¢HANaiNa PLACES CHANGING LIVEI Groundwork Caerphilly Annual Report and Financial Statements 2023/24 Groundwork Caerphilly Charity registration no. 1006811 Company registration no. 2501792 Registered off ice Ty Mynyddislwyn Offices, Bryn Road, Pontllanfraith, Blackwood, Gwent NP12 2BH Contents Page About Groundwork Caerphilly Governance Objectives and public benefit Strateglc report Our plans for the future FlnancSal performance 10 ststement of trustees, responsibilitles 11 Independent auditor's report 15 Statement of financial activities 16 Balance sheet 17 Notes forming part of the financial ststements Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24 About Groundwork Caerphilly Groundwork Caerphilly is a charity, workin8 Within the federation of Groundwo¥k Trusts, kjcally and nationally to transfomi lives in the UK'S most disadvantaged communities. We're passionate about creating a future where every neighbourhood IS vibrant and green. every community is strong and able to shape its own destiny and no-one is held back by their background or circumstances. We help people gain confidence and skills, get into training and work. protect and improve green spaces, lead more actNe lives and overcome significant challenges such as poverty. isolation, low skills and poor health. Groundwork Caerphilly is registered as a company and charity. This report outlines the activity. prioritie5 and financial position of Groundwork. More information on our work can be found in our Imp3Ct Report and on our website. Chalrman's Statement Our operations have gone from strength to strength this year. with 8rowth across the environment centre and Our fla85hip fumiture reuse operation, the Fumiture Revival and I'm impressed by the resilience of the charity'5 enterprising activity. which supports local communitie5 in need. The hi8hli8hts this year have been: Continued refurbishment of the Environment Centre - our listed building and head office Growth in The Furniture Revival with the opening of a new shop in Maeste8, Brid8end I would like to thank the loyal and dedicated staff in Groundwoik Caerphilly who are the foundation of our continuing success. The resilience and success of Groundwork Caerphilly lies in our capacity to not only function in difficult ciicumstances but also to constantly adapt whilst always bein8 conscious of the welfare of our staff and of our customer base. Govemance Re8lstratlon numbers Charity registration no. l(XJ6811 Company re8iStration no. 2501792 Structure Groundwork Caerphilly's 8overnin8 documents are its Memorandum and Artlcles of Association. which were last amended by written resolution in 2012. Board of trustees The board of trustees sit in accordance with the Charities Act 2011 and they are also the directors of the company in cordance with the Companies Act 21y)6. The majority of our trustees are co- opted, with one nominated member from Caerphilly council. We seek a broad ski115 base on our board of tru5tee5 to enable us to benefit from specialist expertise nd networks. We take our governance responsibilities very seiiou51y. recogni5ing the need to ensure as much of our resource as possible is expended on deliverin8 our charitable mission while ensuring our or8anisation is strong. well.m3naged and linancially viable in the long term. New trustees are provided with an induction to the or8anisation, which includes a specific focus on their role and responsibilities. Trustees are responsible for ensuring sound or8anisational system5, processe5 and policies are maintained and embedded in the way Groundwork UK is managed. This includes policies governing our fundraisin8 Standards, our investments and our re5ponsibilitie5 to our Staff, volunteers and beneficiaries. We pay particular attention to issues of health and safety. safeguarding. data protection and information security. each of which has a champion on our b03rd, and maintains comprehensive business continuity arrangement5. We undertake a regular skills audit of our board to ensure we have access to the expertise needed to run our organisation efficiently. effectively and safely. Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023124 Groundwoth Wales, Mana8ement Team is led by the Chief Executive and includes senior staff members responsible for financial and business management. business development. communications and fundraising and programme management. Groundwork Wales management team manage Groundwork Caerphilly. This team is fully accountsble to the Board and its Committees. It operates through delegated powers outlined in our financial regulations and provides regular reports on financial and operational performance and risk management. Related party transactlons Each Groundwork Trust is an independent charity with similar aim. We operate within a group structure and Groundwork Caerphilly 15 a wholly owned subsidiary. Each Trust is therefore reS[￿nSIble for it5 own management wjd administration, and for developing and delivering projects that meet its objectives and core purposes. The appointed trustees of Groundwork Wales are also trustees of Groundwork Caerphilly. Groundwork Caerphilly is a related party to Groundwork waes. Groundwork Caerphilly has considered the other disclosure requirements of the SORP and believes that there are no other related party transactions. Our cofflmhments Everything Groundwork Caerphilly does is underpinned by a set of values, which inform the way we work and behave. We are environmentally aware and focused on communities in need. We are collaborative. show integrity and strive for quality in everything we do. Our decisions, actions and operations are also guided by our sustainable development policy. which sets out how we aim to contribute to creating a strong and just society living within envlronmental limits. Section 162a of the Charities Act 2011 ￿qUireS charities to make a ststement regarding fundraising activities. Although we do not undertake widespread fundraising from the 8eneral public. the legislation defines fundraisin8 as "solicitin8 or otherwise procuring money or other property for C￿ritable purposes" All of our lundraising is managed internally and we do not employ commercial participat0￿ or professional third party fundraisers. The day to day management of all income generation activity is dele8ated to the senior m3na8ement team, who are accountable to the trustees. Groundwoik Caerphilly is not requsred to be bound by any regulatory scheme. As a charity dedicated to supporting people who may be vulnerable we are committed to ensuring our operations are delivered safely and to the hiEhest ethical standards. We have a Groundwork- wide commiiment to effective safeguardin8 and aim to meet best practice standards in terms of management, governance and transparent repofting. Advlsors Audltors HSJ Audit limitsd Severn House Hazell Drive Newport NPIO 8FY kers HSBC 91 High Street Blackwood NP12 IPN Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24 The Board of Trustees The trustees (who are the directors of the company in accordance with the Companie5 Act 21J)61 on the date of approval of this report. or who served as trustees at any time during the year reported on. are as follows. Appointed tru5tee5 First appointed Last appolnted Retiredlresisned Councillor C Mann 18 July 2012 Mr P Fiander 17 September 2019 Mr J GreenidBe 17 September 2019 23rd May 2024 Mr D Havard 17 September 2019 27th May 2022 iith November 2022 Ms K Heenan.Davies 17 September 2019 Ms N Rees 17 September 2019 6lh September 2024 Chalr Mr P Fiander Chlef E¥ecutlve Ms K Stevenson Objectives and public benefit Groundwork Caerphilly's charitable objectives are sel down in its Memorandum of Association and date from the interpretation of charitable activities when they were dr3fted, as amended at annual general meetings and by written resolution in 2012. They commit Groundwork Caerphilly to delivering and promotin8 re8eneration and sustainable development as follows. To promote the conservation. protection and improvement of the physical and natural environment in the County Boroughs of Caerphilly and other South Wales Local Authority area5 includin8 Torfaen. Newport and Monmouthshire. To provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for those living in or working in or resortin8 to the Area. To advance public education in environmental matters and of the ways of better conseNing, protecting and improving the same wheresoever. To promote for the public benefit, urt)an or rural regener3tion in areas of social and economic deprivation within the Area by all or any of the following rneans: the relief of poverty in such ways as may be thou8ht fit the relief of unemployment in such ways as may be thought fit including assistance to find employment.. the advancement of education. training or re-training particularly amongst unemployed people and providing unemployed people with work experience.. the provision of financial assistance. technical as51Stance, business advice or consultancy in order to provide trainin8 and employment opportunities for unemployed people in case5 Of financial or other charitable need through help: la) in setlin8 up their own businesses; or (b) to existing bu&nesses- the creation of training and employment opp)rtunities by the provision of workspace. buildings andlor land for use on favourable terms.. Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24 the provi5i¢)n of housing for those who are in conditions of need and the iwnprovement of housin8 in the public sector or in charitable owneiship provided that such power shall not extend to relieving any local authorities or other bodies of a ststutory duty to provide or impfove housin8; the maintenance. improvement or provision of public ameDlties, including the provision of routeways such as footpaths and cycleways and access lo main transport routes.. the preseN3tion of buildings or sites of historic or architectural Importa￿e- the provision or assistance in the provision of recreational facilities for the public at large andlor those who by reason of their youth, age. infimiity or disablement. poverty or social and economic circum5tsnce& have need of such facilities., the protection Of conservation of the environment, including the reclamation of derelict land for use as open space: the provision of public health facilities and childcare, including the provision of schemes to promote healthier lifestyles and crèche facilities to InC￿3$e the ability of parents to take up emrloyment: the promotion of public safety and prevention of crime. including the alleviation of anti.social behaviour; such other means as may from time to time be determined subject to the prior written consent of the Charity Commissioners for England and Wales. To promote sustainable development for the benefit of the public within the Area the preseNation, conseNation and the protection of the environment and the prudent use of resources: the relief of poverty and the improvement of the conditions of life in 50ci3lly and disadvantaged communities,. the promotion of sustsinable means of achieving economic growth and regeneration. To advance the education of the public in subjects relating to sustsinable development and the protection, enhancement and reh3bilitation of the environment and to promote Study and reSea￿h in such subjects provided that the useful results of such study are disseminated to the public at large, Sustainable development in this Article and in Article l above means "development which meets the needs of the present wittsjut compromising the ability of future generations to meet their own needs" To promote the efficiency and effectiveness of charities within the Area in the direct furtherance of their objects lor any one of them) by the provision of information. ￿ViCe and assistance in the estsblishment, administration and management of such charities includin8 assistance of all types in connection with the raising and distribution of funds. To promote the efficiency a￿1 effectiveness of the voluntary sector for the benefit of the public by the provision of information, support and advice to local community-based groups anywhere in the Area. Groundwork Caerphillvs trustees have referred to the Charity Commission's general 8uidance on public benefit when reviewing the or8anisation's objectives and planning future activitie5. In particular, the trustee5 consider how planned activities will contribute to the charitable objectives set out above. Further detsils about the irr¥)act of Groundwork UK'S activities during the year can be found on the following page& Our work 15 designed to address the needs of all sections of the community and we provide equal access to our seNices re8ardless of race, Sender, disability or sexual orientation. For further details ab(MJt our work visit vA•AV.groundwork￿rg.uk Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMEfrifs 2023124 Strategic report for the yearended 31 March 2024 The Board of Trustees pre$￿t5 its report for the year ended 31 March 2024. This includes statements about our organisation (page 21, its objectives and its governance Ip3ge 3), our financial and operational review for the year (pages 7- 91. our plans for the futurelpages 6-71 and details of our trustees. senior staff and advisers (pages 31.321. Performance oveNiew 2023124 has been a challen8ill8 year for Groundwork Caerthilty. The majority of activities set out in our business plan for the year have been pro8ressed. Levelsof incomeEenerated for theyear were up by £1.400as a ￿sUIt of recoveringfrom a challenging operating environment with the ongoing pandemic. Activity hi8hli8hts Groundwork continues to deliver a rich variety of local Pfojects, programmes and service5 that are transformin8 lives in local communities and helpin8 more people get involved in takin8 action to improve their personal circumstances and the quality of life in their area. Last year we sourced £386,272 of fundlng or enterprlsing income to support our mlsslon. Ouring ihe year we commenced refurbishment works to the building which is listed at Grade 11. A full slate roof refurbishment togetherwith additional flatroof and other cosmetic improvements have been nece55ary in order to brin8 the building up to the required Standard as well as seal water ingress is5￿s. 2. Our plans for the future In order to ensure GToundwork Caerphilly's activities are fully aligned with the needs and expectations of our wider federation. our forward plans are clearly and explicitly driven by Groundwork's collectively agreed strategy. This can be summarised as follows- 'Groundwork 2024,, details how we will support communities to combat the climate and nature emergency. Improve their health and wellbeing and gain access to learning and work opportunities. Groundwork 2024 sets out the charivs ambition to become a significant, radical, national force for driving change in attitudes, behaviours, places and prospects in the local communities that need it most. The strategy commits Gr(yJndwork to achieving the following by 2024.. Mobili5e 75,C(X) days of voluntary action to combat the climate and nature emergencv Connect 50.Ot)) people with their community and nature to improve wellbeing Support 20.000 peoFde into acce55in8 leaming and work Groundwork Caerphillywill continue to run Ty Mynyddi51wyn Environmentcentre to provide facilities forlocal communities 35 well as Groundwork Wales programmes, to improve and strengthen our provision of community development, physical activity, environmental regeneration, employability and volunteering programmes. We will do this by the selling on of reusable furniture to Customers in need and delivering contracts to Caerphilly County BorouEh Council and developing new contracts with other Local Authoritie5. . Financial perfonyonce Groundwork Caerphilly net incomin8 resources for 2023124 totalled É23.036 (compared to £5,269 in 20221231. with an unrestricted surplus of £39.042. Our long-tem) financial strategy has two clear and linked strands as follows.. to manage our overhead costs to ensure discretionary spending is focused on supporting front line delivery and generating more income while maintaining the capacity we need to operate effectively and safely. to achieve an operatin8 surplus so that we can hold a level of reserves sufficient to 5U5tain our charitable operations and strengthen our balance sheet to support commercial services and manase the risk of outcome-ba5ed funding arrèngernents. Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023124 3.1 Resav In line with this finan¢i31 strategy. our trustees have agreed that we should aim to hold 3 months operatin8 costs Icir¢3 £82KI in liquid reserve& We believe this is appropriate for the followin8 rea50ns'. to absorb short terrn setbacks such as1055 or delays in funding to provide the working capital required to finance retrospective pro8ramme fundin8 which can result in considerable timing differences between expenditure and receipt of funds to cover the cost of investin8 in staff training and development to develop new and improved services for Groundwork to cover the cost of developing new services. such as improved communications, research and quality and business infomiation systems to set aside funds for capitsl assets such as ICT equipment to provide fundin8 to cover any unforeseen downturn in activity, allowin8 alternative actlvlty to be 8enerated and/or a planned down-5izin8 of our staff team. The al)ove needs for reserves have to be balanced against the following fact￿S. the need to be seen a5 a responsible charity by the Charity Commission,our partners and funders. our member Trusts within Groundwork and the communities we serve the need to avoid the creation or retention of unnecessary surpluses for which the￿ is no future planned requirement or that bear no relation to our charitsble aims. Unrestricted reserwes, excluding designated reserves, are in surplus by £133.415 {2023.. £70.8551 with restricted funds of £154,080 12023: £170,086). Designated funds of £46.185 will be spent foi future maintenance costs to the Ty Mynyddislwyn p￿rnises. Restricted funds can only be used in accordance wlth agreements ￿aChed with funders relatlng to programmes of work and therefore do not form part of the general reserve5 Ihat are under the control of the trustees. These funds at the year. end relate to fixed assets acquired in previous years, which are being depreciated over their useful life. The future movements on any such restricted funds reflect the long.term nature of Groundwork Caerphilly's pro8ramm¢ activity and in no way flects on the organisati¢)n's financial eff iciency or performance. 3.2 Investments The majority of the grant funds obtained by Groundwork Caerphilly are provided against specified projects for particular needs and are therefore of a restrrcted nature. We do r￿t invest monSes. 3.3 Prlnclpal lundin8 sour¢es Our maiof sources of fundlng durln8 the last year a￿ set out below. Income throu8h charitable Irading.. o The selling on of reusable furniture to customers in need o The rent31 ot facilities at Ty Mynyddislwyn Environment Centre The delivery of contracts under SLA with Caerphilly Council foi the collection of bulky household waste and white goods o The delivery of contracts for battery collections Public sector funding - £22,2941£34.218 in 20231 o Caerphilly County Borough Council SLAS o Community Facilities Programme Charitsble Donations 3.4 Expendltsre on ch¥itable cl>jectives In line with the objectives set in our Groundwork 2020 strategy and the Groundwork Caerphilly business plan, our expenditure in the year was directed towards the following activities- Groundwork Caerphllly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023124 o The selling collectlon and selllng on of reusable furnlture to customers in need o The rental of facilities at Ty Mynyddislwyn Environment Centre o The delivery of contracts under SLA with Caerphilly Council for the collection of bulky household waste and white goods o The delivery of contracts for battery collections o Operation of Groundwork Wales, office base frotn Ty Mynyddi51wyn 3.5 Key Performance Indicators Data 3gaiDSta number of key performance indicators is presented to our trustees on a quarterly basis to measure our success in profile raising, income generation, programme management and continual improvement. These KPIS are tracked on a rollin8 basis and compared to tar8et leve15 of performance outlined in our annual business plan. Monthly m3n2gement accounts track progress against our financial targets and reforecasts to the year-end are made quarterly. A key performance indicator is the 3mount of income secured a5 a percenta8e of forecast salaries and operatin8 costs. This informs year-end forecasts based on prior years, experience. 3.6 Sustainable Development Report Groundwork's charitable mission is to promote sustainable development - helping communities and individuals develop the understanding and capability to take action and make choices that deliver social equity and economic prosperity while reco8nisin8 the need to live within the earth's finite natural resources. In order to have credibility as an or8anisation we need to demonstrate that the principles of sustainable development underpin the way we 80 about our work. Our sustainable development policy commils us to reportin8 on how these principles are integral to the way we plan and manage our operations, support our employees and utilise our resoufces. 3.7 Principal risks and uncertalnties Our board of trustees under5tand5 its responsibilities under the Charity Commission's Statement of Recommended Practice ISORPI for ensuring that the major risks to which the charity Is exposed are identified and reviewed. and that there are systems in ￿ace to miti8ale them, Within our Group, Trustees regularly review the development and operation of our risk management process and receive quarterly updates onactions put in place to miti8ate the m05t 5i8Dificantongoing risks. Risks are identified by our staff teams and reviewed on a regular basis by our management team, The major areas of potential risk. for which we have active mitigation strategies in place, are as follows: Slow recovery in financial climale, inability to secure Income and threat to bottom line and bu5ine55 viability Increased competition / Diminishing Grant funds Lower 8usine55 Viability/PressuTe on reserves - 5i8nificant reductlon in core fundlng WG, Significant reduction in fundin8 Local Authorities Groundwork Caerphilly reco8nises that rlsk management is an essential part of 8ood business practice and an effectNe mechanism of good governance. The Board is committed to ensurin8 that risk mana8ement processes are embedded throughout the organisation. and that these processesare used to help identify at an early stage issues that affect performance or the achievement of our purpose. However. trustee5 also recognise that our process can only seek to mana8e rather Ihan eliminate risk, and that it should therefore be only one of the tools that the Board uses lo provide effective control and management ol the administration of the charity. 3.8 Flnandal instrnments Groundwork Caerphilly's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rale iisks. Our policy is to finance fixed assets and working capital through retained reserves. Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24 4 Statement of trustees, responsibilitle5 The trustees, who are also the directors of Groundwork Caerphilly for the purposes of company law. are responsible for preparin8 the Annual Report and financial st3tement5 in accordance with applicable law regulations. Company law requires the trustee5 to prepare financial ststements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Stsndards and applicable law). Under company law the trustees must not approve the financbal statements unless Ihey are satisfied that they give a true and fair view ot the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparin8 these financial ststements. the trustees are required to: select suitable accouDtIll8 policie5 and then apply them consistently: observe the methods and principles of the Charities SORP; make judgements and accountin8 estimates that are reasonable and prudent, a￿1 prepare the financial statements on the 80in8 concem basis unless it is inappropriate to presume that the charity will continue in business. The trustee5 are responsible for keeping adequate ¥countin8 records that are sufficient to show and explain the charity'5 transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also respons4ble for safeguarding the assets of the chaiity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity's website in accordance with le8islation in the United Kingdom 8ovemin8 the preparation and dissemination of financial statements. which may vary from legislation in other jurisdictions. The maintenance and inte8rity of the charity's website is the responsibility of the trustees. The trustees, responsibility also extends to the on80in8 inte8rity of the financial statements contained therein. Signed on behalt of the 8oard of trustees Phillip Fiander Chalm)an Date: 2011112024 10 Groundwork Caerphilly ANNUAL REPORT AND FINANCIAL STATEMENTS 2023124 Groundwork Caerphilly Independent Auditor's Report to the fvlembers of Groundivork Caerphill), Opinion We have audited the financial siatemenis of Groundivork Caerphilly (the 'Lharity') for the year ended 31 March 2024, Ivhich compris¢ lh¢ SialLrn¢ni of Finaiicial Activilies, Balance Sheet, and Notes io the Financial Statements, incliiding a summary of significant accounting policies. The financial reporting framem'ork Ihai has been applied in their preparation is L'nited Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republi¢ of Ir¢land' and applicable laK% (Uniled Kingdon) Generally Accepted Accounting Practice). In our opinion ihe financial staiements: give a irue and fair vie￿. of the 51ate of ihe charity's &ffairs &s al 31 March 2024 and of it5 incoming resources and application of resour¢es, includinL) lis income and expenditur¢, lor the year (hen ended. hav¢ been properly prepared in accordance Ivith Unil¢d Kingdom Generallv Accepted Accounting Practice: nd have been prepared in accordance M iih the requirenienis of the Companies Aci 2006. Basts for opinlon W¢ condii¢i¢d our aiidit in accordonce Hiih Internalionol Siondards on Audiling (UK) {IS,45 (UK)) and applicable lam.. Our responsibilities under ihose sltmdards ar¢ further described in the auditor responsibililie5 for the audit of the financial siatemeiils 5eclion of our report. M'e are independent of the Charil!, in accordance th iih th¢ ethical requirements Ihai are relevani lo our audit of Ihe financial siaiemeiiis in the UK, including the FRC's Eihical Siandard, and the provisions available for small enlilies, in the circuinstances sei out in noie to th¢ financial S￿leMentS. and ive have fulfilled our other ethical respon5ibililies in accordance with Ihese requiremen15. We beli¢v¢ thai Ihe aiidii evidence we have obiained is suffjcienl and appropriate lo pmvide basis for our opinion. Concluslons relgtinE to golng ¢on¢ern In audiling the financial statements, we hnve concliided that the trustees use of Ihe ¥oin¥ concern basis of accounting in the preparaii()n of the financial slalemenls is appropriale. Based on the ii'ork lie have performed, Ive have nol ideniified anv material uncertainties relaling to events or Conditions Ihai. individually or colle¢lii'elv. nia), cast sigilificani doubi on Ihe charity's ability to continue as a going coilcern for a period of al leasi tivelve months from ivhen the original finanLial stal¢m¢nls ivere auihorised ror issue. Our responsibilities and ihe responsibilities of ihe triisl¢e5 Mlth respect to goin¥ concern are described in Ihe relevunl se¢lions of Ihis report. Other information The triistees 41re responsible for the other infom)1ltion. The olher informalioll Comprises ihe infom141tion included in Il)e annual report, other than the Iinancial siatements and our auditor s report Ihereoi). Our opinioi) on the rinancial staiements does noi cover the oiher inforinaiioii and, excepi io Ihe e.xlenl oiheriiise expliciily sr1i ted ii) our repon, lie do not eipress ali). form of assurance coi)¢111sion Il)ereon. In conneclion iviih oiir audit of ih¢ financial stalenients. our responsibilit>. is lo read Ihe other informaiion and. iii doili4 so, coilsider M'hether ihe oilier infornialion is niateriall). iiiconsistenl iviih ihe finaiici411 Sialemenis or our knoii ledge obiaincd in the audit or oihern i5e appears lo be materially misslaied. If li'e ideniif4' sucli maierial iiiconsisieiicies or apparent niaterial niisstalellienls, Ive are required lo determin¢ iihether there is a malerial niisslaienieni iii the financial staienienls or a material niisslaien)ei)i of ille other infonn4Trtioii. I r. based on the "ork li-¢ have per(orJiied. li'e ionLlude thal there is a malerial missialen)etll of Ihis other infornialion. li'e are required to reporl that faLI We have notliing lo report it) this regard. Page 11 Groundwork Caerphilly Independent Auditor's Report to the Members of Groundwork Caerphilly Opinion on other matters prescribed by the CompAnie$ Art 2006 In our opinion, based on ihe Ivork undertaken in the COUTse of the audil.. the information given in the Siralegic Report and TTuslees' Report for the financial year for M'hi¢h the firtancial statements are prepared is consistent with the financial statements,. and the Straiegic Report and Trustees, Report have been prepared in accordance wilh applicable legal requiremenls. 14tters on which we are required ¢0 repor¢ by eiception In ihe lighi ofour knoii'ledge and underslanding of the charity and ils environment obtained in the course of the audit. li'e have not identified material misstaiements in the Sirategic Report and the Tru51e¢s' Report. We have nothing lo report in respect of the following matters ivhere Ihe Companies Acl 2006 requires us lo repurt to you if, in our vpiDion'. adequate accounting records have not been kepi, or relurns adequa￿ for our audit have noi been received from branches not visited by us. or the finDn¢ial sloiements are not in agreemeni iviih ihe aceounting records and returns; or ¢¢rtain di￿10$ur¢S of Iruslees remuneration specified by laiy are noi made. or 'e have noi received all Ihe infomotion and explanations li'c require for our oudil. Responslblll¢6es of trustees As e,xplained more fully in ihe Statement of Trustees, Responsibilities (sel out on po8e 9 and 10), the trustees are responsible for the preparalion of Ihe financial statements and for being satisfied thai they give a true and fair vieii. and for such internal conlrol as the Iruslecs determine is necessary lo enable the Preparation of financial slaremenis Ihat ale fTee from material missi4iiemenl, Ivhciher due to fraud or error. In preparing the financial statements, the trustees are responsible for assessin8 the charil>"'s ability io continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis or accounting unless ihe Irustees either intend lo liquidate ihe chority or to cease operations, or have no realistic ulternaiive bui ts) du so. Auditor responsibil•ties for the audit of Ihe financinl statements Oiir obj¢¢tives are lo obtain reasonable assurance aboui wheiher the financial staiemenls as a whole ar¢ fr¢¢ from material misstalern¢nt, whciher due to fraud or error, and lo issue an auditor's report thal includes our opinion. Reasonable assurance is a high level of assurance, bui is noi a guaraniee that an audit conducted in accordance H ith ISAS (UK) Ivill al%ia)'5 del¢¢l a m4t¢rial mi5slatem¢nl when il ¢.xi51s. ￿lIS51aleMenlS can arise from fraud or error and are considered maierial if, individually or in the a￿rega¢c. Ihey could reasonably be exp¢¢led to influ¢n¢e the economic decisions of users iaken on the bosis of ihese financial Slatemenls. The extent lo M'hich our procedures are capable of delecting irre8ularilies, Including fraud is detailed below.. Page 12 Groundwork Caerphilly Independent Auditor's Report to the Members of Groundwork Caerphilly We obtain and upda1¢ our und¢rsianding of the enlil).. ils activities, ils control environment. and likely fulure developmenls, incliiding in relalion to the legal and regiilaiorv franleivork applicable and hoiv ihe entity is compl}'ing ivith ihal frameiiork. We communicaled identified fraud risks ihroughoul the engagemeni team llrtd reittained alert throughout the engagement proce55 for any indicaiions of fraud. A5 required b). Ihe auditing siaiidards, Ive ideniify and assess th¢ risk of ttialerial misslatemenl of finaiicial slatemen15, Ivheiher due lo fraud or error, in particular r¢v¢nue re¢o¥nition and m41nagemenl override of coiitrol. We design and perform audit procediires responsive to those risks. and obtain alidit evidence Ihal is sufficient and appropriate to proN"ide a basis for our opinion. This includes consideralion of the risk of act5 by the entitv that M'ere conirarv to applicable lams and re8ulatioiis. including fraud. In response io Ihe risk of material missiatemenl and non-compliance ii'itli laiis aiid regulations, including fraud. v¢ d¢sign¢d procedures ivhi¢h included, Enquiry of management and those Charged %viih govemance around llctiiol and potential liligalion and Claims as M'ell as a¢tuo1. suspecied and alleged frnud; • Review'ing ininules of meelings of ihose charged il'iih governk)nce' Assessing the exlenl of compliance ii'iih the lali's and regulations considered lo have a direct material effecl 011 the financial slalemenls or the operations of Ihe eniiis. Ihrougli enquiry aiid iiispeciion. Revie￿'1n8 finaiicial staiement disclosures and lesling supporting documenlalion lo assess compliance ii'ith applicable laivs and regulations.. Idenlifving joiirnal eniries and oiher iidjiisimenis to lest based on risk criteria and comparing the id¢niified eiilries io supportin8 dociimenl4Trlion. These included those posted to uniisual account combinations; Assessiiig wlietlier reN'enue has been accounted for iii ihe correct period and the existence of rei'enue ai the cul off dale based on the adopted accounting policy for revenue. Because of the inherent limilalions of an audil: Ihere is a risk that H'e w'ill t)01 de(e¢¢ all irregularilies. including those leading lo a material misslalemenl in ihe financial 51al¢ii)enis or non-conipliance iviili reg¥ulalion. This risk inLreases ihe more thai compliance iviih ll laiy or reyulalion is removed from the events and Iransaciions reflected tn ihe financi471 stnieiiieiiis, as ive ivill be less likelv lo beL'omL aii'arc of instanecs of non-compliance. The risk is also greater regarding irrc¥ularities occurring due lo frnud rather than error, as fr41ud invol¥es inieniional Conceoliiieni, for¥erv, collusion, omission or misrepreseniaiioii. A further descriplion of our responsibilities is aN'ailablc on ille Financial Repominb CounLiI's iv¢bsile at.. I%Th￿¥.frc.0rB.likl￿￿dlt0r5rC$pvn$Ib1I1IIe$. This desiripiion forms paff of our audiior"s report. Page 13 Groundwork Caerphilly Independent Auditor's Report to the Members of Groundwork Caerphilly Use ofour report This report is made solely lo the charilable company's trnstees, as a body, in ac¢ordart¢e ivith Chapter 3 of Part 16 of the Companies A¢i 2006. Our audit work has bL'¢n undertaken 50 Ihal wc might slate lo Ihe charity's trustees those matters M'e ore required to slate io them in an auditor's report and for no other purpose. To thc fullest exlenl pern)itted by la￿,, ￿e do not accept or ossume responsibility to anyone other ihan the chariiable company and ils Irusiees as a body, for our audit i%'ork, for ihis ieporL or for th¢ opinions sv¢ have fomied. Andrew Hill FCCA ACA DChA BFP (Senior Siatulory Auditor) For and on behaifof HSJ Audit Lirniled. Statutory Auditor Severn House Hazell Driv¢ Ne￿￿Ort South Wales NPIO 8FY 21 November 2024 Page 14 Groundwork Caerphilly Statement of Financial Actii'ities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestrieted funds Restricted funds 2024 Note Income and Endowments from: Donations and legacies Chariiable aeiivilies 40.800 33i,309 40,800 345.472 Tothl income 376,109 10,163 386,272 Expendilure on.. Charitable activilies (337,067) (26,169) (363,236) Total cxpendilure (337,067) ￿26 169) 39,042 {16,006 363,236) Net income.,' ears presenled. unless oihenvise staled. StAtement of eonipllgnee The financial slalemenls have beeii prepared ii) accordance w'iih the charily's goi'erning documenl. Ihe Compunie5 Act 2006 and 'Accounliiig and Reporting by Charities- Sialemenl of Recommended Practice applicable io cl)arilie% prepariiibp their Jeeounts in aLcordance 1% iih the Finaniial Reporting Standard applicable in Ilie UK and Republi¢ of Ireland (FRS 102)" (effeLtive from l Januarv 2019). The charity is a Public Bin¢fil Entilv as defined b), FRS 102. Busis of prepthration The financial Slalemenls are prepared in sterling, Ivhich is Ilie fiinclioiial curreilcv ot ihe chariiv. ltrloiieiarv amounis in Ihese finAnciAI siaiemenls are rounded to the neares1£. Tl)e fii)ancial Slatenienls have been prepared under ihe historical cosl convention, The priiiLipal aceouniiiig policies adopled are sel out b¢loiY. Figiires coiiraiiied in tlle liiian¢ial siaiemenis lial'e been rounded 10 Ilie nearest pouiid. Coing concern The ¢liaril)- reported a nel iinreslricled iiifloiv ot £39.043 tor the >ear. TrLislees are ii)oniloringi resiilis on a rrequent basis. The truslees are of ihe vieiv Ihat iviih Ehe support ol the paren( charitv. rhe Lharitv is a uioing conrem und there are no material Iin¢¢rtainties aboiii the charii!"s abiliiv to coniinue Ds a going concem. Pag¢ 17 Croundivork Caerphilty Notes to the Financial Statements for the Year Ended 31 March 2024 Judgements In th¢ application of ¢haritv's accounling policies, the trustees are required to make jud8emertls. estimates and ssumptions aboui lh¢ carrying amounl of assets and liabilities that ar¢ not readily apparent from oiher sotirces. The eslimales and associated assumptions are based on historical experience and other fa¢tors thal arc considered lo be relevant. Aciual results may differ from ihese eslimales. The esiimales and underlying assumpiions are reviewed on an ongoing basis. Revisions 10 accounting estimates are reco8nised in the period in ivhich the ¢stimat¢ is revised ivhere the revision affects only that period. or in the period of the revision and future periods where the revision affects both Current and future periods. Intome And endowments Income is recognised the charity is l¢gall> enliiled 10 it after any perforn)an¢¢ ¢onditions have been mel, the amounts can be measured reliabl)., and il is probable that income will be received. Donalioiis fiiid legaelts Donations are recognised ivhen the charity has been noiified in writing of boih Ihe amount and settlement date. In the event Ihal a donaiion is subje¢l lo ¢ondilions thal require a level of performance by ihe charity. before th¢ charity is enli¢led to the funds, the income is deferred and not re¢ognis¢d until eiihcr Ih05e condilions are fvlly m¢1, or the fulfilmenl of those conditions is wholl), within the control of the charity and il is probable that these conditions ivill be ￿lfIlled in the reporting period Graiils receivable Income and grants are in¢lud¢d in incoming resources ￿hen receivable, except as follows.. When donors specify that the 8ranls musi be used in fuiure accounting periods, the income is deferred until Ihose periods. Il'hen donors impose ¢ondition5 iithich have to be fulfilled before the charity becomes ¢nlitled ￿ use such inconie. the income is deferred and noi included in incoming resources until the pre-conditions for have been mel. When donors specifv that granls are for particular re5tricled purposes, which do not amoiinl to pre.condilions regardin¥ enlillement, this income is included in incoming resources of restricted funds ivhen receivable. Granis tho1 relaie to capital Cxpendilure on Specific projecls are Irealed as reslrieted fijnds Ihal are charged io Ihe income 4nd ¢xpendiiure accouni al acquisiiion. This Ireaimeni is due lo the nature ol Ihc fijnding as ihe grants are received lo provide equipmcnl to specifically run Ihe projects and services. Deferred income Deferred income represents amount5 received for future periods and is Teleased to incoming resources in Ihe period for which, ir has been recetved. Such income is only defe￿ed when: The donor specifies thai ihe grani or donalion musi onl> be used in future accounting periods. or The donor has imposed Conditions i¥hich musi be mei before the charity has uncondilional entitlement. Page 18 Groundivork Caerphilly Notes to the Financial Si4temeDts for the Year Ended 31 March 2024 Eipendilure Expenditure inLurred by (he ¢harity in. the )'ear has been split between restricted and unrestri¥t¢d funds_ C0515 have been analvsed between direci chariiable expenditure, fundraisingy and piiblicitN' and ihe adminisiration and management of the charitv. Expendilure relating directly lo a cost categorv has b¢en ¢harg¢d lo thal accouiil. Expenditure. il'hich includes more than one cost caleg0￿, has been apportioned on a reasonabl¢. ju51ifiJble and 0115islent b45is lo the caie¥ories involved. Commiiied exp¢ndilur¢ Ihai hi1S vet 10 be invoi¢ed is, in line iviih besi accountin8 praclice, not recognised in these accounts. It is intended thai such exp¢nditure iiill be funded by fiiture income flom's. E,%pendiliire is recognised once Ihere is a legal or conslriiciive obligation to make a payrnent to a third path., it is probable thai seiileniei)l ii'ill be required and th¢ amounl ofih¢ obli¥aiion can be me&siired reliablv. Expendilure has been allocated lo managenieni and adminisiration of the irust, ¥%h¢re it relales lo the management of Ihe trusl's assets, organisalional administration and compliance iviih consiillltional and siolutorv requiremenrs. Ch(Irifable activilies This includes all e.¥p¢ndilure direcily relaied to ihe aims of Ihe charity a5 folloivs.. To promote Ihe conservaiion, proleclion and in)provcmenl of ihe pl)vsical and natural environment. To provide facilities in Ihe inleresls of social welfare for recreaiion and leisure lime o¢¢iipation with Ihe obje¢iive of improving the conditions of life for those living, iiorkin¥ and visilill¥ in Ihe area. To advance public education in enlironmenlal mallers and in Ihe ways of better ¢onseThin¥, proieciin¥ and improving the environment. Siipport costs Siipport Cosls include cenlrAI funclions and have been allocated lo a¢iivity' cosi ¢aie¥ories on a basis consistent with lh¢ use of resoiirces. for example, allocatin¥ propertv rosls by floor areas. or per capila, staff costs b) the lime spent and other costs bv their usage. Goi'erniince costs These cosls iniliide the costs of gofv'eriihiice arrangements. ii'hiLh relate lo the general rui)IllllE ol. Groundivork Caerphillv as opposed lo the direct managien)ent funclions inlierenl in gen¢ralin8 funds. seTh'ice deliver) aiid progiramme of projcvl work. Thcs¢ inLlude such items as e.Kiernal aiidil: legul advice for Inisiees and costs associated Hith conslitulionlil and Sl4ltUlorY rcquirements. Taxttlion As a registered chavil)., Groiindii'ork Caerphill}' is eiilitled io ilie e.%eniplion fr()ni la¥alion in re5pecl ot incvme ai)d iapilal L*aii)s receiied ii'iih seclions 47,8489 of the Corporation Tax Aci 2010 and seetioi) 256 of ihe Taxalion of Chargeable Gains Acl i9fj? lo rl)e exlenl Ihal these are applied to Ils iharilable objects purposes onlv. Inlangible Assets Inlan&Fible asse15 are sluted iii Ilie Balance Sl)eel at cost less aLcuniulaled amortisaiion aiid impairrneiii. The! are anK)rtised on a straiblil liiie basis vi'er Ih¢ir e5tinialed useful lil'es. Page 19 Groundwork Caerphilly Notes to the Financial Statements for the Year Ended 31 March 2024 Tangible filed assets ndividual fixed assets costing £500.00 or more are initially recorded at cost, less any subs¢qu¢nt a¢¢umulat depreciation and subsequent accumulated impairn)ent losses. Amorti$*tion Amortisalion is provided on intangible fixed assets so as to ￿'r1￿ off the cost, less any estimated residual value, over their expected usefijl economic life as follows: Asset Class Development costs AmortjSAtion method and rAle 2ifio Oti Cost Depreeialion and *mortisation Depreciation is provided on tangible fixed assels so as ¢0 wrire off Ihe cosi or valuaiion, less any esiim&led residual value, over iheir expected usefvl economic life as folloivs: Asset ¢las5 Computers Office equipment Plant & machinery Buildin8S Land DepreclAtlon method 2nd r4te 33..330o on ¢ost 20V• on cost 20010 on cost 2.50,0 011 Cost '0 on ¢osi Fixed asset Investments Invesimenis relate to IOOty,• of Ihe share capital of the ¢harity'S i%holly owmed trading subsidiary and are recognised al c051 less provision for impairment. Sloek Stocks llre vnlued ai the loii'er of cosi and nei rethlisllble value. Nei reJli88ble value 15 bos