SOUTH EAST MIDLANDS LOCAL ENTERPRISE PARTNERSHIP LIMITED

Transcription

1 Registered number: SOUTH EAST MIDLANDS LOCAL ENTERPRISE PARTNERSHIP LIMITED (A Company Limited by Guarantee) UNAUDITED DIRECTORS' REPORT AND FINANCIAL STATEMENTS

2 COMPANY INFORMATION DIRECTORS Cllr N C Blake Mr T F Wells Mrs C C K Smart Mayor D S Hodgson Dr A G Limb CBE DL Cllr J G Jamieson Cllr M J Clarke Mr I C Stuart Mr R C Levene Mr A J Humphreys Mr D P Richards CBE (appointed 3 December 2014) Cllr P Marland (appointed 16 July 2014) Mr A M Burns (appointed 3 December 2014) Mr A Hadawi CBE (appointed 3 December 2014) Mrs Jean Marie Gowin (appointed 15 April 2015) Mr Mahmood Hussain (appointed 3 December 2014, resigned 7 May 2015) REGISTERED NUMBER REGISTERED OFFICE Unit 4 Cranfield Innovation Centre University Way Cranfield Bedfordshire MK43 0BT ACCOUNTANTS MHA MacIntyre Hudson Chartered Accountants Equipoise House Grove Place Bedford MK40 3LE SOLICITORS HCB Park Woodfine 1 Lurke Street Bedford Bedfordshire MK40 3TN

3 CONTENTS Page Directors' Report 1-3 Accountants' Report 4 Income and Expenditure Account 5 Balance Sheet 6 Notes to the Financial Statements 7-10 The following pages do not form part of the statutory financial statements: Detailed Income and Expenditure Account and Summaries 11-13

4 DIRECTORS' REPORT The directors present their report and the financial statements for the year ended 31 March PRINCIPAL ACTIVITIES The principal activities during the current and previous periods were determining local economic priorities and undertaking activities that drove growth and the creation of local jobs. DIRECTORS The directors who served during the year were: Cllr N C Blake Cllr D J Mackintosh (resigned 7 May 2015) Mr R J Phillips (resigned 16 September 2014) Mr T F Wells Mrs C C K Smart Mayor D S Hodgson Dr A G Limb CBE DL Cllr J G Jamieson Cllr M J Clarke Prof N Petford (resigned 3 December 2014) Mr I C Stuart Mr C Scarrott (resigned 3 December 2014) Mr R C Levene Cllr S J Timoney (resigned 16 September 2014) Mr A J Humphreys Mr D P Richards CBE (appointed 3 December 2014) Cllr P Marland (appointed 16 July 2014) Mr A M Burns (appointed 3 December 2014) Mr A Hadawi CBE (appointed 3 December 2014) Mr Mahmood Hussain (appointed 3 December 2014, resigned 7 May 2015) BACKGROUND The South East Midlands Local Enterprise Partnership (SEMLEP) has had a successful year working productively with public and private sector partners to deliver economic growth. This is the first full year for which the Financial Statement has included the Velocity business support service. This is a project funded by 1.7m of Regional Growth Fund through the University of Lancaster and will be completed in June Velocity has been remarkably successful, exceeding its targets by over 40% in delivering support to more than 16,000 businesses, creating 209 jobs and safeguarding a further 399 jobs. Revenue and capital grants of 1m have helped 186 businesses, with the project balance used to support the 6 Velocity business advisers and the management team. As Regional Growth Fund resources are claimed in arrears following the submission of detailed evidence, a significant part of the 2014/15 carryover - identified as 544,364 on page 11 of the Financial Statements - is as a result of the difference in timing between expenditure to support the Velocity team and the receipt of the grant support from the Regional Growth Fund. Page 1

5 DIRECTORS' REPORT SEMLEP is operated by a small team of staff, some of whom are directly employed by the organisation and some are contracted staff. The figure for staff salaries of 386,289 on page 13 is significantly higher than that for This reflects the appointment of additional staff in line with the organisational structure agreed by the Board in 2013 and the inclusion of staff overseeing and delivering the new Velocity business support service. SEMLEP is funded by contributions from local authority partners ( 89,000 in 2014/15) and grant income from Government of 528,600 in 2014/15 ( 250,000 of core funding together with a further 250,000 to enable the production of the Strategic Economic Plan and 25,000 of capacity funding remaining from previous arrangements). The figures for consultancy services includes a significant amount of expenditure on staff contracted to fulfil core roles within the SEMLEP and Velocity teams such as communications and business development. These key functions have enabled SEMLEP and its Velocity business service to raise its profile and to establish the ENVOY group of senior representatives from large businesses within the area. In addition to other responsibilities, SEMLEP has taken on the strategic responsibility for managing a programme of European Structural and Investment Funds which, together with match funding, will enable investment of around 160m in the area between 2015 and As a result of developing a strong Strategic Economic Plan, SEMLEP was able to draw in 79.3m of investment for key infrastructure projects from April 2015 through its Local Growth Deal. There has been significant activity working with Colleges and Universities throughout 2014/15 with two significant events focussing on the need for educational institutions to work more closely with employers to provide the necessary skills. The key showcase sectors, which SEMLEP has identified as those with greatest potential for growth, remain High Performance Technology, Logistics, Manufacturing and Advanced Technology (including Food and Drink) and the Creative and Cultural sectors. A number of successful events were held during 2014 such as the one day event at Silverstone in the week before the British Grand Prix. These events have supported growth by enabling small businesses to engage successfully in the supply chains for these sectors. During 2014/15 SEMLEP was cited as the third strongest LEP for Foreign Direct Investment behind Birmingham and Manchester. Growth in Gross Value Added (GVA) of 4% in 2013 ranked the South East Midlands 4th alongside London, whilst the patch also attained the highest rate of growth in housing with 6,500 new homes completed in Looking ahead, the emphasis will be on ensuring that we have sufficient funds to continue with the successful Velocity business support service using EU funding. In financial terms this will require us to keep careful records of match funding both in cash and in kind (from our staff resources) and to ensure that our cash flow is carefully monitored to meet the requirements of claiming in arrears from EU funds. Page 2

6 DIRECTORS' REPORT This will mean that we will need to continue to work closely with our Accountable Body, Luton Borough Council. We are most grateful for their continuing support as SEMLEP takes on more funding responsibilities which will enable the partnership to deliver more economic growth to benefit local communities and their businesses. In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act This report was approved by the board on and signed on its behalf. Dr A G Limb CBE DL Director Page 3

7 CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SOUTH EAST MIDLANDS LOCAL ENTERPRISE PARTNERSHIP LIMITED In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of South East Midlands Local Enterprise Partnership Limited for the year ended 31 March 2015 which comprise the Income and Expenditure account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given to us. As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/regulations. This report is made solely to the Board of Directors of South East Midlands Local Enterprise Partnership Limited, as a body, in accordance with the terms of our engagement letter dated 26 May Our work has been undertaken solely to prepare for your approval the financial statements of South East Midlands Local Enterprise Partnership Limited and state those matters that we have agreed to state to the Board of Directors of South East Midlands Local Enterprise Partnership Limited, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than South East Midlands Local Enterprise Partnership Limited and its Board of Directors, as a body, for our work or for this report. It is your duty to ensure that South East Midlands Local Enterprise Partnership Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the company's assets, liabilities, financial position and profit. You consider that South East Midlands Local Enterprise Partnership Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or review of the financial statements of South East Midlands Local Enterprise Partnership Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. MHA MacIntyre Hudson Chartered Accountants Equipoise House Grove Place Bedford MK40 3LE Date: Page 4

8 INCOME AND EXPENDITURE ACCOUNT Note TURNOVER 1,2 2,236, ,875 Cost of sales (277,549) - GROSS SURPLUS 1,958, ,875 Administrative expenses (1,414,420) (682,762) SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION 544,364 39,113 Tax on surplus on ordinary activities SURPLUS FOR THE FINANCIAL YEAR 9 544,364 39,113 The notes on pages 7 to 10 form part of these financial statements. Page 5

9 REGISTERED NUMBER: BALANCE SHEET AS AT 31 MARCH 2015 FIXED ASSETS Note Tangible assets 5 13,479 8,329 CURRENT ASSETS Debtors 6 872, ,151 Cash at bank 323, ,552 1,195, ,703 CREDITORS: amounts falling due within one year 7 (365,399) (191,865) NET CURRENT ASSETS 830, ,838 TOTAL ASSETS LESS CURRENT LIABILITIES 843, ,167 CAPITAL AND RESERVES Income and expenditure account 9 843, , , ,167 The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 March 2015 and of its profit for the year in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved and authorised for issue by the board and were signed on its behalf on Dr A G Limb CBE DL Director The notes on pages 7 to 10 form part of these financial statements. Page 6

10 NOTES TO THE FINANCIAL STATEMENTS 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 the Financial Reporting Standard for Smaller Entities (effective April 2008). 1.2 Turnover Turnover comprises revenue recognised by the company in respect of Government Grants for services supplied during the year. 1.3 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: 1.4 Pensions Fixtures and fittings - 25% Reducing balance Computer equipment - 25% Reducing balance The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. 2. TURNOVER Turnover for the year includes the following from local authorities: 2015 Luton Borough Council 10,000 10,000 Corby Borough Council 7,000 7,000 Daventry District Council 7,000 7,000 Aylesbury Vale District Council 7,000 7,000 Milton Keynes Council 10,000 10,000 Cherwell District Council 7,000 7,000 Bedford Borough Council 10,000 10,000 Central Bedfordshire Council 10,000 10,000 Kettering Borough Council 7,000 7,000 Northampton Borough Council 7,000 7,000 South Northamptonshire District Council 7,000 7,000 Total 89,000 89, Page 7

11 NOTES TO THE FINANCIAL STATEMENTS 3. SURPLUS The surplus is stated after charging: Depreciation of tangible fixed assets: - owned by the company 4,492 2,776 Pension costs 26,668 - During the year, no director received any emoluments ( NIL). 4. TAXATION The company is not subject to Corporation Tax on the surplus generated on the basis that the income is not taxable. 5. TANGIBLE FIXED ASSETS Cost Fixtures and Computer fittings equipment Total At 1 April ,701 9,133 14,834 Additions 9,642-9,642 At 31 March ,343 9,133 24,476 Depreciation At 1 April ,425 5,080 6,505 Charge for the year 3,479 1,013 4,492 At 31 March ,904 6,093 10,997 Net book value At 31 March ,439 3,040 13,479 At 31 March ,276 4,053 8,329 Page 8

12 NOTES TO THE FINANCIAL STATEMENTS 6. DEBTORS Trade debtors Accrued income Amounts due from Luton Borough Council Other debtors - 2, , , , ,588 3,389 51, , , CREDITORS: Amounts falling due within one year Trade creditors 98,872 83,293 Deferred income 264, ,760 Other creditors 2,079 3, , , COMPANY STATUS The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding 1 towards the assets of the company in the event of liquidation. 9. RESERVES Income and expenditure account At 1 April ,167 Surplus for the financial year 544,364 At 31 March , CONTINGENT LIABILITIES There were no contingent liabilities at 31 March 2015 or 31 March Page 9

13 NOTES TO THE FINANCIAL STATEMENTS 11. CAPITAL COMMITMENTS The company had no capital commitments at 31 March 2015 or 31 March RELATED PARTY TRANSACTIONS During the year, local authorities income was received from Councils on which Directors hold office as follows: Cllr M Clarke - South Northamptonshire District Council 7,000 7,000 Mayor D S Hodgson - Bedford Borough Council 10,000 10,000 Cllr D J Mackintosh - Northampton Borough Council 7,000 7,000 Cllr S J Timoney - Luton Borough Council 10,000 10,000 Cllr P Marland - Milton Keynes Council 10,000 - Cllr A J Geary - Milton Keynes Council - 10,000 Cllr N C Blake - Aylesbury Vale District Council 7,000 7,000 Cllr J G Jamieson - Central Bedfordshire Council 10,000 10,000 61,000 61, CONTROLLING PARTY The directors are the company's controlling party by virtue of their office. Page 10

14 DETAILED INCOME AND EXPENDITURE ACCOUNT Page TURNOVER 12 2,236, ,875 Cost of sales 12 (277,549) - GROSS SURPLUS 1,958, ,875 LESS: OVERHEADS Administration expenses 13 (1,414,420) (682,762) SURPLUS FOR THE YEAR 544,364 39,113 Page 11

15 SCHEDULE TO THE DETAILED ACCOUNTS TURNOVER Core funding 250, ,000 Strategic economic planning funding 250, ,000 Capacity funding & LEP network funding 28,600 27,590 Local authorities income 89,000 89,000 Velocity income 725,206 41,457 Growing Places funding 720,000 - Growth Hub funding 112,635 - Sponsorship income - 4,828 Other income 60,892 59,000 2,236, ,875 COST OF SALES Grants distributed to businesses 277,549 - Page 12

16 SCHEDULE TO THE DETAILED ACCOUNTS ADMINISTRATION EXPENSES Staff salaries 386, ,107 Staff pension costs - defined contribution schemes 26,668 - Staff training 2, Staff consultancy 135,754 78,774 Consultancy 208, ,787 Consultancy incurred in Velocity 327,821 - Printing and stationery 12,772 17,664 Telephone and fax 6,434 1,868 Website and IT support costs 49,162 43,300 Advertising and promotion 168,652 74,698 Subscriptions 5,131 8,269 Charity donations - 2,400 Legal and professional 2, Accountancy fees 6,863 6,756 Bank charges General office expenses 1, Rent 19,749 13,703 Rates 8,104 3,819 Light and heat 2,565 1,278 Service charges - 1,368 Insurances 3,180 2,701 Repairs and maintenance 2,928 1,070 Depreciation - computer equipment 1,013 1,351 Depreciation - fixtures and fittings 3,479 1,425 Meetings and events 24,551 27,188 Recruitment costs - 2,690 Board expenses 7,013 6,715 1,414, ,762 Page 13