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Registered number: 09157986










NOTTINGHAM REVENUES AND BENEFITS LIMITED










Annual Report and Financial Statements

For the Year Ended 31 March 2024

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Company Information


Directors
Ms E Campbell-Clark (resigned 6 March 2024)
Mr B Grocock (resigned 6 March 2024)
Mr P Jackson (resigned 18 March 2024)
Mr S E Webster (resigned 6 March 2024)
Mr K France (appointed 9 February 2024)
Mr C M Wilderspin (appointed 9 February 2024)




Registered number
09157986



Registered office
Second Floor
Loxley House

Station Street

Nottingham

NG2 3NG




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Contents



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Statement of Cash Flows
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 25


 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Strategic Report
For the Year Ended 31 March 2024

Business review
 
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.

Principal risks and uncertainties
 
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.

Key performance indicators
 
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.



Mr K France
Director

Page 1

 
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.

Directors' responsibilities statement

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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company is the provision of services qin relation to benefits claims.

Results and dividends

The loss for the year, after taxation, amounted to £35,660 (2023 - loss £1,492,002).

No dividends have been recommended.

Directors

The directors who served during the year were:

Ms E Campbell-Clark (resigned 6 March 2024)
Mr B Grocock (resigned 6 March 2024)
Mr P Jackson (resigned 18 March 2024)
Mr S E Webster (resigned 6 March 2024)
Mr K France (appointed 9 February 2024)
Mr C M Wilderspin (appointed 9 February 2024)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Directors' Report (continued)
For the Year Ended 31 March 2024

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 March 2025 and signed on its behalf.
 





Mr K France
Director

Page 3

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited
 

Opinion


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 policiesThe 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).


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 profit 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 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.


Emphasis of matter


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. 













Page 4

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)


Other information


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 ReportOur 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.


Opinion 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 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.


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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 2, 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 is 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.


Page 5

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)


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 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.


Page 6

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Independent Auditors' Report to the Members of Nottingham Revenues and Benefits Limited (continued)


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 2006Our 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.





Sarah Flear (Senior Statutory Auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

24 March 2025
Page 7

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Statement of Comprehensive Income
For the Year Ended 31 March 2024

2024
2023
Note
£
£

  

Revenue from contracts with customers
 3 
-
6,536,031

Cost of sales
  
(4,490)
(5,814,157)

Gross (loss)/profit
  
(4,490)
721,874

Administrative expenses
  
(32,148)
(543,017)

Staff pension - additional IFRS service cost charge
 17 
-
(1,118,000)

Other operating income
 4 
-
1,918

Operating loss
 5 
(36,638)
(937,225)

Investment income
  
100,795
45,876

Other finance cost
 17 
-
(376,000)

Profit/(loss) before tax
  
64,157
(1,267,349)

Tax on profit/(loss)
 9 
(99,817)
(224,653)

Loss for the financial year
  
(35,660)
(1,492,002)

Other comprehensive income:
  

Items that will not be reclassified to profit or loss:
  

Actuarial gain on defined benefit schemes
  
-
15,492,000

Transfer of defined benefit pension scheme
 17 
862,000
-

  
862,000
15,492,000

Total comprehensive income for the year
  
826,340
13,999,998

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 13 to 25 form part of these financial statements.

Page 8

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
Registered number: 09157986

Balance Sheet
As at 31 March 2024

2024
2023
Note
£
£

  

Fixed assets
  

Tangible assets
 10 
-
17,755

  
-
17,755

Current assets
  

Debtors: amounts falling due within one year
 11 
2,010,715
2,022,408

Cash at bank and in hand
 12 
1,564,577
1,176,469

  
3,575,292
3,198,877

Creditors: amounts falling due within one year
 13 
(1,793,690)
(1,399,370)

Net current assets
  
 
 
1,781,602
 
 
1,799,507

Total assets less current liabilities
  
1,781,602
1,817,262

  

  

  

Net assets excluding pension liability/asset
  
1,781,602
1,817,262

Pension liability
  
-
(862,000)

Net assets
  
1,781,602
955,262


Capital and reserves
  

Called up share capital 
 15 
1
1

Profit and loss account
 16 
1,781,601
955,261

  
1,781,602
955,262


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 March 2025.




Mr K France
Director

The notes on pages 13 to 25 form part of these financial statements.

Page 9

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Statement of Changes in Equity
For the Year Ended 31 March 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
1
(13,044,737)
(13,044,736)


Comprehensive income for the year

Loss for the year
-
(1,492,002)
(1,492,002)

Actuarial gains on pension scheme
-
15,492,000
15,492,000
Total comprehensive income for the year
-
13,999,998
13,999,998



At 1 April 2023
1
955,261
955,262


Comprehensive income for the year

Loss for the year
-
(35,660)
(35,660)

Gains on transfer of pension scheme
-
862,000
862,000
Total comprehensive income for the year
-
826,340
826,340


At 31 March 2024
1
1,781,601
1,781,602


The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Statement of Cash Flows
For the Year Ended 31 March 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
(35,660)
(1,492,002)

Adjustments for:

Depreciation of tangible assets
-
13,160

Loss on disposal of tangible assets
17,755
-

Government grants
-
(1,918)

Taxation charge
99,817
224,653

Decrease in debtors
11,693
108,330

(Decrease)/increase in creditors
(520,494)
28,789

Increase in amounts owed to groups
914,814
547,893

Increase in net pension assets/liabs
-
1,494,000

Corporation tax (paid)
(99,817)
(224,653)

Net cash generated from operating activities

388,108
698,252


Cash flows from investing activities

Purchase of tangible fixed assets
-
(11,660)

Government grants received
-
1,918

Net cash from investing activities

-
(9,742)


Net increase in cash and cash equivalents
388,108
688,510

Cash and cash equivalents at beginning of year
1,176,469
487,959

Cash and cash equivalents at the end of year
1,564,577
1,176,469


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,564,577
1,176,469

1,564,577
1,176,469


The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

Analysis of Net Debt
For the Year Ended 31 March 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

1,176,469

388,108

1,564,577


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

1.Accounting policies

 
1.1

Basis of preparation of financial statements

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:

 
1.2

Going concern

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.

Page 13

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

1.Accounting policies (continued)

 
1.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services
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.

 
1.4

Government grants

Government grants received on capital expenditure are initially recognised within deferred income on the Company's Balance Sheet and are subsequently recognised in profit or loss on a systematic basis over the useful life of the related capital expenditure.
Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.

Page 14

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

1.Accounting policies (continued)

 
1.5

Pensions

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.

 
1.6

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.


 
1.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

1.Accounting policies (continued)


1.7
Tangible fixed assets (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:

Plant and machinery
-
33%
straight line basis
Fixtures and fittings
-
33%
straight line 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.

 
1.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
1.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
1.10

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 
1.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 16

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

2.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. 
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.


3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rendering of services
-
6,536,031


All turnover arose within the United Kingdom.


4.


Other operating income

2024
2023
£
£

Government grants receivable
-
1,918



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
-
13,160

Defined benefit pension cost
-
783,000

Government grants
-
(1,918)


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
4,500
9,780

Page 17

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
4,490
4,613,272

Social security costs
-
417,885

Cost of defined contribution scheme
-
783,000

4,490
5,814,157


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Staff
-
190


8.


Other finance costs

2024
2023
£
£

Net interest on net defined benefit liability
-
376,000



9.


Taxation


2024
2023
£
£



Group taxation relief
99,817
224,653


99,817
224,653


Page 18

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
64,157
(1,267,349)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
16,039
(240,796)

Effects of:


Expenses not deductible for tax purposes
38
283,860

Capital allowances for year in excess of depreciation
-
(380)

Other tax adjustments, reliefs and transfers
4,438
-

Amounts (charged)/credited directly to STRGL or otherwise transferred
41,250
-

Other permanent timing differences
215,500
-

Movement in deferred tax not recognised
(252,311)
-

Gross payment for group relief
99,817
224,653

Group relief
(24,954)
(42,684)

Total tax charge for the year
99,817
224,653

No deferred tax adjustments have been recognised in respect of IAS 19 in either 2024 or 2023. An adjustment to the current tax charge, if it had been made, would have resulted in a reduction in the overall tax charged to profit and loss in the year. It is acknowledged that any deferred tax asset arising in respect of IAS 19 adjustments would be considered to be a very long term asset. However, the Directors have considered the specific circumstances of the LGPS and have concluded that it is highly unlikely that the amounts paid will exceed the further accounting adjustments that will need to be made in respect of IAS 10 for the foreseeable future. Accordingly, no adjustments have been made in respect of deferred tax.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

10.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost


At 1 April 2023
36,990
4,425
41,415


Disposals
(36,990)
(4,425)
(41,415)



At 31 March 2024

-
-
-





At 1 April 2023
22,240
1,420
23,660


Disposals
(22,240)
(1,420)
(23,660)



At 31 March 2024

-
-
-



Net book value



At 31 March 2024
-
-
-



At 31 March 2023
14,750
3,005
17,755

Page 20

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

11.


Debtors

2024
2023
£
£


Trade debtors
-
22,408

Amounts owed by group undertakings
2,000,000
2,000,000

Other debtors
10,715
-

2,010,715
2,022,408



12.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,564,577
1,176,469



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
-
35,925

Amounts owed to group undertakings
1,785,690
870,876

Other taxation and social security
-
314,774

Other creditors
-
165,000

Accruals and deferred income
8,000
12,795

1,793,690
1,399,370



14.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
2,000,000
2,022,408


Financial liabilities


Financial liabilities measured at amortised cost
(1,767,785)
(906,801)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors and amounts due from group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors and amounts due to group undertakings.

Page 21

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

15.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1.00
1
1


Voting and dividend rights on all shares rank equally for voting purposes. The right to capital in the event of winding up also rank equally. Rights of redemption on shares are not redeemable.



16.


Reserves

Profit and loss account

Includes all current and prior period retained profit and losses.


17.


Pension commitments

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. 



Reconciliation of present value of plan liabilities:


2024
2023
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
22,475,000
36,254,000

Current service cost
-
1,892,000

Interest cost
-
942,000

Change in financial assumptions
-
(16,555,000)

Change in demographic assumptions
-
(1,720,000)

Benefits paid
-
(302,000)

Contributions by scheme participants
-
259,000

Experience loss/(gain) on defined benefit obligation
-
1,705,000

Transferred to NCC
(22,475,000)
-

At the end of the year
-
22,475,000
Page 22

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024
 
17.Pension commitments (continued)




Reconciliation of present value of plan assets:


2024
2023
£
£


At the beginning of the year
21,613,000
21,394,000

Interest on assets
-
566,000

Return on assets less interest
-
(1,020,000)

Administration expenses
-
(9,000)

Contributions by employer
-
783,000

Contributions by scheme participants
-
259,000

Benefits paid
-
(302,000)

Other actuarial gains/(losses)
-
(58,000)

Transferred to NCC
(21,613,000)
-

At the end of the year
-
21,613,000


Composition of plan assets:


2024
2023
£
£


Equities
-
13,400,000

Gilts
-
447,000

Other bonds
-
1,280,000

Property
-
2,565,000

Cash
-
1,131,000

Inflation-linked pooled fund
-
1,091,000

Infrastructure
-
1,699,000

Total plan assets
-
21,613,000

2024
2023
£
£


Fair value of plan assets
-
21,613,000

Present value of plan liabilities
-
(22,475,000)

Net pension scheme liability
-
(862,000)

Page 23

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024
 
17.Pension commitments (continued)


The amounts recognised in profit or loss are as follows:

2024
2023
£
£


Current service cost
-
(1,892,000)

Interest on obligation
-
(376,000)

Gains on curtailments and settlements
-
(9,000)

Total
-
(2,277,000)


The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £862,000 (gain) (2023: £15,492,000 (gain)).





Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024
2023
%
%
Discount rate



4.8
 
Future salary increases



3.9
 
Future pension increases



2.9
 
Mortality rates



 
- for a male aged 65 now



20.7
 
- at 65 for a male aged 45 now



22.0
 
- for a female aged 65 now



23.5
 
- at 65 for a female member aged 45 now



25.0
 






18.


Related party transactions

During the year, the parent undertaking has recharged expenses to Nottingham Revenues and Benefits Limited of £Nil (2023: £6,275,308). Nottingham Revenues and Benefits Limited had sales/income of £100,795 (2023: £6,104,953) with its parent in the year.
Amounts due to the parent undertaking at 31 March 2024 total £1,252,057 (2023: £437,060).
Amounts due from the parent undertaking at 31 March 2024 total £2,000,000 (2023: £2,000,000).
During year ended 31 March 2024, Nottingham Revenues and Benefits Limited received group taxation relief from a fellow subsidiary of £81,912 (2023: £224,653). The creditor owing to the fellow subsidiary amounts to £515,728 (2023: £433,816) and is included within amounts owed to group undertakings.

Page 24

 
NOTTINGHAM REVENUES AND BENEFITS LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 March 2024

19.


Controlling party

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.


Page 25