Analysis of Business and Economic Impact on NLCF: Report

This report provides an economic and financial analysis of the National Lottery Community Fund (NLCF), a UK-based public sector charity. It explores the link between business and the economy, examining how economic and environmental issues influence the NLCF's operations. The report delves into both microeconomic and macroeconomic factors, such as aggregate demand, unemployment, inflation, and interest rates, and their impact on the organization. Furthermore, it includes a financial statement analysis, using key financial metrics like net profit margin and return on capital employed, and liquidity ratios to assess the NLCF's performance over a three-year period. The report concludes with suggestions for future development based on the accounting evaluation.

Economic and Financial
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Exploring the link between business and economy.....................................................................3
Businesses are influenced by economic and environmental issues.............................................5
Accounting evaluation is the centre of the suggestions for future development.........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In many ways, financial services is an integral part of organisational thinking. Finance
comprises the, study establishment, and strategic planning of financial instruments, banks,
having to borrow, advances, belongings, and accounts receivable, including the investigation of
financial commodities that help repay national economies. Public expenditure, business
institutions, and managerial accounting are really the different categories of finance (Chung,
2019). Economics is this same political discipline that investigates the development, use, and
redistribution of buyers, including the capacity to completely comprehend how marketplaces and
customers communicate. Standard, economy but at the other approach, is essentially
philosophical and teaching, despite being designated as "academic economists" and commonly
accepted among the parts. Economic analysis and human behaviour appear to be the two primary
fields of study for economists. The National Lottery Community Fund was chosen for this study,
and several aspects of business and market administration were covered.
MAIN BODY
Exploring the link between business and economy
The Big Lottery Trust, formally known as the National Lottery Community Fund, is indeed a
non-departmental governmental agency charged with distributing cash raised more by National
Lottery for "charitable organizations." It has granted over £9 billion from over 130,000
megaprojects since 2004. The Community Fund strives to assist projects that benefit underserved
areas and individuals. It gives grants through governmental entities, municipal governments,
especially social entrepreneurs, with over 80% of its revenues going to voluntary sector. The
fund awards funding to initiatives throughout the fields of health, economics, as well as the
environmental, as well as to non-profit organizations. It finances initiatives that meet the
government's goals, but that does not finance services that must be provided by other
components of the government. This entails actively looking to promote activities which allows
organisations to function in innovative ways, and also become more technologically adept,
permitting much more international cooperation, and enhancing the social and community
framework that really can foster and sustain genuine community engagement (About National
Lottery Community Fund, 2021). It also entails working important to maintain that they connect
with anyone who may assist us in achieving the goals. This implies that they acknowledge that

certain companies may require more assistance from each other in order to obtain their financing,
and then we will govern our funding partnerships in such a way that charities may respond to the
new needs of the customers they represent individually and collectively.
This firm's social programmes and extracurricular activities are still relevant, supporting those
that need it either in the Great Britain or throughout the world. National Lottery Community
Fund provides to welfare workers in such a variety of countries, notwithstanding prejudice based
on race, ethnicity, personal opinions, and faith. National Lottery Community Fund's operations
are inextricably related to the financial sector. The international Covid-19 epidemic, for instance,
has wrecked trouble on the industry in the preceding two years. That illness epidemic was, in
fact, an infectious disease that spread quickly over the world as a result of people's travel and
human interaction. Infectious illnesses have had several ramifications on modern society
operations, proving that companies and enterprises are now intricately linked. Company makes
sure ensuring they connect along with all the people we serve around the UK, and also that their
financing is informed by and sensitive to their experiences. We'll share what humans discover
and collaborate with others to find methods for people we finance and that those they collaborate
with just to benefit from one another and guarantee a more comprehensive knowledge and
reaction to challenges as they arise (Feruglio and Rifai, 2017).
 Providing funding: As a consequence of the global disease pandemic, the shutting limits
imposed limits on publicly accessible regular working channels in major institutions, and
also gatherings in private finance locations and gatherings. This is the core issue. Non-
profits, such as the National Lottery Community Fund, encountered a range of obstacles
this year, as they had the year before.
 As a function including its covid-19 endemic problem of economically transmissible
sickness, policy makers have set limitations on any form of public conference,
assemblage, or movement.
 Formulation of frameworks: Changed and will continue to select new techniques for
operations, notably in the production and delivery of commodities money to charities.
The breakdown of transportation as a result of epidemiological problems had a massive
impact.
 This necessitates the use of broader effort via believe that access financing approaches
like those used against the National Lottery Community Fund. Food, sanitising

equipment, and crucial medicines for children are really no longer viable due to freight
and passenger limitations that hampered the mobility of strong contributor and
volunteers. As a result, internet contributions to multiple agencies across numerous
countries are necessary.
 This will have a long-term influence on profits and despite the fact that the disease was
widespread, the epidemic also had an influence on all this sector, raising supply in
growing countries like minor part of Ireland and England. The area, on either arm,
requested the financial workshops and activities to be postponed. Both of these business
commitments result in higher spending and lower expenses for National Lottery
Community Fund, primarily in the United Kingdom (Gastil and Broghammer, 2020).
Businesses are influenced by economic and environmental issues.
National Lottery Community Fund's long-term sustainability but also consistent
performance are influenced by a number of external forces. There are significant environmental
challenges linked with every type of company, whether for profit or not for profit. These
protection techniques are divided into two members to form communication more effective:
underlying economic condition and currency value. The components are listed below, along with
their effects. Microeconomic reasons: Non-profit organisations such as the National Lottery
Community Fund are influenced by economic variables. These features have an influence on
both income and non-income companies.
The ability of investors or contributors, as well as the accessibility of the business entity, has
a considerable impact on the operations and viability of non-profit organisations. Contributions
must also be transparent in order for non-profit organisations to succeed.
Across the business, the term "aggregate demand" was utilised to describe customer demands
and desires. Then according economic experts, net spending shows the amount of currency that
consumers are permitted to demand on increasingly diverse in ways that benefit from it. The
most typical reason for using it is for personal purposes. Whenever an increase in production or
proper adjustments throughout aggregate demand required incremental or accurate equilibrium
point changes, it has a significant impact on the internal functioning of non-profits like National
Lottery Community Fund. As a result, whether the underprivileged like myself who are
struggling again from situation have a greater demand for higher food prices (Khan, 2019).

Macroeconomic Aspects: Even though they have an influence on the early and long efficacy
and achievement, several factors come within the area of finance and administration.
Unemployment- Despite the fact that National Lottery Community Fund exists for charity
purposes such as assisting those in need, assisting the poor, and supporting their nation, among
many other things, the number of jobless has a significant impact on output. The growing
number of low-wage workers exacerbates impoverishment as well as the effects of the crisis. The
number of inhabitants who requested aid from all those non-profits, as well as the level of
monitoring given each other, are determined by this methods to make job option in the country.
Inflation: The important executive branch of deflation depicts circumstances in which the
availability of cash or overseas investment has expanded across the economy, leading the money
supply to rise in supply. The nations' right to acquire certain items is challenged in these kind of
situations. It has a major influence on the neighbourhood as well as the environmental.
Underemployment: This seems to have an influence on non-profit organisations' revenue,
wages, and advantages, but they should purchase goods to serve people, therefore sponsorship
has grown more challenging underneath those circumstances. This seems to have a major
influence on non-profit organisations.
Interest rates: Investment returns do have direct impact on organisations like National Lottery
Community Fund charity, since higher costs make it much more difficult to collect funds from
other sources, particularly during times of rising inflation. It does have an influence upon on
short- and long-term funding needs of non-profits and certain other businesses (Kraus and
Feuerriegel, 2017).
Fiscal policy is involved: The phrase "banking system" refers to the procedure that is
carried out through municipal governments within every jurisdiction. In order to eliminate
certificate of deposits, when both governing party and the Treasury sell credit to the very same
population. This aids in the reduction of interest rates and the development of connectivity, and
many other security investment accounts. When global rates decrease, this mechanism makes it
easier for organisations like the National Lottery Community Fund to obtain cash from
institutions.
Evaluation and interpretation of key financial metrics

Overall operating margin, earnings growth proportion, returning extra gross profit ratio,
and many other profit metrics were used to assess and identify a firm's successful or non-
profitable status.
Net income percentages are evaluated in the following way: This representing the level a
growth in average economic output to key economic indicators such as net profitability. To
obtain a better knowledge of the non-profit National Lottery Community Fund's business
conditions in order to help the firm make better decisions and grow economically. There are very
few key economic ratios that demonstrate a bank's liquidity and success.
PARTICULARS 2019 [£,millions] 2018 [£,millions] 2017 [£,millions]
Net profit 2.5 (-0.4) £2263799
Revenues 131.0 128.0 £126546524
Net profit margin =
Net profit x 100
total revenues
3.0 x 100/ 131.0 =
2.29%
-0.6 x 100/ 128.0 =
-(0.46)%
2263799 x 100
126546524 =
1.78%
In comparison to the previous 2 years, the National Lottery Community Fund looks to
have fared significantly better in 2019, with quite a strong gross profit of 2.29 points. In 2018,
the percentage was almost non-existent, indicating that the company enjoys a significant edge (-
0.46 percent). Nonetheless, as shown in the analytical table opposite, the company produced a
result in 2017 with only a profit margin of 1.78 percent.
The profitability or efficiency is symbolised by the financial statement analysis, commonly
known as that of the cost of capital worked percent. It is calculated using revenue as well as the
overall sum that will have to be committed (Long, Lu and Cui, 2019).
PARTICULARS 2019 [£,millions] 2018 [£,millions] 2017 [£,millions]
Earnings before
interest and tax
(EBIT)
3.0 (-0.6) £ 2263799
Capital employed 43.5 37.3 £ 37,909,312
ROEC = EBIT /
capital employed
3.0/43.5
= 0.068
(-0.6)/ 37.3
= 0.016
2263799/ 37909912
= 0.059
So this is smallest proportion throughout 3 years, overall cost of capital invested during
2018 (0.068 percent) significantly better (0.068 percent) than that in 2018. Throughout 2017, the

proportion hovered at 0.059 percent, which was very high. This shows that perhaps the National
Lottery Community Fund Corporate would have a markedly improved day in 2019.
Liquidity-to-capital-to-assets-on-hand this research concentrates on just few key
indicators that are widely was using to analyse and track a company's liquidity. Extra revenue
reflects a corporation's readiness to satisfy short-term debt obligations.
Current Ratio Analysis: This metric or methodology is being used to maximize business
accounts and also the amount CA it spends towards that CL.
PARTICULARS 2019 [£,millions] 2018 [£,millions] 2017 [£,millions]
Current assets 49.7 40.3 £ 37902277
Current liabilities 13.5 10.4 £ 7351949
Current ratio=
current assets/current
liabilities
49.7/13.5 = 3.68 40.3/10.4 = 3.87
£ 37902277 /
£7351949
= 5.15
As demonstrated in the chart above, the Emergency relief organization might have higher
cash flow capabilities even during 2017/2018 financial year, with a liquidity ratios of 5.15
percent margin. Regardless of the fact particular, as indicated in the table beneath, the financial
leverage of that entity has been gradually deteriorating year in and year out. According to the
current ratio, retained earnings in 2018 were 3.87 percent, while total expenses in 2019 were
3.68 percentage points.
Accounting evaluation is the centre of the suggestions for future development.
 There has been many suggestions for improving an institution's economic and general
status, like the National Lottery Community Fund. The recommendations and ideas are
needed for effective economic figures that depicts the entity's previous economic state.
 Similar to the previous point, the corporation must concentrate on improving its financial
status, which has been steadily worsening throughout 2017. It's required once more for
the company's day-to-day operating and short-term financial requirements.
 Delivering after-sales services to the same firm's many clients led in the firm taking huge
control for the customer satisfaction. This looked to be a chosen career decision for the
organisation, as it help the user to improve the firm's reputation within the specific
operating context by establishing after-service policy guidelines and building a company
portal where customers can address their queries. As a consequence of this problem, the

company was likely to entice a rising number of delighted customers and produce a
sample is representative than a nationally functioning company, prompting ideas of
expanding into the global market (Tooze, 2018).
 The National Lottery Community Fund could aim on enlisting the help of a variety of
countries via the world wide web, utilising contemporary police to carry out diverse
social welfare activities.
 The National Lottery Community Fund might also rely mostly on internet fund raising
from a variety of countries by documenting their public welfare work through social
media platforms or Facebook, broadcast tv, and other means, such as its information
technology, to encourage donations and keep customers knowledgeable.
 They had concentrate on their potential to earn more money, including certain with
Return on Capital Expenditure, who has been dropping since 2017. All of this might be
improved by deciding the volume of responders in their company across the world
economy. It involves a discussion of funds raised through local taxes as well as
sponsorships from an outside parties. That would be to initiate a general recognition in
response to a specific issue in order to raise funds to help people in need. Inside the event
of an emergency, NET must be ready to react quickly. NET promotes an operating and
maintenance environment that ensures operational readiness, for which they are currently
seeking funding (Wry and Zhao, 2018).
CONCLUSION
As per the final report findings, accounting has traditionally studied commodities, lending
rates, world trade, and currency sector. Information in accordance with a variety of issues, along
with the amount of assistance required, predicted returns, return on investment, ideal contract
transactions, and overall team makeup. Economic analysis can also financial managers in
determining how national policies and survey results market conditions. Customers with the
ability to recognise countries would be possible to forecast macroeconomic trends and analyse
the effects of certain forecasts on businesses, goods, and money system.

REFERENCES
Books and Journals
Chung, I.H., 2019. Does the budget process matter for infrastructure spending? Capital
budgeting in local government. Public Money & Management, 39(3), pp.193-200.
Feruglio, F. and Rifai, A., 2017. Participatory budgeting in Indonesia: past, present and future.
Gastil, J. and Broghammer, M., 2020. Linking Theories of Motivation, Game Mechanics, and
Public Deliberation to Design an Online System for Participatory Budgeting. Political
Studies, p.0032321719890815.
Khan, A., 2019. Fundamentals of Public Budgeting and Finance. Springer Nature.
Kraus, M. and Feuerriegel, S., 2017. Decision support from financial disclosures with deep
neural networks and transfer learning. Decision Support Systems, 104, pp.38-48.
Long, W., Lu, Z. and Cui, L., 2019. Deep learning-based feature engineering for stock price
movement prediction. Knowledge-Based Systems, 164, pp.163-173.
Tooze, A., 2018. Crashed: How a decade of financial crises changed the world. Penguin.
Wry, T. and Zhao, E.Y., 2018. Taking trade-offs seriously: Examining the contextually
contingent relationship between social outreach intensity and financial sustainability in global
microfinance. Organization Science, 29(3), pp.507-528.
Online
About National Lottery Community Fund. 2021. [Online] Available Through
< https://www.tnlcommunityfund.org.uk/>.