REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2021 |
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NW FIRECONTROL LTD |
REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2021 |
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FOR |
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NW FIRECONTROL LTD |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2021 |
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Company Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 3 |
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NW FIRECONTROL LTD |
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COMPANY INFORMATION |
for the Year Ended 31 March 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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STATEMENT OF FINANCIAL POSITION |
31 March 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PENSION LIABILITY | 11 | ( |
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NET LIABILITIES | ( |
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RESERVES |
Income and expenditure account | 9 | ( |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2021 |
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1. | STATUTORY INFORMATION |
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NW Firecontrol Ltd is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The impact of disclosure requirements of the Retirement Benefits Scheme, has resulted in a significant liability being shown on the balance sheet and an increase in the pension cost included in the profit and loss account. These disclosures will not directly affect the levels of cash pension contributions payable and this has been taken into account when considering the applicability of the going concern basis. The company has an agreement with each of the authorities (who jointly control the company) that contains obligations about the ongoing funding of the company. In addition, the authorities are committed to the continuation of the current fire control arrangements (provided by the company) as they deliver considerable savings and would be very difficult for the authorities to take back 'in-house'. Whilst the agreements with the authorities do not specifically commit them to cover the pension liabilities, there is no doubt that the authorities must ensure that the company continues to be a going concern. |
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Critical accounting judgements and key sources of estimation uncertainty |
The directors consider there to be no items in the financial statements where they have had to make significant judgements in the process of applying the group's accounting policies or key sources of estimations uncertainty, other than as stated below: |
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The present value of the defined benefit pension scheme liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 12 will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuations performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 March 2021. Any differences between the figures derived from the roll forward and approach and a full actuarial valuation would impact on the carrying amount of the pension liability. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Patents and Licences are being amortised evenly over their estimated useful life of five years. |
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Computer software is being amortised from 1 June 2014 as the software was brought into operation during May 2014. Computer software is being amortised evenly over its estimated useful life of seven years. |
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Tangible fixed assets |
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Fixtures and fittings | - |
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Computer equipment | - |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease. |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
Employees of NW Firecontrol Limited participate in the Cheshire Pension Fund which is a defined benefit pension scheme. The scheme is a Local Government Pensions Scheme managed by Cheshire West and Chester Borough Council. The assets of the scheme are invested and managed independently of the finances of the company. |
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The operating costs of providing retirement benefits to employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and liabilities, are recognised in the accounting period in which they arise. The operating costs, finance costs and expected return on assets are recognised in the statement of comprehensive income with any other changes in fair value of assets and liabilities being recognised in other comprehensive income. |
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Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable. Basic financial instruments are recognised at cost. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
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Additions |
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At 31 March 2021 |
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AMORTISATION |
At 1 April 2020 |
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Amortisation for year |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
and 31 March 2021 |
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DEPRECIATION |
At 1 April 2020 |
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Charge for year |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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Amounts received in advance | 2021 | 2020 |
£ | £ |
Capital grants | 405,997 | 846,453 |
Contributions received in advance from Fire and Rescue Services (FRS) | 2,840 | 904,876 |
Implementation funding held by GMCA | 295,802 | - |
FRS forward maintenance plan | 131,417 | 131,667 |
ESMCP Capital grant | 907,645 | 866,625 |
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1,743,701 | 2,749,621 |
Included in other creditors are grants and contributions received in advance. |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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The lease is for a term of 25 years with effect from 14 July 2008. The rent is subject to a review on each fifth year of the term when the rent will increase by a multiple of 1.025. The company currently pays rent of £383,225 per quarter. |
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From 1 April 2014 there is a grant in place from DCLG which will provide an ongoing contribution of 66% of the rental costs for the duration of the lease. The disclosures above are disclosed gross of the grant. |
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9. | RESERVES |
Income |
and |
expenditure |
account |
£ |
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At 1 April 2020 | ( |
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Deficit for the year | ( |
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Actuarial surplus/(deficit) | (4,109,000 | ) |
At 31 March 2021 | ( |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | EMPLOYEE BENEFIT OBLIGATIONS |
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The amounts recognised in the balance sheet are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Present value of funded obligations |
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Fair value of plan assets |
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(7,038,900 | ) | (2,659,900 | ) |
Present value of unfunded obligations |
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Deficit | ( |
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Net liability | ( |
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NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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11. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
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The amounts recognised in surplus or deficit are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Current service cost |
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Net interest from net defined benefit
asset/liability |
63,000 |
113,000 |
Past service cost |
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778,000 | 1,056,000 |
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Actual return on plan assets |
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Changes in the present value of the defined benefit obligation are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Opening defined benefit obligation |
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Current service cost |
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Contributions by scheme participants |
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Interest cost |
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Benefits paid | ( |
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Remeasurements: |
Actuarial (gains)/losses from changes in
demographic assumptions |
319,000 |
(649,000 |
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Actuarial (gains)/losses from changes in
financial assumptions |
5,473,000 |
(1,205,000 |
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Other experience remeasurement | (91,000 | ) | (363,000 | ) |
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Changes in the fair value of scheme assets are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Opening fair value of scheme assets |
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Contributions by employer |
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Contributions by scheme participants |
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Expected return | 248,000 | 250,000 |
Benefits paid | (79,000 | ) | (68,000 | ) |
Return on plan assets (excluding interest
income) |
1,592,000 |
(19,000 |
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NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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11. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
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The amounts recognised in other comprehensive income are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Actuarial (gains)/losses from changes in
demographic assumptions |
(319,000 |
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649,000 |
Actuarial (gains)/losses from changes in
financial assumptions |
(5,473,000 |
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1,205,000 |
Other experience remeasurement | 91,000 | 363,000 |
Return on plan assets (excluding interest
income) |
1,592,000 |
(19,000 |
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(4,109,000 | ) | 2,198,000 |
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The major categories of scheme assets as a percentage of total scheme assets are as follows: |
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Defined benefit |
pension plans |
2021 | 2020 |
Equities | 46% | 38% |
Bonds | 40% | 46% |
Property | 10% | 8% |
Cash | 4% | 8% |
100% | 100% |
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
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2021 | 2020 |
Discount rate |
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Future salary increases |
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Future pension increases |
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12. | CAPITAL COMMITMENTS |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
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NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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13. | RELATED PARTY DISCLOSURES |
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Greater Manchester Combined Authority (GMCA) |
Lead authority for North West Region |
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S31 Funding is provided by the Department of Communities and Local Government annually to cover 66% of the building lease. This is paid to GMCA from DCLG as the lead authority for the North West region .In the period under review, the required grant was £1,016,115 (2020 £1,011,715) the company received £1,012,000 (2020 £1,669,246) leaving a balance owing of £4,116 (2020 £Nil). |
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Grant funding owed | 2021 | 2020 |
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DCLG lease grant | 4,116 | - |
Other grant funding | 295,802 | - |
299,921 | - |
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Greater Manchester Combined Authority |
Subscriber member |
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During the year amounts were received and receivable from this subscriber member as follows: |
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2021 | 2020 |
£ | £ |
Service charges | 2,308,297 | 2,264,589 |
Use of facilities | - | 458 |
Recharge of costs | 27,598 | - |
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2,335,895 | 2,265,047 |
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Purchases of £897,792.30 (2020: £719,580) were made from this subscriber member. |
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2021 | 2020 |
£ | £ |
Amount due to related party at the balance sheet date | 140,098 | 225,978 |
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Cheshire Fire Authority |
Subscriber member |
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During the year amounts were received and receivable from this subscriber member as follows: |
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2021 | 2020 |
£ | £ |
Service charges | 856,971 | 840,744 |
Use of facilities | - | 3,645 |
Grant | - | 80,000 |
Recharged costs | 100,453 | 32,501 |
957,424 | 956,889 |
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Purchases of £Nil (2020: £150) were made from this subscriber member. |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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2021 | 2020 |
£ | £ |
Amount due from related party at the balance sheet date | 2,580 | 2,387 |
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Lancashire Combined Authority |
Subscriber member |
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During the year amounts were received and receivable from this subscriber member as follows: |
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2021 | 2020 |
£ | £ |
Service charges | 1,213,868 | 1,190,883 |
Use of facilities | - | 226 |
Recharged costs | 14,510 | - |
1,228,378 | 1,191,109 |
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Purchases of £Nil (2020: £Nil) were made from this subscriber member. |
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2021 | 2020 |
£ | £ |
Amount due from related party at the balance sheet date | (2,354 | ) | 115 |
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Cumbria County Council |
Subscriber member |
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During the year amounts were received and receivable from this subscriber member as follows: |
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2021 | 2020 |
£ | £ |
Service charges | 379,249 | 372,061 |
Use of facilities | - | 144 |
Recharged costs | 4,552 | - |
383,801 | 372,205 |
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Purchases of £Nil (2020: £Nil) were made from this subscriber member. |
2021 | 2020 |
£ | £ |
Amount due from related party at the balance sheet date | (193 | ) | - |
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14. | POST BALANCE SHEET EVENTS |
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The Manchester Arena Public Inquiry in respect of the Manchester Arena attack commenced on 7th September 2020 . The Public Inquiry is an independent public inquiry, established on 22 October 2019 by the Home Secretary. Its purpose is to investigate the deaths of the victims of the 2017 Manchester Arena attack. There are currently no claims against NW Firecontrol Ltd in respect of this. The costs of ongoing legal representation will be met by the company and recharged to the Fire and Rescue Services on the same basis as other company costs. |
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15. | ULTIMATE CONTROLLING PARTY |
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The controlling parties are the four subscriber members being Cheshire Fire Authority, Cumbria County Council, Greater Manchester Combined Authority and Lancashire Combined Fire Authority each with 25% control and as such there is no singular ultimate controlling party. |
NW FIRECONTROL LTD (REGISTERED NUMBER: 06314891) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2021 |
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16. | LIMITED BY GUARANTEE |
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The Company is limited by guarantee and does not have any share capital. The liability of the four subscriber members is limited. Each member of the Company undertakes to contribute an amount not exceeding £1 in the event of a winding up. |