2021-03-31-accounts - Making Communities Work & Grow (Mcwg)

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CHARITY REGISTRATION NUMBER: 1 J
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ANNUAL REPORT 2020/21

CHARTY NUMBER: 1045064

MCWG empowers the community it serves by co-producing personal, social, physical and emotional wellbeing activities.

Making Communities Work & Grow

Financial Statements

Year ended 31 March 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	6
Statement of financial activities	7
Statement of financial position	8
Statement of cash flows	9
Notes to the financial statements	10

Making Communities Work & Grow

Trustees' Annual Report

Year ended 31 March 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Registered charity name Making Communities Work & Grow Charity registration number 1045064 Principal office 19 Goldborne Road North Kensington London W10 5NY United Kingdom

The trustees

Mr Tarik Ellekhlifi Mr Khalid Ben Tahar (Treasurer) Mr Shahnawaz Ismail (Vice Treasurer) Mr Redouan Ahmadi (Chairman) Mr Abdelali Lamsaadi (Appointed 1 February 2021) Independent examiner Corporate Leaders Chartered Certified Accountants 1st Floor 29-31 Minerva Road London NW10 6HJ

Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2021

Structure, governance and management

OUR MISSION

To encourage young people and families to aspire to achieve their full potential so that they realise that they have a unique contribution to make to the social, cultural and economic future of their communities.

We continued to deliver a high standard of existing activities, developed new programmes, and concentrated on highlighting the needs and problems of the Arabic and ethnic community.

WHO WE ARE:

Making Communities Work and Grow (MCWG) has been providing outstanding service to the community of Kensington and Chelsea and surrounding areas since 1994. MCWG first set up as a response to the lack of specific services for Black and Ethnic Minority (BAME) young people in the area. Over the years, our inclusive ethos has meant that we increasingly open our doors to disadvantaged young people and families from a variety of backgrounds, for example from White British, Moroccan, Somali and Bangladeshi communities. MCWG predominantly works with 8--21-year olds. We offer services to children and young people and families who are disadvantaged in a number of ways. Many young people are from low-income single-parent families who struggle to access mainstream services and educational support. This is particularly the case for families who do not speak English as a first language or children who have recently arrived in Britain. Isolation, loneliness, and a confused sense of identity are common feelings amongst young people when they first walk through our doors. Low levels of literacy and educational attainment are also a big issue. We work closely with social care and education professionals to help families stay safe and access support, whilst working with young people to build their self-esteem and sense of achievement. Currently we are the only organisation that is facilitating young participants of the North African/Arab community. We also cater for Afro-Caribbean, Asian and other minority ethnic groups.

We are the only youth service in Kensington and Chelsea that specially caters for BAME children and young people, specifically those from North African/ Muslim backgrounds. Similarly our supplementary schools assist local schools by providing their pupils with extra-curricular support, which in turn help, improve school results. This year we have created a new programme of activities aimed at parents and adults from coffee mornings, health and wellbeing workshops, day trips and sports and fitness activities. Feedback from surveys, training providers, business professionals, police and the local authority further indicate a need to provide specifically tailored services for young people of North African/Arab and other BAME backgrounds being affected by poverty-related issues.

Our users play a pivotal role in shaping and developing all our projects. We hold regular discussions and dialogue to understand their developing needs and to get suggestions for improvement in the delivery of our services to them. MCWG is a thriving charity organised by local people for the local people. A community-based charity provides a grass-root service for each individual household.

THE WORK WE DO

Youth Support Service

The drop-in centre delivers life skills and extra-curriculum programmes during the evenings, weekends and holiday periods, which enhance the personal, social and educational development of children and young people. During the drop-in sessions, we also offer employment opportunities and training for young people. We target those who are (NEET) not in education, employment or training, those at risk of engaging in criminality, drug abuse, anti-social behaviour, and school leavers with no or little

Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2021

qualifications. We work in partnership with local external agencies who feed us information so that our youth workers can promote education, employment and training on offer. We offer various projects that enhance the skills of the members of our community, from early intervention to youth and adult programs. We value the feedback and comments from the community and staff, this year was all about healthy living, enhancing life skills, creating employability opportunities, mentoring and serious youth violence. Our focus is towards modelling responsible productive young men and woman, who are able to take responsibility in the family and within society, who contribute to the economic growth of the country. We do this by equipping them with the sound knowledge, the correct understanding, the right skills and lots of experience. Through our supplementary and mother tongue classes (Arabic), we support children aged 5-14, our after school homework clubs, focus on maths. We also have a youth development programme through which we work with young people to build an individual's selfesteem and confidence by empowering them through provisions of social education, sports and youth activities. Our projects encourage personal development, help channel aggression, and discourage anti-social behaviour. Added to this we also work with many families including single parents, particularly those on a low income who are finding it difficult to access mainstream services and educational. We also work closely with social care and education professionals on advising young people and families in staying safe and accessing further support services. The community is the backbone of the organisation, which is why we consider community involvement a key factor in steering the organisation forward. Our engagement with the community and transparency, have helped us provide an outstanding service. The organisation holds a deep understanding of its community and is empathetic to its cultural needs, and by doing so, it acts as a stepping-stone to integration in the wider society.

Our Supplementary and mother tongue school caters for children aged 5-14-year olds. We provide formal national curriculum support and mother tongue classes. The School runs every Saturday from 9:30am--2.30pm At Ark Burlington Danes Academy. We currently have over 200 students, 11 teachers, 7 assistant teachers (volunteers), 1 headteacher and 1 administrator. Our ten classes cater to different age groups and levels. We teach Arabic, as well as after school maths homework classes and music. Our school has the largest number of children and young people that attend RBKC Supplementary schools.

2021 presented many challenges for our organisation, with the impact of COVID-19 on our services and the closure of the centre as well as staffing issues, we were not able to run at our full capacity but are working towards that for 2022.

Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2021

Financial review

Income for the year was £154,266 and expenditure was £104,167 resulting in a surplus of £50,099. Reserves at the end of the year were £217,611 which represents six months turnover.

POLICIES

The charity has a full range of policies and procedures. Every year the trustees review those policies which include;

Risks Public benefit Safeguarding

Reserves

The charity aims to hold six months of turnover as reserves. During the year the charity managed to increase its reserves. We are an inner-city charity providing important services to young people from different communities. For the future of the young and social cohesion, it is important we continue our work year on year. Indeed, we are more needed when times are tough. For those reasons the trustees aim to hold six months reserves to ensure the future needs are met.

Investment

The charity holds some funds in an interest earning deposit account.

The trustees' annual report was approved on 28 January 2022 and signed on behalf of the board of trustees by:

Mr Khalid ben Tahar (Treasurer) Trustee

Making Communities Work & Grow

Independent Examiner's Report to the Trustees of Making Communities Work & Grow

Year ended 31 March 2021

I report to the trustees on my examination of the financial statements of Making Communities Work & Grow ('the charity') for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Tahir Ayub (FCCA) Independent Examiner Corporate Leaders Chartered Certified Accountants 1st Floor 29-31 Minerva Road London NW10 6HJ

28 January 2022

Making Communities Work & Grow

Statement of Financial Activities

Year ended 31 March 2021

			2021		2020
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	103,640	50,606	154,246	192,954
Investment income	5	21	–	21	86
		`─────────`	`────────`	`─────────`	`─────────`
Total income		103,661	50,606	154,267	193,040
		`═════════`	`════════`	`═════════`	`═════════`
Expenditure
Expenditure on raising funds:
Costs of other trading activities	6	52,782	–	52,782	71,986
Expenditure on charitable activities	7,8	990	50,395	51,385	130,721
		`─────────`	`────────`	`─────────`	`─────────`
Total expenditure		53,772	50,395	104,167	202,707
		`═════════`	`════════`	`═════════`	`═════════`
		`─────────`	`────────`	`─────────`	`─────────`
Net income/(expenditure) and net
movement in funds		49,889	211	50,100	(9,667)
		`═════════`	`════════`	`═════════`	`═════════`
Reconciliation of funds
Total funds brought forward		166,719	792	167,511	177,178
		`─────────`	`────────`	`─────────`	`─────────`
Total funds carried forward		216,608	1,003	217,611	167,511
		`═════════`	`════════`	`═════════`	`═════════`

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 10 to 15 form part of these financial statements.

Making Communities Work & Grow

Statement of Financial Position

31 March 2021

		2021	2020
	Note	£	£
Fixed assets
Tangible fixed assets	13	7,698	10,264
Current assets
Cash at bank and in hand		242,134	180,734
Creditors: amounts falling due within one year	14	32,221	23,487
		─────────	─────────
Net current assets		209,913	157,247
		─────────	─────────
Total assets less current liabilities		217,611	167,511
		─────────	─────────
Net assets		217,611	167,511
		═════════	═════════
Funds of the charity
Restricted funds		1,003	792
Unrestricted funds		216,608	166,719
		─────────	─────────
Total charity funds	15	217,611 ═════════	167,511 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 28 January 2022, and are signed on behalf of the board by:

Mr. Khalid ben Tahar (Treasurer) Trustee

The notes on pages 10 to 15 form part of these financial statements.

Making Communities Work & Grow

Statement of Cash Flows

Year ended 31 March 2021

	2021	2020
	£	£
Cash flows from operating activities
Net income/(expenditure)	50,100	(9,667)
Adjustments for:
Depreciation of tangible fixed assets	2,566	3,422
Other interest receivable and similar income	(21)	(86)
Interest payable and similar charges	606	194
Accrued (income)/expenses	(1,838)	2,955
Changes in:
Trade and other creditors	10,572	12,248
	`────────`	`────────`
Cash generated from operations	61,985	9,066
Interest paid	(606)	(194)
Interest received	21	86
	`────────`	`───────`
Net cash from operating activities	61,400	8,958
	`════════`	`═══════`
Cash flows from investing activities
Purchase of tangible assets	–	(6,795)
	`────────`	`───────`
Net cash used in investing activities	–	(6,795)
	`════════`	`═══════`
Net increase in cash and cash equivalents	61,400	2,163
Cash and cash equivalents at beginning of year	180,734	178,571
	`─────────`	`─────────`
Cash and cash equivalents at end of year	242,134	180,734
	`═════════`	`═════════`

The notes on pages 10 to 15 form part of these financial statements.

Making Communities Work & Grow

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 19 Golborne Road, North Kensington, London, W10 5NY, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
legacy income is recognised when receipt is probable and entitlement is established.
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance
Equipment	-	25% reducing balance

4. Donations and legacies

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2021
		£	£	£
Donations
Grants and donations		–	50,606	50,606
Donations - Unrestricted		103,640	–	103,640
		`─────────`	`────────`	`─────────`
		103,640	50,606	154,246
		`═════════`	`════════`	`═════════`
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2020
		£	£	£
Donations
Grants and donations		1,000	126,954	127,954
Donations - Unrestricted		65,000	–	65,000
		`────────`	`─────────`	`─────────`
		66,000	126,954	192,954
		`════════`	`═════════`	`═════════`
Investment income
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Bank interest receivable	21	21	86	86
	`════`	`════`	`════`	`════`

5. Investment income

Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2021

6. Costs of other trading activities

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Costs of other trading activities -
Membership schemes and social
lotteries	52,782	52,782	71,986	71,986
	`════════`	`════════`	`════════`	`════════`

7. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Restricted funds	–	47,313	47,313
Support costs	990	3,082	4,072
	`────`	`────────`	`────────`
	990	50,395	51,385
	`════`	`════════`	`════════`
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Restricted funds	–	126,206	126,206
Support costs	707	3,808	4,515
	`────`	`─────────`	`─────────`
	707	130,014	130,721
	`════`	`═════════`	`═════════`

8. Expenditure on charitable activities by activity type

	Activities
	undertaken		Total funds	Total fund
	directly Support costs		2021	2020
	£	£	£	£
Restricted funds	47,313	–	47,313	126,206
Governance costs	–	4,072	4,072	4,515
	`────────`	`───────`	`────────`	`─────────`
	47,313	4,072	51,385	130,721
	`════════`	`═══════`	`════════`	`═════════`

9. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation of tangible fixed assets

2021	2020
£	£
2,566	3,422
`═══════`	`═══════`

Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2021

10. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as	The total staff costs and employee benefits for the reporting period are analysed as	follows:
	2021	2020
	£	£
Wages and salaries	2,695	33,987
Social security costs	1,098	3,365
	`───────`	`────────`
	3,793	37,352
	`═══════`	`════════`

The average head count of employees during the year was 4 (2020: 6).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

11. Trustee remuneration and expenses

The Trustees did not receive any remuneration and did not charge any expenses during the year ended 31 March 2021 and 31 March 2020.

12. Annual commitments under operating leases

The charity has three leases on separate properties as below;

(1) Office 10, 7 Thorpe Close - £2,920 renewed annually
(2) Office 2, 7 Thorpe Close - £2,730 renewed annually
(3) 19 Golborne Road - £20,000 per annum, 5 year lease from August 2015

13. Tangible fixed assets

	Fixtures and	Motor
	fittings	vehicles	Equipment	Total
	£	£	£	£
Cost
At 1 April 2020 and 31 March 2021	28,973	33,122	24,259	86,354
	`════════`	`════════`	`════════`	`════════`
Depreciation
At 1 April 2020	28,197	30,635	17,258	76,090
Charge for the year	194	622	1,750	2,566
	`────────`	`────────`	`────────`	`────────`
At 31 March 2021	28,391	31,257	19,008	78,656
	`════════`	`════════`	`════════`	`════════`
Carrying amount
At 31 March 2021	582	1,865	5,251	7,698
	`════════`	`════════`	`════════`	`════════`
At 31 March 2020	776	2,487	7,001	10,264
	`════════`	`════════`	`════════`	`════════`

Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2021

14. Creditors: amounts falling due within one year

	2021	2020
	£	£
Accruals and deferred income	5,478	7,316
Social security and other taxes	26,743	16,171
	`────────`	`────────`
	32,221	23,487
	`════════`	`════════`

15. Analysis of charitable funds

Unrestricted funds

	Unrestricted funds
					At
		At		31 March 202
		1 April 2020	Income	Expenditure	1
		£	£	£	£
	General funds	166,719	103,661	(53,772)	216,608
		`═════════`	`═════════`	`════════`	`═════════`
					At
		At			31 March 202
		1 April 2019	Income	Expenditure	0
		£	£	£	£
	General funds	173,326	66,086	(72,693)	166,719
		`═════════`	`════════`	`════════`	`═════════`
	Restricted funds
					At
		At		31 March 202
		1 April 2020	Income	Expenditure	1
		£	£	£	£
	Restricted Fund	792	50,606	(50,395)	1,003
		`════`	`════════`	`════════`	`═══════`
					At
		At			31 March 202
		1 April 2019	Income	Expenditure	0
		£	£	£	£
	Restricted Fund	3,852	126,954	(130,014)	792
		`═══════`	`═════════`	`═════════`	`════`
16.	Analysis of changes in net debt
					At
			At 1 Apr 2020	Cash flows	31 Mar 2021
			£	£	£
	Cash at bank and in hand		180,734	61,400	242,134
			`═════════`	`════════`	`═════════`