2022-03-31-accounts

NCWG MAKING COMMUNITIES WORK & GROW ANNUAL REPORT 2021-2022 Charity Number: 1045064

CHARITY REGISTRATION NUMBER: 1045064

Making Communities Work & Grow Unaudited Financial Statements

31 March 2022

Making Communities Work & Grow

Financial Statements

Year ended 31 March 2022

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	5
Statement of financial activities	6
Statement of financial position	7
Statement of cash flows	8
Notes to the financial statements	9

Making Communities Work & Grow

Trustees' Annual Report

Year ended 31 March 2022

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.

Reference and administrative details

Registered charity name Making Communities Work & Grow Charity registration number 1045064 Principal office 19 Golborne Road North Kensington London W10 5NY United Kingdom The trustees Tarik Ellekhlifi Shahnawaz Ismail (Vice (Resigned 31January 2022) Treasurer) Khalid Ben Tahar (Treasurer) (Resigned 4 September 2022) Redouan Ahmadi (Chairman) Abdelali Lamsaadi Aicha Bendayhia (Appointed 24 January 2022) Independent examiner Corporate Leaders Chartered Certified Accountants 1st Floor 29-31 Minerva Road London NW10 6HJ

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Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2022

Structure, Governance and Management

OUR MISSION

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

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 was first set up as a response to the lack of specific services for the global majority of communities and young people in the area.

Over the years, our inclusive ethos has meant that we increasingly opened our doors to disadvantaged young people and families from a variety of backgrounds, including and not limited to White British, Moroccan, Somali, African, Caribbean and Bangladeshi communities. MCWG predominantly works with 8-21-year olds whilst also offering services to individuals outside of those age ranges. Many of our beneficiaries 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 among young people when they first walk through our doors. Low levels of literacy and educational attainment are also big issues. 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.

We are one of the few youth services in Kensington and Chelsea that specifically cater totheglobal majority of children and young people, specifically those from North African and Arab backgrounds. Similarly, our supplementary schools assist local schools by providing their pupils with extra-curricular support, which in turn helps improve school results. 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 global majority backgrounds being affected by poverty-related issues.

Our users play a pivotal role in shaping and developing our projects. We hold regular discussions and dialogues 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. We are a community-based charity providing grassroots services for the community.

THE WORK WE DO

Youth Club Provision

Our weekly youth drop-in sessions deliver life skills and extra-curricular programmes during the evenings, weekends and holiday periods, which enhance the personal, social, emotional and educational development of children and young people. During the drop-in sessions, we also offer employment opportunities and training for young people. We also target those who are (NEET) not in education, employment or training and those at risk of engaging in criminality, drug abuse, anti-social behaviour, and school leavers with little to no qualifications. We work in partnership with local external agencies that provide 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.

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Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2022

We value the feedback and comments from the community and staff. Our focus is towards modelling responsible productive young men and woman, who are able to take responsibility within society and can contribute to the economic growth of the country. We do this by equipping them with sound knowledge, correct understanding, the right skills and experience to achieve this contribution. We also have a youth development programme through which we work with young people to build an individual's self- esteem 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. Adding 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 services. 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 integrating in the wider society.

Our Supplementary and mother tongue school caters for children aged 5-16 years old. We provide formal national curriculum support and mother tongue classes. The school runs every Saturday from 10:30-3.00 pm at Colville Primary School. We have over 300 students enrolled, 11 teachers, 4 teaching assistants and 2 Volunteers. Our ten classes cater for different age groups and levels. We teach Arabic and run after-school homework clubs that help students with Maths and English. Our school has the second largest number of children and young people that attend a supplementary school within the Royal Borough of Kensington & Chelsea. We also have after-school homework clubs that focus on Maths and English from KS1 through to KS4 and allow beneficiaries to gain confidence in completing their homework and staying up to par with their fellow peers.

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Making Communities Work & Grow

Trustees' Annual Report (continued)

Year ended 31 March 2022

Financial review

Income for the year was £96,509 and expenditure was £163,654 resulting in a deficit of £67,145. Reserves at the end of the year were £150,466 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 there was a decrease in the charity’s 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. 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 30 January 2023 and signed on behalf of the board of trustees by:

Redouan Ahmadi (Chairman) Trustee

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Making Communities Work & Grow

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

Year ended 31 March 2022

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 2022.

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:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the financial statements do not accord with those records; or

3. 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

30 January 2023

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Making Communities Work & Grow

Statement of Financial Activities

Year ended 31 March 2022

			2022		2021
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	49,930	46,574	96,504	154,246
Investment income	5	5	–	5	21
		────────	────────	────────	─────────
Total income		49,935	46,574	96,509	154,267
		════════	════════	════════	═════════
Expenditure
Expenditure on raising funds:
Costs of other trading activities	6	100,438	–	100,438	52,782
Expenditure on charitable activities	7,8	18,559	44,657	63,216	51,385
		─────────	────────	─────────	─────────
Total expenditure		118,997	44,657	163,654	104,167
		═════════	════════	═════════	═════════
		─────────	────────	─────────	─────────
Net (expenditure)/income and net
movement in funds		(69,062)	1,917	(67,145)	50,100
		═════════	════════	═════════	═════════
Reconciliation of funds
Total funds brought forward		216,608	1,003	217,611	167,511
		─────────	────────	─────────	─────────
Total funds carried forward		147,546	2,920	150,466	217,611
		═════════	════════	═════════	═════════

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.

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Making Communities Work & Grow

Statement of Financial Position

31 March 2022

		2022	2021
	Note	£	£
Fixed assets
Tangible fixed assets	13	36,311	7,698
Current assets
Cash at bank and in hand		117,648	242,134
Creditors: amounts falling due within one year	14	3,493	32,221
		─────────	─────────
Net current assets		114,155	209,913
		─────────	─────────
Total assets less current liabilities		150,466	217,611
		─────────	─────────
Net assets		150,466	217,611
		═════════	═════════
Funds of the charity
Restricted funds		2,920	1,003
Unrestricted funds		147,546	216,608
		─────────	─────────
Total charity funds	15	150,466 ═════════	217,611 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 30 January 2023, and are signed on behalf of the board by:

Redouan Ahmadi (Chairman) Trustee

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

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Making Communities Work & Grow

Statement of Cash Flows

Year ended 31 March 2022

	2022	2021
	£	£
Cash flows from operating activities
Net (expenditure)/income	(67,145)	50,100
Adjustments for:
Depreciation of tangible fixed assets	8,495	2,566
Other interest receivable and similar income	(5)	(21)
Interest payable and similar charges	925	606
Accrued income	(2,679)	(1,838)
Changes in:
Trade and other creditors	(26,049)	10,572
	────────	────────
Cash generated from operations	(86,458)	61,985
Interest paid	(925)	(606)
Interest received	5	21
	────────	────────
Net cash (used in)/from operating activities	(87,378)	61,400
	════════	════════
Cash flows from investing activities
Purchase of tangible assets	(37,108)	–
	────────	────────
Net cash used in investing activities	(37,108)	–
	════════	════════
Net (decrease)/increase in cash and cash equivalents	(124,486)	61,400
Cash and cash equivalents at beginning of year	242,134	180,734
	─────────	─────────
Cash and cash equivalents at end of year	117,648	242,134
	═════════	═════════

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

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Making Communities Work & Grow

Notes to the Financial Statements

Year ended 31 March 2022

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 projectsor commitments.

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.

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Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2022

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.

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Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2022

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	2022
	£	£	£
Donations
Grants and donations	–	46,574	46,574
Donations – Unrestricted	49,930	–	49,930
	────────	────────	────────
	49,930	46,574	96,504
	════════	════════	════════
	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
	═════════	════════	═════════

5. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2022	Funds	2021
	£	£	£	£
Bank interest receivable	5	5	21	21
	══	══	═══	═══

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Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2022

6. Costs of other trading activities

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2022	Funds	2021
	£	£	£	£
Costs of other trading activities:
Membership schemes and social
lotteries	100,438	100,438	52,782	52,782
	═════════	═════════	════════	════════

7. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Restricted funds	–	36,435	36,435
Support costs	18,559	8,222	26,781
	───────	────────	────────
	18,559	44,657	63,216
	═══════	════════	════════
	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
	════	════════	════════

8. Expenditure on charitable activities by activity type

	Activities
	undertaken		Total funds	Total funds
	directly	Support costs	2022	2021
	£	£	£	£
Restricted funds	36,435	–	36,435	47,313
Governance costs	–	10,421	10,421	4,072
	────────	────────	────────	────────
	36,435	10,421	46,856	51,385
	════════	════════	════════	════════

9. Net (expenditure)/income

Net (expenditure)/income is stated after charging/(crediting):
	2022	2021
	£	£
Depreciation of tangible fixed assets	8,495	2,566
	═══════	═══════
Staff costs
The total staff costs and employee benefits for the reporting period are analysed as		follows:
	2022	2021
	£	£
Wages and salaries	32,831	2,695
Social security costs	–	1,098
	────────	────────
	32,831	3,793
	════════	════════

10. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

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Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2022

The average head count of employees during the year was 4 (2021: 4).

No employee received employee benefits of more than £60,000 during the year ended 31 March 2022 and 31 March 2021.

11. Trustee remuneration and expenses

The Trustees did not receive any remuneration and did not charge any expenses during the year ended 31 March 2022 and 31 March 2021.

12. Annual commitments under operating leases

The charity has two leases on separate properties as below;

(1) Office 2, 7 Thorpe Close - £2,730 renewed annually

(2) 19 Golborne Road - £20,000 per annum, 5 year lease renewable June 2022.

13. Tangible fixed assets

	Fixtures and	Motor
	fittings	vehicles	Equipment	Total
	£	£	£	£
Cost
At 1 April 2021	28,973	33,122	24,259	86,354
Additions	–	37,108	–	37,108
	────────	────────	────────	─────────
At 31 March 2022	28,973	70,230	24,259	123,462
	════════	════════	════════	═════════
Depreciation
At 1 April 2021	28,391	31,257	19,008	78,656
Charge for the year	145	7,037	1,313	8,495
	────────	────────	────────	─────────
At 31 March 2022	28,536	38,294	20,321	87,151
	════════	════════	════════	═════════
Carrying amount
At 31 March 2022	437	31,936	3,938	36,311
	════════	════════	════════	═════════
At 31 March 2021	582	1,865	5,251	7,698
	════════	════════	════════	═════════

14. Creditors: amounts falling due within one year

	2022	2021
	£	£
Accruals and deferred income	2,799	5,478
Social security and other taxes	694	26,743
	───────	────────
	3,493	32,221
	═══════	════════

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Making Communities Work & Grow

Notes to the Financial Statements (continued)

Year ended 31 March 2022

15. Analysis of charitable funds

Unrestricted funds

	Unrestricted funds
		At			At
		1 April 2021	Income	Expenditure 31 March 2022
		£	£	£	£
	General funds	216,608	49,935	(118,997)	147,546
		══════════	════════	═══════════	════════════
		At			At
		1 April 2020	Income	Expenditure	31 March 2021
		£	£	£	£
	General funds	166,719	103,661	(53,772)	216,608
		══════════	══════════	══════════	════════════
	Restricted funds
		At			At
		1 April 2021	Income	Expenditure	31 March 2022
		£	£	£	£
	Restricted Fund	1,003	46,574	(44,657)	2,920
		═══════	════════	══════════	═════════
		At			At
		1 April 2020	Income	Expenditure	31 March 2021
		£	£	£	£
	Restricted Fund	792	50,606	(50,395)	1,003
		═════	════════	══════════	═════════
16.	Analysis of changes in net debt
					At
			At 1 Apr 2021	Cash flows	31 Mar 2022
			£	£	£
	Cash at bank and in hand		242,134	(124,486)	117,648
			══════════	═══════════	══════════

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