

At 1st April 2022

12,000

493,780

66,805

572,585

Charge for year

7,363

-

5,596

12,959

At 31st March 2023

19,363

493,780

72,401

585,544

NET BOOK VALUE

At 31st March 2023

580,637

1

234,032

814,670

At 31st March 2022

588,000

1

239,628

827,629

Cost or Valuation at the 31st March 2023 for the Long Leasehold property is represented:

Cost

270,000

Valuation 2015

380,000

Valuation 2021

(50,000

)

600,000

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

Long leasehold property

£

Cost

270,000

Aggregate depreciation

10,800

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 2023.

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

PLH Cyf

38,065

-

Other debtor

-

1,618

38,065

1,618

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade creditors

-

510

VAT

5,087

2,496

Other creditors

-

5,000

PLH Cyf

-

2,511

Accruals and deferred income

5,668

4,991

10,755

15,508

13.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

£

£

£

£

Fixed assets

184,381

630,289

814,670

827,629

Current assets

183,213

1,950

185,163

158,483

Current liabilities

(10,755

)

-

(10,755

)

(15,508

)

356,839

632,239

989,078

970,604

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.22

in funds

31.3.23

£

£

£

Unrestricted funds

General fund

325,602

31,237

356,839

Restricted funds

Llanelly House

267,652

(6,163

)

261,489

YMCA

1,950

-

1,950

Big Picture Llanelly House

52,000

-

52,000

Revaluation Reserve

323,400

(6,600

)

316,800

645,002

(12,763

)

632,239

TOTAL FUNDS

970,604

18,474

989,078

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

169,393

(138,156

)

31,237

Restricted funds

Llanelly House

-

(6,163

)

(6,163

)

Revaluation Reserve

-

(6,600

)

(6,600

)

-

(12,763

)

(12,763

)

TOTAL FUNDS

169,393

(150,919

)

18,474