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REGISTERED NUMBER: 03368008 (England and Wales)















FCC Communities Foundation Limited

Strategic Report,

Report of the Directors and

Financial Statements

for the year ended

31 March 2024






FCC Communities Foundation Limited (Registered number: 03368008)

Contents of the Financial Statements
for the year ended 31 March 2024










Page

Company Information 1

Strategic Report 2 to 4

Report of the Directors 5

Report of the Independent Auditors 6 to 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13 to 16


FCC Communities Foundation Limited

Company Information
for the year ended 31 March 2024







DIRECTORS: Mr C J Ellis
Mr G Allen
Mrs S A Scott
Mrs J A Fourcade
Ms C H Sambridge



REGISTERED OFFICE: 8 Hopper Way
Diss
Norfolk
IP22 4GT



REGISTERED NUMBER: 03368008 (England and Wales)



AUDITORS: Haines Watts
Statutory Auditor
8 Hopper Way
Diss
Norfolk
IP22 4GT



SOLICITORS: Fisher Jones Greenwood LLP
Charter Court, Newcomen Way
Severalls Business Park
Colchester
Essex
CO4 9YA

FCC Communities Foundation Limited (Registered number: 03368008)

Strategic Report
for the year ended 31 March 2024


The purpose of the Strategic Report is to inform stakeholders in the Landfill Communities Fund (LCF) and Scottish Landfill Communities Fund (SLCF) and to help them assess how the directors have performed their duty under section 172 (duty to promote success of the company).


REVIEW OF BUSINESS
The 2023/24 financial year saw a decline in both the LCF and SLCF income. The financial year ended with the business receiving £4,967,244.90 in LCF income, which was £1,588,258.46 less than was forecast and is £2,745,111.99 down on the previous financial year. It also received £422,996.03 in SLCF income, which was £88,483.59 less than was forecast and is £90,261.11 down on the previous financial year. With a combined income in excess of £5,000,000, the business is still in a stable financial position.

With interest rates remaining high, the business ended the financial year having generated £171,617 in interest earnings. The Board took the decision to give the interest earnings away as Gift Aid and awarded £150,000 to the Black Country Living Museum to complete the restoration of Woodside Library, which forms part of the broader 'Forging Ahead' redevelopment project.

During the 2023/24 financial year the business has implemented Work Smarter, a new cloud based HR platform, and Signable, a new cloud based E-signature platform. Both these systems have resulted in cost savings, whilst at the same time improving efficiency and allowing the business to become paperless.

LCF

Spring Budget Statement 2024

As part of the Spring Budget announcement on 6th March 2024, HM Revenue & Customs (HMRC) released their Landfill Tax Briefing which states the following in relation to the Landfill Communities Fund (LCF):

1. The government has planned to set the value of the LCF for 2024-2025 at £30.9m (£32.9m in 2023/24)
2. The diversion rate for contributors from Landfill Operators will remain at 5.3%
3. The confirmation of the ENTRUST Levy for 2024-2025 is set as 2.93% (3.38% in 2023/24)

Additionally, the government plans to raise the standard and lower Landfill Tax rates, aligning them with the Retail Price
Index (RPI). The rates will be rounded to the nearest 5 pence and these upcoming adjustments will be effective from 1 April 2025 onwards.

This was published by ENTRUST on their website on 15th March 2024.

Performance against Key Targets

HMRC, through ENTRUST, is continuing to monitor the level of uncommitted funds held and unspent funds held by Environmental Bodies, as well as the level of overheads costs being incurred by Environmental Bodies across the sector. Environmental Bodies are expected to continue to reduce the level of uncommitted and unspent funds being held and to contain their administration costs to within 7.5% cost to spend. They are also expected to limit the amount of funds held to no more than 1.5 times the total amount of income they receive across a single financial year.

The level of unspent LCF funds held by the business on 31st March 2024 reduced by £2,119,569 on the previous financial year, down from £9,913,804 to £7,794,235. This is well within the 1.5 times the total annual income received target, against which the performance of the business is measured. The level of uncommitted LCF funds held by the business on 31st March 2024, (less contingency), reduced by £1,316,020 to £340,822. This represents a positive step forward and clearly demonstrates that the business is committing and spending the funds it receives. It is also a reflection of the fact that the business has experienced a drop-off in income over the course of the financial year. The Directors are comfortable with the level of unspent funds held and are pleased with the progress that has been made to reduce the level of uncommitted funds held. The company committed £6,296,835.63 to new projects in England and a further £427,895.45 to new projects in Scotland in the 2023/24 financial year.

The Board agreed not to launch a third round of the Flagship Funding programme for the 2024/25 financial year due to the reduction in income.

LCF overhead costs were contained at 5.95% cost to spend, against a target of no more than 7.5%.

SLCF
The diversion rate remained unchanged at 5.6%, but despite this remaining static, the total value of the SLCF has reduced quite considerably down from £7.4 million in the 2022/23 financial year, to £4.36 million at the end of the 2023/24 financial year. Although this is in line with SEPA's calculation of potential SLCF contributions based on the Fiscal Commission Scottish Landfill Tax forecasts. (Data provided by SEPA).

FCC Communities Foundation experienced a reduction in income in Scotland during the 2023/24 financial year, seeing income drop from £601,740 in the 2022/23 financial year, down to £422,996 at the end of the 2023/24 financial year. SLCF overhead costs were contained at 9.92% cost to income for the financial year and within the target set by SEPA of 10% cost to income.

The business is forecasting that income will reduce by approximately 15% in Scotland for the forthcoming financial year.


FCC Communities Foundation Limited (Registered number: 03368008)

Strategic Report
for the year ended 31 March 2024

EXECUTIVE SUMMARY
After consideration of the results for the year, the continued instability of the economy and the pressures facing the UK as it begins to recover from the cost of living crisis, the Directors feel that the company has performed well with all the key targets set by HMRC having been met.

This assessment is based on the following key performance indicators (KPI's)* of the financial performance. The KPI's have been split in to LCF and SLCF as FCC Communities Foundation reports to ENTRUST for its business activity in England and SEPA for its business activity in Scotland:

LCF SLCF
Landfill tax credit income receive £4,967,245 £422,996
Operating costs for the business £ 398,760 £ 41,956
Cost to spend ratio (%) 5.95% N/A
Cost to income ratio (%) N/A 9.92%
New Grant commitments made during the year £6,296,836 £427,895
Commitment Balance at the year end £7,240,923 £434,846
Project spend during the year £6,701,983 £356,333
Level of write backs during the year £ 425,483 £100,446
Level of unspent funds held at the end of the year £7,794,235 £702,662
Level of uncommitted funds held at the end of the
year

£ 340,822

£230,317
Level of funds retained for wind up of the
business

£ 212,500

£ 37,500

*The above data is based on a cash basis as required by and reported to ENTRUST and SEPA as at 31 March 2024.

The business continues to recognise the importance of reducing the level of both uncommitted and unspent monies held and has demonstrated throughout the 2023/24 financial year that it is beginning to make real progress in achieving meaningful reductions in both these key areas. This will continue into the 2024/25 financial year.

During this financial year the company has received and processed 200 new LCF project applications and 36 new SLCF project applications. Of the new project applications received and processed, 110 LCF projects and 14 SLCF projects were awarded funding. The total amount committed to new projects through the LCF was £6,296,835.63 and the total amount committed to new projects through the SLCF was £427,895.45.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks are:

- The diversion rate for both the LCF and SLCF not being adjusted to maintain the annual value of the two funds
- The Chancellor reallocating some of the money currently allocated to the LCF to other governmental priorities
- The Chancellor announcing the end of the LCF
- Revenue Scotland announcing the end of the SLCF


FCC Communities Foundation Limited (Registered number: 03368008)

Strategic Report
for the year ended 31 March 2024

FINANCIAL RISK MANAGEMENT
The FCC Communities Foundation Board has responsibility for the company's liquidity and financial risk.

The Directors are committed to reducing the level of unspent funds held and the level of uncommitted funds held. This is monitored monthly.

The Board has a policy of not forward committing funds based on financial projections and is therefore always in a position to meet its liabilities in the event of the closure of the LCF and/or SLCF.

An annual winding up provision is made in the budget. This is per ENTRUST guidance and the costs allowed are for the wind down of the business if it were to cease trading prior to the end of the LCF/SLCF.

PEOPLE

FCC Communities Foundation employs 7 full-time and 1 part-time members of staff. The number of employees working for the business did not change during the 2023/24 financial year.

ON BEHALF OF THE BOARD:





Mr G Allen - Director


21 August 2024

FCC Communities Foundation Limited (Registered number: 03368008)

Report of the Directors
for the year ended 31 March 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of operating as an Environmental Body under the Landfill Tax Regulations 1996 in England and an Approved Body in Scotland, to receive, distribute and spend Landfill Communities Fund and Scottish Landfill Communities Fund monies.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr C J Ellis
Mr G Allen
Mrs S A Scott
Mrs J A Fourcade
Ms C H Sambridge

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr G Allen - Director


21 August 2024

Report of the Independent Auditors to the Members of
FCC Communities Foundation Limited


Opinion
We have audited the financial statements of FCC Communities Foundation Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its deficit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
FCC Communities Foundation Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we have performed our own assessment of the susceptibility of the financial statements to material misstatement, including how fraud may occur, and concentrated our audit work in these areas in order to detect any material misstatements which may exist.

- we had a planning meeting with management prior to performing the audit to obtain an understanding of the entity's policies and procedures on compliance with laws and regulations, including enquiring whether there were any instances of non-compliance.

- we had a planning meeting with management prior to performing the audit to obtain an understanding of the entity's risk assessment process, including obtaining managements assessment of the risk of fraud, and knowledge of any actual, suspected or alleged fraud instances during the year

- we tested a number of journals.and obtained and evaluated the business rationale for any which appear unusual or outside the company's normal course of business;

- we performed a preliminary analytical review of the financial statements and used this to direct further audit testing

Our audit did not identify any matters relating to the detection of irregularities including fraud.

However, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Simonetta Castellano (Senior Statutory Auditor)
for and on behalf of Haines Watts
Statutory Auditor
8 Hopper Way
Diss
Norfolk
IP22 4GT

21 August 2024

FCC Communities Foundation Limited (Registered number: 03368008)

Statement of Comprehensive Income
for the year ended 31 March 2024

2024 2023
Notes £    £    £    £   

INCOME 4 5,075,659 7,952,326

Other operating income 10,205 -
5,085,864 7,952,326

Staff costs 5 341,502 322,300
Depreciation 1,542 833
Other operating expenses 7,337,646 8,793,469
7,680,690 9,116,602
(2,594,826 ) (1,164,276 )

Interest receivable and similar income 171,617 58,010
DEFICIT BEFORE TAXATION 7 (2,423,209 ) (1,106,266 )

Tax on deficit 8 4,107 572
DEFICIT FOR THE FINANCIAL YEAR (2,427,316 ) (1,106,838 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (2,427,316 ) (1,106,838 )

FCC Communities Foundation Limited (Registered number: 03368008)

Statement of Financial Position
31 March 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 9 4,186 1,693

CURRENT ASSETS
Debtors 10 949,563 1,268,554
Cash at bank 8,496,898 10,604,449
9,446,461 11,873,003
CREDITORS
Amounts falling due within one year 11 (7,732,489 ) (7,729,222 )
NET CURRENT ASSETS 1,713,972 4,143,781
TOTAL ASSETS LESS CURRENT LIABILITIES 1,718,158 4,145,474

RESERVES
Income and expenditure account 12 1,718,158 4,145,474
1,718,158 4,145,474

The financial statements were approved by the Board of Directors and authorised for issue on 21 August 2024 and were signed on its behalf by:




Mr G Allen - Director



Mr C J Ellis - Director


FCC Communities Foundation Limited (Registered number: 03368008)

Statement of Changes in Equity
for the year ended 31 March 2024

Retained Total
earnings equity
£    £   
Balance at 1 April 2022 5,252,312 5,252,312

Changes in equity
Total comprehensive income (1,106,838 ) (1,106,838 )
Balance at 31 March 2023 4,145,474 4,145,474

Changes in equity
Total comprehensive income (2,427,316 ) (2,427,316 )
Balance at 31 March 2024 1,718,158 1,718,158

FCC Communities Foundation Limited (Registered number: 03368008)

Statement of Cash Flows
for the year ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,274,561 ) 407,641
Tax paid (572 ) (378 )
Net cash from operating activities (2,275,133 ) 407,263

Cash flows from investing activities
Purchase of tangible fixed assets (4,035 ) (2,259 )
Interest received 171,617 58,010
Net cash from investing activities 167,582 55,751

(Decrease)/increase in cash and cash equivalents (2,107,551 ) 463,014
Cash and cash equivalents at beginning of year 2 10,604,449 10,141,435

Cash and cash equivalents at end of year 2 8,496,898 10,604,449

FCC Communities Foundation Limited (Registered number: 03368008)

Notes to the Statement of Cash Flows
for the year ended 31 March 2024


1. RECONCILIATION OF DEFICIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2024 2023
£    £   
Deficit before taxation (2,423,209 ) (1,106,266 )
Depreciation charges 1,542 834
Finance income (171,617 ) (58,010 )
(2,593,284 ) (1,163,442 )
Decrease in trade and other debtors 318,991 362,429
(Decrease)/increase in trade and other creditors (268 ) 1,208,654
Cash generated from operations (2,274,561 ) 407,641

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 8,496,898 10,604,449
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 10,604,449 10,141,435


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank 10,604,449 (2,107,551 ) 8,496,898
10,604,449 (2,107,551 ) 8,496,898
Total 10,604,449 (2,107,551 ) 8,496,898

FCC Communities Foundation Limited (Registered number: 03368008)

Notes to the Financial Statements
for the year ended 31 March 2024


1. STATUTORY INFORMATION

FCC Communities Foundation Limited is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Income
Income represents landfill tax credits payable by Landfill Operators under the Landfill Tax Regulations 1996. The percentage of the total landfill tax liability which a Landfill Operator is able to transfer to their nominated Environmental Body is referred to as the diversion rate. The diversion rate is set by the Chancellor of the Exchequer and announced in the Budget. For the financial year to 31 March 2024 the diversion rate was set at 5.3%.

Grants committed
The company accounts for grants committed in the income and expenditure account once the award of the grant has been approved by the board of directors and the applicant has been advised of the success of their application

Release of grants committed.
When a grant is approved the applicant has 12 months to complete the project and claim the grant. Each year a number of grants are not claimed or fail to meet the criteria to be claimed within the 12 month period. When this happens, the grant is written off and the money is released back into the income and expenditure account so that it can be re-committed to a new project. Unclaimed grants are reviewed monthly by the General Manager and Grant Managers. Write offs are processed throughout the financial year.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 33% on cost
Computer equipment - 33% on cost

Financial instruments
Short term debtors are measured at transaction price, less any impairment.
Short term creditors are measured at the transaction price.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

FCC Communities Foundation Limited (Registered number: 03368008)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


4. INCOME

The income and deficit before taxation are attributable to the one principal activity of the company.

An analysis of income by class of business is given below:

2024 2023
£    £   
Landfill tax credits 5,075,659 7,952,326
5,075,659 7,952,326

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 285,251 269,288
Social security costs 32,954 31,841
Other pension costs 23,297 21,171
341,502 322,300

The average number of employees during the year was as follows:
2024 2023

Administration 8 8

The remuneration of key management personnel amounted to £90,226 (2023 - £84,875).

2024 2023
£    £   
Directors' remuneration 3,156 4,070

6. EXCEPTIONAL ITEMS
2024 2023
£    £   
Release of grants committed 525,929 405,602

When a grant is approved the applicant has 12 months to complete the project and claim the grant. Each year a number of grants are not claimed or fail to meet the criteria to be claimed within the 12 month period. When this happens, the grant is written off and the money is released back into the income and expenditure account so that it can be re-committed to a new project.

7. DEFICIT BEFORE TAXATION

The deficit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 1,542 834
Auditors' remuneration 8,970 8,886

FCC Communities Foundation Limited (Registered number: 03368008)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


8. TAXATION

Analysis of the tax charge
The tax charge on the deficit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 4,107 572
Tax on deficit 4,107 572

UK corporation tax has been charged at 19% (2023 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Deficit before tax (2,423,209 ) (1,106,266 )
Deficit multiplied by the standard rate of corporation tax in the UK of 19% (2023 - 19%) (460,410 ) (210,191 )

Effects of:
Income and expenses not deductible for tax purposes 493,017 219,426
Gift Aid (28,500 ) (8,663 )
Total tax charge 4,107 572

The Company has no taxable trading profit and it is only taxed on interest received.

9. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 April 2023 3,784 8,512 12,296
Additions - 4,035 4,035
At 31 March 2024 3,784 12,547 16,331
DEPRECIATION
At 1 April 2023 3,784 6,819 10,603
Charge for year - 1,542 1,542
At 31 March 2024 3,784 8,361 12,145
NET BOOK VALUE
At 31 March 2024 - 4,186 4,186
At 31 March 2023 - 1,693 1,693

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 946,395 1,260,978
Prepayments 3,168 7,576
949,563 1,268,554

FCC Communities Foundation Limited (Registered number: 03368008)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Corporation tax 4,107 572
Social security and other taxes 10,662 10,171
Other creditors 2,352 2,553
Grants agreed by the board but
not paid 7,675,758 7,657,372
Accrued expenses 39,610 58,554
7,732,489 7,729,222

12. RESERVES
Income
and
expenditure
account
£   

At 1 April 2023 4,145,474
Deficit for the year (2,427,316 )
At 31 March 2024 1,718,158

The income and expenditure account represents cumulative surpluses of landfill tax credits received over grants committed and operating expenses. This surplus is a result of timing differences between the date that landfill tax credits are received and the date that grant commitments are approved by the board of directors.

The company is limited by guarantee and has no share capital. Every director undertakes to contribute such amounts as may be required (not exceeding £1) to the company's assets if it should be wound up while they are a director or within one year after they cease to be a director. There were 5 directors as at the year ended 31 March 2024 (2023 - 5).

The reserves are not attributable to directors as the company is prevented by its Memorandum from paying dividends, bonuses or other distributions to the directors of the company.

13. RELATED PARTY DISCLOSURES

During the year the company paid £3,156 in director's remuneration, fees and expenses (2023 - £4,070) to the following directors:

S Scott £250 (2023 - £500)
J Fourcade £Nil (2023 - £Nil)
G Allen £2,375 (2023 - £2,938)
C Sambridge £531 (2023 - £164)
C Ellis £nil (2023- £nil)


14. CONTROLLING INTEREST

The company is controlled by the directors as listed on page 1.