Registered number.. 02648892 Charity number: 1005555 The National Communities Resource Centre Limited IA Company Limited by Guarantee) Trustees, Report and Financial Statements For the Year Ended 31 March 2022
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Contents Page Reference and Administrative Details of the Charity, its Trustees and Advisers Trustees. Report statement of Trustees. Responsibilities Independent Auditor's Report on the Financial Statements statement of Financial Activities incorporating the Income and Expenditure account Balance Sheet 11 12 13 Notes to the Financial Statements 14-30
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2022 Trustees M Birkell C Gaskell M Hamilton Iresigned 17 February 20221 R Moulds (resigned 11 August 2022} R Mccarthy Iresiqned 12 Auoust 20211 M Pierre E Poller Prof. A Power, Chair D Orr lappoinled 16 July 20211 N Hibbert Company registered number 02648892 Charity registered number 1005555 Registered office The Foundry 42 Henry Street Liverpool England L1 SAY Company secretary J Vincent Independent auditor BDO LLP 5 Temple Square Temple Street Liverpool L2 5RH Bankers Natwesl 2 - 8 Church Street Liverpool Merseyside L1 3BG Page 1
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Trustees. Report For the Year Ended 31 March 2022 The Trustees who are also directors of the charity for the purposes of Company Law present their report together with the financial statements of the charity for the year ended 31 March 2022 which are also prepared lo meet the requirements for a directors, report and accounts for Companies Art purposes. The comparative financial statements cover the 18 months ending 31 March 2021. Legal and administrative information set out on Page 1 forms part of this report. The financial statements comply with CLJrrent slatulory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice- Accounting and Reporting by Charities. OBJECTIVES AND ACTIVITIES The Charity's objertive is lo close the inequality gap that exists in communities across the UK by providing residential training, resources and micro-granls for people living and working in the lowest income communities. The Charity helps people to build the skills and Confiden they need to take positive action to tackle problems in their homes and neighbourhoods. The Charity specialises in providing training on community self-help action, families and young people, housing and the environment. To achieve this the Charity's activities include.. Developing and running training progfftmmes and courses, hosted at Trafford H811, owned by the Charity's parent, Regenda Group-, Co-developing training materials, resources and action plans for participants to use in their own communities after attending training at Trafford Hall., Creating networks between communities across the UK lo share experiences, leaming and resources,. Providing micro-granls to community groups to kick start grassroots projects in their own communities,. and Assessing the impact of training on individuals and community groups through feedback and evaluation. The Trustees are aware of the Charity Commission's guidance on public benefit {PB1). They consider that the charity's objectives and aclivilies, and their decision-making in relation thereto, are and have been consistent with that guidance. Page 2
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Trustees, Report Icontinuedl For the Year Ended 31 March 2022 ACHIEVEMENTS AND PERFORMANCE The main achievements of the National Communities Resource Centre over this period are.. Regenda secured the Youth Hostel Association as a venue partner and reopened Trafford Hall in July 2021 which conlraclually allows the charity to remain in the charity wing and use the facilities for residential training programmes at a reduced fee. Recommenced our residential programmes at Trafford Hall (previously held on line or at the London School of Economics). These include the Think Tank events for Housing Plus and Energy Plus Academy (partnered with the London School of Economics) and the Amied For8, Families in Stress residential programmes., Pilot delivery of Chartered Institute of Housing certified, 'Empowering Communities, programme aimed at tenants., Launched the 'build an outdoor education bam, campaign (which will be funded via the John Hills Memorial Fundl- Completed a brand narrative exercise with stskeholders and upgraded the website lo enable online event bookings., Recruitment of Admin apprentice lo strengthen the staffing structure., and 2 charity trustees secured positions on Regenda Homes Iparentl board. FINANCIAL REVIEW The charity receives its principal funding through project funding, grants, donations and sponsorship from a number of statutory and other bodies. Each of these funding streams is used to deliver a mixture of online, day, residential training courses and often offer small action grants directly lo the charity's beneficiaries. In line with the charity's key objectives, the training and grants are provided primarily lo tenants of social housing and workers providing housing seNices,' community volunteers,. young people and families to enable them lo engage in wider community activity and become more active members of their respective communities. Training is delivered in partnership with delivery bodies and other support organisations, such as local authorities, CICS and voluntary organisalions lo ensure the charity works collaboratively with other organisalions to further our objects. Training is delivered in partnership with delivery bodies and other support organisations, such as local authorities, CICS and voluntary organisalions lo ensure the charity works collaboratively with other organisalions to further our objects. As at 31 March 2022 the charity had funds of £714,699 (Mar 2021.. £718,890). £689,446 (Mar 2021.. £685,998) in unreslricled funds and £25,253 (Mar 2021.. £32,892) in reslricled funds. Fundraising The charity ulilises online platforms such as Golden Giving and Charities Aid Foundation ICAFI lo receive donations. Any fundraising activities are managed internally in line with the Code of Fundraising Practice standards. The charity does not exchange data with other parties and has not purchased supporter mailing lists. There have been no complaints made to the charity during the period. The charity maintains records of all supporters, donors and gifts received and ensures that these records are regularly reviewed and monitored to check that contact with donors is done in line with any preferen which they have slated lo us. The charity does not carry out active telephone fundraising or mailing campaigns and does not knowingly contact vulnerable individuals or those who have opted out of mailing contact. Page 3
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Trustees, Report Icontinuedl For the Year Ended 31 March 2022 Resgrves policy The charity aims to maintain free reserves (being unrestricted funds excluding fixed assets and designated reservesl equivalent to 3 months of annual expenditure. This is deemed lo be a sufficient amount required to sustain its operation over any period where some of the income generating a¢livities may be temporarily curtailed. Free reserves currently held by the charity is £700,815. The ¢harily has £600,000 designated funds for specific purposes. Risk management The Trustees carried out a review of the Charity s activities and examined the major opportunities available to the Charity and the risks to which it is exposed. The primary risks identified through the review were determined to be loss of grant income,. ineffective business planning,. inadequate Insuran cover., national economic downturn., the effect of the COVID-19 pandemic., and catastrophic failure, or Acts of God. The primary risks described above are controlled through Comprehensive management procedures., segregation of fiduciary duties,. regular and detailed reporting to Trustees., Rigorous Business Planning approved at Board level., annual and periodi¢ insurance review with advice from brokers (Trustee and Officer indemnity is in place)- diversification of income streams and planned growth in earned income. Trustees address the question of risk via the agenda items of board meetings, with issues arising being implemented after detailed discussion and inslrucb'on. An annual review of the risks which the Charity may face., The establishment of systems and procedures to mitigate those risks identified in the review., and The implementation of procedures designed lo minimise any potential impact on the Charity should any of those risks materialise. The reserves held by the Charity are deemed to be necessary in order to ensure that the current levels of service are maintained and that adequate sums are available to maintain and replace the assets used by the Charity. The Trustees consider that the current policy of retaining reserves is essential if the Charity is lo continue lo provide a secure future in the medium term for the Charity al Trafford Hall and also lo fund future developments. Going Concern The parent company, Regenda Ltd has sucsSfUllY negotiated a contract with the Youth Hostel Association IYHAI on behalf of Regenda and the Charity, to operate Trafford Hall lo help enact ils new business model. The agreement allows the Charity lo relain its office Spa and continue lo operate all ils charitable activities from Trafford Hall. However, due lo the ongoing uncertainties surrounding the effects of the economic slowdown because of the Covid-19 pandemic, il is difficult to fully predict the future impact on the charity. Having taken all the factors into account, the Directors are of the opinion that the charity will continue to receive an adequate level of income lo meet ils anticipated requirements and has prepared the financial statements on a going conrn basis. Page 4
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Trustees, Report Icontinuedl For the Year Ended 31 March 2022 FUTURE PLANS The 5 year delivery plan commenced in 2021 with suwssful delivery of objectives and budget outtum for the first year. Delivery of year 2 will focus on.. Strengthen key partner relationships., Grow the Housing Plus and Energy Plus Academy partners., Secure ongoing funding for Families programmes., Re launch Youth Programmes in partnership with The Learning Foundry,. Launch the Empowering CommLJnities Itenanl training programmel., Complete the Outdoor Education Barn., and Hold a reopening Celebration event with key stakeholders, at Trafford Hall. STRUCTURE. GOVERNANCE AND MANAGEMENT The Charity is a Registered Charity {10055551 and a Company Limited by Guarantee 126488921, constituted through ils Memorandum and Articles of association. The Charity joined the Regenda Group in December 2020 at which point the existing Members resigned and Regenda became the sole Member. The Directors of the company during the period are as set out in the legal and administrative information on page 1. Since joining the Regenda Group, recruilmenl, induction and training of trustees is overseen by the Nomination and Remuneration Committee. The Charity s Board of Directors has full responsibility for the charity within parameters set by the Parent Board and meets at least bi-monthly. The Charity works in partnership with several other organisalions on some of its charitable programmes, including the National Housing Federation, Chartered Institute of Housing, London School of Economics, University of Manchester, and other voluntary organisations in the local area. The Charity complies with the principal recommendations of the National Housing Federation's Code of Governance 2020 and the Code of Conduct 2022. Key Management Personnel Directors are required to disclose any relevant interest and register them at Board meetings, and in accordance with the charity's policy withdraw from decision where a conflict of interest arises. Page 5
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Trustees, Report Icontinuedl For the Year Ended 31 March 2022 Provision of information to auditors Each of the persons who are Dirertors at the same time when the Directors, report is approved has confirmed that.. So far as that Director is aware, there is no relevant audit information of which the company s auditors are aware., and That Director has taken all the steps that ought to have been taken as a Director in order to be aware of any information needed by the company s auditors in connection with preparing their report and to establish that the company's auditors are aware of that information. Auditors The auditor, BDO LLP will be proposed for appointment in accordance with section 485 of the Companies Act 2006. In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. This rewrt was approved by the board on 22 September 2022 and signed on its behalf. Birkett ON BEHALF OF THE BOARD Page 6
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Statement of Trustees. responsibilities For the Year Ended 31 March 2022 The Trustees are responsible for preparing the Trustees, Report and the financial statements in awordance with applicable law and regulations. Company law requires the Trustees lo prepare financial statements for each financial year in accordance with United Kingdom Generally ACpted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. select suitable accounting policies and then apply them wnsistently., make judgements and accounting eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless il is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them lo ensure that the financial statements comply with the Companies Art 2006. They are also responsible for safeguarding the assets of the Charity and hence for tsking reasonable steps for the prevention and detertion of fraud and other irregularities. Page 7
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Independent Auditorfs report to the members of The National Communities Resource Centre Limited Oplnlon on the flnanclal statements In our opinion, the financial statements.. give a true and fair view of the slate of the Charitable Company's affairs as al 31 March 2022 and of ils incoming resources and application of resources for the 12 month period then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements of The National Communities Resource Centre Limited I'the Charitable Company) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Basis for opinion We conducted our audit in accordan with International Standards on Auditing (UK) IISAS (UKII and applicable law. Our responsibilities under those stsndards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independen We remain independent of the Charitable Company in accordance with the ethical requirements relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern In auditing the financial slatemenls, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material UnrtaInlieS relating lo events or conditions that, individually or collectively, may cast significant doubl on the Charitable Companys ability to continue as a going concern for a period of at least twelve months from when the financial stslements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going COnM are described in the relevant sections of this report. Page 8
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Independent Auditorfs report to the members of The National Communities Resource Centre Limited (continued) Other Informatlon The Trustees are responsible for the other infomation. The other information comprises the information included in the Trustees, report, other than the financial statements and our auditor's report Ihereon. The other information comprises the information in the Trustees, report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtsined in the audit or olhetwise appears lo be materially misstsled. If we identify such material inconsistencies or apparent material misstalemenls, we are required to determine whether there is a material misslatemenl in the financial stslemenls or a material misstalemenl of the other infomiation. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this regard. Other Companles Act 2006 reportlng In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, report, which includes the Directors, Report prepared for the purposes of Company Law, for the financial period for which the financial statements are prepared is consistent with the financial statements,. and the Directors, Report. which is included in the Trustees, Report, has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the Charitsble Company and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustee's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion,. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Directors, remuneration specified by law are not made., or we have not received all the infomialion and explanations we require for our audit., or the Iruslees were not entitled to take advantsge of the small companies, exemptions in preparing the directors, report and from the requirement to prepare 8 Strategic report. Page 9
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Independent Auditorfs report to the members of The National Communities Resource Centre Limited (continued) Responslbllltles of dlrectors As explained more fully in the statement of Trustees, responsibilities, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees detemiines is nessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due to fraud or error. In preparing the financial slatemenls, the Trustees are responsible for assessing the Charitable Company's ability lo continue as a going concem, disclosing, as applicable, mallers related lo going concern and using the going conrn basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but lo do so. Audltorfs responslbllltles for the audlt of the flnanclal statements We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran is 8 high level of assuran, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstatement when il exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial slatemenls. Extent lo which the audit was capable of detecting ittegularities, including fraud Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design prOdureS in line with our responsibilities, outlined above, lo detect material misslatemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding and accumulated knowledge of the Charitable Company, and the sector in which il operates we considered the risk of acts by the Charitable Company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial slatemenls. We considered the significant laws and regulations lo be United Kingdom Generally Accepted Accounting Practice (including FRS102 and the Charities Statement of Recommended Practice) and the UK Companies Act 2006. All audit team members were briefed to ensure they were aware of any relevant regulations in relation lo their work, areas of potential non-compliance and fraud risks. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements {including the risk of an override of conlrolsl, and determined that the principal risks were related to posting inappropriate joumal entries, management bias in accounting estimates and improper incoming resources recognition. Page 10
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Independent Auditorfs report to the members of The National Communities Resource Centre Limited (continued) Audltorfs responslbllltles for the audlt of the financlal statements {contlnued} Our audit procedures in response to the above included, but were not limited lo.. Agreement of the financial statement disclosures lo underlying supporting documentation., Challenging assumptions and judgements made by management in their significant accounting eslimales, in particular in relation lo the recoverability of debtors., Procedures to test incoming resources including agreement of incoming resources recognised to supporting documentation on a sample basis., Identifying and testing journal entries identified as potentially unusual. This testing included, bul was not limited lo, any journal entries posted with specific keywords, journals posted by unexpected users, and journals posted to least used accounts., Discussions with management, and those charged with governance, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud., Discussions with management, and those Charged with governance lo understand if there has been any Serious Incident Reports made to the Charity Commission either during the period or post period end., review of trustees, meeting minutes both during the period, and post period end, for any known or suspected instances of non-complian with laws and regulation, Serious Incident Reports made to the Charity Commission or fraud., Enquires to confirm with management that there was no legal Corresponden during the period, or post period end, requiring review., Obtaining an understanding of the control environment in monitoring compliance with laws and regulations. Our audit prOdureS were designed lo respond lo risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due lo fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate cOnalment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit prOdureS performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are lo become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council's I"FRC's"I website at.. This description forms part of our auditor's report. Use of our report This report is made solely to the Charitable Company's members, as a body, in accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the Charitable Company's members those matters we are required lo slate to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the Charitable Company and the Charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Hamid Ghafoor (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Liverpool United Kingdom 27 Sept8mb8r 2022 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC3051271. Page 11
The National Communities Resource Centre Limited (A Company Limited by Guarantee) statement of financial activities (incorporating income and expenditure accounti For the Year Ended 31 March 2022 Total funds 18 months ended 31 March 2021 Unrestrlcted funds Year ended 31 March 2022 Restrlcted funds Year ended 31 March 2022 Total funds Year ended 31 March 2022 Note Income from: Donations and legacies Charitable activities Investments Other income 11.011 24.604 5,357 2.500 11.011 139.987 5,357 2.500 42,074 58.854 645,716 16,312 115.383 Total income Expenditure on: Charitable activities 43.472 115.383 158.855 762,956 100,359 62,687 163,046 389,719 Total expenditure 100.359 62.687 163.046 389,719 Net incomel{expenditure) 156.887) 52.696 {4.191) 373,237 Transfers between funds 15 60.335 160.335) Net movement in funds Reconciliation of funds.. Total funds brought fonmard Net movement in funds 3.448 {7,639) {4,191) 373,237 15 15 685,998 3.448 32.892 {7,639) 718,890 {4,191) 345,653 373,237 Total funds carrled forward 689.446 25.253 714.699 718,890 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 14 10 30 form part of these financial stalemenls. Page 12
The National Communities Resource Centre Limited
(A Company Limited by Guarantee) Registered number: 02648892
Balance Sheet As at 31 March 2022
| Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand Current liabilities Note 12 13 Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Net assets 16 Charity funds Restricted funds 15 Unrestricted funds Designated funds 15 General funds 15 Total unrestricted funds 15 Total funds |
651,062 156,984 808,046 (93,347) 600,000 89,446 |
2022 £ 714,699 714,699 714,699 25,253 689,446 714,699 |
34,856 720,019 754,875 (35,985) 685,998 |
2021 £ 718,890 718,890 718,890 32,892 685,998 718,890 |
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on cl<L / oq/1...<l.and signed on their behalf by Michael Birkett: K �� �
The notes on pages 14 to 30 form part of these financial statements.
Page 13
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 General Infomiatlon The National Communities Resource Centre Limited is a private company limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provide in the Referen and Adminislralive Detsils page. Details of the Charity's operations are provided in the Trustees, Report. Aceountlng pollcles 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in aCrdan with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102} (effective 1 January 20191, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006 and the Charities Act 2011. The National Communities Resource Centre Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially rewgnised at historical cost or transaction value unless otherwise stsled in the relevant accounting policy. Amounts are presented in pounds sterfing and rounded lo the nearest pound. The principal accounting policies adopted, judgements and key SoUrS of estimation uncertainly in the preparation of the financial stslements are as follows.. 2.2 Financial resporting standard 102 - reduced disclosure exemptions The Charity has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by FRS 102 "The Financial Reporting Stsndard applicable in the UK and Republic of Ireland" The requirements of Section 7 Statement of Cash Flows., The requirements of Section 11 Financial Instruments paragraphs 11.41 Ibl, 11.41 Icl, 11.41 le), 11.41 If), 11.42, 11.44 to 11.45, 1 1.47, 11.481alliii}, 11.48{allivl, 11.48lbl and 11.481¢l,' and The requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Regenda Group as al 31 March 2022 and these financial statements may be obtained from ils registered office.. The Foundry, 42 Henry Street, Liverpool, L1 SAY. 2.3 Golng concern The parent company, Regenda Ltd has successfully negolialed a contract with the Youth Hostel Association IYHAI on behalf of Regenda and the Charity, to operate Trafford Hall lo help enact ils new business model. The agreement allows the Charity lo retsin its office Spa and continue to operate all its charitable activities from Trafford Hall. However, due to the ongoing uncertainties surrounding the effects of the economic slowdown because of the Covid-19 pandemic, it is difficult to fully predict the future impact on the charity. Having taken all the factors into account. the Directors are of the opinion that the charity will continue to receive an adequate level of income to meet its anticipated requirements and has prepared the financial statements on a going concem basis. Page 14
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Accountlng pollcles (contlnuedl 2.4 Income Income is recognised in the financial statements as follows.. All income is recognised once the Charity has entitlement lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are recognised in the period for which they are awarded. Payments received from the government for furloughed employees are a form of grant. This grant money is receivable as compensation for expenses already incurred, and where this is not in respect of future related costs, is recognised in income in the period in which it becomes receivable and the related expense is incurred. Specific grants and allowances are recognised in the period that the specific activity or project is completed and matched to corresponding expenditure. Excess income is carried forward to fund the activity in subsequent periods. Grants relating to expenditure on tangible fixed assets are credited to the slalement of financial activities al the same rate as depreciation on the assets lo which the grants relate. The deferred element of grants is included as deferred income. Donations, legacies, covenants. fundraising income and other income are recognised when receivable. Specific Sponsorships are recognised in the period that the specific activity or project is completed and matched lo corresponding expenditure. Excess income is carried fotward lo fund the activity in subsequent periods. The deferred element of sponsorships is included as deferred income. Investment income is recognised in the period when receivable. Training Courses are recognised in the period when the course lakes place. Volunteers, time is not recognised in the Statement of Financial Activities as it is provided free of charge. The recognition of income from legacies is dependent on establishing enlillemenl, the probability of receipt and the ability lo estimate with sufficient accuracy the amount re1Vable. Evidence of enlillement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them Ilhrough knowledge of the existence of a valid will and the death of the benefactor} and the executor is satisfied that the property in question will not be required lo satisfy claims in the estate. Receipt of a legacy must be recognised when il is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount lo be distributed to the Charity, can be reliably measured. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Page 15
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Accountlng pollcles (contlnuedl 2.5 Expendlture All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating lo the category. Charitable expenditure Includes all expenditure incurred on the activities run in pursuance of the Charity's objectives. Govemance costs Includes those costs incurred in the governance of the charity and are associated with constitutional and slatulory requirements. Support costs Central costs incurred in support of charitable activities are apportioned over the appropriate cost centres and charged lo charitable expenditure as SUPPOrt costs. Support costs are allocated lo charitsble activities on the basis of total expenditure. Expenditure is recognised On there is a legal or constructive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs atlributsble lo a single activity are allocated directly lo that aclivily. Shared costs which contribute lo more than one activity and support costs which are not allribulable lo a single activity are 8PPOrtioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.6 Taxatlon As a registered charity the Charity is generally exempt from Corporation Tax and Capital Gains Tax on its charitable activities, but not from VAT. Irrecoverable VAT is included in the cost of those items lo which il relates. 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 2.8 Cash at bank and In hand Cash at bank and in hand includes cash and short-tem) highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. Page 16
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Accountlng pollcles (contlnuedl 2.9 Credltors Liabilities are recognised when there is an obligation al the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the selllement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay lo settle the debt or the amount it has received as advanced payments for the goods or services il musl provide. 2.10 Flnanclal Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value. 2.11 Penslons The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 2.12 Fund accountlng General funds are unreslricled funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been sel aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each reslricled fund is sel out in the notes lo the financial slalements. Investment income, gains and losses are allocated lo the appropriate fund. Crltlcal accountlng estlmates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. The Charity makes eslimales and assumptions conceming the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The Charity considers that there are no eslimales and assumptions that have a significant risk of causing a material adjuslmenl to the carrying amounts of assets and liabilities within the next financial year. Page 17
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Income from donatlons and legacles Total funds 18 months ended 31 March 2021 Unrestrlcted Total funds funds Year ended Year ended 31 March 31 March 2022 2022 Donations Gift aid Government grants 5.285 5.726 5,285 5,726 31.969 6,039 4,066 Total 2022 11,011 11,011 42.074 Total 2021 42,074 42,074 Income from charitable activities Unrestricted funds Year ended 31 March 2022 Restricted funds Year ended 31 March 2022 Total funds Year ended 31 March 2022 Housing Plus Academy Youth & Family Development Energy Plus Charitable Activities 73,495 35,232 6,656 73,495 35,232 22,874 8,386 16,218 8.386 24,604 115,383 139,987 Total funds 18 months ended 31 March 2021 Restricted funds 18 months ended 31 March 2021 Housing Plus Academy 58,854 58,854 Page 18
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Investment Income Total funds 18 months ended 31 March 2021 Unrestrlcted Total funds funds Year ended Year ended 31 March 31 March 2022 2022 Income received from subsidiary Bank interest Interest on loan from parent company 645,556 160 39 5,318 39 5,318 5.357 5,357 645,716 Investment income was fully unrestricted in the current and previous financial period. The 2021 income received from subsidiary relates to income received from a former subsidiary of NCRC (Trafford Trading Company Limited, ceased trading in February 20191. Analysis of expenditure on charitable activities Summary by fund type Unrestricted Restricted Total funds funds funds Year ended Year ended Year ended 31 March 31 March 31 March 2022 2022 2022 Social Housing Training 100,359 62,687 163.046 Page 19
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Analysls of expendlture on charltable actlvltles Icontlnuedl Summary by fund type Icontlnuedl Unrestrlcted Restrlcted funds funds 18 months 18 months ended ended 31 March 31 March 2021 2021 Total funds 18 months ended 31 March 2021 Social Housing Training Impairment 221,205 100,000 68,514 289,719 100,000 321,205 68,514 389,719 Analysis of expenditure by adivities Artivities undertaken Support Total directly costs funds Year ended Year ended Year ended 31 March 31 March 31 March 2022 2022 2022 Social Housing Training 114,954 48,092 163.046 Activities undertaken directly 18 months ended 31 March 2021 Support costs 18 months ended 31 March 2021 Total funds 18 months ended 31 March 2021 Social Housing Training Impaimienl 68,514 221,205 100,000 289,719 100,000 68,514 321,205 389,719 Page 20
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Analysls of expendlture by actlvltles (contlnued) Analysls of dlrect costs Soclal Housing Total Training funds Year ended Year ended 31 March 31 March 2022 2022 Total funds 18 months ended 31 March 2021 Staff costs 41,328 25,723 31,931 14,864 608 500 41,328 25,723 31,931 14,864 608 500 YHA charges Contract costs Trainer costs Premises Other direct costs 68,514 114,954 114,954 68.514 Analysis of support costs Social Housing Totsl Training Impairment funds Year ended Year ended Year ended 31 March 31 March 31 March 2022 2022 2022 Intergroup charge Bank charges and interest Insurance 15,000 24 189 15.000 24 189 Sub-contractors and Change Manager Miscellaneous 15,780 830 15.780 830 Governance costs 8.350 1,419 6,500 8.350 1,419 6,500 Rates Marketing 48,092 48.092 Page 21
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 Analysls of expendlture by actlvltles (contlnued) Analysls of support costs Icontlnuedl Soclal Housing Training Impairment 18 months 18 months ended ended 31 March 31 March 2021 2021 Total funds 18 months ended 31 March 2021 Staff costs 13,383 987 34,461 1.565 8,447 84,786 656 3.208 37,627 25,088 2,177 13.383 987 34,461 1,565 8,447 84,786 656 3.208 37.627 25,088 2,177 100,000 8.820 Bank charges and interest Insuran Repairs and maintenance Sub-contractors and Change Manager Miscellaneous Loan interest Professional fees Gas and electric Rates Impaimient Governance costs 100,000 8.820 221,205 100,000 321,205 Governance costs consist of the auditors remuneration. Auditorfs remuneration 18 months ended 31 March 2021 Year ended 31 March 2022 Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 6,000 Fees payable to the Charity's auditor in respect of-. All non-audit services not included above 1,800 Page 22
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 10. Staff costs 18 months ended 31 March 2021 Year ended 31 March 2022 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 36,900 3,329 1,099 13,100 71 212 41,328 13,383 The average number of persons employed by the Charity during the year was as follows.. 18 months ended 31 March 2021 No. Year ended 31 March 2022 No. Employees No employee received remuneration amounting to more than £60,000 in either year. Key management personnel were remunerated £25,539 (18 months ending 31 March 2021 £Nill during the year. 11. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefils12021 £NIL). During the year ended 31 March 2022, no Trustee expenses have been incurred12021 £NIL). Page 23
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 12. Tanglble flxed assets Fixtures and fittings Cost At 1 April 2021 Disposals 27.248 127.248) At 31 March 2022 Depreclatlon At 1 April 2021 Depreciation on disposals 27,248 127,248) At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 Page 24
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 13. Debtors 2022 2021 Due within one year Trade debtors Amounts owed by group undertakings Prepayments and accrued income 33,123 600,000 17,939 20.000 4,279 10,577 651,062 34,856 In September 2021, a £600k loan to Regenda was sel up. This was to utilise the large cash resetves available to the charity and gain interest on this amount. 14. Creditors: Amounts falling due within one year 2022 2021 Trade creditors Amounts owed lo group undertakings Other taxation and soci81 security Accruals and deferred income 43,271 4,845 14 35,927 45,231 93,347 35,985 Page 25
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 15. Statement of funds ststement of funds - current year Balance at 31 March 2022 Balance at 1 Aprll 2021 Transfers Inlout Income Expenditure Unrestrlcted funds Deslgnated funds Regenda Loan Triodos, Ethical Investment 200,000 400,000 200.000 400.000 600,000 600,000 General funds General Fund 685.998 43,472 (100.359) 1539,6651 89.446 Total Unrestricted funds 685.998 43,472 (100,359) 60,335 689.446 Restrlcted funds Housing Plus Academy Youth & Family Development Energy Plus Academy 23.967 8.925 73,495 35,232 6,656 137.127) 118.904) {6.656) {60,3351 25.253 32.892 115,383 162.687) {60,3351 25.253 Total of funds 718,890 158,855 (163,046) 714,699 Page 26
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 15. Statement of funds (contlnuedl ststement of funds - prlor year Balance at 1 October 2019 Balance at 31 March 2021 Transfers Inlout Income Expenditure Unrestrlcted funds Deslgnated funds Reserve Fund Property Fund Maintenance Fund 5,010 266,697 15,000 15,010) {100,0001 1166,6971 {15,000) 286,707 {100,0001 1186,707) General funds General Funds- all funds 704,102 {221.2051 203,101 685,998 Total Unrestricted funds 286,707 704,102 {321,2051 16,394 685,998 Restricted funds Housing Plus Academy Youth & Family Development Energy Plus Academy Wellbeing Fund Royal Borough of Kensington Fundraiser 33,627 8,925 1,335 10,000 1,599 3,460 58,854 168,5141 23,967 8,925 11,3351 {10,000) 11,599) 13,460) 58,946 58,854 168.5141 {16,394) 32.892 Totsl of funds 345,653 762,956 1389,7191 718,890 Page 27
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 15. Statement of funds (contlnuedl The above schedule illustrates the income and expenditure of each fund and the amount by which each is supported from the unrestricted funds of the charity. Unrestrlcted general funds Funds which are available for use or retention at the discretion of the Trustees, in accordance with the Charity's objectives. Unrestrlcted deslgnated funds These Funds are unreslricled funds which have been set aside by Iruslees for an essential spend or future purpose. During September. a £600k loan to Regenda was sel up. This was to utilise the large cash reserves available lo NCRC and gain interest on this amount. The schedule expects £400k of this lo be paid back in May as il has been agreed that this will be invested into an ethical investment opportunity with the Triodos Global Impact Fund, however, there is no set end date on this investment. Transfers between funds Transfers to and from unreslricled funds indicate the extent to which money from unrestricted funds is required to support these restricted activities. Where a restricted programme has been completed and there is no requirement lo return any unspent funds to grant providers, amounts have been transferred lo unreslricled funds and then designated as a designated resetve. Restrlcted funds Housing Plus Academy The Housing Plus Academy is a partnership between 15 leading housing associations, LSE Housing and Communities, the National Housing Federation, the Chartered Institute of Housing and the National Communities Resource Cenlre. 11 has been developed to promote knowledge exchange and participalive learning among frontline staff and tenants of social landlords. MOD - Youth & Families Development A fund lo cover the development and running of our Youth Futures and Family Futures programmes, funded by the Richard Rogers Charitable Trust, the Berkeley Foundation, the John Ellerman Foundation, Wilmoll Dixon Interiors, Garfield Weston and the Ministry of Defence. Energy Plus Academy The Energy Plus Academy, in partnership with the Housing Plus Academy, aims lo generate know-how and problem solving skills lo tsckle climate change through the likes of workshops, think tanks and knowledge exchange between social landlords, professionals, experts, policy makers, community groups and residents. Page 28
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 15. Statement of funds (contlnuedl Wellbeing Fund An awards for All Grant for a 6 week therapeutic project to improve the wellbeing of adults suffering from common mental health issues. Royal Borough ofKensington A fund lo support tenants and residents from the Lancaster West Estate to provide training and a residential weekend. Fundraiser Monies received to pay for fundraising research. 16. Analysls of net assets between funds Analysls of net assets between funds - current year Unrestrlcted Restrlcted funds funds 2022 2022 Total funds 2022 Current assets Creditors due within one year 782,793 193,3471 25,253 808.046 193,347) Total 689,446 25,253 714.699 Analysis of net assets between funds - prior year Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Current assets Creditors due within one year 721,983 135,9851 32,892 754,875 135,9851 Total 685,998 32,892 718,890 17. Pension commitments The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £212 {18 months ending 31 March 2021 £1,099) of which £75118 months ended 31 March 2021 £441 were payable to the fund al the balan sheet dale and are included in creditors. Page 29
The National Communities Resource Centre Limited (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2022 18. Related party transactions The charity has made a loan lo Regenda Limited (the parent Company} in the year for £600,000 {18 months ending 31 March 2021 £Nill, all of which is outstanding at year end. Regenda Limited also charged the charity £15,000 in support costs in the year, none of which was outstanding al year end118 months ending 31 March 2021 £Nill. A contract lo continue the support the development of the Housing Plus Academy is in place with the LSE. Professor Anne Power Ilhe Chair of the charity) wort(s at the LSE bul does not receive any renumeralion of any kind relating lo the contract. 19. Controlling party The Charity's immediate and ultimate parent company is Regenda Limited, a company incorporated in England and Vvales with the registered office of The Foundry, 42 Henry Street, Liverpool, L1 SAY. At 31 March 2022, the largest and smallest group in which the results are consolidated is that headed by Rengenda Limited. The consolidated accounts of the Company are available to the public and may be obtained from its registered office.. The Foundry, 42 Henry Street, Liverpool, L1 SAY. No other group accounts include the results of the Charity. Page 30