Registered number:
For the Year Ended
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Company Information
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Contents
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Strategic Report
For the Year Ended 31 March 2024
This is the tenth and final period of operation for Nottingham Revenues and Benefits Ltd (NRB) which was set up to deliver a revenues and benefits service as part of the innovative partnership approach between Nottingham City Council and Northgate Public Services (UK) Ltd (NPS). The sub contract with NPS came to an end on 31 October 2021 and a new contract to provide the revenues and benefits service directly to it’s parent, Nottingham City Council, came into effect from 1 November 2021.
On 1 April 2023 the Company’s trade assets and liabiities were transferred back to its parent, Nottingham City Council, and therefore the Directors confirm that the Company has ceased operating as a going concern from that date. These accounts represent the residual activity (mainly one-off and ongoing expenses) that has occurred whilst the Company is effectively dormant, awaiting liquidation.
The Company’s capital management ensured that strong credit ratings and capital ratios were maintained. This also ensured that the business was correctly supported and shareholder value maximised. The Company’s key risks include liquidity risk, interest rate risk and capital risk.
Liquidity risk management The Company’s principal financial asset is cash and the directors consider the balance at 31 March 2024 is more than sufficient to meet all remaining obligations prior to dissolution. The Company’s former employees participated in the Local Government Pension Scheme (LGPS) which had both assets and obligations at the end of the previous accounting period. These all transferred back to the parent, Nottingham City Council, on 1 April 2023. Interest rate risk management The Company has no external financing facilities therefore its interest rate risk is limited to the level of interest received on cash surpluses and investments. Fair value measurements The Directors consider that the carrying amount of the remaining financial assets and liabilities recognised in the latest Statement of Financial Position approximate to their fair value.
In terms of Financial Performance, the Statement of Comprehensive Income shows an overall surplus of £826,340 for 2023/24 compared to a surplus of £13,999,998 for 2022/23. This was due to a re-measurement of the defined pension liability at 31 March 2023.
This report was approved by the board on 19 March 2025 and signed on its behalf.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Directors' Report
For the Year Ended 31 March 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 profit or loss 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 judgments 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 loss for the year, after taxation, amounted to £35,660 (2023 - loss £1,492,002).
No dividends have been recommended.
The directors who served during the year were:
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Directors' Report (continued)
For the Year Ended 31 March 2024
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited
We have audited the financial statements of Nottingham Revenues and Benefits Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to Note 1.2 of the financial statements, which explains that the trade and assets of the company were transferred to its parent undertaking from 1 April 2023 and therefore the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in respect of this matter.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)
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 an Auditors' Report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and industry, we identify the key laws and regulations affecting the company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to: • management bias in respect of accounting estimates and judgements made; • management override of control; • posting of unusual journals or transactions. We focussed on those areas that could give rise to a material misstatement in the company financial statements. Our procedures included, but were not limited to: • enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; • reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud; • reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; • performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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 Auditors' Report.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)
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 an Auditors' Report 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.
for and on behalf of
Statutory Auditors
2 Lace Market Square
Nottingham
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Statement of Comprehensive Income
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Registered number: 09157986
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 25 form part of these financial statements.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Statement of Changes in Equity
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Statement of Cash Flows
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Analysis of Net Debt
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
1.Accounting policies
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
Nottingham Revenues and Benefits Limited is a private Company limited by shares and incorporated and domiciled in the United Kingdom. The address of the registered office, which is the same as the place of business, is given in the Company information of these financial statements. The financial statements are presented in Sterling which is the functional currency of the Company and have been rounded to the nearest £1. The following principal accounting policies have been applied:
On 1 April 2023 the company’s trade, assets and liabilities were transferred to its parent company and therefore the Directors confirm that the company will not continue to operate for 12 months from the date of approval of these financial statements. As a result, the financial statements are prepared on a basis other than going concern.
FRS 101 does not provide an alternative basis to prepare the financial statements, however appropriate consideration and corresponding adjustments have been made to the recoverable amount of assets, any provisions for onerous contracts and re-classification of long term assets and liabilities. The financial statements do not include any provision for the future costs of terminating the business of the company except to the extent that such costs were committed at the balance sheet date. There were no significant judgements made by management during this process and presentation on a basis other than going concern has not resulted in any material adjustments in preparing the financial statements.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
1.Accounting policies (continued)
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: - the amount of revenue can be measured reliably; - it is probable that the Company will receive the consideration due under the contract; - stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. NRB invoices its primary customer on a monthly basis. Any amounts in relation to services yet to be delivered at 31 March 2024 are not recognised in revenue and are reported as deferred income in the creditors note to the financial statements so as to recognise income on an accruals basis. Other judgements in revenue recognition Where a contract price covers several promised goods or services, it must be allocated between those promises. For all cases where the company sells goods with services, those goods are also available as discrete items, therefore evidence exists of the stand alone selling price and this can be used to drive the allocation. Variable consideration arises where the final amount payable for goods or services depends on annual volume of sales to the customer. In this case the amount initially recognised is the best estimate of the total that will be received. In the rare situations where there is such a wide range of possibilities for the eventual price that it cannot be estimated at the outset, this is a constraint on the amount of variable consideration that can be recognised and recognition of the uncertain element is delayed until more information is available. Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
1.Accounting policies (continued)
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the currencies of the post-employment benefit obligation with at least an 'AA' rating or above, as set by an internationally acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases and pension increases are based on expected future inflation rates for the respective countries. Further details about pension obligations are given in Note 17.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
1.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
Significant areas of estimation for the Company include the calculation of the pension liability. Information is included in the pension note above and Note 17.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
Profit and loss account
The Company operates a Defined benefit pension scheme as an admitted body in the Local Government Pension Scheme (LGPS) which is a multi-employer funded defined benefit plan of qualifying employees. The pension scheme assets are held in separate trustee administered funds to meet the long-term pension liabilities to past and present employees. The trustees of the fund are required to act in the best interests of the fund’s beneficiaries, which includes management of risks and appropriate investment of the scheme assets to generate returns. The appointment of trustees to the fund is determined by the scheme’s governing documents and are completely independent from the Company.
The defined benefit pension transferred to Nottinghamshire County Council on 1 April 2023, the transfer valuation used has been based on the most recent actuarial valuation at 31 March 2023 and was updated by Barnett Waddingham to take account of the requirements of FRS 101 in order to assess the liabilities of the scheme at 1 April 2023/31 March 2023. Scheme assets are stated at their market values at respective balance sheet dates and overall expected rate of return are established by applying published brokers' forecasts to each category of scheme assets.
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
17.Pension commitments (continued)
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
17.Pension commitments (continued)
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NOTTINGHAM REVENUES AND BENEFITS LIMITED
Notes to the Financial Statements
For the Year Ended 31 March 2024
The company is a wholly owned subsidiary of Nottingham City Council, a UK based democratic organisation. Nottingham City Council, is required by statute to prepare Statement of Accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom. Consolidated financial statements are publicly available at the parent company's registered office, Second Floor, Loxley House, Station Street, Nottingham NG2 3NG.
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