Charity registratlan number 1050876 Company registration number 03085148 (England and Wales) WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees C Cordingley S Laing J Imlkinson M Evans J Smith Secrelary B Henderson S•nlor management S Field G Philliskirk D Wilson Central manager Central manager Central manager Charfty number 1050876 Company number 03085148 Regi8t8rad officg Off Folkwood Grove Ringinglow Road Sheffield S117TB Auditor Hart Shaw LLP Europa Link Sheffield Business Park Sheffield S9 IXU Banker8 HSBC Bank PIC Carmel House 49-63 Fargate Sheffi'eld S12HD WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED CONTENTS Page Trustees, report Independent auditols report 7-10 Statement of financial activities 11 Balance Sheet 12 Statement of cash flow8 13 Notes to the financial statements 14-23 WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their annual report and financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity'5 governing document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charilie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounling periods commencing from 1 January 2016) Objectives and actlvities The year 2023 was an exciting time for WORK Ltd. Following the challenges of the COVID pandemic, it Was a relief to move forward with long-anticipated plans and achieve new milestones. We secured a second location, allowing us to open up more spaces for students and expand on the range of life skills we offer to individuals across South Yorkshire. WORK Ltd has been established for 30 years. We support adults116+1 who have significant learning disabilities with engagement, learning, commercial crafts production and well-being activities. The Charity is operated by a board of local Trustees. It is run and managed by three Centre Man8gers. Our organisation w88 established to provid8 a creative educational environment for adults with learning difficulties that impact their intellectual capacity lo the point that 'regular' employment 18 a near impossibility. Over the years we have eslablished various 'workshops' with experienced staff supporting leamer5 on a variety of arts and crafts activities. Thesa 'WOTkshops' include cookery, jewellery manufacturing, painting, sep50nal card creations, stained-glass production, horticulture, dance, music & performance amongst others. The crafts that our learners produce 18 801d via our relail unit (attached lo our 'Hidden Gem Cafè'l and online via platforms such as 'Etsy'. Most of our leamers are referred to us through Sheffield City Coun￿1 Social Services and our focu5 is always on supporting each studenl feel 'purpose' through tailored educational training programmes, creativity and expert Sed pastoral care. While all our learners require constant support through either ourselves, their families or their carers our aim is, and has always been, to develop life Skills, confidence, social interactions and self-esteem. We support students with a variety of moderate to severe intellectual learning disabilities. All of our leamers have significantly impaired capacity lo develop new skills and face daily challenges around behaviours such as Social skills and hygiene routines which require continuous supervision. All learners have associated diagnosed leaming disabilities such as Downs Syndrome, Autism, Epilepsy, Specific Language Disorders, Hearing Impairment, and often present an overlapping of neurological challenges that compound their intellectual Capacity. ￿lIst an oversimplification of the intellectu81 disabilities our leamer8 face,16Q/o have Downs Syndrome, 69U/o Moderate Autlsm and 15Vo are al the more severe end of the Autistic spectrum. All of our students have significanuy reduced ability to understand new or complex information, develop new skills and cope independently. Our students face huge day-lo-day challenges. they require specific and consi5tenl routine in their daily activities,. from getting up, what they eat, Ir8nsport arrangements and obviously the activities we provide at WORK Ltd. The majority of our students cannot read or write., however, we are able to help them slowly leam new skills through guided education and repetition of workshop activities. Charltable purposes (Public Benefit) In setting plans and priorities for areas of work the Board of WORK Ltd has had regard to the guidance from the Charity Commission on the provision of Public Benefit, with particular allenlion paid to how planned activilies will contribute to meeting the objectives of WORK Ltd. The Trustees confirm that they have complied wilh the duty in section 4 of the 2011 Charity Act lo have due regard to guidance published by the Charity Commission regarding public benefit. Significant activities The vanous project5 that are carried out at WORK Lld by the students indude.. Main Workshop - Staffed by qualified TLrtors, support as515tants and volunteers and where all main assembly worf( is done induding woodwork, printing, textile5, arls and crafts. Glass Room - Where stained glass products and Jewellery are made by the Students. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Resourcelstudent Kltchen - This multifunctional area is staffed by qualified Tutors. Our fully equipped home from home kitchen 15 where oijr students learn basic lrfe skills from washing, healthy living to cooking. Our students leam the importance of a healthy diet and are taught how to cook and bake simple recipes. As well as the kitchen area the resource roorn is used as a clean space to creale bespoke textile5 and crafts. The Hldden Gem Café - At the heart of our charity is the award-winning Hidden Gern Café serving delicious food and operated by the support of our students. In Ihe café our students are taught lo serve tea and coffee, clear tables and interact with our many customers. Our students also WO￿ alongside our chefs learning basic food hygiene and food preparation. Trainin ndsu ort Pro ects WORK Ltd continues to provide intensive, person-centred training progr2mrnes. These include healthy eating, food preparation, c81ering, woodwork and horticulture. Creative crafts, such as knilling, sewing, art, training in music, draffla, dance, exercise, personal expression, literacy and reading skills, from important aspects of our devèlopment programmes. We have qualified teachers employed as our Tutors. The quality ol goods produced by our 8tudenls are exceptional and we only purchase a small amount of goods from outside suppliers which compliments what Is made on site by our students. Thls is not only more profrtable for u8 but helps to build the self-esteem of the student5. In addition, WORK Limited provides ongoing training and advocacy skills to enable students to idenlify what they would like to achieve and need to achieve, giving student's fuifilmenl in their learning and development. Staff provide support on a wide range of issues from Telalionships to beTeavement. Mechanisms are in place to Tefer to specialised professionals if required. Individual practical support is given lo carer51o en8ble them to have access lo relevant information, ser¥ice and advice. A¢hievemont8 and performance We have recently secured a 10-year lease for a v8cant commerclal premises on Hutcliffe Wood Road in Beauchief {S8). This is fantastic news foi our charity as space at our Bents Green Centre has become limited yet the demand for our services Gontinues lo grow each year. We've known for some time Ihal we needed addition81 space to accommodate the expansion of learner activities, retail space, and to increase awareness of the services WoTkLTD provide5 to local residents with leaming disabilities. The new premises will seNe multiple purposes.. Ground floor.. A retail outlet showcasing and selling crafts made by our learners. Second floor.. A new craft workshop dedicated to the production of jesrnonite items, wrapping paper, greeting cards, and clay designs. Third floor,. Office space for staff. Cellar (8ubject to funding).. A potentlal space for18ser cutting products and woodwork activities. ile our Bents Green location serves our leamers well, its seduded location limits our visibility and potential for expansion. The new slte on Hulcliffe Wood Road offers an exciting opportunity for increased visibility, providing prominent shopfront lo raise awareness of our charity and the incredible work our learners do WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Estimated Costs.. The total estimated Cost for repurposing this facility 15 approximately £40,000. Funding Overview, The Church Burgoss Trust awarded us £5.￿0, which 15 ringfenced for C8Pital works making the premises accessible for both learners and the community. By receiving this grant it has really helped us turn this vacant commercial space into somewhere that the local residents can be really proud of and senie as a focal point for their local area. The funds were used to partition the facilitie5 existing space to effectively create two distinct areas, one for the learners and one as a retsil unit showcasing the students art and craft products. Keyfund provided £24,999 and was made up of three projects Project 1 Purchase. This enabled us to get some of our digital media equipment for our podcast room Project 2 Refurb. The majority of the grant was for the refurbishment which included flooring, plastering, electric81 installationAviring. Project 3 Refit. We were able to refit the kitchen area purchasing new units aswell as refitting the office with new equipment We have also soughl funding for equipment and materials to run new projects for our learners. One major project is the Je8monite work8hop, which will give our leamers the chance to develop new skills in crafting versalile products like coasters, plates, candle holders, and ornaments. This craft is accessible lo all learners, regardless of disability, and provides an excellent opportunity for creative expression. The Sheffield Grarnmar School Exhlbltion Foundatlon generou51y granted us £7,000 to bring this project to life, and our learners are thoroughly enjoying the experien￿. Additionally, we have been focusing on enhancing our learners. woodworking skills. A £2,400 grant frorn The Church Burgess Educational Foundation was received to purchase a laser cutter lor creating high-quality wooden crafts. This initiative is further supported by a £15,000 grant from The Bailey Thomas Charltable Fund, which covers the core delivery costs of an advanced woodworking training progr8mme. We have ambitious plans for thi6 new facility and are excited to see it become a thriving hub for our learners and the local community. While 2023 brought a strong focus on our new site, we ensure that our ongoing projects at the Bents Green Centre were not overlooked. We were thrilled to re￿1ve a generous £500 donation from The Kaye Charilable Grant, specifically for the conlinuation of our twice-weekly dance classes Following the challenges of COVID-19, we saw first-hand the positive impact these dance dasses had on our students-not only in terms of physical fitness, but also in improving their balance. concenlrelion, and confidence. The contribution from The Kaye Gr8nt will help cover the costs of hiring the church hall as well 8S helping fund our dedicated d8nce teachers, ensuring these valuable sessions continue lo benefit our students. Financl41 revlew The results for the year ended 31 December 2023 shows a surplus of £68,730 after charging depreciation of £37,457. The total inwme for the year of £1,272,422 is a 28a/o increase on the previous ye8r. Donations and fund-raising activities were £196,529 (2022 - £56,224) and café and shop sales have increased to £552,883 (2022 £462,350). Support costs totalled £385,800 compared to £347,582 in the previous year. The forecast for the current year is again that there will continue to be sufficient income to meet all costs but without sufficient ability to invest in future developments. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Rese￿eS and Leasehold improvements The Trustees seek to keep a minimal level of unrestricted funds to ensure the charity remains a going concem and sufficient unrestricted funds to cover known commitments. They have assessed the risk lo the charity's ongoing income and the level of reserves required has been determined taking in to account the current economic climate and local and national government policies. The appropriate reserves level has been set at 4 months of the current rate of expenditure. Even at this level, the charity would face severe difficulties in seeking to replace any lost income over such a relatively short period. At this year end the unreslricled funds were £533,804 which equates lo 5 months of charitable expenditure. The Trustees consider this to be acceptable and have achieved their target of al least 4 months expenditure In reserves. The Asset Replacernenl Deslgnated Fund has been fonned as an essential mean8 of enabling the Trustees to replace core fixed assets when required. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place lo mitigate exposure to the major risks. Plan8 for the future The Trustees and Managers of WORK Ltd have put in place a nurnber of incentives lo enable successful achievement of the organisalions aims and objectives, over the next 3-5 years. These include.. Hldden G m C fe: Our short-term goal is to redecorate the café and redesign the layout to enh8nce the dining experience, while also creating a new area lo showcase our students, crafts and a deli section. The café is in need of a minor refurbishment, which we believe will excite our loyal customers and attract new visitors. Looking ahead, we've been granted planning perfflission to extend onto the playing fields within our boundaries. With this additional space, we plan to expand the outdoor courtyard, offering more seating, comfortable dining are8s, and improved coverage, making outdoor seating available year-round, regardless of the weather. Work8h an source: In the short term, we plan to recruit a new full-time staff member as 8 support worker to assist our tutors in the workshop and resource classroom. This will help maintain our student-lfrslaff ratios as we accommodate a steady influx of new students. Another immediate goal is lo introduce advanced woodworking to our existing curriculurn. This new program will build on basic woodworking 8ki115, enabling students to design, create, and market high-quality, bespoke products. Looking a Ilttle further ahaad and always keeping in mlnd how beneficial it is for us to have a steady influx of new students at the end of every school year. In addition to wanting lo begin hosting open evenings and fun days to build and secure relationships with the corresponding agencies involved, as well as the new students and their families we also want to create a video showcasing the day in the life at WORK Ltd which our students will produce with our multi media Tutor. This video will be shared across our Social media platforms, website, and wllh colleges, schools, and Sheffield City Council. We believe this will provide parents, studen15, and social workers with valuable insight into what we offer, showing student5 in action and staff addressing key questions. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Fundln Pro ects: We have secured planning pemission to connect our main facility to a council run car park to improve access to the facility for learners, their families and our customers. This approval means our lease has expanded to encompass and construct a pathway across greenbelt (council run park) approximately 30 metres in length through what is currently overgrowth. Planning permission has also been secured to expand our footprint approximately 6 metres onlo SCC owned parkland (Bents Green Playing Fields) to allow for the erection of Iwo 'log cabins, to act as additional learner workshop space. The third area we seek funding for is to purchase the two log cabins lo erect on the newly available land. These log cabin5 measure 6m x 3.2m each and will house two additional distinct learner workshop areas. Planning permission has been granled for these Iwo cabins to be housed on the new boundary perimeters. Our long-term goal is to demolish and rebuild our workshop, transforming the current single-storey facility Into a two-slorey building, a project we aim to start in 2026. The new space will include a fully equipped classroom, workshop, quieUsen50ry area, a designaled dining area for sludents and Staff, as well as offices. The demand for the charity's services from adults with learning dlsabilities throughout the city continues lo incTea5e. Consequently, it remains essential to seek additional extemal funding for key projects that will enable the Trustees to make necessary investments in Ihese new developments. This is crucial to ensure the charity can continue meeting the important needs of some of society's most vulnerable individuals. We are dedicating time lo applying for large, laTgeled grants, while also working hard to ralse donations through various channels, such as the "Become a Friend of WORK" monthly donation iniliative. pop-up shops, concerts, partnerships as companies, charity ofthe year, and promoting our JustGiving page through the Hidden Gem Café for one-off donation5. These efforts are aimed al securing much-needed funding. Structure, govèrnance and management Worthwhile Occupational and Recreational Krafts Ltd (WORKI is a charitable company limited by guarantee incorporated in England and W8le5. It is governed by 3 Memorandum and Articles of Association. The charity and company registration numbers and registered office are set out within 'Legal and Administrative Information" Members of the board, who are directors for the purpose of company law and trustee5 for the purpose of Ihe charity law, who 8eNed during the year and up to the date of this report are sel out on page 1. In this report the board members are referred to as trustees although they have a dual role as directors. None of the trustees has a benefic181 interest in the company. All of the Iruslees are members of the company and guarantee to contribute £1 in the evenl of a winding up. Trustees are recruited based on their skills and as far as possible matched to the 5kllls required by Ihe Board. The diarity seeks new trustees fram time to lime through known contacts. If a person makes it known they are interested in becoming a trustee, they are invited to allend an inleNiew with one or more of the trustees. The appointment is then considered by the full board. New trustee5 receive induction training about the aims, objedives and activitie5 of the charity and rnade aware of their responsibilities a5 Iruslees. The senior m8n8gement leam in charge of the day to day management ofthe company are D Wlson, G Philliskirk and SJ Field. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Statement of trustees, responsibllities The trustee5, who are also the directors of Worthwhile Occupational & Recreational Krafts Limited for the Purpose of cornpany law, are responsible for preparing the Trustees, Report and the financial statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees lo prepare financial statements for each financial year which give a true and fair view of the State of affairs of the charity and of Ihe incoming reSoUr￿S and application of resources, including the income and expenditure, of the charitable company for Ihal year. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject to any malerial departures disdosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless il is inappropriate to pre8ume that the charity will continue in operation. The trustees are responsible for keeping adequale accounting records that disclose with reasonable accuracy at any lime the finanrial position of the charity and enable them to ensure that the financial staternents comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and Integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from leglslalion in other jurisdiGtion8. Auditor In accordance with the company'5 articles, a resolution proposing that Hart Shaw LLP be reappointed as auditor of the company will be put at a Genergl Meeting. This report has been prepared in accordance with the provisions applicable lo companies subject to the small companies, regime ofthe CompaniesAct 2006. The trustees, report was approved by the Board of Trustees. M Evan8 Trustee Dated.. 27 September 2024 WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED Quallfied opinlon We have audited the financial statements of Worihwhile Occupational & Recreational Krafts Limlted (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheel, the statement of cash flows and notes lo the financial slatemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Slandards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Irel8nd (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements.. give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its for the year then ended., have been properly prepared in accordance wilh United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for quallfled oplnion We were appointed as auditors following the year ended 31 December 2023 when the company needed an audlt for the first time. The opening balance sheet had not been audited and we were unable to carry out procedures to audit the opening balance sheet and therefore we are unable to determine whether any adjustments to the statement of income and retained earnings might have been necessary in the currenl period. We were also unable to ascertain whether accounting policies were consistently applied with the prior year. In 8ddition were any adjustment to the 81atemenl of income and retained earnings lo be required the strategic report would also need to be amended. We conducted our audit in accordan￿ with International Standards on Auditing (UK) {ISAs IUK)> and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of Ihe financial statements section of our report. We 8re independent of the charity in accard8nce with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Elhical 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 lo provide a basis for our qualified opinion. Conclu•lons relating to golng concern In auditing the financial statements, we have conduded that the trustees, use of the going concern basis of accounting in the preparation of the financial slaternents is appropT¢ate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions thal, individually or collectively, may casl Significant doubt on the charity's ability to continue as a going con￿rn for a period of 8t 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. Other Inforniation The other information comprises the information included in the annual report other than the financi81 statements and our auditor's ￿port thereon. The trustees are responsible for the other information contained within Ihe annual report. Our opinion on the financial statements does not cover the other informalion and we do not express any form of assuran￿ conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially incon5iStent with the financial statement5 or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we idenlify such material inconsistencies or apparenl material misstatements, we are required to determine whether this gives rise to a Tnaterial misstatement in the financial statements themselves. If. based on the work we have performed, we conclLJde that Ihere is a material misstatement of this other information, we are required to report that fact. We have nothing to report in thi5 regard. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED Matters on which TA￿ are required to report by exception In respect solely of the limitation on our work Telaling to opening balances described above-. we have not obtained all the information and explanations that we considered necessary for the purpose of our audit., and we were unable to determine whelher adequate accounting records had been maintained. We have nothing to report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require u5 to report lo you if, in our oplnion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report,. or the financial statements are not in agreement with the accounting records. the trustees were not entitled ta prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a slr8tegic report. Re8ponsibllltle8 of tru8te•• As explained more fully in the statement of Irustees, Tesponsibililies, the trustees, who are also the directors of Ihe charity for the purpose of company law, are responsible for the preparation of thè finanrial slatements 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 rnis518tement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the chaTily's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Irustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. Auditorfs responsibilitie8 for the audit of the flnanclal 8tatement8 We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effed thereunder. Our oblectives are lo obtain reasonable assurance about whether the financlal statements as a whole are free from material misstelemenl, whether due to fraud or error, and lo issue an auditols report that includes our opinion. Reasonable assurance is 8 high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a mglerial misstalement 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 decision5 Of users taken on the basis of these financi81 statement5. Extent to which the audlt was considered capable of detecting Irregularitiej, Including fraud and the audit re8pon8e 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 lo which our procedures are capable of detecting irregularities, including fraud is detailed below.. We have assessed the overall susceptibilrty of the financial statements to material misstatement due to irregularities as low. Our approach at the planning stage which conlributed to designing procedure6 included.. identifying laws and regu18tions at the planning stage that were significant lo the entity and that could reasonably be expected to have a material effect on the financial statements from our general knowledge along with our client and sector specific experience enquire5 of management as to whether Ihey had any knowledge of any actual or suspected fraud considering the controls in place to mitigate the risk of irregularities, including fraud. communicating identified laws and regulations to the audit team ensuring the audit team had recent, relevant experien￿ and were aware of the significant laws and regulations relating to the entity and it's sector along with the competence WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED The significant laws and regulations directly affecting the financial ststements where the consequences of non- compliance could have a material effect on amounts or disdosures in the financial statements included.. The Charities Act and related regulations, The Statement of Recommended Practice (SORPI, The Companies Act 2008 as well as other operational laws and regulalions. We assessed the over811 susceptibility of the financial statements to material misstatement due to fraud, 88 low. In response to the risks our approach included bul was not limited to.. reviewing financial statement disclosures and agreelng to 8UPPOrting documentation to assess compliance with applicable laws and regulations. performing analytical procedures lo Identify any unusual or unexpected relationships. reviewing minutes of meelings of those charged with governance. reviewing legal and professional costs for any indication of non-compllance with laws and regulations. increased revenue substantive testing across 811 material income streams. Management override rnay cause there lo be a material misstatement wllhin the financial statements and may present itself in a number of ways, for example.. override of internal controls le.g. segregation of duties) entering into transactions outside the normal course of the charity, especially with related p8rties fraudulent income recognition, including income being recorded in the wrong period and fund presenting bias in accounting judgements and estimates. In relation to how the risk of management override of controls was addressed, our approach included but was not limited to.. assessing whether judgemenls and assumptions made in determining the aGcounling estimates were indicative of potential bias investigating ralionale of Significant or unusual transactions and agreeing to under5ying records reviewing related partie8 and transactions wrth them to ensure these were not outside the normal course of business enquiring with managemenl as to whether they had any knowledge of 8ny actual or suspected fraud reviewing of all material journal entries made throughout the year as well as those made to prepare the financial statements Owing io the inherent limitations of an audlt, Ihere is an unavoidable rlsk that we may not have detected material mlsslatements in the financial statement5. even though we have performed our audit in accordance with auditing slandards. Furtherrrore, as with all audits, Ihere 18 a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expecled to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be Gon5idered to be material to the financial statements. The further rernoved non-compliance with laws and regulations is from the even15 and transactions reflected in the financial statements, the less Sikely we would become aware of it. A further de5CriPtion of our responsibilities is available on the Financial Reporting Council's website at.. https.'11 www.frG.org.uklauditorsresponsibilities. This description fomis part of our auditorfs report. This report is made solely to the company's members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might slate to the company's members those matters we are required to slate lo them in an auditor's report and for no other PUTpose. To the fullest extent permilled by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for Ihis report, or for the opinions we have formed. WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED Natalie Bracey {Senlor Statutory Audltor for and on behalf of Hart Shaw LLP Chartered Accountants ststutory Audltor Europa Link Sh8ffield Busines5 Park Sheffield S9 1XU 10- WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlctsd Restricted funds fund8 2023 2023 Total Unre5trlcted Restrlcted funds funds 2022 2022 Total 2023 2022 Nots¥ Income and endowments from: Donations and legacies Charitable activities Investments other income 139,432 1,072,661 2,602 630 57,097 196,529 1,072,661 2,602 630 56,224 936,475 324 731 56,224 936,475 324 731 Total incomè 1,215,325 57,097 1,272,422 993,754 993.754 Charitable activitie6 1,183,762 19,930 1,203,692 1,022,396 1,022,396 Net incomel(exp•ndlture) 31,563 37,187 68,730 (28,642> 128,642) Transfers be￿een funds 48 148) Net movemant in funds 31,563 37,167 68,730 128,594) 148) (28,642) Reconciliatian of fundg.. Fund balances at 1 January 2023 497,580 497,580 526,174 48 526,222 Fund balance• at 31 D•¢ember 2023 529,143 37,187 566,310 497,580 497,580 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 11 WORTHWHILE OCCUPATIONAL & RECREATIONAL KRAFTS LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed a980ts Tangible assets Current assets Stocks Debtors Cash at bank and in hand 12 309,106 265,153 13 14 23,328 51,672 269,306 2,515 39,839 247,366 344,306 289,720 Creditorn: amounts falllng due wlthin one year 15 (87,102) (57,293) Net current assets 257,204 232,427 Total 488•t• l•s• current liabilitie8 586,310 497,580 Income fund8 Restricted funds Unrestricted funds Designated funds General unreslricled fund8 16 37,167 17 200,000 329,143 200,000 297,580 529,143 497,580 566,310 497,580 The company is entitled to the exemption from the audit requirement contained In Section 477 of the Companies Act 2006, for the year ended 31 December 2023, although an audit has been carrled out under section 144 of the CharitiesAct 2011. The director5 acknowledge their responsibilrties for complying with the requirements of the Companies Act 2006 with respect lo accounting records and Ihe preparation of financial statements. The mernbers have not required the company to obtain an audit of ils financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial 51atements were approved by the Trustees on 27 September 2024 ZL22>