Charity registration number 1052262 (England and Wales) Company registration number 02959482 COMMUNITY SUSTAINABILITY SERVICES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
COMMUNITY SUSTAINABILITY SERVICES LEGAL AND ADMINISTRATIVE INFORMATION Trustees Charity number (England and Wales) Company number Registered office Auditor Bankers Mrs P Blyth Mr D Cleghorn Mrs G Lawson 1052262 02959482 Unit 13c. Southwick Ind. Estate North Hylton Road Southwick Sunderland Tyne & Wear SR5 3TX Robson Laidler Accountants Limited Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear England NE2 1TJ Lloyds Bank PLC 54 Fawcett Street Sunderland Tyne & Wear SR1 1ST
COMMUNITY SUSTAINABILITY SERVICES CONTENTS Trustees' report Page 1 - 6 Independent auditor's report 7-9 Statement of financial activities 10 - 11 Balance sheet 12 Notes to the financial statements 14 - 24
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees who are also directors of the charty for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the vear ended 31 March 2025 *Aei accounts in accordance with the Finanda Repoing standard applicate in the Uk and Repubis of reland (FRS 102)" (effective 1 January 2019). Objectives and activities The principal activity of the Charity for the year 1st April 2024 to 31st March 2025 was that of providing services for vulnerable and disadvantaged people in the North East of England. The Chanty's main objectives are: To relieve poverty in particular by supplying and renovating furniture and household goods to those in need in the North East of England The relief of elderly or disabled people by participating in any charitable scheme or service intended to benefit such people in need. To protect and safeguard the environment for the public benefit particularly through the promotion of reuse and recycling as a means of waste disposal and the provision of recycling activities. We have worked towards our objectives by: Collecting, renovating and distributing furniture and household goods to those in need Providing training and volunteering opportunities, in particular for the long term unemployed and people with Learning Disabilities and Mental Health problems. Providing garden and handyperson services for elderly or disabled people to help them to live comfortably. securely and safely in their own homes in the community. How the Charity's activities deliver public benefit The Charity's activities aim to help the most vulnerable people within our community. We act to alleviate poverty. maintain people's independence within their own homes and offer support to those in long term unemployment, people with Learning Disabilities and people with Mental Health problems. All of our activities are provided whilst ensuring that the service users have a sense of dignity, and we are always aware of their emotional wellbeing. The Charity measures its success based on the number of service users helped, the feedback forms and reports received back from service users and targets being hit, and in some cases exceeded, within the relevant services. The Charity is a public benefit entity. The trustees have had regard to the Charity Commission's guidance on public benefit. The main activities and who the Charity helps are described below. - 1 -
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance Furniture Stores The Charity operates out of two premises across the city, each making a valuable contribution to the Charity's overall purpose and values. The first is based in Southwick on the North side of the River Wear and the second is in Thorney Close, on the South side of the River Wear. The furniture stores exist to make affordable, quality furniture available to those most in need in our community. The Charity collects donated furniture and passes it on to service users, for a small charge, ensuring that the furniture is of good quality and is re-usable. Volunteers help within the furniture stores by offering their free time to assist with serving customers and administration work. CSS and its board of trustees are very grateful for the amount of time which is donated to the charity throughout the year. CSS has been trying to increase its awareness to those in most need within our community, to let people know that we are here and can help them. A website has been created and this will hopefully attract more people to the services that we have to offer. This includes awareness for SCS Contracts Ltd, the trading subsidiary of CSS. Any surplus funds from SCFS Contracts are passed to the charity to help with its running costs. During the reporting period the board made the hard decision to close the furniture store and the activities that are based at Thorney Close. The site had succumbed to a lot of vandalism during the previous 2 years, and mounting costs to repair the buildings and gardens were too much for the charity to sustain. A business case regarding the logistics of Thorney Close was prepared, and the vandalism suffered by the charity added to the decision to close the branch. Furniture Restoration Workshop The workshop, based in Thorney Close, provided training and volunteering opportunities and supported placements for the long term unemployed, people with disabilities and people with mental health problems, Within the furniture restoration workshop service users and volunteers could learn how to restore furniture and can acquire basic craft skills. The workshop provides therapeutic learing; it allows the service users to obtain new skills through stress free training whilst they work. Due to the closure of the Thorney Close site, the workshop has been relocated to a new unit on Southwick Industrial Estate, and forms part of the Northern Inspired Furniture Project - 2-
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Handyperson and Minor Alterations Service After providing a Handyperson and Minor Alterations (HPMA) Service on behalf of Sunderland Care and Support during the five-year period between 2008 and 2013, a tender application was submitted and the decision was made to award the new contract to the Charity in 2013. The contract awarded was initially for three years running from July 2013 to June 2016. The contract was subsequently extended, and the contract ended in September 2021. A new contract was published in 2021 and CSS applied via the council's rigorous procurement service We were very proud to be awarded the new contract, and the start date was October 2021. This is a five-year contract which will help provide some stability and sustainability to the charity, meaning CSS can build for the future. The HPMA service provides handyperson, gardening and minor alteration works on the homes of service users who are elderly or vulnerable within the city. The works we complete within this service enable customers to remain in their own homes and consequently maintain their independence. The service is accessed via referral only. The HPMA contract has targets set at the start of each contractual period, CSS is proud to state that all targets set are met and exceeded Northern Inspired Furniture (NIF) After the closure of the Thorney Close site, it was decided to take on the lease of Unit 13A Southwick Industrial Estate, and to relocate the workshop from Thorney Close to Unit 13A, and to move in Northern Inspired Furniture to separate the project from the sale of essential items of furniture. NIF concentrates on the sale of the non-essential items of furniture and decorative items. The charity tries to keep down the price of essential items of furniture for customers (3-piece suites, beds, wardrobes etc, and non-essential items can be offered for sale at a higher price, meaning that the proceeds from these items is used to keep the price of essential Items lower. It is anticipated that volunteers and trainees can work within this department and pick up practical skills in the workshop, as well as life skills in the working environment. The board will monitor this project over the next financial year. Governance and Internal Control The Directors have overall responsibility for the direction, management and control of the Charity and meet generally every 2 to 3 months, while responsibility for the day to day operational and financial aspects of the Charity is delegated to the Chief Executive Officer. Related Parties le Charity operates a wholly owned subsidiary Company, SGFS Contracts Ltd, which carries out gardenin andyperson, decorating and metal fabrication work but on a non-subsidised basis. During the coming year it anticipated that the Company will expand further by offering new and additional services to businesses as well as continuing to offer a much-valued service to domestic customers. Any profit accruing to the Company is pledged to the Charity. Financial review After a couple of challenging years with reported losses, the charity this year is pleased to report a small surplus in the year. Reserves policy The Company has continued with its policy of maintaining reserves at a level approximating no more than six months unrestricted expenditure of the service. The free reserves held at the end of the reporting period are £63,760, The excess reserves held at the end of the inancial year are planned to be invested in replacement of our aging fleet of vans which will improve the services This is in-line with the Charity's reserves policy and designated funds supplement for the financial year. - 3-
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Risks The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. The Directors are responsible for assessing the major risks to which the Company is exposed, and for establishing systems to mitigate those risks. They have considered risks which could have a negative effect on the Company's ability to pursue its aims, both in terms of the kelihood of their occurring and the probable impact of such events. Risks identitied include legal compliance, insurance, financial loss, continuity of personnel, accidents, property, IT and general governance. The Directors continue to review and monitor these risks, and the adequacy of the systems in place to reduce them. Financial Statements Company Law requires the Directors to prepare financial statements for each financial year, which gives a fair view of the statement of affairs of the Company and of the surplus for that year. In preparing those financial statements the Directors are required to; • select suitable accounting policies and then apply them consistently • make judgements and estimates that are reasonable and prudent • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Acts 1985 to 2006. Plans for the Future The charity will continue to provide the Handyperson and Minor Alterations service on behalf of Sunderland Care and Support for the new contracted period. CSS will continue to work with Gentoo offering single beds to the children of their tenants as part of the child bed poverty reduction initiative. Other landlords and housing associations will be contacted to see if this is something we can work alongside them with. The Charity will continue to seek funding for the core business to enable it to carry out the much-needed work that it does. The Charity will look at employing a Business Development Officer, who will concentrate on sourcing funding for the core business and new vehicles. It is envisaged that they will improve the marketing of CSS and increase it's awareness. This year we sadly said farewell to our Chief Executive, Tony Lawson. Tony has been with the Charity for more than 30 years and has successfully steered us through the bad times and the good, and the Trustees wish him a long and happy retirement. We have however been fortunate to recruit Joanne Thompson to take the work of the Charity forward - 4 -
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Structure, governance and management The charity is controlled by its governing document, a deed of trust, and constitutes a limited company. limited by guarantee, as defined by the Companies Act 2006 The Charity is a company Limited by Guarantee and was incorporated on the 17 August 1994. The Charity is registered as a charity under the Charities Act 1960 and was registered on 25 January 1996. The Charity is governed by its Memorandum and Articles of Association. The Board of Trustees, whose members are Directors for the purpose of the Companies Act 2006, has overall responsibility for the direction, management and control of the Company and meets typically every 2 to 3 months. The responsibility for the day to day operational and financial aspects of the Company has been delegated to the Chief Executive Officer. The Trustees aim is to ensure that they apply best practice and that they comply with the Charity Commission's guidelines, The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mrs P Blyth Mr D Cleghorn Mrs G Lawson Application to become a Trustee is by means of personal invitation from the existing Trustees who take into account the relevant skills and experience of those invited. New Trustees are invited to attend an induction for half a day at the charity in order to familiarise themselves with all aspects of the charity. The induction covers the following: - The obligations of the Trustees - The Memorandum and Articles of Association - The history of the charity - The services that the charity offers - The trading subsidiary company - The current financial position of the company - Future plans Community Sustainability Services (formerly known as Sunderland Community Furniture Service) has a Board consisting of at least three Trustees. The Directors have overall responsibility for the direction, management and control of the Charity and meet every 2 to 3 months while responsibility for the day to day operational and financial aspects of the Charity is delegated to the Chief Executive Officer. The Charity also operates a wholly owned subsidiary Company, SCFS Contracts Ltd. which carries out gardening, handyperson, decorating and metal fabrication work but on a non-subsidised basis. During the coming year it is anticipated that the Company will expand further by offering new and additional services to businesses as well as continuing to offer a much-valued service to domestic customers. Any profit accruina to the Company is pledged to the Charity. - 5-
COMMUNITY SUSTAINABILITY SERVICES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Statement of trustees' responsibilities The trustees, who are also the directors of Community Sustainability Services for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that 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; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor The auditors, Robson Laidler, have indicated that they are willing to be re-appointed at the forthcoming Annual General Meeting. Disclosure of information to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees' report was approved by the Board of Trustees. Mrs P Blyth Trustee Dated: M.12 22 - 6-
COMMUNITY SUSTAINABILITY SERVICES INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF COMMUNITY SUSTAINABILITY SERVICES Opinion We have audited the financial statements of Community Sustainability Services (the 'charity') for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. 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: give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. 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 charity 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 charity'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. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit: the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements. - 7-
COMMUNITY SUSTAINABILITY SERVICES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY SUSTAINABILITY SERVICES Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within 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: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit, or the trustees were not entitled to 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 strategic report. Responsibilities of trustees As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity's ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable 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. The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence of non-compliance. The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management. A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 8-
COMMUNITY SUSTAINABILITY SERVICES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY SUSTAINABILITY SERVICES 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 anone 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. mman Michael T Moran BA FCA (Senior Statutory Auditor) for and on behalf of Robson Laidler Accountants Limited 17 December 2025 Statutory Auditor Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear England NE2 1TJ - 0.
COMMUNITY SUSTAINABILITY SERVICES STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Current financial year Unrestricted funds 2025 € 81,964 35,428 2,251 119,643 Restricted funds 2025 Total 2025 Notes 3 Income from: Donations and legacies harang cites. Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) Transfers between funds Net movement in funds Reconciliation of funds: Fund balances at 1 April 2024 Fund balances at 31 March 2025 10,000 454,504 : 464,504 91,964 454,504 35,428 2,251 584,147 Total 2021 78,294 446,867 33,551 1,946 560,658 7 8 10 85,342 19,311 104,653 14,990 5,180 20,170 467,560 467,560 (3,056) (5,180) (8,236) 85,342 486,871 572,213 11,934 100,054 412,779 512,833 47,825 11,934 47,825 48,648 68,818 37,877 29,641 86,525 98,459 38,700 86,525 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing operations The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 10 -
COMMUNITY SUSTAINABILITY SERVICES STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Prior financial year Unrestricted funds 2024 Notes Income from: Donations and legacies Charitable activities Other trading activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income and movement in funds Reconciliation of funds: Fund balances at 1 April 2023 Fund balances at 31 March 2024 5 6 78,294 33,.551 1,946 113,791 7 8 100,054 3,789 103,843 9,948 38,700 48,648 - 11- Restricted funds 2024 446,867 446,867 408,990 408,990 37,877 - 37,877 Total 2024 78,294 446,867 33,551 1,946 560,658 100,054 412,779 512,833 47,825 38,700 86,525
COMMUNITY SUSTAINABILITY SERVICES BALANCE SHEET AS AT 31 MARCH 2025 2025 E 2024 Fixed assets Tangible assets Investments Notes 14 15 € 4.998 60 5,058 E 80 60 140 Current assets Stocks Debtors Cash at bank and in hand 16 17 Creditors: amounts falling due within one year Net current assets Total assets less current liabilities 19 4,502 148,632 109,757 262,891 (169,490) 4,604 129,306 147,631 281,541 (195.156) 93,401 98,459 86,385 86,525 Income funds Restricted funds Unrestricted funds - general 21 29,641 68,818 37,877 48,648 98,459 86,525 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 11(124 202> PV Beget Mrs P Blyth Trustee Company Registration No. 02959482 - 12-
COMMUNITY SUSTAINABILITY SERVICES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 Notes 2025 E 2024 Cash flows from operating activities Cash absorbed by operations Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Investment income received Net cash (used in)/generated from investing activities Net cash generated from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (34,364) (29,343) (5,810) 49 2,251 1.946 (3,510) 1,946 (37,874) 147,631 109.757 (27,397) 175,028 147,631 - 13-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1 1.1 1.2 1.3 1.4 Accounting policies Charity information Community Sustainability Services is a private company limited by guarantee incorporated in England anc Nales. The registered office is Unit 13c, Southwick Ind. Estate, North Hylton Road, Southwick, Sunderland Tyne & Wear, SR5 3TX. Accounting convention The financial statements have been prepared in accordance with the charity's governing document, the companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic o reland" (FRS 102) and the Charities SORP "Accounting and Reporting by Charities: Statement o 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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest E. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Charitable funds objectives. Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Donated services and facilities are included at the value to the charity, being the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market. - 14 -
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 1 Accounting policies 1.5 1.6 1.7 1.8 (Continued) Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance Income from charitable trading activity is accounting for when earned. Investment income is included when receivable. Expenditure Expenditure is recognised on an accruals 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: • Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes. • Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries, It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support then. • 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 between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, as set out in the notes to the accounts. Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold improvements Fixtures and fittings Equipment Motor vehicles 10% straight line basis 15% straight line basis 33% straight line basis 20% straight line basis The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indicatior exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairmen loss (if any). - 15 -
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 1 Accounting policies (Continued) Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.10 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.11 Financial instruments The charity has elected to apply the provisions of Section 11 Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 1.12 Taxation The charity is exempt from corporation tax on its charitable activities. 1.13 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received Termination benefits are recognised immediately as an expense when the chanty is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 2 Critical accounting estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting seria, or are te perid of in the period in hit he estimate is revered one retirin are not are periods. - 16-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 3 Income from donations and legacies Unrestricted Restricted funds 2025 funds 2025 Donations and gifts Grants Donations and gifts Cash donations Management charges Other 81,964 81,964 1,366 84,100 (3,502) 81,964 10,000 10,000 Total Unrestricted Restricted funds funds 2025 € 2024 E 2024 81,964 10,000 91,964 1,366 84,100 (3,502) 81,964 78,294 78,294 1,094 75,700 1,500 78,294 Total 2024 E 78,294 78,294 1,094 75,700 1,500 78,294 Grants Technology Services Group Limited 10,000 10,000 10,000 10,000 4 Income from charitable activities Prova pon of sonicas to the disaranged and vinto Restricted funds 2025 € 454,504 Restricted funds 2024 E 446,867 5 Income from other trading activities Furniture sales Unrestricted Unrestricted funds funds 2025 2024 35,428 33,551 - 17 -
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Income from investments Unrestricted Unrestricted funds funds 2024 Interest receivable 2,251 1,946 Expenditure on raising funds Unrestricted Unrestricted funds 2025 funds 2024 Other trading activities Other trading activities Staff costs Depreciation and impalment 34,133 50,366 843 85,342 40,646 59,290 118 100,054 - 18-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 8 Expenditure on charitable activities Direct costs Staff costs Motor expenses Accountancy Audit fees Direct costs Provision of Provision of services to the services to the disadvanged and vulnerable and vulnerable E 23,957 1,060 4,266 122,372 260,354 Share of support and governance costs (see note 9) Support Governance Analysis by fund Unrestricted funds Restricted funds 226,305 25,597 770 4,480 101.625 358,777 127.311 783 486,871 19,311 487,560 486,871 152,412 13 412,779 3,789 408,990 412,779 9 Support costs allocated to activities 2025 2024 Staff costs Rent, rates and water Insurance Light and heat Telephone Printing, postage and stationary Sundry expenses Bad debt Repairs and maintenance Training and travel Bank charges Governance costs 59.101 35,553 7,385 10,974 5,982 569 3,741 394 3,126 285 201 783 128,094 Analysed between: Provision of services to the disadvanged and vulnerable 128,094 98,824 14,631 10,736 12,595 4,827 1,894 4.291 177 3,637 659 141 -13 152,425 152,425 - 19-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 9 Support costs allocated to activities Governance costs comprise: Legal and professional 10 Net movement in funds The net movement in funds is stated after charging/(crediting): Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets 2025 783 783 2025 € 4,480 843 (Continued) 2024 13 13 2024 € 4,266 118 11 Trustees None of the trustees (or any persons connected with them received any remuneration or benefits from the charity during the year. 12 Employees The average monthly number of employees during the year was: Managerial Administration Other staff Total Employment costs Wages and salaries Social security costs Other pension costs 2025 Number 2 3 5 10 2025 305.132 24,999 5,641 335,772 2024 Number 2 3 5 10 2024 244,654 17,760 4,399 266,813 Key management personnel received remuneration of £56,008 (2024: E40,614). There were no employees whose annual remuneration was more than £60,000. - 20-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Taxation The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 14 Tangible fixed assets Leasehold improvements Fixtures ans E Equipment Cost At 1 April 2024 Additions Disposals At 31 March 2025 Depreciation and impairment At 1 April 2024 Depreciation charged in the year Eliminated in respect of disposals At 31 March 2025 Carrying amount At 31 March 2025 At 31 March 2024 15 Fixed asset investments 27,445 (27,445) 27,440 (27,440) 20,565 (4,512) 16,053 20,524 (4.495) 16.029 24 41 E 18,181 5,810 (18,181) 5,810 18,154 843 (18,154) 843 4,967 27 Motor chiclos E 55,106 55,106 55,099 55,099 7 Total E 121,297 5,810 (50,138) 76,969 121,217 843 (50,089) 71,971 4,998 80 Cost or valuation At 1 April 2024 & 31 March 2025 Carrying amount At 31 March 2025 At 31 March 2024 16 Stocks Finished goods and goods for resale 2025 € 4,502 Unlisted investments 60 60 60 2024 € 4,604 - 21-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 17 Debtors Amounts falling due within one year: Trade debtors Amounts owed by fellow group undertakings Prepayments and accrued income 2025 € 133,766 4,693 10,173 148,632 2024 E 116,875 12,431 129,306 18 Subsidiaries Details of the charity's subsidiaries at 31 March 2025 are as follows: Name of undertaking SCFS (Contracts) Limited Registered office England and Nature of business Class of shares held General building work, maintenance and recycling Ordinary The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows: Name of undertaking Profit/(Loss) Capital and Reserves 24.686 % Held Direct 100.00 19 SCFS (Contracts) Limited (70) Creditors: amounts falling due within one year 20 Other taxation and social security Trade creditors Amounts owed to fellow group undertakings Other creditors Accruals and deferred income 2025 € 32,912 17.010 8,939 110.629 169.490 Retirement benefit schemes Defined contribution schemes 2025 Charge to profit or loss in respect of defined contribution schemes 5,641 2024 € 31,429 23,539 12,034 1,103 127,051 195,156 2024 € 4,399 The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. - 22-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used, At 1 April 2024 Incoming resources Resources expended E Transfers At 31 March 2025 Handy Person and Minor Alteration New computer fund 37,877 454,504 10,000 (467,560) (5,180) 24,821 4,820 37,877 464,504 (467,560) (5,180) 29,641 Previous year: At 1 April 2023 € Incoming resources Resources expended Transfers At 31 March 2024 Handy Person and Minor Alteration 446,867 (408,990) 37,877 The Handyperson and Minor Alterations (HPMA) fund This fund relates to a three year service contract to provide handyperson and minor alterations services to the disadvantaged and vulnerable within Sunderland. The contract has specific targets that are to be met. The contractual amount relates to salaries of the handypersons, administration staff, management charges. materials for providing the service and a contribution towards the overheads. The New Computer Fund This fund relates to monies received from funders to purchase computer equipment for use within the charity. The balance at the year end relates to the amount unspent. 22 Unrestricted funds he unrestricted funds of the charity comprise the unexpended balances of donations and grants which a ot subject to specific conditions by donors and grantors as to how they may be used. These incluc designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At 1 Apri 202. Incoming resources € Resources expended € Transfers At 31 March 2025 General funds 48,648 119,643 (104,653) 5,180 68,818 Previous year: At 1 April 2023 General funds 38,700 Incoming resources € 113,791 Resources expended Transfers At 31 March 2024 (103,843) 48,648 - 23-
COMMUNITY SUSTAINABILITY SERVICES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Analysis of net assets between funds At 31 March 2025: Tangible assets Investments Current assets/(liabilities) At 31 March 2024: Tangible assets Investments Current assets/(liabilities) Unrestricted funds 2025 4,998 60 63,760 68,818 Unrestricted funds 2024 80 60 48,508 48,648 Restricted funds 2025 E 29,641 29,641 Restricted funds 2024 37,877 Total 2025 4,998 60 93,401 98,459 Total 2024 80 60 86,385 86,525 24 Operating lease commitments At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: Within one year Between two and five years 2025 € 46,899 57,738 104,637 2024 E 31,464 5,244 36,708 25 Related party transactions There were no disclosable related party transactions during the year (2024 - none). - 24 -