REGISTERED COMPANI, N1[￿]BER. 112614714 {Eiiglaiid aiid INales) REGISTERED CHARITI. 1NLI￿lBER. 1004132 IiEPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEfvIENTS FOR THE YEAR ENDED 31 ST MARCH ?0?4 FOR GROUNDWORK NORTH WALES GROUNDWORK NORTH WALES CONTENTS OF THE FINANCIAL sTATE￿￿NTs FOR THE YEAR ENDED 31 ST MARCH ?0?4 Page Report of the Trustees I to 14 Report of the Independent Auditors 15to 17 Statement of Financial Activities 18 Balance Sheet 191020 Consolidated Cash Flow Statement 21 Note5 to the Financial Statements 22to34 GROLINDIW'ORIk NORTH II'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCH 2024 Report of the Trustees The Iru51ees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with Ihc fiiiancial slalemenls of the ¢harity for the year ended 31 sl March 20?4. The Iruslees have adopted the provisions of Accounting and Reporting by Charities.- Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (effective l January 20151. Name of Charity The name of the charity is Groundwork North Wales (GWNW). It is referred lo in this report as"The Trust" GWNW wholly own5 two subsidiary trusts (also companies limited by guarantee). Refurbs Flinlshirc and Wild Ground. Together the three trusts are referred lo in this report as the GWNW Group of Trusts or the Group. GWNW is a memberof the Federation of Groundwork Trusts. The use ofthe word"Groundwork" is used as a collective lemi lo describe Ilie Federation and the member Groundwork Trusts. Objectives And Activities Groiindwoi'k North Wales's charitable objectives are set down in our Memorandiim and Articles of Association and dale from Ilie interpretation of charitable activities when they were drafted in 1991 as amended al annual general meetings and by written resolution. To promote the ¢oiiservalion, protection and improvcmenl of the physical aiid natural environment including that which is of cducational or scientific interest lo the general public or within wliich the wildlife is in nced of protection and including the itnprovemenl and maintenance of public parks. To advance public education in environmental matters and in all matters ¢oncerning wildlife and nature conservation, in the ways of better conserving, protecting and improving the samc where50ever. To conserve and protect the physical and natural environment by promotion of sustainable waste management practices in accordance with the best practicable environmental option. The promotion for the benefit of the public of urban or rural regeneration of areas in social or economic deprivation, by relieving poverty or financial hardship through improving the employability of disadvantaged individuals through the provision of work placement, affordable childcare, training and volunteering opportunilics, the provision of quality affordable furniture and household goods. the provision of items such a5 food and energy efficiency measures and energy efficiency advice. To provide facilities for recreation and other leisure-time occupation in the interests of social welfare with the object of improving the Conditions of life for tlie persons for whotn they are intended. To advance cultural well_being through people's engagement with the arts and the nation'5 built and natural heritage. Our Strktegic Objectives Groundwork North Wales as a charity works to Iransfonn lives in di5advanlaged communili¢s. Our team help people to carry out hundreds of projects each year. We do this by tackling climate chaiige,. helping people out of fuel and fumilure poverty. bringin¥ out the best in young people by helping them lo improve tlieir local area; building stronger communities by improving green space aiid conserving the natural environment. getting people back into work and supporting them lo gain skills and qualifications. Page I GROUNDIIYORK NORTH KVALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST ￿[ARCH ?0?4 As an organisalion Groundwork Nortli Wale.4 is committed lo iillproving the social. economic, environinenlal, and cultiir21 ￿'elIbeing of Wales. Focusing our aetivilies ivhere ive can make the most difterence, our dii'erse range of programmes aiid activities enable our teain lo respond lo Ilie changing need4 of our communitie.4, helping them create the Wales they want lo live in, now and in the future. Our day-to-day operations and Olir strategic objectives are aligned to the Grouiidwork Federation's 2023-28 strategy lo.. Help people improve their prospectS-increa5ing confidence, skills, wellbeing, aiid employability, and helping those out of work to find jobs in the green economy, Help people create better places making communities greener, healiliier aiid better prepared for the future and enabling people lo work together to bring about change in their local area. Help people protect the planet supporting people and businesses to reduce their carbon footprint. ¢ul waste, and take practical action lo combat climate change. Our Business Plan Objective5 for the year 2023-24 Our overriding business plan Ihcme was for our group of charities to remain financially viable, and lo sustain our 2bility to deliver our activities in line with our charitable objective5 while making the tn051 of opportunities to undertake new initiatives and lo achieve growth so as lo eonlribute to the economic, social, environmental and cultural wellbeing of Ilie comrnunities of North Wales. With mentoring support from Piloilighi during the year we developed a strategic business plan for 2024-27, the first key component of which was lo build our financial management capacity and support systems lo ensure we make sound decisions in the conduct of our business. Our business plan priorities were to continue lo.. Develop a business model that will prepare the organisation for the potential withdrawal of core funding, Build on the work we have done lo position the organisation as a national training provider and to grow both in demand and geographically, crease our capability lo deliver by investment in our people and volunlccrs, Further embed our joint management structure lo drive more cost effective and efficient ways of working without redueing the quality of our service offer, and Enhanee existing and develop new relationships with partners, funders, and businesses. Access to new improved financial management information enabled us lo start lo make business changes and enhancements lo ensure a more cost effective and sustainable delivery of our priorities and the continuing viability of the GWtIW Group. Overview of Activities The health aiid safety of our staff, volunteer5 and the individuals and communities we serve continued lo be uppem)osl throughout the period. It was a year of great challenge for all with the continuing contlicts in the Ukrainc and Middle East, high inflation fuelling the eosl-of_living crisis and gencral economic inslabilily. A5 much as ever before we were conscious of the part ie should play in helping our communities lo copc. Page 2 GROLryDW'ORIk N'ORTH II'ALES REPORT OF THE TRUSTEES FOR THE YE.AR ENDED J I ST NIARCH 2024 Our passion for enua(Fing people wilh the natural environment and supporting them lo think about th¢ir environmental impac15 lia5 alway.s been the golden thread tlial runs through our activitie5 on the ground. This last l ? months has been no different and we have delivered a varied and diverse range of activities and pi'ojects across North Wales accordingly. Our pi'ogranitne areas ¢oi)liniie lo aligii with Welsh Goveniment's key ivellbeing drivers with links to Social, Economic, Environmental ai)d Cultural Wellbeing. We also made the lime to take stock of the way in whieh we operate as an organisation. With mentoring support from Piloilight we engaged in a programme of strategic refreshment resulting in the development of a strategic business plan 2024-27, a new sel of organisational values and behaviours, a significantly enhanced financial management capability, and a sel of governance improvements leading to a blueprint for board development and succes5iOti. During the year our achievements were recognised formally by the successcs we achieved in a range of award nominations. Our business activity and project highlights this year are set out below. GROUNDIVORK NORTH WALES Energy Saving With the cost of energy adding to the cost-of-living ¢risis and fuel poverty increasing commensurately, this area of our business has grown significantly in importance. Our Local Energy Saving Partnership (LEAP) Scheme continued lo provide support and guidance for managing household energy consumption within the Wrexhatn and Flintshire counties. Each home visit is tailored lo the needs of the household, providing them with easy measures for reducing their energy consumption, keeping them wami, reducing their energy bills, and offering advice on ways of becotning more energy efficicnl. The key metrics for the year were.. 181 home visits. 2,036 easy mcasures installed. Combined annual energy savings of £54,433. 248 onward referrals (insulation, priority services register, income maximisation). 31,898kgs C02 reduced. Our Energy Outreach project flinded by Citizen5' Advice Bureau 15 an outreach only energy advice programme with the aim of creating an entry point for undcrrepresenled communities to accef £ energy advice and other citizen advice services. The largel of reaching 200 residents in Wrexham and Flinlshire in the six months from October 2023 was subslanlially achieved. Training The training wing of our business has gone from Strength lo streiigtli with annual incomc increasing lo over £600k from the £440k secured iii 2022-23. li has delivered over 3200 qualificalioiis as well as a healthy financial contribution after deducting salary and other direct costs which ha5 been reinvested into funding our cliaritable objects for the benefit of local communilics and the environtnent. In 2023 we were successfully reappointed as a lead provider for Adult Community Learning Wrexham and Flinlshire and this area of oui. training business has seen significaiit growth, accounting for over 40 /0 of total annual income. Over the past two years we have supported over 1.800 learners under the scheme. Page 3 GROLINDIVORK NORTH II'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED J I ST MARCI.1 ?094 Caffi Cyne, ￿y￿ Waters and Buckley It was a challenging year for our cafes. While they continued very successfully to deliver our social and environmental objectives and were greatly valued by the communities they serve, our enhanced financial management revealed that they were operating al a loss and in need of remedial action lo ensure their future viability. Appropriate measures were initiated iii the filial monilis of the year and ￿.1￿[ be fully implemeiil¢d for 2024-?i through a coinbination of restructuring, tighter shitl management and staff utilisalion, price adjustments, and (in the case of Buckley) rebalancing the use and opening times. We are now confident of their long-lerni operational viability. Unfortunately, wc had to close our Wellbeing Hub in Wrexham within a few months of ils opening to stem future losses. Our Lunch & Company events continued monthly throughout the year enabling participants lo socialise, meet new people and enjoy a meal wilh entertainment and activities. The lunches are aimed al individuals who are over 55 and have feli isolated. Clywedog Valley Partnership The Clywedog Valley Partncr5hip is coordinated by GWNW and plans to rcvilalise Ihc heritage assets of the Clywedog Valley for the benefit of the local community and visitors. During the year we secured a major grant from Heritage Lottery which will enable us to progress tl)e Partnership's ttinbitious plaiis, by eoiidueling feasibiliry studies for a series of linked heritage buildings and natural siles along the Clywedog Valley and developing detailed plans to SUPPOrt our next major funding bid lo HLF. In the longer term Iliis will benefit local people through opportunities for volunteering, education and training, wellbeing, and enjoyment, as well as supporting the local economy by altracling visitors from further afield. As part of the overall vision for the Clywedoo Valley we have giveii focus to the heritage sites at King's Mill and Nanl Mi11-__as well as the Minera Lead Mines & Country Park which was showcased in the 2022-23 Annual Report. Ive have aetively SLlPPOrted the community. group5 at both King's Mill and Nanl Mill, enabling them lo be registered with Conipanies House as commiinity trLlSts, and, in Ilie case of Kii)g's Mill to be registered a5 a charity with the Charity Commission, with intentions lo do the same for Nant Mill. We will continue to provide 5UPPOrt lo both trusts with governance and fundraising as they become more established. Community Rgii Partnerships (CRPS) It was another busy year for 3 Counties Connected {3CC), the commuiiity rail partnership for the Chester-Shrewsbury- Crewe line. It is hosted by GWNW working closely with the Community Rail Network and Transport for Wales, while other partners and interests are repre.sented on the steering group. The partnership aims lo connect commllnitie5 With their local train stations and lo promote sustainable travel. 20?3-?4 has been the second full year with GWNW as host and has delivered a wide range of projects and activities which have brought local communitie5 together lo deliver green inilialives and encourage sustainable travel, while supporting social and economic wellbeing. In the light of GWNW'S success as host of 3CC, during the year Transport for Wales invited us to apply to host a further CRP along the North Wales coast-conwy Valley and North Wales Coast CRP. Although il is early days, an energetic stan has been made and a full programme is planned for 2024-25. The CRP was shortlisted in two categories at the Community Rail Network Awards in March.. Involving Children and Young People-spon50red by LNER, and Influencing PosiliK'e Change and Suslainabilily sponsored by RSSB. Our Back Yard Project The Our Back Yard project, which ha5 been running since 2018, concluded at the end of Oetober. The project continued Page 4 GROUNIDWORIk Ni ORTH IIIALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCH 2024 lo run twice weekly sessions and education acliiiilies iviih local schools. A full summer events programme was held with over 300 people attending the Quay Nature Club se.ssions ai Wepre Park. The project has e%labli5hed a commiiied group of volunteers, wlio continue lo improve the gi'een spaces and habitats across Connah's Quay. The volunteers have been offered training in mental health first aid, confidence building, and small tools use alongside infornial training durino sessions. At the conclusion of the project minor capital works were carried out lo siles and an education pack was produced for local schools. We will endeavour lo sustain and relain the volunteers Ilirough new projects and ongoing work on the Wild Ground nature reserves in the area. Safer Streets The project was funded by the Home Office and undertaken in partnership with the Community Cohesion Team al Wrexliam Council. Its aitn wa5 to work with groups or individuals who had been identi fied as being involved or al risk of becoming involved in anti-social behaviour. Most were on part limelablcs or in speciali51 behavioural units or classes within schools, and some had beei) involved with the police or Youth Justice. The project started in January 2023 and rinislied in December 2023. We aimed to work with five school groups in Wrexham for ten sessions each anticipating working with up lo ten pupils per group. In the event we engaged with over thirty young people. We experienced some behavioural issue8 within a couple of Ilie groups, bul addressed and resolved them. Each school we worked with were very positive about the project and remarked upon the differcnee in the pupilb who were engaged. WILD GROUND Newt Networks In early 2023 we were delighted to be awarded £?50k funding by the Nature Networks Fund (a Welsh Govemment grant programme delivered by the National Lottery Development Fund) to SUPPOrt our Newt Network5 progratnTne which started on I st April 2023 and will extend over three years. By working in partnership and involving communities the prog'atllme aims lo increase the resilience of the network of all our protected sltes in Northeast Wales. The Wild Ground team are engaging with local communities, schools, and volunteers with the aim of making our sile habilals more resilient and increasing nature connectivity. A wide range of enjoyable, accessible engagement activities to suit varied inleresls, abilities and access needs are being delivered. The programme also includes capital investment in sites to deliver habitat improvement, especially for greal crested newts, and support partner neighbouring siles to improve conneclivily. tn the winter months capital works were dclivercd at Maes y Giug (pond creation), Knowle Hill (pond restoralioii, scrub management, and fencing), Spon Green (pond resloralion), and Glascoed (pond resloralion). All the capital works were designed lo improve and expand suitable habitats for newts on the sites. Woodland Wellness Funded by Landfill Tax grant secured in 2022-23, thi5 project has focused on woodland improvements at our Broughion, Knowle Hill and Maes y Grug reserves. The project has engaged volunteers lo carry out woodland management. Volunteers have supported staff with tree planting, hedge laying and woodland thinning. Monthly wellbeing events havc bcen held, including walks, bushcraft, and craft sessions. The project concluded in November 2023. Rhydymii'yn Valley Nature Reserve Staff have continucd to manage and deliver the contract for this Defra owned site. The contract stipulates a range of sitc management prescriptions and survey requirements. The contract 15 managed by Defra with monthly liaison meetings. In addition lo an aiinual report, we are also required to report against KPI.s and produce survey data al regular intervals. Tlie most reccnt contract wa.s awarded in OLlobei' 2023 for one year with potential aniiual exlension5 for a further two years. The first of the annual extensions has been secured. Page 5 GROUNDIVORK NORTH M'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCH 2024 General Reserve Management General reserve management has continued across our neiwork of sites. Our teatn of reserves officers work across siles to ensure they are tnaintained safely and provide the best habitat for our range of 5UPPOrted species, The team provide a range of volunteer opportunities for local communities, deliver educatioiial sessioiis to local scliools, and organise event.s throughout the year. Work has been priorilised across all siles based on coi)Iraclual obligations, project aims and commiimenls, and safely requirements. Priority sitcs with a designatioii or linked lo a contract are maintained lo a good or excellent standard, while other siles are maintained lo a tnoderale or good staiidard. The focus olreserve management through the year included grassland management, access improvements, pond management, tree management, clearing invasive species, and infrastructure improvements such as fencing, bridge repairs and drainage. As regards sile and tree Safety, monthly safety checks have been recorded digitally using a mapping system, allowing staff to repoit issues directly via sile maps, pinpointing the localioii accuralcly. We plan lo use Ihi& systcm for tree safely checks in due course. The annual survey of great erested newts look place in April and NIay 2023 and was completed in line with contract and SSSI requirements. The survey season is a major undertaking for Wild Ground requiring staff lo work night shifts. Tlirough carcful planning we succeeded in carying out our survey obligations as well as maintaining our regular work WLih volunteers and schools and delivering oui conlraetual obligalions al our vaiious nature reseive siles. Volunteering Support from our volunteers is vital to enable u5 to carry out some of our project5, it a150 enables us to engage local people in practical conservation work which brings immediate benefits lo the local area and long-lenn benefits with increased local knowledge, enEhusiasiM and participant confidence and wellbeing. The Tnonetary valLte of this contribulioii can be used to match funding received from outside sources to maximise the benefits financially and in tertns of work cotnplcled on the grouiid. REFURBS FLINTSHIRE lain Operations The charity has continued lo collect bulky household waste and lo redistribute household goods lo lower income households at affordable prices. These redistiibuted household goods might otherwise have been discarded as wa5tc to landfill. Refurbs has also continued to deliver cleaning and clearance services for Flinlshire County Council's (FCC) void pi-opcrtle5. Our sofa deconstruction offering continued lo show th¢ value of partncrship working alongside Flintshire County Council. There has becn an increase in the number of sofas included in the bulky collection and those which could not be recycled were channelled lo the Oakenholt site where the 50fa deconstruction team are based. Lcgal rcstrictions relating to the use and presence in upholstered domestic sealing of persislenl organic pollulanls (POPS) which apply in England are yel lo be implemeiited in Wales. This could have serious implications for operations and associated costs al Refurbs, in particular bulky waste and sofa deconslruclion. A watching brief is being maintained. Acros5 the GWNW Group Ihe accuracy of financial information and quality of financial management has improved. In the ca5c of Refurbs thi5 has enabled a more forensic and commercial uiiderstanding of the costs and viability of the different areas of business and will help inforni the renegolialion of. and relendering for. contracts in 2024-25 and future years. Page 6 GROLNDIVORK NORTH IVALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCH 2024 Buckley Repair and Reuse Centre with Community Cafe The successful eslablishmenl and early months of operation of the centre and cafe, which are in the ownership of Refurbs, were heralded in the 20?1-22 and 20?2-23 annual trustees report. The centre has become a focal point for the local community and great relationships have been formed. The centre continues to fulfil ils objective of piomolinu education and behavioural cliaiige on waste and recycling inilialives, a5 well as providing volunteering opportunities for local people. An extensive programme of repair, recycling, and upcycling workshops and sessions has been run successfully throughout the year. The café complements the centre and provides the opportunity for quiet enjoytnellt and social inleraetion. However, with our improved understanding of the financial dimension of the business. il became clear that the Buckley e%lablishmenl, in particular the café, was running at a lo%s. To ensure its future viability and suslainabilily il w necessary lo implement appropriate remedial measures including changing staffing arrangements and revising the us¢ of the sile lo operate three days a5 a cafe and three days as a centre for projects. The situation will be kept under revieiv and further revised as necessary, bul we are eonfidenl that thing5 are moving in the right direction. Community Fridge Flint Grant funding has enabled us lo continue our waste food subscription whieh as well as easing the food poverty challenge in the community, benefits the natural environment by reducing food waste disposals to landfill and ¢onsequeDI greenhouse ga5 ¢mi5sions. In April 2023 we were awarded a grant from the Landfill Disposa15 Tax Fund for the period April 2023 until March 2025, with this we have been able lo maintain and improve our community tridge service al the Refurbs sile in Flint. The WG Landfill funding is delivering a project called Making Food Go Furthcr, with the aim of reaching 250 residents of Flinlshire County aiid reduciiig food waste (and addressing food poverty) through running.. educational community sessions on how to tnake best use of surplus food and the differences between best- before-use by awareness-raising campaigns, and ommunity food drives lo ¢ollecl unwanted store cupboard essentials for our community fridge which would oihenvise go to waste. The project ha5 funding for a part-time coordinator to deliver the service and drive more waste food into the fridge as well as educate and infomi the community about using surplus food sources. Another objective has been lo bring volunteers on board with a view to developing the community fridge into a volunleer-led hub within the community- At present we have 3 volunteers supporting thc service weekly. Woodshed For most of the year our Woodshed project has continued with a minimum of 15 adults atleiiding each weck and a constant slreain of inlcrcst and refeiials coTniiig through. More than cvcr before our cotnmunilies need projects like this lo lift them out of the doom and gloom going on in their daily lives. All money made from sales of items has gone back into this prograrnme, which has brought a mu¢h_needed lifeline for most of the volunteers who have attended. A donation of £500 from Gallagher Insurance (GWNW Group's insLirers) fLinded new equipment, which significantly improved produclivily. Volunteering in W&les With funding of £l1.5k brought forward from 2022-23, this project continued to deliver volunteering opportunities, with the primary focus being for 16-24-year-old refugees who have recently resettled in North Wales. Not all the volunteers were refugees- some were young people just generally struggling with mental health. Overall, we engaged with 30 young peoplc all cxperiencing different challenges. The project offered a range of activities that provided personal and emotional support lo build confidence and knowledge lo support resettlement and resilience. Page 7 GROUNDNI'ORIk NORTH II'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCFI 2024 Swap Shop In November 20?3 we secured £IOk of funding from Lottery Community Fund. This funding was for the creation of a clothing and accessories swap shop to be bascd at our Buckley Rcpair and Reus¢ c¢nlre. The project provides the community with an opportunity to come together, share and recycle items of clothing. Encouraging and increasing the lifespan of clotliing in tliis ￿'aY deci'ease5 the amount of clothes going to landfill and helps people and famili¢s savc money by swapping items of clothing. Estate of Peter Jones Legac We are indebted to ihe Eslale of the late Peter Jones for two generous legacy donations amounting lo £35k and will ensure that the sum is used in accordance with their expressed wishes foi the purpose ol residents in Flint to benefit frotn rceyeled items, especially bicyclc rccycling. We are now using Iliis funding lo support our Bikc Shcd and offering recycled bikes at affordable prices and in 2024 will be offeriiig maintenance courses for local people lo come and leam new skills and receive a recycled bike. PROGRthIME OF BUSINESS IMPROVEIWIENTS We were privileged to lake part in a business improvement programme with mentoring support from Pilotlight, the costs of which werc generously funded by the Gatfield We51on Foundation. Over a12-monih period we engaged in a process of fundamental self-reflection with guidance from four Pilotlighi experts and an assigned project manager. The key outcotTiCS from thc programme were.. A strategi¢ plan 2024-27. A strengthened financial manigement capacity with insightful and reliable financial information. including forecasts. A revised set of organisational values and behaviours. Govemance improvements, including a skillg audit of the board, leading to a blueprint for board development and succession. An improved understanding of the commercial aspects ofthe bu5ines5, enabling clarity on pricing, profitability, and viability. While the programme concluded formally with a final progress review with the Pilot lighters in April 2024, the benefi15 continue, and further work is planned to build on the above outcomes as well as lo make progress with the one missed goal of the Senior Leadership Team being clear on monthly priorities and ensuring that capacity is shared accordingly, underpinned by a decision-making matrix. RECOGNITION The GWNW Group was included for tlie fourth coiisecutive year in the SEI 00 ranking of the top l 00 social enterpri5¢5 in the UK achieving finalist status in three award categories-climale, Impact and Leader of the Year. GWNW was winner of the Made a Difference award al the Wesl Cheshire and North Wales Chamber Awards 2023, while Rcfurbs Flintshire wa5 short-listed by the Reuse Network for Reuse Organisation of the Year 20?3. We are immensely proud of our Chief Executive, Karen Balmer. for winning the Environmental Champion award al the WISE 100 20?4 awards ceremony. Page 8 GROUNDIVORk NORTH W'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED J I ST M.4RCH ?0?4 Group Performance Measures People Green Doctor visits Numbcr of Volunteers People supported {cost of livinu crisi5) Formal Qualifications Gained Places People engaged in outdoor activities Area of land Inainlainedlimproved Community clean-ups Woodlands improved Planet River Improvement Projects Trees planted Diversion of waste from laiidfill Environmental Quality Projects 181 106 3407 3244 5058 200,000 m2 18 14 45 803 tonnes 71 Finantial Review The Trust assesses ils financial perfoiinance against the opening forccast budaet and monitors actual result5 on a regular and sy51ematic basis during the year. It has been another challenging year financially in the aftemiaih of the pandemic and associated restrictions and with the surge in fuel prices and Ilie general rate of iiiflation while cotnp¢tition for limited resoui'ces wiihiii the sector has continued lo grow, as our core funding support has come under increasing pressure. We have been able to secure total income for the year of £2,674,655. The principal sources of funding were as follows.. Welsli Government Public Sector Bodies Chaiitable Trusts Private Sector Natioiial Loltcry Local Authority Housing Association £139,?83 £590,119 £350,989 £883,252 £129,789 £524,295 £56,928 Reserves Policy Reserve5 are needed lo bridge the gap between the spending and receiving of income, ie the working capital of the charity, and to cover any unplanncd eventualities. The Trustees reviewed the policy durin(F th¢ year and revised the required minimum Icvcl of unrestricted reserves lo 3 months of unrestricted expenditure with no specified upper limit. Total reserves held al 31 st March 2024 amounted lo £1,834,551. The amount held as restricted reserves amollnted to £1,404,441, with £430,110 in unrestricted resei'ves. Financial Strategy Essential coinponenl.s of our strategy are that full cost recovery is achiei'ed, that our organisalions continue lo build Iheir reserves and Ilial good cash Elows are maintained. To this end we will endeavour lo ensure we have Sufficient working capital, to cover no less than 3 months expenditure needs, by building our uiireslrieled reserves, Page 9 GROUNDII'ORK NORTH II'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST MARCH 2024 ensure we have the right product and serpice mix between grant and non-granl funded activities to mitigate financial risk, develop our product and service offer to ensure we al le&st cover our costs and remain finan¢ially, viable. with any surpluses reinvested in the quality and reach of our delivery. Our busÉness plan for 2023-24 sought to continue to operationalise our financial strategy. Plans for Future Periods Tlie cliaritable groLlP'S plans for the forthcotniii(r 'ear are to review its activities in liiie iyith tlie charitable object5 aiid lo continue to priorilise the development of those areas wliere the greatest growth and impact on the ground can be achieved. Structure, Governance and Management Groundwork North Wales is a registered charity and company limited by guarantee as defined by the Companies Act ?006. The governing docutnenls are it.s Memorandum and Articles of Ass(>ciation, which wcre amended by Special resolution of the members of the company most recently on 6th October 202110 add.. clause 2.6 to the objec15- to advance cultural well-being through people's engagement wilh the arts and the iiation's built and natural hei'ilage, clause 2.7.. the area of beiiefil is Wales and England, a normal limit of three on the number of terms which can be served by I￿stee5, unless by exception a further extension is justified. The amendments were duly auihorised by the Charity Commission and filed with Companies House. The governing body of the trust is IES board of trustees who are also the directors of the company in accordance with the Companies Act 2006. The directors are the mernbers of the company. The board is respoiisible for slratcgic decision making and is ultimatcly responsible for the financial viability of Ilie company. It tneels a tninimum of four titne5 a year. Trustees are appointed on a three yearly basis and retire by rotation al the AGM,. retiring trustees can be rcappointed. Organisational structure and decision-making power5 The board retain5 authority for the overall strategy and policy of the Trust and approves the 5tralegie Plan as well as the annual Business Plan. The board delegates decision making powers to the Chief Executive and lo two sub-groups: the Finance and HR Sub- Group and a Risk Assurance Sub-Group. A Board trustee chairs each Sub-Group and the members are appointed by the Board. lernis of reference for the Sub-Group5 sel down their delegated authority from the board and specify limiiations on the authority for matlcrs which the Board reserves to Llself. The Finance and HR Subgroup is responsible for reviewing the management accounts, amendments to policy and matters appertaining to the remunerdtion and welfare of the trust's staff. It meets foiir times a year in behyeen the quarterly Board meetings. The Risk A5.%urance Sub-Group wa.% e%tablished during 2022-23 10 monitor and provide assurance on the GWNW Groiip's principal risks aiid siipportii)g risk management processes. The Siib-Group's reniit also includes liealtli & safety risks, policy, procedures, and perforniance. It also meets four limes a year ahead of meeliiigs of the board. Page 10 GROUNDII'ORK NORTH IV.4LES REPORT OF THE TRUSTEES FOR THE YEAR ENDED J 1ST MARCH 2024 Induction and training of new trustee5 New membcrs of tlic Board of Trustees are provided with the Charity Coinmission's giiidan¢e'. The Essential Trustee.. What you need to know- What )'ou need lo do" and a full pack of oilier li'ust docutneiits sucli as Ilie lalesl annual report and accounts, risk register aiid blisiiiess plan. New Trustees have an induction meeting with the Chiet Executive, members ol the Senior Management Team and the Cliaii. of the board of Truslces. Robert Williams resigned from the board in July 20?3, otherwise ils membership remained stable throughout 20?3-24 and no new meTnbers were appointed Relationships within the Groundivork FederAtioll The Trust is part of the Federation of Groundwork Trusts in England, Wales and Northem Ireland, each working with thcir partiiers in deprived areas to iinprove the quality of the local environment, the lives of the lo¢al pcople and the success of the local businesses. Groundwork North Wales works in partnership with ils sister trust in South Wales lo provide national coverage across Wales. Governance review A comprehensive review of the governance of Groundwork North Wales and of its two subsidiaries, Wild Ground and Refurbs Flintshire, was conducted in the Autumn of 2020 using the framework for governance rcvicws issued by Groundwork UK for use across the Federation. While the findings were generally positive. a number of improvement actions were identified which were approved by thc Board. Their implementation was completed by in 2021-2? A series of governance improvements were taken fonvard during 2023-?4 as part of the Piloilighi-supported programme lo which reference ha5 been made earlier. An important component was a self-assessmenl of the effectiveness of the Board and its two Sub-group5 leading to the delivery of a blueprint for board development and succession which will bc taken forward in 20?4-25. Public Benefit Statement Our charitable objectives, as sel down in our Memorandum and Articles of Association, are presented under Objectives and Activities earlier in this report. Statemeiit of Comptiance The Trustees have referred to the Charity Commission's general guidance on public benefit when reviewing 2022-23 activities and making plans for future periods and believc that they have complied with Ihcir duty lo have due regard to this guidance. In particular, the Trustees have considered how all the Trust's activities contribute lo ils chaiitable objectives. All of the Trust's aelivilies focus on improving the quality of life for people and the places in which thcy live - focusing on the most disadvantaged people and places in Wales and England. Identifiable Benefits In lenns of identifiable benefits, the Trust delivers projeels and programmes, manages contracts and delivers services according to its objectii'es, with the resulting benefits of safer and stronger eommunilies across North Wales, healthier and tnorc active communities, enhaiiced ( green") skills and employment opportunities for citizens, larger numbers of higher quality places for young people lo go and things for Iliem to do, and the rcductioii of carbon emissions lo hclp lo tackle elimate c11ange. The TrLlSt aims to help the public to make sustainable development a reality, respectin¥ nature's limits and 5UPPOrting the Welsh Government's commitment to future generations. Page 11 GROUNDIVORIk NIORTH II'ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST WIARCH 2024 Benefit to the Piiblic Our approacli is always to work in partnership with oihcrs frotn the publi¢, private and voluntary sectors. to add value to wider plans for maximum impact to the public. Our role in these partnersliips is usually to find ways of helping deprived, di5advanlaged, or disabled local people lo gel practically involved in decisions and actions. As such, our work is designed to address the needs of all sectioiis of the community, and we provide equal access to oui. services regardless of raee, gender, disability, or sexual orientation. Our work primarily benefits those in most need. and thanks lo the support of our funders and partiiers (such as The Welsh Government, Local Authorities and Natural Resources Wales) our services are in the main provided free lo those in need. Financial Instruments The charitable company's operations expose it to a variety of financial risks includiiig price risk, credit risk. liquidity risk and cash flow risk. The charitable company's principal financial inslrLiments comprise sterling bank accounts togeihei. with trade debtors and trade creditors that arise directly from operalioiis. Price ri5k- Price risk is managed by monitoring the market, current rates of intlalion and costing products and services in accordance with these factors. Credit risk- Credit risk is mitigated by monitoring and managing the credit limits given to our customers. Liquidity risk- Liquidity risk is managed by maintaining a balanced mix of income streams, with a limit to the number of payTn¢nls by results or in arrears payment contract5 at any one time. Cash flow risk - is managed through our credit management procedures, cash flow forecasting and negotiation of paytncnt terms where practicable. Risk fvlanagement The full Board reviews the risk register at summary level at each board meeting and keeps a regular focus on the major risks lo which the group is exposed, having regard for the risk appetite it has agreed for each ribk area. More delailcd scrutiny of the risks and progress with mitigating actions is undertaken regularly by the Risk As5urancc Subgroup with issues escalated lo the full Board by exception. The review and updating of the risk register and associated programme of mitigating actions is a routine feature of Senior Leadership Team meetings. The principal risk areas on the GWNW st Group's risk register at 31 March 2024 were: Financial income and financial sustainability Data protection and eomplianee. Safeguarding. People, leadership, and culture. Govemance and regulatory. Cyber security and ICT failure. Business continuity. RepulatiL)n. Health & safety. Page 12 GROUNDII'ORK NORTH IV,4LES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST M,IRCH ?0?4 REFERENCE AND ADL¥IINISI'IL4TIVE DETAILS Registered Company number 02614714 {England and Wales) Registered ChArity number 1004132 Registered office 3-4 Plas Power Road, Tanyfron Wrexham LLI 15SZ Trustees N Reader CBE (Chair) Retired Finance Director M Booker Retired Bank Manager R D Williams Solicitor C A Powell Environrnental Manager H Wright Retired S Overson H R Manager S Moore Retired R Taylor Eslales & Facilities Director N Said Commercial Dircctor First Elected March 2020 February 2002 June 2003 September 2004 February 2011 August 2013 April 2013 February 20?0 March 2020 RetiredlResigned July 2023 Trust Senior Management Teom Karen Balmer Chief Executive Christine Bowyer Hcad of FtR & Governance Lorna Craw5haw Head of Operations Hanna Clarke Head of Marketing Louise Stokes Head of Health & Safely and Training Richard Aram Head of Contracts & Project Delivery Judy Mitchell Head of Finance Stewart Platt Commercial Finance Manager Auditors M. D. Coxey and Co. Limited Chartered Accountants and Statutory Auditors 25 Grosvenor Road Wrexham LLI I IBT Banker5 National Westminster Bank plc 33, Lord Sireel Wrexham LLII ILP Solicitors GHP Legal Ashgrove 26-30 Grosvenor Road Wrexham LLII IBU Page 13 GROUNDIVORK NORTH ALES REPORT OF THE TRUSTEES FOR THE YEAR ENDED J 1ST MARCH ?0?4 Statement of trustees responsibilitie5 The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affair5 of thc cliaritable company and of the incomino resources and application of resources, includinir the income and expenditure of tlic charitable company for that period. In preparing those financial stalemenls, the trustees are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and prudent,. slate whether applicable accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slalemenls. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping propcr accounting re¢ords which disclose with reasonable accuracy at any lime the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the 25sets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit infortnation of which the charitable company's auditors are 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 auditors are awarc of that information. Auditors A resolution was passed al the AGM in November 2022 10 delegate responsibility to the Board of Trustees to appoint auditors. Report of the INstees, incorporating a strategic report, approved by order of the board of trustees, as the cotnpany directors, on 28 November 2024 and signed on the board's behalf by.. Nigel Reader CBE Chair l Trustee Page 14 REPORT OF THE INDEPENDEN'T AUDITORS TO THE MEMBERS OF GROUNDWORIi NORTH II'ALES Opinion We have aiidited tlie Iinancial statements of Groundivork Noril) Wales (the 'pareiit charitN l and its siibsidiaries Ith¢ '(Troup I ror thL }'ear Lnded 31, N,larch 20?4 i¥'hi¢h compris¢ the Statcmenl ot. l.'inancial Acti￿ltIes. tlie BIL Iwicc Shcct. the Cash Floii" Statcmcnt and notes to the liiianLial statemenis. in¢luding a summary of 5igiiificanl accounting policics. -fhc financial rcportiiig fraiiiill"oi'k that li￿ bcLli applied iii their prep￿all￿n ib upplilable law and Uniied kingdL)m A¢Lounting Siandardb (Unilcd Kingdom Generalli. ALLCPted AcLoiintin£ Practice). In our opinion the financial statemcntS-. gil'e a true and lair trieii. ol'tlit state ol tlie groLlP'S and ot the parent chai'ilable conipan), s atlairs as at 31 st March 2024 and ot its incoming resources and application OF re50urLe5, including its incomc and expenditurc. for the j.e￿ Ihcn end¢d.. have been prc)perly prepared in aLcordance ii'ith United Kinodom Generally Accepted Accounting Practice: and hai'c bLen pi'iparLd in accOrd￿)Ce ¥iith the r¢4uirementb of the CotnpaniLS ALI 2006. Basis for opinion We coiidiictcd our audit iii accoi'danLe i¥ iih Internalional Si