The trustees present their annual report and financial statements for the year ended 30 November 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, 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 Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
The objects of the charitable company are to promote equality and diversity for the public benefit.
in particular we aim to achieve this by
- the elimination of discrimination on the grounds of sexual orientation;
- advancing education and raising awareness in equality; and
- diversity in respect of lesbian, gay and bisexual people.
The activities undertaken include conducting and/or commissioning research on equality and diversity issues and publishing the useful results to the public, and cultivating a sentiment in favour of equality and diversity for lesbian, gay and bisexual people. As well as promoting human rights (as set out in the universal declaration of human rights and subsequent united nations conventions and declarations) and particularly the rights and freedoms of those who face discrimination on the grounds of sexual orientation.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
We have engaged with a wide range of people in order to promote equality and eliminate discrimination.
Our volunteers produced and broadcast free-to-view webinars on a range of subjects pertinent to LGB people with titles including: Talking Homophobia, Should Conversion Therapy Be Banned? and our Election Special.
We created a newsletter to keep our supporters informed about our work and significantly grew our subscriber list.
We supported individuals who contacted us, either by engaging directly or by passing their query to other organisations that could help.
We made over 30 submissions to consultations on a range of issues central to the protection of the rights of LGB people. Those bodies include Ofsted, the Law Commission, Women and Equalities Commission and the Office for Statistics Regulation. In addition, we attended an online webinar hosted by the UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, and wrote a submission that was posted on the OHCHR website. We also wrote and sent submissions to the Independent Expert on Sexual Orientation and Gender Identity.
We met with politicians, academics, artists, journalists and healthcare professionals to make them fully aware about our work and we campaigned on a range of issues, including proposed reforms to the Gender Recognition Act , and proposals to ban two different kinds of “conversion therapy”, which would have directly impacted the rights of LGB people.
Importantly, we provided a source of community and support to those who told us they felt isolated. We responded to a steady stream of people who wrote to thank us, to offer support and/or to request advice.
In April 2021 we were pleased to be registered as a charity.
At that date, the existing directors, Kate Harris, Ann Sinnott, Malcolm Clark and Bev Jackson, were appointed as Trustees and subsequently they were joined by Robert Wintemute, Lord Young of Norwood Green, Kathleen Stock OBE, Conrad Roeber and our Chair, Eileen Gallagher, OBE. Ann Sinnott, Malcolm Clark and Kathleen Stock having since resigned as Trustees and Directors form the charitable company.
We have created a Management Team, including volunteers, to manage the day-to-day business of the charitable company and to run many of its activities directly.
Our vision, mission and values were developed to help us fulfil our charitable objects.
In October 2021 we ran a significant national Conference that was open to the general public and attended by over 450 people. In addition to offering a number of free tickets to those who could not afford to purchase their own, we filmed all of the panels and speakers and posted them free of charge on our YouTube channel. More than 40,000 people viewed those videos and we are satisfied that this, and the range of other activities we have delivered, demonstrate that we have been effective in promoting the rights and freedoms of those who face discrimination on the grounds of sexual orientation. We look forward to building on these activities.
The financial results are set out in the following statement of financial activities. The year ended 3 0 November 2021 shows a net deficit on unrestricted funds amounting to £ 8,276 (2020 - surplus of £ 34,373 ) giving the cha ritable company carry forward an unrestricted reserve surplus of £ 26,097 (2020 - £ 34,373 ) to be used in furtherance of its charitable objects.
Given the charitable company has only been established for a short period of time, the Trustees are pleased with how the charitable company has been performing financially and are keen to see its reserves grow in the periods to come.
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The organisation is a company limited by guarantee and was incorporated on 28 November 2019. The organisation was awarded charitable status on 20 April 2021.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
We approached some eminent people who were sympathetic to our broad aims and who we believed would bring the appropriate skills and experience to our Board. We appointed them following rigorous interviews based on the guidance issued by the Charity Commission.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £ 1 in the event of a winding up.
LGB Alliance consists of six Trustees / Directors, five voluntary management team members, two freelance Administrative Assistants, one freelance Fundraising Co-ordinator, one voluntary Press Officer and up to 14 volunteers who assist with our social media, shop, website, research, events and fundraising.
The trustees' r eport was approved by the Board of Trustees.
The trustees, who are also the directors of LGB Alliance for the purpose of company law, are responsible for preparing the Trustees' 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 year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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; and
- 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.
I report to the trustees on my examination of the financial statements of LGB Alliance (the charitable company) for the year ended 30 November 2021.
As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
LGB Alliance is a private company limited by guarantee incorporated in England and Wales. The registered office is 124 City Road, London, EC1V 2NX.
The financial statements have been prepared in accordance with the charitable company, 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 Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charitable company . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, despite the ongoing and potential effects of COVID-19, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees continue to adopt the going concern basis of accounting in preparing the financial statements and no adjustments to the results or the carrying values declared in these financial statements are required, and none have been made.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities an d services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory
requirements of the charity and include the audit or independent examination fees and costs linked to the strategic management of the charity.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company 's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charitable company ’s contractual obligations expire or are discharged or cancelled.
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Conference ticket sales
Merchandise Sales
Merchandise costs
Consultancy
Insurance
Computer costs
Office costs
Legal and professional costs
Staff training
General expenses
Travel and subsistence costs
Bank charges
Governance costs
Conference expenses
None of the trustees (or any persons connected with them) received any remuneration during the year, .
Expenses were reimbursed as follows:
1 Trustee £1,081 travelling expenses
2 Trustees £2,605 office expenses
3 Trustees £2,403 conference expenses
The average monthly number of employees during the year was:
Included with Other Creditors (Note 12) are amounts due to Related Parties of £649 (2020: £nil).
The amounts owed are as follows:
Ms K Harris £30
Ms B Jackson £619
Included with Other Debtors (Note 11) are amounts due from Related Parties of £nil (2020: £3,812).
This represents funds held in Trust by one of the Trustees (Ms K Harris) whilst the organisation established secure banking facilities. All funds were transferred on the successful establishment of full bank facilities in the name of the organsation.