REGISTERED COMPANY NUMBER: 04851054 (England and Wales)

REGISTERED CHARITY NUMBER: 1135322

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

LEICESTERSHIRE, LEICESTER AND RUTLAND

COMMUNITY FOUNDATION

Page

Report of the Trustees

1

to

8

Report of the Independent Auditors

9

to

12

Statement of Financial Activities

13

Balance Sheet

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

to

30

The trustees present their annual trustees' report for the year ending 31 March 2025. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland published in October 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

1. The Community Foundation is an independently constituted and locally managed charitable company, registered in England and Wales no. 04851054 and registered charity number 1135322. The liability of each member is limited to £1. It is part of a network of 46 UK Community Foundations.

2. The Community Foundation meets its charitable aims by giving grants to charitable groups, particularly those working with local needs, by attracting and managing grant-giving funds for, individuals, families, companies and public agencies. It also reinvigorates dormant or onerous charitable trusts. It maintains a small staff to carry out this work.

RECRUITMENT, APPOINTMENT AND INDUCTION OF TRUSTEES

All Trustees also serve as Directors under the Companies Act 2006. The Community Foundation periodically publicly advertises recruitment for Trustees. All Trustees sign a declaration of fitness to serve and an annual statement of interests, undergo an induction process and intermittent training, and are expected to attend at least 75% of meetings. The full Board of Trustees meets quarterly. The Finance Panel also meet quarterly, and the Grants Panel three or four times a year. Working groups are formed for specific projects or tasks.

The charity has a President, and three Vice Presidents, not subject to re-election. Trustees, Presidents and Vice-presidents are not remunerated, though may claim reasonable travel expenses to meetings.

Quality Standards

A rigorous Quality Accreditation (QA), a formal measure of efficacy, takes place periodically, with the next due late in 2025.

Organisational Structure and Pay

The Community Foundation's permanent staff were the Chief Executive, the Finance Manager, two Grants Officers, the Grants Assistant, and the Philanthropy Executive. Freelance staff were employed for grant assessment and higher level administration. A pension contribution of 8% is given to permanent staff after a year of service. Trustee expenses and related party transactions are disclosed in note 13 and 23 to the accounts.

GDPR

Communication and data storage continued to be monitored in 2024-25.

What We Did: Activities and Performance of the Year

As in every year, the focus of our work was:

1. Fund Development: increasing financial support for local needs by attracting new, and retaining existing, private and public grant-giving funds, including legacies, and reinvigorating dormant trusts.

2. Distribution of grants from these funds to charitable, voluntary and community groups especially those working effectively with local needs

3. Rigorous financial management, tracking money in and out, reviewing the performance of investments and maintaining a lean operating budget.

4. Governance: reviews, projects and strategies to lead, support or improve operation.

1. Fund Development

The Community Foundation works to attract money to be distributed locally as grants, with or on behalf of a range of donors and funders. As usual, the Community Foundation offered two kinds of grant giving funds:

a. Endowment Funds: where the donation is invested under professional management for a charitable income drawn down quarterly for distribution. This creates enduring support for local community need.

b. Spend down Funds: where the donation is distributed to a timescale specified by the donor or funder: This creates immediate support for local needs.

Some donors choose to do both; included in the totals below. Each new donor has a Fund Agreement which instructs on their charitable aims and method of grant-giving decision-making from a choice of options. Work took place to increase profile especially with professional advisors and businesses. The Community Foundation had a second year as Charity of the Year for East Midlands Chamber with neighbouring community foundations Forever Notts and Foundation Derbyshire, attending numerous events to talk about the value of local charities and local giving. A lunch event co-hosted with the High Sheriffs of Leicestershire and Rutland brought together donors and other stakeholders. Presence at business networks and on social media was much increased.

Endowment Funds

Growing a community endowment is a key goal of Community Foundations because invested funds provide enduring charitable income for local needs. In 2024/25 the Community Foundation welcomed two funds, the Francis Caus Charity Fund, to benefit the West End of Leicester, and the Richard Pearson Endowment Fund. Some donors generously added to their existing funds. Total value of endowment funds £4,264,919 (2024: £4,276,204).

Spend Down Funds

As valuable to local communities, "spend down" funds are spent within a timescale agreed with the donor or funder. The Lucy Phillips Arts Fund was set up by her friends in memory of Lucy's life and work as an arts practitioner and supporter. The Community Foundation welcomed the Market Harborough Building Society Community Fund, benefitting the areas around branches; The Randal Foundation Fund to deliver grants locally to help meet their established aims around improving healthcare, alleviating poverty, supporting women and children at risk, prisoner rehabilitation and education; and Anchor Butter, towards community food projects. Hamilton Community Association, a closed charity benefitting local people and Abacus Flooring Ltd contributed to our Making Local Life Better fund.

Generous immediate spend additions were made to the Brucciani Fund, the Louisa Fund, the William Colton Youth Sports Fund, and Cambridge and Counties Bank Community Fund.The Community Foundation continued to support the NHS Leicestershire Partnership Trust Getting Help in Neighbourhoods Adult Mental Health programme. Total of £434,905 in spend down funds (2024: £277,751).

Donor Support

The Community Foundation continued to support donors to meet their giving aims, reporting to them on the impact their grants made. The Making Local Life Better Fund continued to be popular with both donors and charitable groups, for any charitable need up to £3,000 anywhere in Leicester, Leicestershire and Rutland. Others (with more than £50K to spend) were fully supported to hold a standalone application process. Still others instructed the Community Foundation to select beneficiaries on their behalf, to their aims, or selected their own beneficiaries. All donors received an annual report of their fund's activity and grants made.

2. Distribution of Grants

The Community Foundation followed the established rigorous outreach, assessment and reporting processes to ensure that donors' and funders' money reaches local needs. While supporting all kinds of philanthropic giving and public grant distribution, there was as usual a focus on "grassroots" charitable groups, too small to employ fundraisers but whose work nonetheless makes a vital contribution in communities that face challenges. Most charitable groups of all sizes continued to face increased demands on their services as well as rising costs. Donors and funders gave a range of grants to help reduce homelessness, support health, increase affordable access to sports and the arts, improve local community facilities, offer education or employment support, and train volunteers among much other work. The planned transition to a new nationally led Customer Relationship Management system encountered many problems, causing additional work and increased cost, eventually sending the Community Foundation back to the legacy system, but apart from a pause in the Making Local Life Better Fund schedule, grant giving work continued through the technical difficulties. The year was notable for the great increase in applications from local charitable groups for grants, some three or four times the previous number, a reflection both of rising costs and reduced funding opportunities elsewhere.

The Community Foundation was grateful for the support of volunteers and freelancers including David Lindley, and all those who sat voluntarily on Grants Panels and the Advisory Group. The generous sharing of time, knowledge and experience from those working and living in Leicester, Leicestershire and Rutland helps makes the Community Foundation's grant-giving responsive, informed and far reaching.

A total of 117 grants were made to a value of £238,991 (2024: £466,452); in addition the Community Foundation detailed and monitored 49 further grants for the NHS Getting Help in Neighbourhoods Adult Mental Health grants programme, taking the total value of grants made to £1,430,915, and are detailed in the Grants Summary for 2024/25, available on the Community Foundation website, or available as a hard copy on request.

3. Financial Management

As in every year, the Community Foundation tracked and reported money from the wide variety of donations and additions to funds, given out as grants, reviewed the performance of investments, and maintained a careful operating budget. Further work took places to streamline processes with the new Treasurer and accounting software put in place the previous year.

The Community Foundation model is a self-sustaining one; it offers a charitable service for very competitive fees which contribute to its lean operation. A least 90% of donations goes to local need. For several reasons, including somewhat volatile markets, a dearth of new public funding programmes, and the investment in a new CRM with attendant difficulties, it was a challenge to meet operating costs. The Community Foundation remained very grateful for contributions to operating costs from private donors. .

Total income in the year, including new and renewed private funds, dormant fund transfers and public fund delivery, amounted to £702,053 (2024: £612,183).

Going Concern

The Trustees have a reasonable expectation that the company has adequate resources to continue for the foreseeable future and therefore adopt the going concern basis in preparing the financial statements. Further details are in the Accounting Policies, below.

Financial Review and Results for the Year

An overall surplus before losses on investments by the charitable company of £224,805 (2024: deficit of £94,947), this was made up of income from charitable activities towards the expendable funds. After the gains/(losses) on investments, the result was an overall surplus of £67,056 (2024: £278,496). This was made up of a deficit of £78,813 in unrestricted funds, a surplus of £157,154 in restricted funds and a deficit of £11,285 in endowment funds. The Community Foundation reached £4.26m (2024: £4.28m) for its endowment fund by the end of the year. The balance of reserves carried forward at the year-end was £4,804,352 (2024: £4,737,296).

Reserves Policy

At the year end, free reserves stood at unrestricted funds of £104,528 less tangible fixed assets of £384 giving a total of £104,144 (2024: £182,566). Restricted funds amounted to £434,905 (2024: £277,751).

Investment Policy

The Trustees invest endowment funds with an objective to provide a return that maintains the real (inflation adjusted) value of the capital, whilst also delivering a cash flow to meet charitable giving and contribute to the operating costs of the Community Foundation. The Trustees' attitude is categorised as "risk tolerant", opting to invest in specialist investment funds which offer a diversified investment portfolio over a long-term time horizon. For clarity, the Trustees believe that the long-term investment horizon means that their investments may include a high degree of equity-based investment. During the year, The Community Foundation used two investment managers CCLA and M&G but will consider other investment managers etc generally for larger amounts (£150,000+).

The Community Foundation offers a default allocation for the investment of endowment funds which are broadly socially responsible but can also offer some flexibility to those larger donors who take an active interest in where their funds are invested or wish to place further ethical restrictions on the investments. Any such "ethical investment" will be made on a best endeavours basis and will depend upon other factors. These may include the nature of the restriction imposed and the availability of a suitable fund or funds being accessible to the Trustees.

The Trustees' strategy is to aim to follow a total return approach, delivering a predictable return for giving through income and capital growth. The Community Foundation aims for an "income" for grant making from its endowment funds of 4% each year, comprising a mixture of investment income and capital growth. This is drawn down quarterly to minimise the impact of short-term market variability. Trustees may review this 4% aim in order to protect capital values.

The Community Foundation reviews investment performance regularly and acts where investments are not achieving the desired returns within the approved attitude to risk. Investment performance and risk is reviewed every-other finance panel meeting. Trustees receive quarterly updates on fund performance from the investment managers, and may meet with them to discuss performance, and to better understand any changes to their investment policy.

In addition to the Endowment Funds, The Foundation has invested some of its restricted and unrestricted funds. The Trustees' strategy for the investment of restricted funds is to minimise any exposure to capital loss as the capital is restricted for giving in the medium term. Again, Fund balances are regularly reviewed, and the Trustees' attitude is categorised as "very risk averse". The Trustees' strategy for the investment of unrestricted reserves is to provide a return that contributes to the operating costs of the Community Foundation, whilst, as far as possible, maintaining the value of the capital for future sustainability. For clarity, the trustees interpret, the very risk adverse, attitude to mean that investments for restricted funds, should be in the form of cash or near cash investments. The Board reviews its Investment Policy every 2 years, but the Finance Panel reviews performance more regularly. During the year, the charity received £67,180 (2024: £133,521) income from its investments and saw losses of £157,749 (2024: gains of £373,443) in the market value of investments.

4. Governance

The Board of Trustees met quarterly to oversee progress and direction, and review policies. Other than the appointment of the new Treasurer in the previous year, the Board remained stable. It was also very active. As well as the usual schedule of quarterly Board meeting, reviewing progress, policies and procedures, the Finance Panel and the Grants Panel met regularly. Several trustees made active introductions to new potential fundholders and donors, gave speeches at events, and supported the staff team through the challenges of the CRM transition. There was increased contact with the national body UK Community Foundations, for national intelligence that could assist local developments.

Plans for 2025-26

The Community Foundation will continue its core work to maintain and grow levels of philanthropic financial support for impactful grant-giving, to strengthen local communities, enabling donors and potential donors to "see" local need, and for charitable groups to understand the nature of private giving. A new strategic plan will be created to take the Community Foundation to 2029, in a changing, demanding climate for most charities. Fund development will be central to this. Plans include the support of "shared" funds for those who can't or don't want to set up a named, self-directed living or legacy grant-giving fund but do want to support local charities. One of these will be a development of the longstanding Women in Philanthropy Fund; another to work with neighbouring community foundations on a straightforward and affordable model for businesses, the majority of which are SMEs in Leicester, Leicestershire and Rutland. It is likely to remain challenging for small local charities to attract support for their vital work in a highly competitive fundraising landscape, where much giving goes to national charities, and costs are unlikely to fall substantially. The Community Foundation will continue to seek any available public funds in addition to private philanthropic funds to distribute local communities. The issue of covering operational costs with increasing demand on funds will be central.

The Community Foundation will review the level of administration required of charities to make an application, as well build understanding of their work, local challenges, and the impact they make, to share with and encourage donors and funders. A major piece of work will to be to return to the much-needed transition to a new Customer Relationship Management system, either via the original plan of using the new system built by UK Community Foundations, once its early problems are resolved, or using a different model. The Community Foundation will continue to support the Lord Lieutenant of Leicestershire's workstream for the Kings Award for Voluntary Service, and to engage with UKCF and other Community Foundations at staff and Chair level, to make sure national knowledge and developments can be used locally. New trustee recruitment will be considered, as will training.

Public Benefit

The Trustees have paid due regard to the Charity Commission's guidance on public benefit in reviewing existing work and planning future activities. The Community Foundation works to support the diverse communities of Leicester, Leicestershire, and Rutland by attracting and distributing private philanthropic, company and public funds, and reinvigorating dormant charitable trusts. Funds are distributed to local charitable groups working to reduce local need and improve local quality of life, and considerable work takes place to ensure access to funds is equitable as well as impactful. Consistent work has been undertaken to attract and support family, individual and company donors to engage with local needs, and the charitable and voluntary groups working to meet those needs. Considered initiatives, networks, social and traditional media have reached to potential donors and to charitable groups. The Community Foundation continued to maintain intelligence about the local area, and grant spend was monitored. The Community Foundation continued to work in as cost-effective manner as possible, with the large majority (usually 90% or over) of all funds managed are channelled into local giving.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04851054 (England and Wales)

Registered Charity number

1135322

Registered office

3 Wycliffe Street

Leicester

Leicestershire

LE1 5LR

Trustees

Mr D Andrews

Mr R J Colton

Mr S Dawkins

Miss J Flack (resigned 18.6.2025)

Ms J Hand

Mr K Hudson

Mr I McCormack

Mr M Robinson

Dr V Sharma

Ms T Soraghan (appointed 18.6.2025)

Auditors

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

Patron

Her Grace, The Duchess of Rutland

President

Lord Lieutenant of Rutland, Dr L Howard OBE, JP

Vice Presidents

Mr I McAlpine OBE

Ms S Morgan QPM

Mr R Moore FRICS

Chair

Mr S Dawkins

Company secretary

Ms K Green

Chief Executive Officer

Ms K Green

Bankers

NatWest

Granby Street

Leicester

LE1 6EJ

Investment managers

CCLA

Senator House

85 Queen Victoria Street

London

M&G Charities

PO Box 9038

Chelmsford

CM99 2XF

Website address

www.llrcommunityfoundation.org.uk

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of Leicestershire, Leicester and Rutland Community Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

-select suitable accounting policies and apply them consistently.

-observe the methods and principles in the Charities SORP 2019 (FRS 102).

-make judgements and estimates that are reasonable and prudent.

-state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

As far as the Trustees are aware:

-there is no relevant audit information of which the charitable company's auditor is unaware: and

-the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 22 November 2025 and signed on its behalf by:

Mr S Dawkins - Trustee

Opinion

We have audited the financial statements of Leicestershire, Leicester and Rutland Community Foundation (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, 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 charitable 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 trustees' 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 charitable 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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 trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 trustees 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 trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 Independent 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:

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the charity and industry in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and Charities SORP (FRS 102).

We enquired of management concerning the charities policies and procedures relating to:

- the identification and compliance with laws and regulations.

- the detection and response to the risks of fraud.

- the internal controls inherent within the charity to mitigate fraud risk and non-compliance to laws and regulations.

We enquired of management, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.

We communicated relevant laws and regulations and potential areas of fraud to all audit team members. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, income recognition and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of fund agreements from both income streams to ensure income has been accurately recorded and to confirm amounts are recognised in the correct period.

- Identifying and testing journal entries, on a sample basis, to review for potential management bias or manipulation of income recognition.

We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud.

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 Independent Auditors.

Use of our report

This report is made solely to the charitable 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 charitable 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr P Bott FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

25 November 2025

2025

2024

Unrestricted

Restricted

Endowment

Total

Total

fund

funds

funds

funds

funds

Notes

£

£

£

£

£

INCOME AND

ENDOWMENTS FROM

Donations and legacies

2

38,477

247,762

164,256

450,495

201,484

Charitable activities

4

Grants

26,812

67,500

-

94,312

269,028

Charitable activities

85,065

-

-

85,065

-

Investment income

3

4,027

63,153

-

67,180

133,521

Other income

5

5,000

-

-

5,000

8,150

Total

159,381

378,415

164,256

702,052

612,183

EXPENDITURE ON

Raising funds

6

116,793

-

-

116,793

73,661

Charitable activities

7

Grants

-

238,991

-

238,991

466,452

Charitable activities

121,364

97

2

121,463

167,017

Total

238,157

239,088

2

477,247

707,130

Net gains/(losses) on investments

(2,082

)

-

(155,667

)

(157,749

)

373,443

NET INCOME/(EXPENDITURE)

(80,858

)

139,327

8,587

67,056

278,496

Transfers between funds

21

2,045

17,827

(19,872

)

-

-

Net movement in funds

(78,813

)

157,154

(11,285

)

67,056

278,496

RECONCILIATION OF

FUNDS

Total funds brought forward

183,341

277,751

4,276,204

4,737,296

4,458,800

TOTAL FUNDS CARRIED FORWARD

104,528

434,905

4,264,919

4,804,352

4,737,296

2025

2024

Unrestricted

Restricted

Endowment

Total

Total

fund

funds

funds

funds

funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

16

384

-

-

384

775

Investments

17

40,255

63,970

4,264,766

4,368,991

4,333,830

40,639

63,970

4,264,766

4,369,375

4,334,605

CURRENT ASSETS

Debtors

18

27,338

51,782

153

79,273

10,385

Investments

19

50,000

-

-

50,000

-

Cash at bank

-

319,153

-

319,153

414,516

77,338

370,935

153

448,426

424,901

CREDITORS

Amounts falling due within one year

20

(13,449

)

-

-

(13,449

)

(22,210

)

NET CURRENT ASSETS

63,889

370,935

153

434,977

402,691

TOTAL ASSETS LESS CURRENT LIABILITIES

104,528

434,905

4,264,919

4,804,352

4,737,296

NET ASSETS

104,528

434,905

4,264,919

4,804,352

4,737,296

FUNDS

21

Unrestricted funds

104,528

183,341

Restricted funds

434,905

277,751

Endowment funds

4,264,919

4,276,204

TOTAL FUNDS

4,804,352

4,737,296

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

The financial statements were approved by the Board of Trustees and authorised for issue on 22 November 2025 and were signed on its behalf by:

Mr S Dawkins - Trustee

Cash flows from operating activities

Cash generated from operations

1

(83,886

)

(514,836

)

Net cash used in operating activities

(83,886

)

(514,836

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(636

)

Purchase of fixed asset investments

(215,517

)

(337,122

)

Sale of fixed asset investments

22,606

16,892

Deposit into current asset investments

(50,000

)

-

Interest received

67,180

133,521

Net cash used in investing activities

(175,731

)

(187,345

)

Cash flows from financing activities

Income attributable to endowment

164,256

324,245

Expenditure attributable to endowment

(2

)

(954

)

Net cash provided by financing activities

164,254

323,291

Change in cash and cash equivalents in the reporting period

(95,363

)

(378,890

)

Cash and cash equivalents at the beginning of the reporting period

414,516

793,406

Cash and cash equivalents at the end of the reporting period

319,153

414,516

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

67,056

278,496

Adjustments for:

Depreciation charges

392

779

Losses/(gain) on investments

157,749

(373,443

)

Loss on disposal of fixed assets

-

118

Interest received

(67,180

)

(133,521

)

Income attributable to endowment

(164,256

)

(324,245

)

Expenditure attributable to endowment

2

954

(Increase)/decrease in debtors

(68,888

)

41,370

Decrease in creditors

(8,761

)

(5,344

)

Net cash used in operations

(83,886

)

(514,836

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

414,516

(95,363

)

319,153

414,516

(95,363

)

319,153

Liquid resources

Deposits included in cash

-

-

-

Current asset investments

-

50,000

50,000

-

50,000

50,000

Total

414,516

(45,363

)

369,153

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Leicestershire, Leicester and Rutland Community Foundation is a public benefit entity, incorporated in England and Wales. The registered office is 3, Wycliffe Street, Leicester, LE1 5LR.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Income

Income is recognised in the period in which the charitable company is entitled to receipt and the amount can be measured with reasonable certainty.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to headings, they have been allocated to activities on a basis consistent with use of the resources and budgets available. Salaries have been allocated on a time basis.

Grants payable comprises all tranches for which the conditions for payment have been met during the year. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and of maintaining its quality accreditation to UK Community Foundation standards endorsed by the Charity Commission.

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

-

15% on reducing balance

Computer equipment

-

33% on cost

Taxation

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

Fund accounting

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific funds. The aim and use of each restricted fund is set out in the notes to the financial statements.

The endowment fund includes funds donated to the Foundation by private and corporate donors, usually as personally named Funds, invested together and individually tracked so that the income can be distributed regularly to beneficiaries nominated by individual donors. Any capital gains or losses and income arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired after the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Value added tax

Value added tax is not recoverable by the charity and as such is included in the relevant costs in the Statement of Financial Activities.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Debtors

Basic financial assets, including debtors and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Creditors and provisions

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments