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2022-03-31-accounts

Waltham Forest Community Transport Limited

Annual Report and Financial Statements

31 March 2022

Company Registration Number 03073284 (England and Wales)

Charity Registration Number 1048701

Contents

Reports

Reports
Reference and administrative information 1
Report of the Management Committee 2
Independent auditor’s report 10
Financial statements
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 18
Principal accounting policies 19
Notes to the financial statements 22

Waltham Forest Community Transport Limited

Reference and administrative information

Members of the Management Committee Dr Sabir Bham (Acting Chair)
Mr Andrew Jazaerli
Mr Paul Leslie
Mr Richard Mundy (Treasurer)
Mr David Williams
Company Secretary and Director Helen Tredoux
Registered office Low Hall Depot
Argall Avenue
London
E10 7AS
Telephone 020 8521 0665
Email info@ctwf.co.uk
Website www.communitytransportwf.co.uk
Company registered number 03073284 (England and Wales)
Charity registered number 1048701 (England and Wales)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Co-Operative Bank
PO Box 101
1 Balloon Street
Manchester
M60 4EP

Waltham Forest Community Transport Limited 1

Report of the Management Committee Year to 31 March 2022

The Management Committee presents its report with the financial statements of Waltham Forest Community Transport for the year ended 31 March 2022.

This report, which also constitutes a directors’ report for company legislation purposes, has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006, and has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the principal accounting policies set out on pages 19-21 and comply with the requirements of the Charities Act 2011, the Companies Act 2006, the charitable company’s Memorandum and Articles of Association, applicable laws, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and FRS 102.

Governance, structure and management

Waltham Forest Community Transport (WFCT) is a charitable company, limited by guarantee, Company No. 03073284 (England and Wales) and is registered with the Charity Commission, Charity No. 1048701. The charitable company was incorporated on June 22, 1995 and registered as a charity on August 16, 1995. The charitable company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £5.

The charity’s senior employee has the title Director and Company Secretary but is not a member of the Management Committee and therefore not a company director or charity trustee.

Recruitment and appointment of members of the Management Committee

The directors of the company are also charity trustees for the purposes of charity law and are known as members of the Management Committee under the company’s articles. The members of the Management Committee (MC) are elected to serve for a period of three years, after which they must be re-elected at the next Annual General Meeting.

The MC needs to reflect the diverse needs of our user groups and their members, our passengers. We actively seek to enhance the pool of potential committee members who are representative of all areas of the community. Where gaps are identified, we target specific areas for recruitment.

The MC reviews annually the existing skills of its members and seeks to gain outside support from advisors and volunteers on specific issues (e.g. marketing). Training is offered to all MC members (see below).

Waltham Forest Community Transport Limited 2

Report of the Management Committee Year to 31 March 2022

Governance, structure and management (continued)

Member induction and training

A member induction meeting is arranged for all new MC members immediately following the AGM. This is usually led by the Company Secretary and Director of the charity. The initial induction enables members to familiarise themselves with:

New members are encouraged to take up additional training opportunities throughout their term of office. Information regarding training opportunities is provided to members. An annual financial training session is provided to MC members.

The following members were in office at 31 March 2022 and served throughout the year except where shown:

Board member Appointed / resigned Dr Sabir Bham Mr Paul Leslie Mr Andrew Jazaerli Mr Richard Mundy (Treasurer) Mr David Williams Miss Lorna Wisdom Deceased January 2022

Key management personnel Helen Tredoux - Director and Company Secretary Alison Fowlerlouis - Fleet Supervisor

Remuneration for these personnel, and all staff, is set by comparison with similar voluntary organisations. Despite the economic climate, we have managed to provide all staff with pay increases at or above inflation. Community Transport Waltham Forest is one of the few transport organisations accredited as a London Living Wage employer. The Management Committee reviews salaries and hourly pay rates annually.

Waltham Forest Community Transport Limited 3

Report of the Management Committee Year to 31 March 2022

Governance, structure and management (continued)

Risk Management

The Management Committee uses its annual business planning process to ensure that it is aware of the risks to which we are exposed. Where possible we have systems and procedures in place to mitigate the risks facing the charity. We maintain a Risk Register, which is reviewed by the Management Committee annually.

Examples of Risk Management include:

Human Resources

There is a risk of losing key staff, work overload and reduced capability to respond to our members' needs. We have appropriate back-up plans. Procedures are in place to ensure compliance with standards for the employment and management of staff, as well as the health and safety of staff, clients and visitors. To help ensure our compliance we have contracted Croner Consultancy to advise and support on HR matters.

Premises

We operate from a busy transport site owned by the London Borough of Waltham Forest (LBWF). The need to avoid accidents by/with people or vehicles is paramount. WFCT has a staff member attending health and safety meetings affecting the charity’s premises, storage and parking. The results of these meetings are reported to members.

Drivers and Training

Our business depends on providing safe journeys 100% of the time. Our drivers’ competence and attitude are key elements. Our Fleet Supervisor undertakes annual risk assessments for the drivers we employ, and we receive professional support and advice through the national Community Transport Association (CTA). We have adopted the nationally recognised MiDAS system of driver training to ensure consistency in driver standards. This system is used by WFCT and for drivers from our member groups which use our vehicles on a self-drive basis. Staff have DBS checks where appropriate.

Vehicles

We employ an external examiner to check all vehicles regularly. All recommended maintenance and repairs are carried out. We acquire newer minibuses by (a) purchasing when funds are available and (b) leasing. There is limited progress towards the availability of more environmentally friendly minibuses but we monitor the market and intend moving to hybrid and/or electric vehicles as soon as that becomes practicable.

Quality Standards

WFCT is accredited by the Fleet Operator Recognition Scheme (FORS) which aims to raise the level of quality within fleet operations and to demonstrate which operators are achieving exemplary levels of best practice in safety, efficiency, and environmental protection. We are audited annually by FORS.

Waltham Forest Community Transport Limited 4

Report of the Management Committee Year to 31 March 2022

Governance, structure and management (continued)

Organisational Structure

Members of WFCT are organisations and groups in Waltham Forest, Newham and Enfield, most of which are charities and voluntary bodies. WFCT has a management committee of elected representatives and non-voting advisors. The elected members of the Management Committee are the trustees of the charity and directors of the company and are responsible for setting our strategic direction, ensuring compliance with our governance and management of finances.

The Director is responsible to the Management Committee and is also Company Secretary. Operational responsibility is delegated to the Director. The work of the charity, including service provision, staff supervision and liaison with the national body, is undertaken by the Director, along with the Fleet Supervisor and key staff.

Members meet staff and receive verbal and appropriate written reports at regular meetings. All meetings are minuted.

Related parties

WFCT is a member of the Community Transport Association (CTA), and we are guided by its national policies. WFCT actively uses the advice and information services of the CTA. Our Director represents us at the London CTA meetings. This is valuable in identifying relevant policy and legal developments and potential funding sources.

We also work with many other local organisations and local authorities.

Our aims and objectives

Our charity’s purposes are set out in the objects contained in the company’s memorandum of association:

"To relieve poverty, youth, age, sickness or disability by the provision of transport to individuals in need of such relief or to charitable bodies established for the benefit of such individuals."

How our activities deliver public benefit

The main area of WFCT’s charitable activity is the provision of minibus and associated transport services to registered member groups. These are eligible groups who wish to use WFCT’s services on an occasional basis or regularly to meet their group travel needs.

Who used and benefited from our services

WFCT provides transport and training to local organisations. In 2021/22 we had 76 active member organisations spanning a wide range of voluntary, community and statutory organisations. The breakdown of membership at the end March 2022 showed 14.5% Adult and Social Care organisations, 7.9% Arts and Culture, 21.1% Elderly, 4% Faith, 12% Public Services, 6.6% Schools and Colleges, 4% Sports and 11.8% Youth Organisations.

Waltham Forest Community Transport Limited 5

Report of the Management Committee Year to 31 March 2022

Who used and benefited from our services (continued)

Community Hires

We offer a choice of minibuses from standard to accessible, enabling our members to select a vehicle best suited to the mobility needs of their members. Activity was constrained in the year, because of restrictions because of Covid lockdowns. During 2021/22, we achieved 6,580 community hires. The estimated figure for total passengers was 210,560 across all services, including shuttle services for events at the London Stadium.

Community Drivers

WFCT provides drivers to those organisations unable to provide their own.

Committed Services

Committed services, where Members have ongoing committed bookings, include day services for voluntary sector organisations and Adult and Social Care services. These too were heavily restricted in 2020/21, because of Covid Restrictions. 3,751 trips were undertaken, with 24,907 passenger journeys.

Door to Store Service

WFCT operates a grant funded Door to Store shopping service for elderly and disabled people in Waltham Forest. With appropriate precautions, we were able to continue this during the year, despite Covid. The service is funded by LBWF Adult and Social Care and forms an important part of enabling the elderly to retain their independence, by providing accessible transport to local supermarkets for shopping. The service runs 2.5 days a week offering 3 trips a day to various supermarkets, with specific days allocated to specific areas in Waltham Forest. Door to Store continued through much of the year and 1,653 trips took place with 1,889 passengers using the service for outward and return journeys.

MOAT Services (Dial a Ride)

We continued providing a number of Dial a Ride routes.

Excursions Club

WFCT operates a small excursions club programme offering seasonal outings to individuals at risk of suffering from isolation and loneliness. During 2021/22 and whilst Covid restrictions were in place for most of the year we ran 12 trips with 480 passengers on outings to places of interest.

Waltham Forest Community Transport Limited 6

Report of the Management Committee Year to 31 March 2022

Who used and benefited from our services (continued)

Waltham Forest Community Driving School

WFCT has been a local provider of MiDAS (minibus awareness training) for more than 10 years. The training register is managed nationally through CTA UK and is aimed at anyone driving a minibus. WFCT offers this service locally and has a register of more than 280 drivers. We have strengthened our training offer and the Community Driving School has increased the variety of training related to minibus travel and operations. Courses now include Standard and Accessible MiDAS, D1 Entitlement, Passenger Assistance Training and 5 Steps to Safety Training. The School was curtailed during lockdowns, reopening in September 2021. In 2021/22 we trained 149 individuals. The training schemes are monitored to ensure that WFCT continues to provide training to meet the needs of our members.

Monitoring

We use customer satisfaction surveys to measure the quality of our service and use opportunities such as special consultations to ensure that we continue to review our services to best meet our member organisations' needs.

Newham Community Transport

WFCT was awarded a Power to Change grant in 2018 towards a minibus for work in Newham and support for an Outreach worker for 18 months to develop small grass roots services in Newham. The Outreach worker started in 2019 and continues to develop services in Newham. Funding, including their Covid Emergency Income Support scheme, expired in March 2022.

Principal Funding Sources

Before COVID, in 2019/20, 76% of income from charitable activities came from committed services for our members. 23% from community groups' occasional hires and 1% from our Community Driving School. These proportions have changed as services have begun resuming after the pandemic. This year committed services represented 87% of income, with 12% from occasional hires and 1% from the school.

In 2018/19 Walthamstow & Chingford Almshouses kindly donated £11,360 for driver training. That training was suspended because of Covid but resumed this year. £5,769 is carried forward to future years.

Souter Trust granted £1,000 in 2020/21 to support our Excursions Club, which was spent in the year.

A £14,430 grant was received in the year from LB Newham, for Activities Assistance, which was provided in the year.

We wish to thank all those who gave grants and donations. Their support increases significantly the numbers of people benefiting from our services.

Waltham Forest Community Transport Limited 7

Report of the Management Committee Year to 31 March 2022

ULEZ Fleet replacement programme

Community Transport qualifies under the sunset period to 2023 for welfare vehicles. This year we replaced a further two vehicles with compliant vehicles. Most of our fleet now meets the Euro 6 standard. Three remaining vehicles need to be replaced by October 2023.

Covid-19

The year was still impacted by Covid-19. Under the HMRC Job Retention Scheme we received £12,144 towards the costs of furloughing staff at the start of the year.

Financial review

Financial Results

The statement of financial activities discloses a surplus in net incoming resources of £151,701 (2021: £162,001). Reserves at 31 March 2022 were: restricted funds - £5,769, unrestricted general funds - £613,241 and designated funds - £195,000.

Reserves Policy

WFCT maintains a cautious reserves policy, with the goal of being able to remain in business, providing community services to our members, even when experiencing a significant reduction in income.

Restricted funds arise from income granted to Community Transport that can be used only for the purposes specified in the grant. Our Treasurer regularly monitors the costs allocated against grants and reviews progress against the budget for each grant.

Designated Reserve funds are used to maintain adequate security for known risks. At 31 March 2022 these totalled £195,000 for: Core Costs (3 months' core staff, running and other costs); Redundancy (to enable WFCT to reduce services or wind up because of unexpected losses of funding, to ourselves or our member groups); Working Capital (to manage cash) and Future Community Services, to be delivered after year-end. Excluding designated funds, general unrestricted reserves total £613,241 at 31 March 2022.

Responsibilities of the members of the Management Committee

The members of the Management Committee (who are also trustees of Waltham Forest Community Transport for the purposes of charity law and directors for the purposes of company law) are responsible for preparing the Report of the Management Committee and the financial statements, in accordance with applicable law and United Kingdom Accounting Practice (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the members are required to:

Waltham Forest Community Transport Limited 8

Report of the Management Committee Year to 31 March 2022

Responsibilities of the members of the Management Committee (continued)

The Management Committee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with Companies Act 2006. The members are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Management Committee is aware:

The members are responsible for the maintenance and integrity of the corporate and financial information included on charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislations in other jurisdictions.

.......................................................... Date: 13.10.2022

Company Secretary

Waltham Forest Community Transport Limited 9

Independent auditor’s report 31 March 2022

Independent auditor’s report to the members of Waltham Forest Community Transport Limited

Opinion

We have audited the financial statements of Waltham Forest Community Transport Limited (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022, which comprise the group statement of financial activities, the group and charitable parent company balance sheets, the group statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Waltham Forest Community Transport Limited 10

Independent auditor’s report 31 March 2022

Other information

The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Waltham Forest Community Transport Limited

11

Independent auditor’s report 31 March 2022

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Waltham Forest Community Transport Limited 12

Independent auditor’s report 31 March 2022

Auditor’s responsibilities for the audit of the financial statements (continued)

We assessed the susceptibility of the group and charitable parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Waltham Forest Community Transport Limited 13

Independent auditor’s report 31 March 2022

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Waltham Forest Community Transport Limited

14

Consolidated statement of financial activities (including the Income and Expenditure Account) Year to 31 March 2022

Notes
Unrestricted
general
funds
£
Designated
funds
£		 Restricted
funds
£		 Total
funds
2022
£



Total
funds
2021
£
Income and expenditure
Income from:
Grants and donations
3
Investments
Charitable activities
4
Disposal of fixed assets
Total income
Expenditure on:
Charitable activities
Total expenditure
5
Net income
Transfers
12
Net movement in funds
13
Funds brought forward 1 April 2021
10
Funds carried forward at 31 March 2022		 29,797
28
1,236,799
—
—

—

—

—		 14,430
—
—
—
44,227

28
1,236,799
—		 309,529
388
756,165
11,177
1,266,624
—		 14,430 1,281,054 1,077,259
1,086,418
13,550		 29,385 1,129,353 915,258
1,086,418
13,550		 29,385 1,129,353 915,258
180,206
(16,950)
(13,550)
16,950		 (14,955)
—		 151,701
—		 162,001
—
163,256
3,400		 (14,955) 151,701 162,001
449,985
191,600		 20,724 662,309 500,308
613,241
195,000		 5,769 814,010 662,309

The statement of financial activities includes all gains and losses in the year, and therefore a separate statement of total recognised gains and losses has not been prepared.

All of the above amounts are related to continuing activities.

Waltham Forest Community Transport Limited 15

Consolidated balance sheet 31 March 2022

Notes 2022
£		 2022
£		 2021 2021
£
Fixed assets
Tangible assets
7
Current assets
Debtors and pre-payments
8
Cash at bank and in hand
Current liabilities
Creditors and accrued expenses
9
Net current assets
Total net assets
The funds of the charity:
Funds and reserves
Unrestricted
. General
. Designated
11
Restricted funds
10

243,857
370,125		 255,601
558,409		 128,204
325,829		 246,769
415,540
613,982

(55,573)		 454,033
(38,493)

814,010 662,309
613,241
195,000
5,769		 449,985
191,600
20,724
814,010 662,309

These financial statements were approved by the members of the Management Committee and signed on its behalf by:

.......................................................... Date: 13.10.2022

Company registration number: 03073284

The notes on pages 22 to 29 form part of these accounts.

Waltham Forest Community Transport Limited 16

Charity balance sheet 31 March 2022

Notes 2022
£		 2022
£		 2021
£		 2021
£
Fixed assets
Tangible assets
7
Current assets
Debtors and pre-payments
8
Loan to East CT CIC
15
Cash at bank and in hand
Current liabilities
Creditors and accrued expenses
9
Net current assets
Total net assets
The funds of the charity:
Funds and reserves
Unrestricted
. General
. Designated
10
Restricted funds
11

243,857

55,250
314,357		 255,601
557,891		 128,204
55,250
269,941		 246,769
415,656
613,464

(55,573)		 453,395
(37,739)

813,492 662,425
612,723
195,000
5,769		 450,101
191,600
20,724
813,492 662,425

These financial statements were approved by the members of the Management Committee and signed on its behalf by:

.......................................................... Date: 13.10.2022

Company registration number: 03073284

The notes on pages 22 to 29 form part of these accounts.

Waltham Forest Community Transport Limited 17

Consolidated statement of cash flows year to 31 March 2022

Notes
2022
£		 2021
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2021
B
Cash and cash equivalents at 31 March 2022
B

93,976		 170,984


27,500
**(77,180) **		 11,177
(124,265)
**(49,680) ** (113,088)

44,296


325,829
 57,896
267,933

370,125		 325,829

Notes to the statement of cash flows for the year to 31 March 2022.

A Reconciliation of net movement in funds to net cash provided by operating activities

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Loss (surplus) on disposal of tangible fixed assets
(Increase) decrease in debtors
Increase (decrease) in creditors
Net cashprovided by operating activities
151,701
39,598
1,250
(115,653)
17,080		 162,001
31,964
(11,177)
58,702
(70,506)
93,976 170,984

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2022
£		 2021
£
Cash at bank and in hand
Total cash and cash equivalents		 370,125 325,829
370,125 325,829

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

Waltham Forest Community Transport Limited 18

Principal accounting policies 31 March 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2022.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) second edition issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Basis of consolidation

The consolidated statement of financial activities and group balance sheet consolidate the financial statements of Waltham Forest Community Transport Limited and its subsidiaries, made up at the balance sheet date as Waltham Forest Community Transport Limited either owns the entire share capital of the subsidiary or assumes control of the entity.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the members of the management committee to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

As set out in these accounting policies under “going concern”, the trustees have considered the impact of the Covid pandemic on the charity and have concluded that although there may be some further negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

Assessment of going concern

The members of the management committee have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

Waltham Forest Community Transport Limited 19

Principal accounting policies 31 March 2022

Assessment of going concern (continued)

The members of the management committee of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above.

Fund accounting

Unrestricted general funds are available for use at the discretion of the members in furtherance of the general objectives of the charity.

Designated funds are unrestricted funds earmarked by the members for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Income recognition

All income is included in the statement of financial activities when the charitable company is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

Waltham Forest Community Transport Limited 20

Principal accounting policies 31 March 2022

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight line basis over the period of the lease.

Tangible fixed assets

Capital expenditure on items costing £500 or over is depreciated at rates designed to write off the costs over the estimated useful lives of the assets, calculated on the straight-line method, less any residual value. First-year depreciation on assets costing more than £5,000 is calculated pro rata in the year in which they were purchased. Improvements to premises will be written off, on the straight-line method, over the life of the lease during which the expenditure is incurred.

Depreciation is provided at the following annual rates on a straight-line basis in order to write off each asset over its estimated useful life:

 Office equipment 25% on cost  Vehicles 10-20% on cost

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Parent charity information

The parent charity, Waltham Forest Community Transport Limited, had total income of £1,281,054 (2021 - £1,076,993) and net income of £150,336 for the year ended 31 March 2022 (2021 - £161,850). The parent company has taken advantage of the exemption from preparing a separate income statement and statement of cash flows.

No separate statement of financial activities has been presented for Waltham Forest Community Transport Limited alone, as permitted by s408 of the Companies Act 2006 and paragraph 24.36 of SORP 2015.

Waltham Forest Community Transport Limited 21

Notes to the financial statements Year to 31 March 2022

1 Company limited by guarantee

Waltham Forest Community Transport Limited is a company limited by guarantee, and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amounts as may be required, not exceeding £5, to the assets of the charitable company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member.

2 Taxation

Waltham Forest Community Transport is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

3 Grants and donations

Unrestricted
funds
£		 Restricted
funds
£		 2022
£
Department for Transport, Bus Service Operators
HMRC (Job Retention)
DWP Business Grant
LB Newham (Activities Assistance)
Donations
2022 Total funds		 17,203
12,144
300
—
150		 —
—
—
14,430
—		 17,203
12,144
300
14,430
150
29,797 14,430 44,227
Unrestricted
funds
£		 Restricted
funds
£		 2021
£
Department for Transport, Bus Service Operators
Big Lottery (Social Enterprise Support Fund)
Souter
Power to Change (Business Development Support)
Power to Change (Emergency Income Support)
Power to Change (Recovery Fund)
HMRC (Job Retention)
Donations
2021 Total funds		 13,203
—
—
—
—
—
133,766
60		 —
48,500
1,000
8,000
30,000
75,000
—
—		 13,203
48,500
1,000
8,000
30,000
75,000
133,766
60
147,029 162,500 309,529

Grant providers have reservation of title to those assets acquired with their capital grants, in the event of the company ceasing to exist.

Waltham Forest Community Transport Limited 22

Notes to the financial statements Year to 31 March 2022

4 Income from charitable activities

Unrestricted
funds
£


Restricted
funds
£		 2022
£
Committed bookings fees and fares
Membership fees (net of VAT)
Community vehicle use
Training to third parties
2022 Total funds		 1,081,827
657
143,115
11,200		 —
—
—
—		 1,081,827
657
143,115
11,,200
1,236,799 — 1,236,799
Unrestricted
funds
£		 Restricted
funds
£		 2021
£
Committed bookings fees and fares
Membership fees (net of VAT)
Community vehicle use
Training to third parties
2021 Total funds		 723,055
100
29,605
3,405		 —
—
—
—		 723,055
100
29,605
3,405
756,165 — 756,165

5 Total resources expended

Charitable activities Charitable activities Charitable activities
Gover-
nance
£


Total
funds
2022
£

178,376

398,325

15,000

773

425

3,574

10,797

5,518

447,288

11,568

36,683

21,026

1,129,353
Committed
Bookings
£
Casual
Bookings
£
Driving
School
£
East CT
£
Costs directly allocated to
activities:
. Staff
. Vehicles
. Audit fee
. Statutory
. Medical
. Marketing
. Consultancy
. Driving School
Support cost allocated to
activities
. Staff
. Premises
. Office running costs
. Other support costs
Total funds		 134,010
348,598
—
—
372
2,253
5,948
—
391,449
5,748
32,104
18,322
17,729

46,118

—

—

49

298

787

—

51,787

760

4,247

2,508
1,387

3,609

—

—

4

23

62

5,518

4,052

60

332

196
25,250

—

—

—


1,000

4,000

—

—

5,000

—

—
—

—

15,000

773
—

—

—

—

—

—

—

—
938,804
124,283
15,243
35,250
15,773

Waltham Forest Community Transport Limited 23

Notes to the financial statements Year to 31 March 2022

5 Total resources expended (continued)

Charitable activities Charitable activities Charitable activities
Gover-
nance
£
Total
funds
2021
£
Committed
Bookings
£
Casual
Bookings
£
Driving
School
£
East CT
£
192,124
248,300
—
—
—
—
11,329
—
341,886
11,925
26,211
—
17,099
8,257

10,671

—

—

—

—

487

—

14,693

513

1,126

—

735
1,007

1,301

—

—

—

—

59

3,481

1,792

63

137

—

90
—

—

—

—

—

—

12,000

—

—

—

800

—

—
—

—

5,350

168

—

—

—

—

—

—

3,654

—

—
201,388

260,272

5,350

168

—

—

23,875

3,481

358,371

12,501

31,928

—

17,924
848,874
36,482
7,930
12,800
9,172
915,258

Costs are apportioned across charitable activities based on the proportion of income received for that activity during the year.

Comparative information for expenditure, by fund, is as follows:

Expenditure Unrestricted
funds
£		 Restricted
funds
£		 Designated
funds
£		 Total
funds
2021
£
Charitable activities
Total expenditure		 705,513 209,745 — 915,258
705,513 209,745 — 915,258

6 Staff costs and emoluments

Staff costs and emoluments
2022
£		 2021
£
Wages and salaries
Social security costs
Other staff costs		 574,502
41,131		 509,480
34,201
615,633
10,031		 543,681
16,077
625,664 559,758

No employee received emoluments of more than £60,000 in the year (2021: Nil).

Waltham Forest Community Transport Limited 24

Notes to the financial statements Year to 31 March 2022

2022
No.		 2021
No.
Average number of employees(FTE) 25 21
2022
No.
36		 2021
No.
35
Average number of employees(headcount basis)

The aggregate remuneration of key management personnel (Director and Fleet Supervisor) totalled £102,368 (2021 - £91,295).

Member remuneration and related party transactions: none (2021: none). No members received any remuneration during the year (2021: none). Expenses amounting to £nil (2021: £nil) were reimbursed to, or paid on behalf of, members of the Management Committee.

7 Tangible assets

Tangible assets
Group and charity Vehicles
£
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Disposals
Annual charge
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 404,805
77,180
(35,000)
446,985
158,036
(6,250)
39,598
191,384
255,601
246,769

8 Debtors

Debtors
Group Charity
2022
£		 2021
£		 2022
£		 2021
£
Trade debtors
Other debtors
Accrued Income
Prepayments
VAT recoverable		 148,394
44,251
27,054
24,158		 27,068
25,500
42,597
19,938
13,101		 148,394
44,251
27,054
24,158		 27,068
25,500
42,597
19,938
13,101
243,857 128,204 243,857 128,204

Waltham Forest Community Transport Limited 25

Notes to the financial statements Year to 31 March 2022

9 Creditors and accrued expenses, amount falling due within one year

Group Charity
2022
£		 2021
£		 2022
£		 2021
£
Trade creditors
Accruals
Other creditors
Social Security and other taxes
Pensions
Payroll creditor		 19,327
19,195
317
16,734
—
—		 17,015
5,000
659
10,307
5,197
315		 19,327
19,195
317
16,734
—
—		 17,015
4,905
—
10,307
5,197
315
55,573 38,493 55,573 37,739

10 Restricted funds

Restricted funds
As at
1 April
2021		 Income
£		 Expenditure
£		 As at
31 March
2022
£
Group and charity £
Walthamstow and Chingford Almshouses
Peoples Postcode Lottery
Community Links
LB Newham (Activities Assistance)
Souter		 8,649
8,155
2,920
—
1,000		 —
—
—
14,430
—		 (2,880)
(8,155)
(2,920)
(14,430)
(1,000)		 5,769
—
—
—
—
20,724 14,430 (29,385) 5,769
As at
1 April
2020		 Income
£		 Expenditure
£		 As at
31 March
2021
£
Group and charity £
Walthamstow and Chingford Almshouses
Peoples Postcode Lottery
Community Links
LB Waltham Forest
Power to Change (Business Development)
Power to Change (Emergency Income)
Power to Change (Recovery)
Souter
Big Lottery		 8,649
10,400
2,920
46,000
—
—
—
—
—		 —
—
—
—
8,000
30,000
75,000
1,000
48,500		 —
(2,245)
—
(46,000)
(8,000)
(30,000)
(75,000)
—
(48,500)		 8,649
8,155
2,920
—
—
—
—
1,000
—
67,969 162,500 (209,745) 20,724

Purposes of restricted income funds:

Waltham Forest Community Transport Limited 26

Notes to the financial statements Year to 31 March 2022

11 Designated funds

Designated funds
Group and charity As at
1 April
2021
£		 Transfers
£		 As at
31 March
2022
£
Core costs
Redundancy fund
Working Capital
Future Community Services		 60,000
25,000
60,000
46,600		 —
—
—
3,400		 60,000
25,000
60,000
50,000
191,600 3,400 195,000
Group and charity As at
1 April
2020
£		 Transfers
£		 As at
31 March
2021
£
Core costs
Redundancy fund
Working Capital
Future Community Services		 60,000
25,000
60,000
—		 —
—
—
46,600		 60,000
25,000
60,000
46,600
145,000 46,600 191,600

Purposes of designated funds:

12 Net assets between funds

Net assets between funds
Unrestricted
funds
£		 Designated
funds
£


Restricted
funds
£		 Total
2022
£
Fixed assets
Current assets
Current liabilities		 255,601
413,213
(55,573)		 —
195,000		 —
5,769		 255,601
613,982
(55,573)
613,241 195,000 5,769 814,010

Waltham Forest Community Transport Limited 27

Notes to the financial statements Year to 31 March 2022

12 Net assets between funds (continued)

Unrestricted
funds
£		 Designated
funds
£		 Restricted
funds
£		 Total
2021
£
Fixed assets
Current assets
Current liabilities		 246,769
241,709
(38,493)		 —
191,600
—		 —
20,724
—		 246,769
454,033
(38,493)
449,985 191,600 20,724 662,309

13 Net movement in funds

This is stated after charging:

2022
£		 2021
£
Depreciation
Auditor’s remuneration
Operating lease charges (Plant and machinery)
(Loss)surplus on disposal of vehicles		 39,598
15,000
119,732
(1,250)		 31,964
5,350
99,431
11,177

14 Operating lease commitments

At 31 March 2022, the total minimum lease payments under non-cancellable operating leases were:

Operatinglease commitments: 2022
£
78,846
40,110
118,956		 2021
£
94,635
118,956
213,591
Within one year
Between one to five years
Total

15 Related parties

East CT Community Interest Company ('East CT') is a wholly-owned subsidiary of WFCT, set up to undertake commercial trading. It has not yet traded. Helen Tredoux (WFCT Company Secretary) and Richard Mundy (WFCT Treasurer) are directors of East CT. WFCT has loaned £55,250 to East CT for start-up costs and working capital. The loan is repayable on demand. East CT has been set up to provide transport services in East London with an emphasis on accessible and affordable transport for the widest range of local individuals, groups and organisations. As such the granting of the loan is considered to be within the charitable objects of WFCT. Furthermore, the sole beneficiary of East CT CIC is WFCT.

Owing to the nature of the WFCT operations and the composition of the members of the Management Committee, being drawn from local organisations, it is inevitable that transactions will take place with organisations in which a member may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the charity’s financial regulations and normal procurement procedures.

Waltham Forest Community Transport Limited 28

Notes to the financial statements Year to 31 March 2022

16 Subsidiary company

At the year end, Waltham Forest Community Transport Limited controls the following subsidiary entity, which is consolidated in these financial statements:

Name

Status Registration number

East CT C.I.C. Company limited by Company 08615580 shares (England & Wales)

The assets and liabilities of the subsidiary were:

2022
£		 2021
£
Current assets
Creditors: amounts falling due within one year
Net assets		 55,769
(55,669)		 55,888
(55,788)
100 100

15 Comparative information

Notes Unrestricted
general
funds
£		 Designated
funds
£
Restricted
funds
£		 Total
funds
2021
£
Income and expenditure
Income from:
Grants and donations
3
Investments
Charitable activities
4
Disposal of fixed assets
Total income
Expenditure on:
Charitable activities
Total expenditure
5
Net income
Transfers
12
Net movement in funds
13
Funds brought forward 1 April 2020
10
Funds carried forward at 31 March 2021		 147,029
388
756,165
11,177		 —
—
—
—
162,500

—

—

—
309,529

388

756,165
11,177
914,759 —
162,500		 1,077,259
705,513 —
209,745		 915,258
705,513 —
209,745		 915,258
209,246
(46,600)		 —
46,600
(47,245)

—		 162,001
—
162,646 46,600
(47,245)		 162,001
287,339 145,000
67,969		 500,308
449,985 191,600
20,724		 662,309

Waltham Forest Community Transport Limited 29