COMPANY REGISTRATION NUMBER: 3286672 CHARITY REGISTRATION NUMBER: 1065423 Progress to Change Company Limited by Guarantee Financial Statements For the year ended 31 March 2024
Progress to Change Cornpany Limlted by Guarantee Financial Statements Year ended 31 March 2024 Page Trustees, annual report {incorporaling the direclorfs report) Independent auditor's report lo the members Slalemenl of financial activities (including income and expenditure account) Statement of financial position 12 Statement of cash flows Notes lo the financial slalemenls 14
Progress to Change Company Limited by Guarantee Trustees, Annual Report (In¢orporatlng the Directorfs Report) Year ended 31 March 2024 The trustees, who are also the directors for the purposes of company law, present their report 8nd the financial slalemenls of the charity for the year ended 31 March 2024. Reference and admini5tratlve details Registered charity name Progress lo Change Charity registration numbgr 1065423 Cornpany registratlon number 3286672 Prlnclpal office and reglstered office 63 Clarendon Road Leeds LS2 9NZ The trustees ProfA W M Hay (Chairman) Mrs D Favre Mrs J Dilks Prof O Matthias Mrs C Cochrane Dr E Wincup Mrs S Mondon Mr R Brook (Resigned 19 September 20231 Kgy management personnel Chief Executive - Mrs L Canlley Finance Manager- Mrs R Kyle Ripon House Hostel Manager- Mrs C Maguire Cardigan House Hostel Manager- Mr B Spink Training and Project Manager- Mrs E Falk Company secretary Mrs T Gradys Auditor Gibson Booth Chartered Accountants & Slatulory Audllors New Court Abbey Road North Shepley Huddersfield H08 8BJ Bankers National Westminster Bank plc Leeds City Office Branch 8 Park Row Leeds LS15HD Solicitors Wrigleys Solicitors LLP 19 Cookridge Street Le6ds LS2 3AG Investment managers CCLA Senator House 85 Queen Victoria Street London EC4V 4ET
Progress to Change Company Limited by Guarantee Trustees, Annual Report {Incorporating the Director's Report} {contlnued) Year ended 31 March 2024 Chalrman's report This last year has witnessed some major personnel changes al Progress lo Change IPICI and a huge amount of work by many lo enable a contract bid lo be submilled lo the Ministry of Jusliee for funding for a possible 5-year period from April 2026. In early April this year Louise Canlley retired after 17 years as CEO of the charity. Amongst many achievements, Louise helped oversee the merger of our two hostels Ripon House and Cardigan House under a single umbrella organisalion and I now have the privilege of chairing the trustees of our unitary grouping. As a truste& for some 7 years I have Wbtnessed how well Louise sleeied PIC and help&d to inslil. and reinforce, the charity's ethos which is about housing residents on release from prison, ensuring their accommodation is welcoming and supportive, that significant effort is made lo help with their rehabilitation, and that premises also function to ensure protection of both residents and wider public. This is no small tssk. Louise managed Ihls work with rigour, and a 9real deal of compassion, and trustees are grateful for all she did. We wish her well in heT retirement and trust Ihal she gels to travel and Continue marathon running. Louise's retirement meant finding a replacement lor her and l am delighted that Clare McGuire. formerly the manager of Ripon House, was chosen by a panel of Iruslees lo be the new CEO. With Clare moving up we had to lind a new Operations Manager for Ripon and we recruited Elizabeth Sunley from a wide range of applic8nls. Elizabeth, formerly a Senior Probalitsn Officer in Leeds, joined the management team in April and l am delighted to say is sellling in well. She compliments Ben Splnk who manages Cardigan and has done so for some 2 years now, and Emma Falk who continues to oversee many projects and the, al limes. frustrating process lo secure the Enabling Environment award which we now have for both premises. As Iruslees we are grateful lo this management team of four for all they do lo enable the charity lo remaln fully staffed and meet ils commilmenls. The Charity has been preoccupied for some two years about the process lo bid for a ntract for funding from 2026 onwards. After a further delay in the process we were finally invtied lo lender for the new contract in June 2024. The financial section of the bid, based on current expenditure, and projections for the future. is robust, and was completed by our PIC accountant Rachel Kyle, and we trustees wish lo thank her. Above all the Iruslees owe a real debt of thanks lo Clare McGuire who did the vast bulk of the writing for the bid, which she submitted before the due dale. Emma and Ben also contributed on sections where they had the expertise. Bul given that Clare had been in post for less than 3 months before undertaking the work on the bid, the Iruslees consider this lo be an exceptional achievement, and wish to both thank and compliment her. Our Board of Trustees remains unchanged and is a real resource for the support and wise counsel it provides for the wide range of issues PIC needs to consider. The board continues lo meet mainly via Zoom with two meetings a year in-person. Inspection visits of premises is now also mainly in-person except where a staff absence may necessitate an online inleNiew. In-person visits by Iruslees provides a valuable opportunity to engage with staff and residents, and is a vital engagement mechanism. as well as an important window on activities. The three trustees Emma Wincup. Sara Mondon, and 019a Matthias, and our secretary, Tricia Gradys, contlnue to oversee our grant giving process. Carol Cochrane created. and maintains, our Risk Register which gives us a clear view of any potential problems and how we might miligale these. Carol also co-ordinates our Remuneration Committee, with Jill Dilks and Diana Favre additional members. Although inflation is on the wane, the trio still had lo consider legacy cosl-of-living problems for staff and assess what the charily could afford by way of salaries. Diana, as Vice-chair. also continues to step in and cover for me when l am unavallable. l am grateful lo 811 three Iruslees on the Remuneration Committee, lo those on the grant-giving commillee, and other Iruslees, for all of their work and support of me, and the charily. Progress lo Change is an associate of the National Approved Premises Association. This gives us access to training and to meetings with other Independent APS and representatives from the Ministry of Jusli¢e. Two trustees, along with Clare and Ben, attended the NAPA Tesidenlial conference in July. The a¢hievemenls and performance section of this report explains that our contract with the Ministry of Justice runs until 31 March 2026. The charity thus has a guaranteed income for the next 1 and /* years. We await the outcome of the new bid which we will only find out in May 2025. Our pension responsibilities occupy much discussion time for the Iruslees. The charity is now solely responsible for the employer's contribution for staff on the People's Pension, as well as for those ¢urrenlly and previously employed who are on the West Yorkshire Pension Fund IWVPFI, which has an ongoing deficit. We continue lo fund the deficit. More recent valuations of the WYPF now sijggesl that il is in credit, bul we await the 3-yearly review by the fund's auditors lo see what our future payments will be. We continue lo be indebted lo Tricia for her efficient work as Company Secretary and lo Patrick Healon, our auditor from Gibson Booth. Amidst many uncertainties the charity continues to offer opportunities for our residents to re-assess their lives and with support make the changes needed to turn from offending. I wish lo thank all our staff, wilhoul whose resourcefulness, dedication, and hard work, none of this would be possible
Progress to Change Company Limited by Guarantee Trustees. Annual Report Ilncorporating the Director's Report) (continued) Year ended 31 March 2024 ProfA WM Hay an
Progress to Change Company Limited by Guarantee Trustees, Annual Report (Incorporating the Director's Report} (Continued) Year ended 31 Mar¢h 2024 Governlng Document Progress lo Change (formerly known as the Ripon and Leeds Diocesan Council for Social Concern) is a Company Limited by Guarantee and incorporates the work of the two Approved Premises - Ripon House and Cardigan House and their related assets and liabilities. Our registered charity number is 1065423. The charity has ils Offi al 63 Clarenden Road, Leeds, LS2 9NZ. Social Concern was incorporated on 3 December 1996. Following a special resolution, the company was incorporated under the revised name of Ripon & Leeds Diocesan Ctsuncil for Social Concern with effect from 27 December 2000. As a result of the creation of the Diocese of Leeds in 2014, and following a special resolution, the company was incorporated under the revised name of Progres5 to Change with effect from 15 August 2015. During 2015, the Trustees further reviewed and updated the Articles of Association of the Company. These were amended by a special Tesolulion dated 22 September 2015. RecruStment and appointment of Trustees The Trustees of Progress lo Change and the Board members are the same people. Under the requirements Of the Articles of Association Trustees are appointed for a period of four years, after which they Can be re-appointed for one further term of four years. Five are appointed by the Bishop of Leeds and four are appointed by the Board of Trustees. Members h8ve a wide range of backgrounds and skills, bringing expertise in business, finance, education, the legal system, social work and the Church. To ensure a broad skills mix, Trustees are asked lo provide a CV and list of skills on their application form. A skills inventory is maintained and, in the event of particular skills b6ing lost due lo retirement, efforts are m8de lo recruit individuals with a similar skills base. Progress to Change this year has created an application pack for interested parties. Organlsational structure The Board of Trustees, of up lo nine members, has overall responsibility for the management, strategic direclion, and policy of the Charity and meet nine times a year. Most meetings of the Board, including some sub-group meetings. are held via the Zoom platform lo accommodate the needs of Iruslees. However, two meeting per year are held on a face-to-face basis at Ripon House. APS inspection visits are undertaken in person by a Trustee. D8y-lo-day management of the two Approved Premises IAP'S) is delegated lo the Chief Executive Officer and Operational Managers. The Managers have responsibility for operational management of the AP'S. individual supervision of staff and ensuring that the staff teams continue lo develop skills and working practices in line with best practice. Trustee induction and training New Board members are provided with an induction pack. Additionally, gaps in knowledge are identified by individual members and visits and training are organized to enable members lo have suffiryenl information about the work of the charity lo contribute effectively. Remuneratlon Policy Inlroduclion.. Progress lo Change is eommilled to paying ils employees fairly so that the best people for the job are attracted and retained. Employee Salaries.. The pay and benefits of all employees are reviewed on 8 gUlar basis and, where appropriate, are benchmarked against the salary scales used within the Probation Service for equwalent roses. Payments lo Trustees.. All trustees give their lime freely and do not re1ve any pay gr recompense other than lor reasonable out of pocket expenses. The Finance Committee.. The Finance Commillee reviews the remuneration of all employees and makes recommendations lo the Board r)f Trustees for implemenlalion. The Finance Committee comprises of three Trustees, one of whom will act as ChalT. The Finance Committee will make salary recommendations lo the Board for all employees taking into consideration.. any proposals lor pay increases for Hostel employees pul forward by the Chief Executive recommendations lo the Board in respect of cosl-of-living increases. Grant maklng policy In the recent past the Gharity has made the occasional small grant lo local organisalions in furtherance ol the charity's objectives. Progress lo Change is now encouraging any indwidual, or small communily-based group, lo apply for a small grant i SUPPDrtino a planned activity. in accordance with our charitable aims, which will enhance the quality of life of those taking part.
Progress to Change Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 Applications from individuals can be submitted for grants of up lo £1.000. and Community groups or organisalions up to £2,000. Individuals and groups applying musl be able ID show that the activity will improve the life opportunities for those who have been affected by crime. Organisalions may only apply for a grant once in any financial year. Rlsk management The Trustees maintain a Risk Register of the poten1181 risks which the Charity is exposed to and has pul in place steps lo mitigate these risks. The risks are grouped under three main headings- al Governance Risks. bl Financial Risks, cl Operational Risks. For each risk existing control procedures have been identified along wilh proposed improvements in controls. On an ongoing basis as new risks are identified or the nature or significance of perceived risks change the Risk Register has been updated. The last update was in May 2024. This involved the idenlificalion of any changes to the potential risks and progress on the implem8nlalion of identified actions lo miligale risks. As explained under 'Objectives and activities,, the principal 8Ctivily of the two Approved Premises is to provlde enhanced supervision in a residential setting, including rehabililalion, risk management, and monf(oring. The majority of offenders are on license following release from custodial sentences. There are particular risks associated with this work. The Charity has a team of appropriately qualifted key management personnel who undertake regular Irainino as well as working closely with the Ministry of Justice and the Probation Service. Robust Risk Management procedures are in place in all aspects of the Charity's day-lo-day activities in Ihls regard. Policies and procedures are in place lo ensure compliance wilh health and safely regulations, food hygiene regulations and lire regulations. The risk management systems and prOdureS are Continually reviewed by the key management team. All the identified risks are managed by regular Iralning and awareness for staff working on day-It>day operations and by ensuring areditatIOn is up lo dale and having robust policies and procedures in place. Related partl9$ In so far as il is complementary lo the Charity's objects, the Charity is guided by local and national policies. The AP'S work in association with the regional Probation Servi, Community Rehabilitation Companies. local GP practices, local housing organisations, alcohol and drugs services. and other third seclor organisalions. Nationally, the AP'S work collaboratively with their funders, the Ministry of Justice. and Her Majesty's Prison & Probation Servlce. We are also a member of the National Approved Premises Association INAPAI, ensuring that national slandaids are constantly allained. The Trustees thank all of our partner agencies for their commitrnenl lo and assistance with our work. Oblectlves and activities The charity's purposes. as set tsut in the objects contained in the company's Articles of Assoclalion, are.. to maintain th6 premises known as Ripon House and Cardigan House as Approved Premises within the meaning of the Offender Management Act 2007.. lo support and further all or any charitable activities carried out in connection with the Church of England in the DI0Se of Leeds and in particular., the promotion and temperance and of higher standards of moral life in the individual, the family and the community.. the rehabilitation of offenders and in particular those addicted to drugs or alcohol or otherwise in need of help., the relief of distress or suffering arising from offending behaviour. These objects were last reviewed and updated in 2015. The Trustees have referred lo the gLtid8nce contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. The focus of ourwork Progress lo Change continue to Provide enhanced supervision for people on Probation, who are on post custody Lic8nce. Both premises work with those that present a high risk of harm lo the public. Ripon House continues to also take women who present a medium risk of harm lo the public but present wf(h a complex problemslneed. The work undertaken al both premises is both needs and risk led and pivotal to the risk management plan over seen by the Probation Practitioner. Individuals are subject, to key work sessions, curfews, and additional monitoring, including, for some the requirement to wear a lag, these may monitor an Individual's precise whereabouts or alcohol consumption. Ex8d and tailored Licence conditions are drawn up by the Probation Praclilioner, wlih some input from the Approved Premises, in terms ol requesting specific requirements linked lo their slay al the AP. Achlevements and performance Performance continues lo be a crucial part of our current contract with the Ministry of Justice. Both Cardigan House and Ripon House musl demonslrale these are being mel at key stages of an individual's slay. Both premises hil their largels for 23124 and are currently performing well into the 2 quarter of 24125.
Progress to Change Company Limited by Guarantee Trustees, Annual Report Ilncorporating the Directoffs Report) (continued) Year ended 31 March 2024 Key lo the success of the Approved Premises are the engagement sessions (purposeful activiliesl. Over 12 months the number of individuals attending the vast array of activities remains impressive with events including our continued engagement with Active Leeds who have supported both staff and residents in taking more care of both their physical and mental well-being. Our other partnerships include supporting residents lo engage in creative workshops, such as music, drama and art which complement the staff sessions which focus more on rehabililalion, thinking skills and independent living. Contract with the MOJ Al the end of 2023 the Government announced that all future contracts for the running and management of Independent Approved Premises would finally be pul out for lender. This formal process has now been completed. W6 needed lo submit evidence of the specific skills provided including detailed costing of the service. The current contract ends in Spring 2025. The oijlcome of the lender submission will not be known until thtsn. Therefore, there will be a 12-monlh extension lo our current contract, during the mobilisation period. With new contracts starting in April 2026. Enabllng Environments Both Approved Premises are in receipt of the required Enabling Environment Award (EEI and hold the full awards until 2026. However, each are required to undertake annual assessmentslreports lo demonstrate the on-going commilled to their EE slalus. Ripon House was successful in retaining theirs in March 2024 and Cardigan House will b& submitting their report in Ocl 2024. Partnership5 As an AP partnership working remains very high on the agenda and is key to providino residents with a positive impactful slay. The incoming CEO, C Maguire, is beginning lo make links with local community oroanisalions including faith grtsups and education providers, lo support both residents and our staff team. One su¢h partnership is the DWP Social Justice Team who provide drop-in sessions at the APS to support residents who are both vulnerable with multiple barriers. They offer support with benefit advice and job centre liaison. Progress lo Change have also joined Mindful Employer Network lo provide additional support lo all staff around emotional wellbeing. Stafflng Recruilmenl and retention have been an ongoing issue for the past few years. However, in the last six months staffing has been more stable and we have welcomed several full-time staff lo Progress lo Change, including Liz Sunley who is now the Operational Manager for Ripon House. Liz joined the organisation in March 2024 and is already making a very positive impact on the AP, with her wealth of experience workin9 With women and a can-do attitude. We have also employed several new Support Workers at both Cardigan House and Ripon House, and all have brought new skills and uniqueness lo the roles. The personnel in Case Manager and Administrative Roles remains stable. The organisation is grateful lo the very important part our Relief staff play, lo help cover holidays and sickness, sometimes al very short notice. We also have two new, On Ca51 Managers who have been a positive 8ddilion to the 16am. The support ol our On-call Managers ensure staff have assistance and support from a qualified. eXperIend individual al all times of the day and night. Flnancial revlew Our Ministry of Justice contract has been extended until March 2026 after which a new contract over a 4-yeaT, possibly 5- year, period will be in place from 1 April 2026. We have had lo submit a bid for this new ¢onlra¢l and our new CEO spent a considerable amount of time preparing the bid. The outcome of bids will be announced in May 2025. Income for the period from April 2024 - March 2025 was based on the income for 2023 plus an increase for CPI. The Ministry of Justice provide(J a contribution of 800h of the Additional annual pension payments to WYPF for 202112022, bul the charity was informed that this was a one-off payment. Since then, the charrty has been solely responsible for all pension payments lo the WYPF and for the employer's contribution lo pensions for those staff on the People's Pension. An annual finance budget for each AP is submitted to the Board of TTuslees in March. Budget reviews lake pla six times a year al Management Board meetings. Both AP'S have continued lo manage Ihelr finanS in a prudent and resourceful way. Income for the year including investment income increased from £2,216,025 in 2023 10 £2,484,550 in 2024. Further information is provided in notes 5, 6 and 7. Expenditure during the year increased from £2,131,652 in 2023 10 £2.288.156 in 2024. Further information is provided in notes 8and9. The Charity's investment portfolio increased in value during the year lo £2,309.27612023: £2,067,547>. The nel gains on investments during the year were £241,72812023.. losses of £29.4031. As sel out in note 19 'Pensions and other posl-retiremenl benefits, following an actuarial review a loss of £810,00012023'. gain of £956.0001 has been reflected in this year's Statement of Financial Aclivilies. The nel movement in funds for 2024 was a deficit of £371.87812023.' surplus of £1,010.970).
Progress to Change Company Limited by Guarantee Trustees, Annual Report Ilncorporating the Directorfs Report) (contlnued) Year ended 31 March 2024 al Principal Fundlng Sources The Ministry of Justice is the principal funder of both Cardigan House and Ripon House. Detailed information on this and the Charity's finances are set out in the Financial Accounts al the end of this Report. The Charity does not undertake any additional fundraising activities. bl ResoNes Pollcy In considering this the Trustees have had regard to the current situation in the UK,. the high level of inllalion, the high level of interest rates and our contract with the Ministry of Justice. There remain uncertainties regarding the Charity's funding by the MOJ. 11 is for the above reasons and the level of uncertainly that the charity has again considered it both prudent and necessary to mainlaifi Designated Reserves as sel out in the Designated Reserves note. The Trustees have established a policy whereby the funds of the Approved Premises not commilled or invested in tangible fixed assets ("Ihe free reserves") are maintained at a level which the Board Considers sufficient lo maintain the continuing activities of the Charity on the basis of the funding arrangements with the Ministry of Justice. Why reserves are needed As part of ils Risk Assessment, the Board has established that the Charity needs lo mainlain short-term and long-lerm reserves lo reduce the impact of Tisks from both internal and external factors. As owner of the two properties Cardigan House and Ripon House, the Board needs to hold sufficient reserves to CDveT major building works which are not funded by the MOJ. The two Approved Premises need lo hold short-lerm reserves lo meet costs of unplanned events and planned internal maintenance of the buildings. The Board also has overall responsibility for the staff employed and, should income be disrupted the Charity need lo hold sufficient reserves lo meet ongoing costs and commitments until further funding is secured. Reseryes are also required lo meet the VVYPF defined benefit liabilities given that there is no guarantee that the Ministry of Justice will continue lo provide fvnding. Level of Reserves Given the slated background as to why reserves are needed, the Iruslees are of the view that the level of unrestricted income reserves of £2,797,791 are at an appropriate level lo enable the charity to meet ils objectives and continue as a Going Concern. Investment of reserves The reserves of the Charity are held in the freehold property, investments managed by CCLA. and short-lerm bank accounts. With regard lo risk, as the balance of the Central Reserves Fund alters, investment advice will be sought by the Trustees when necessary. c} Investment Pollcy The investment policy's objectives are.. Effective man8gemenl of the Charity's assets that are not required for imminent use. To protect the reserves of the Charity and maximise investment income. The Investment Objectives are-. Produce the best financial return within an acceptable level of risk. Produce a total return of al least RPI plus 3 % tsver the long term. The policy has regard lo areas of Risk, Liquidity, Time Horizon, the charity's Ethical Policy, Management, Reporting and Monitoring. The policy is approved by the Trustees and is Teviewed annually. Investment of reserves The Charity continues to monitor its reserves. As the charity is solely responsible for the p6nsion funds of previous and existing staff on the WYPF, and for those with the People's Pension, il may have lo look lo ils reserves lo meet all payments. Some small projects that will benefit the residents of both Approved Premises may also be considered. The Charity's conlracl with the MOJ continues lor a further two years lo 31 March 2026. After that our contract with the MOJ will be dependent on a successful competitive lender. The Charity will continue lo operate al the highest level in carrying out ils activities for the benefit of ils residents. The Charity continues lo investigate future outreach work with residents once they have left the Approved Premises.
Progress to Change Company Limited by Guarantee Trustees, Annual Report Ilncorporatlng the Directofs Report) (continued) Year ended 31 March 2024 Plan$ for future perlods The future of the organisalion is very positive. The aim is lo win the conlracl which will provide the organisalion and ils staff with stability for a further 5 years post 2025. Staff training is high on the agenda for the coming 12 months, exploring options to provide a more formal qualification for those who join at entry level roles. Plans are also taking shape in terms of working towards having a nel zero ambition for both APS in the coming years. Post balance sheet evènts A good deal of time was spent by the CEO, senior management, and trustees preparing a bid for a contract for 4-years of funding from April 2026.. the bid was submilled lo the Ministry of Justic8 in August 2024. Trustees. responslbllities statement The trustees, who are also directors for the purposes 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 Kingdc>m Generally Aecepled Accounting Praclicel. Company law requires the charily Iruslees to prepare financial slalements for each year which give a true and fair view of the stale of affairs of the charitable company and the incoming resources and application of reSoUrs, including the Income and expenditure, for that period. In preparing these financial slalemenls, the Iruslees are required lo.. select suitable accounting policies and then apply them consislenlly.. observe the methods and principles in the applicable Charities SORP., make judgments and aecounling eslimales that are reasonable and prudent., prepare the financial statements on the going concern basis unless it Is inappropriate lo presume that the charity will continue in business. The Iruslees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charity's transactions and disdose with reasonable accuracy at any lime the financial position of the charity and enable them lo 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 detedion of fraud and other irregularities. Audltor Each of the persons who is a trustee al the dale of approval gf this report confimis that.. so far as they are aware, there is no relevant audit information of which the charity's auditor is un8ware', and they have taken all steps that they tsughl lo have taken as a trustee lo make themselves aware of any relevant audit information and lo establish that the charity's auditor is aware of that information. A resolution lo reappoint Gibson Booth as auditors for the ensuing year will be proposed al the forthcoming annual general meeting. Small company provlslons This report has been prepared in accordance with the provisions applicable lo companies enlilled to the small companies exemption. The sle and signed on behalf of the board ol trustees by.. annual report was approved on Prol WMHay Trustee
Progress to Change Company Limited by Guaranteo Independent Auditor's Report to the Members of Progress to Change (contlnued) Year ended 31 March 2024 Opinion We have audited the financial statements of Progress lo Change Ilhe '¢harily'l for the year ended 31 March 2024 which comprise the statement of financial activities (including income and expenditure accounll, slalemenl of financial position, slalemenl of cash flows and notes lo the financial stalemenls. 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 Iuniled Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial slalemenls: give a true and fair view of the slate of the Charity's affairs as al 31 March 2024. and of ils incoming resources and application of resources, including Its income and expenditure, for the year then ended., have been properly prepared in awjrdance with Unked Kingdom Genorally Accepted Accounting PraGtice,' and have been prepared in accordanee with the requirements of the Charities Act 2011. Basis for oplnlon We conducted our audit in accordance with InleTnalional Standards on Audlling IUKI {ISAs IUK}l and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilllies for the audit of the financial slalemenls section of our report. We are indep&ndenl of the charity in accordan with the ethical requirements that are relevant lo our audlt of the financial slalemenls 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 lo provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial slalemenls, we have concluded that the Iruslees, 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 trr collectively. may cast significant doubl on the charity's ability lo Continue as a going concern for a period of at least twelve months from when the financial statements are aulhoTised for issue. Our responsibilities and the Tesponsibililies of the trustees with respect to going concern are described in the relevant sgclions of this report. Other informatlon The other infomalion comprlses the information included in the trustees, annual report. other than the financial stslemenls and our auditorfs report Ihereon. The Iruslees are responsible for the other information. Our opinion on the financial slalemenls does not cover the other Information and, except lo the exlenl othetwise explicitly slated in our report. we do not express any fom of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so. consider whether the other information is materially inconsislenl with the financial statements or our knowledge ob18ined in the course of the audit or olhewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalements, w6 are required lo determine whether this gives rise lo a material misslalement in the financial slalemenls themselves. If, based on the work we have perfomed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard. Matters on whlch we are requlred to report by exceptlon We have nothing to report in r&specl of the following mallers in relation to which the Charities (Aceounls and Reports} Regulations 2008 require us to report to you if. in our opinion: the information given in the Iruslees, pOrt is inconsislenl in any material respect with the financial stalemenls.. or sufficlenl accounting records have not been kept,. or the financial slalemenls are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. Responslbllities of trustees As explained more fully in the trustees, responsibilities slalemenl, the trustees {who are 81s0 the directors for the purposes of company lawl 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 detemine is necessary lo enable the preparation of financial slalemenls that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial staltsmenls, the trustees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable. mallers related to going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charity or to cease operations, OT have no realislie allernalive bul lo do so.
Progress to Change Company Limited by Guarantee Independent Auditovs Report to the Members of Progress to Change {contlnued) Year ended 31 March 2024 Auditor's responslbiSities for the audit of the financial statements We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not 8 guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are consid6red material rf. individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these rinancial slalemenls. Irregularities, including Iraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misslalem8nls in respect ol irregularities, including fraud. The exlenl lo which our procedures are capable of detecting irregularities. including fraud is detailed below. Based on our understanding of the charity and the charity sector, we idenlifled that the principal risks of non-complian¢& with law and r6gulalions related lo the Chari116s Act 2011. and we considered the exlenl lo which non-compliance might have a material effect on the financial slalemenls. We evaluated management's incentives and tspportunilies lor fraudLilenl manipulation of the financi81 slalemenls lincluding the risk of override of ¢onlrolsl and the audit procedu$ performed included.. dlscussions with management including consideration of known or suspected instances of non.compliance with laws. regulation and fraud; challenging assumptions and judgements made by management in their significant accounting estlmales., lesling of non-purchase and sales ledger bank transactions,. testing of journals.. lesling of purchase invoice aulhorisalions. Because of the inherent limitations of an audit, IheTe is a risk that we will fail lo delecl all irregularities, including those leading lo a material misslalement in the financi81 slatemenls or non-¢omplian¢e with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and Iransaclions reflected in the fi'nancial stalemenls, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or MISpresentation. A further description of our responsibilities is available on the FRC'S website at.. www.frc.org.uklaudilorsresponsibililies. This description forms part of our auditor's report. Usg of our report This report is made solely lo the charitable company's trustees, as a body, in accordance with Part 4 of the Charities {Accounls and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charitable MpanY'S Iruslees those mallers we are required to slate lo them in an auditols report and for no other purpose. To the fullest exlenl p&rmilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Gibson 8oolh Chartered Accounlanls & Stalulory Auditors New Court Abbey Road North Shepley Huddersfield HD8 8BJ JP. 4 4£. Gibson Booth is eligible lo ael as auditor in lemis of Sedion 1212 of the Companies Act 2006. 10
Progress to Change Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 Unreslricled funds 2023 Totsl funds Total funds Note Income and endowments Donations and legacies Charitable activities Investment income 250 2,475,434 8,866 250 2,475,434 8,866 175 2,206,984 8,866 Total income 2,484.550 2.484,550 2.216,025 Expendlture Expenditure on charitable activities Total expenditure {2,288,1561 12.288.156) 12.131,6521 12,288,156) 12,288,156) 12,131,652) Net gainsl{lossesl on investments 11 241,728 241,728 129,4031 Net Income 438,122 438,122 54,970 Other recognised galns and losses Acluaiial Ilossesllgains on defined benefit pension schemes Net movement in funds 1810,000) 1810,0001 956,000 {371,8781 1371.878) 1,010,970 Reconciliation of funds Total funds brought foTward 4,985,782 4,985,782 3,974,812 Total funds carrled forward 4,613,904 4,613.904 4,985.782 The slalemenl of financial activities includes all gains and losses recognised in the year. All income an(J expenditure derive from continuing activities. The notes on pages 14 to 24 fomi part of these flnancial statements. 11
Progress to Change Company Limited by Guarantee Statement of Financial Position 31 March 2024 2024 2023 Note Fixed assets Tangible fixed assets Investments 15 16 1,955,540 2,309,276 1,985,883 2,067,547 4,264,816 4,053.430 Current assets Debtors Cash al bank and in hand 17 87,933 414.954 74,232 320,326 502,887 394,558 Credltors: amounts falling due within one year 18 1153,7991 163,2081 331,352 Net current asset5 349,088 Total assets less current Ilabllltles 4,613,904 4,384,782 Net assets excluding defined benefit penslon plan Ilabllity 4,613.904 4.384,782 Defined benefit pension plan liability Net assets Including deflned beneflt pgnsion plan liability 19 601,000 4,613.904 4.985,782 Funds of the charlty Unreslricled funds.. Revaluation reserve Deflned benefit pension resetve Other unreslricled income ftjnds 1.816,113 1,816,113 601,000 2,568.669 2,797,791 Totsl unrestrlcted funds 4.6fj3,904 4,985,782 Total charity funds 20 4,613,904 4,985.782 These financial slalements have been prepared in accordance with the provisions appSicable to companies subject lo the small companies, r69ime. These financial slalemenls were approved by the board 9f InJste8s and authorised for issue on on behalf of the board by.. and are signed ProfA WM Trustee O-< IL ay The notes on pages 14 to 24 fom) part of these flnancial statements. 12
Progress to Change Company Limited by Guaranteè Statement of Cash Flows Year ended 31 March 2024 2024 2023 Cash flows from operating actlvlties Net income 438,122 54.970 Adjuslmenls for.. Depreciation of tangible fixed assets Nel Igainslllosses on investments Dividends, interest and rents from investments Other interest receivable and similar inetsme Interest payable and similar charges Defined benefit pension plan employer contributions Accrued exp&nsesllin¢om61 Service cost of defined benefi't pension scheme 40,342 1241,7281 {8,8661 {49,0001 57,906 29,403 18,866} 10,000 1284,0001 11,4131 131,000 1233,0001 23,505 73,000 Changes in.. Trade and other debtors Trade and other creditors 113.700) 67,085 194,884 138,8231 Cash generated from operations Net cash from operating aclivilies 95.760 145,061 95,760 145,061 Cash flows from investing activitie5 Dividends, interest and rents from investments Purchase of langibl& assets Pufchases of other investments Pro¢eeds from sale of other investments 8,886 19,9981 8,868 {16.2341 1240,000} 154,000 Nel cash used in investing activities 11,132} {93,3681 Net increase in cash and cash equlvalents Cash and cash equivalents at beginning of year 94,628 320,326 51,693 268,633 Cash and ¢ash equlvalents at end of year 414,954 320,326 The notes on pages 14 to 24 fom) part of these flnancial statements. 13
Progress to Change Company Llmited by Guarantee Notes to the Financial Statements Year ended 31 March 2024 General infomiation The charity is a public benefit entity and a private company limited by guarantee, reglslered in England and Wales and a registered charity in England and Wales. The address of the registered office is 63 Clarendon Road, Leeds, LS2 9NZ. statement of compliance These financial slalemenls have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the Slalement of Recommended Practice applicable lo charllies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 IFRS 1021 (Charities SORP IFRS 10211 and the Companies Act 2006, Charities Act 2011 and UK Generally Accepted Accounting Practice. Accountlng policies Basls of preparation The financial statements have been prepared under the historical cost convention, exp1 for investments which are included al fair value and the revaluation of certain fixed assets. The financial slalements are rounded lo the nearest £ and prepared in sterling, which is the functional currency of the entity. The significant accounting policies consistently applied in the preparation of these financial slalemenls are sel out below. Going concern The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related lo events or conditions that may cast significant doubt on the ability of the charity lo Continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the dale of authorisalion for issue of the financial slalemenls and have concluded that the charity has adequate resources lo continue in operational existence for the foreseeable future and there are no material uncertainties about the charity's ability lo continue as a going cOnrn, thus they continue to adopt the going conrn basis of accounting in preparing the financial slalemenls. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management lo make judgements, estimates and assumptions that affed the amounts Teported. These estimates and judgements are ntinuallY reviewed and are based on experience and other factors. including expectations of future events that are believed lo be reasonable under the cir¢umstances. Significant judgements The judgements (apart from those involving es1imalions} that management has made in the process of applying the enlily's accounting policies and that have the most significant effect on the amounts recognised in the financial slalemenls are as follows.. Depreciation has not been charged on freehold buildings as it is the charity's policy lo maintain the properties in a continual stale of sound repair. Due consideration has been given lo any necessary requirement to impair these assets. Key sources of eslimalion uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will Tarely equal the related aclual outcome. The key assumptiot)s and other sources of estimation uncertainty that have a sionrficanl risk of causing material adjuslmenl lo the carrying amounts of assets and liabilities within IhB next financial year are as follows.. Allocation of overheads and support costs by activity The charity allocates ils expenditure and overheads lo either direct costs or support costs. Costs incurred which are in line with the charity's objective's are allocated lo direct costs. Costs incurred for the administration of the charity are allocated lo support costs. Propety revaluation The properties within land and buildings are valued under the revaluation model and are held 81 market value. The valuation is re-assessed annually, and where the trustees judge that the property valuations have not materially changed. no subsequent revaluation is obtained. The valuation is amended when necessary lo rellecl current estimates. 14
Progress to Change Company Limited by Guarantee Notes to the Flnanclal Statements (contlnuedj Year ended 31 March 2024 Accounting pollcies (contlnuedj Defined benefit pension scheme The charity has an obligation to pay pension benefits lo certain employees. The cost of these benefits and the present value of the obligation are determined using actuarial valuations which make assumptions about a number of factors, including,. life expec18ncy, salary increases, asset valuations and the discount rale on corporate bonds. These factors are estimated in determining the net penslon obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 19 for the disclosures relating lo the defined benefit pension scheme. Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive lo changes in the eslimaled useful economic lThies and residual values of the assels. The useful economic lives and residual values are re-assessed annually. They are amended when necessary lo reflect current eslimales. See note 15 for the carrying amount of the tangible assets, and the tangible fixed assets policy below for the depreciation rates used for each class of assets. Fund accounting Unreslricled funds comprise accumulated surpluses and deficits on the general fund and designated funds. They are available for use al the discretion of the directors in the furtherance of the company's general charitable objectives. Restricted funds are created when grants and donations are made for a particular purpose. the use of which is restricted lo that purpose. Incomlng resourcgs All income is included in the slalement of financial activities when enlitlemenl has passed lo the Charity, il is probable that the economic benefits associated with the transaction will flow lo the charity and the amount can b& reliably measured. The following specific policies are applied lo particular categories of income.. Income from donalitsns is recognised when there is evidence of enlillement lo the gift, receipt is probable and ils amount can be measured reliably. Grants are included in the slalement of financial activities on a receivable basis. The balance of income received for specific purposes, bul not expended during the perlod, is shown in the relevant funds in the balance sheet. Where incom& is reiVed in advance of entillemenl of receipt ils reeognilion is deferred and Included in creditors as deferrèd income. Where enlillemenl occurs before income is received, the income is accrued. Ministry of justice grants are recognised in full in the year which they are receivable and any unspent amount is reflected as a balance in the unreslricled general fund. Capital grants are recognised when receivable and are deferred over the life of the asset on which they are expended. Resources expendgd Allo¢ation of overhead and support Costs Overhead and support costs have been allocated belween charitable activity and governance based on the lime spent by employees working in the two areas concerned and the actual cost incurred. Governance Costs Governance Costs comprise all costs involving the public accounlabilily of the charity and ils compliance with regulation and good practice. These costs include costs related lo slalulory audit and legal fees plus an apportionment of wages. overheads and support costs. Irrecoverable VAT All expenditure is slated inclusive of irrecoverable VAT. Operatlng leases L6ase payments are recrignised as an expense over the lease lem) on a slraighl-line basls. The aggregate benefit of lease incenlwes is recognised as a redudion to expense over the lease term. on a slraighl-line basis. 15
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Accountlng policies (continued) Tangible assets Tangible assets are initially recorded al cost, and subsequently slated al cost less any accumulated depreciation and impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless il reverses a charge for impairment that has previously been recognised as expenditure within the slalemenl of financial a¢tivilies. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except lo which il offsets any previous revaluation gain, in which case the loss is shown within other regnised oains and losses on the slalemenl of financial acllvilies. Freehold buildings are not depreciated. 11 is the charity's policy lo maintain the properties in a continual slate of sound repair. Accordingly, the Iruslees consider that the life of the properties is so long and the residual value, based on pri$ prevailing al the lime of acquisition. is so high that any depreciation would be insignificant. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less ils residual value. over the useful economic life of that asset as follows.. Fixtures and fittings Computer equipment 250/0 slraighl line 25 /0 Straight line Investments Listed investments are measured al fair value with changes in fair value being recognised in the Slalemenl of Financial Aclwity. Financlal Instruments A financial asset or a financial liability is recognised only when the enlily becomes a party lo the conlraclual provisions of the instrument. Basic financial instruments are initially recognised al the amount re¢eivable or payable including any related transaction Costs, unless the arrangement constitutes a financing tr8nsaction, where il is recognised al the present value of the future payments discounted al a mark61 rale of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured al the cash or other consideration expected lo be paid or received and not discounted. Where investments in shares or preference shares are publicly traded tsr their fair value can olhewise be measured reliably, the investment is subsequently measured al fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured al Cost less impairment. Deflngd bènefit plans The charitable company conlribules lo the Local Govemmenl Pension Scheme I'LGPS'I, a defined benefit pension scheme. The LGPS is a funded scheme and the assets are held separately from those of the charitable company in separate Iruslee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an 8Ctuarial basis using the projected unil method and discounted al a rale equivalent lo the current rate of return on high quality corporate bond of equivalent term and currency lo the liabilities. The actuarial valuations arè obtained al least Iriennially and are updated al each balance sheet dale. The amounts charged lo operating surplus are the current service costs and gains and losses on selllemenls and curtailments. They are included as part of staff Costs. Past service costs are recognised immediately in the Slalemenl of Financial Activities if the benefits have vested. If the benefits have not vested immediately. the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets aTe shown as a nel amount as other finance costs or income. Nel pension finance costs are allocated to appropriate resources expended categories in the slalemenl of financial aolivilies. Net pension finance income is recognised as an incoming resource in the Statement of Financial ActiVleS. Actuarial gains and losses are recognised immediately as other recognised gains and losses in the Statement of Financial Aclivilies. Company Ilmlted by guarantee The charitable Company has nine members. If the charity is dissolved, each member promises to remain a member or within twelve months afterwards. to pay up to £10 towards the cost of dissolution and the liabilities of the charity while the contributor was a member.
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Donations and legacies Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Funds 2023 Donations 250 250 175 175 Charltable actlvitles Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Fund5 2023 Ministry of Justice grants Income from residents Other income 2,375.235 50,934 49,265 2,375,235 50,934 49,265 2,157,344 49,392 248 2,157.344 49,392 248 2,475,434 2,475.434 2,206,984 2,206,984 Investment Income Unrestricted Funds Total Funds 2024 Unrestricted Funds Total Funds 2023 Investment income 8.866 8,866 8.866 8,866 Expenditure on charltable activltles by fund type Unrestricted Fund5 Total Funds 2024 Unrestricted Funds Total Funds 2023 Staff costs Premises costs Supplies and Services costs Establishment costs Grants payable Finance costs Support costs 1,704,094 300,888 97,096 173.272 1,500 1.704,094 300,888 97,096 173,272 1,500 1,561,377 276,843 106,231 166,159 1,561,377 276,843 106,231 166,159 10,000 11,042 10,000 11,042 11,306 11,306 2,288.156 2,288,156 2,131.652 2.131,652 Expendlture on charltablg activities by activity type Activities undertaken directly Support costs Total funds 2024 Total fund 2023 Staff costs Premises costs Supplies and servi$ costs Eslablishmenl costs Grants payable Finance costs Governance costs 1,704,094 300.888 97,096 173,272 1,500 1,704,094 300,888 97,096 173,272 1,500 1.561,377 276,843 106.231 166.159 10,000 11,042 11,306 11,306 2.276,850 11.306 2,288,156 2.131.652 17
Progress to Change Company Limlted by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 10. Analysls ofsupport costs Governance costs Total 2024 Total 2023 Staff costs 11,308 11.308 11,042 Net galnslllossesl on Investments Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Funds 2023 Nel gainslllossesl on investments 241,728 241,728 129,4031 {29,4031 12. Net income Nel income is slated after chargingllcredilingl.. 2024 2023 Depreciation of tangible fixed assets Fees payable for the audit of the financial slalemenls 40,342 5,300 57,906 4,500 13. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2024 2023 Wages and salaries Social socurily costs Employer contributions lo pension plans Other employee benefiis 1,453.125 127,666 60,609 74,000 1,285,834 105,931 49,654 131,000 1.715,400 1,572.419 The average head count of employees during the year was 86 {2023'. 861. The average number of full-lime equivalent employees during the year is analysed as follows.. 2024 2023 No. No. Cardigan House approved premises Ripon House approved premises Secretary 22 18 21 16 39 38 The number of employees whose remuneration for the year fell within the following bands, were.. 2024 No. 2023 No. £80,000 10 £69.999 The key management personnel of the charity comprise the trustees logether with the individuals listed on page 1. The lolal employee benefits of th& key management personnel were £340.72812023.' £316,316). 14. Trustee remuneration and expenses No trustees received any remuneralion12023.' none). The amount paid lo Iruslees in respect of Iravelling costs was £122 {2023.. £1401. This was in respect of one Iruslee 12023.. three}- 18
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 15. Tanglble fixed assets Land and buildings Fixtures and fillings Computer equipment Total Cost Al 1 April 2023 Additions Disposals 1,900.000 497,121 9,998 18,7841 21,750 2,418,871 9,998 110,040} (1,2561 20,494 At 31 March 2024 1,900,000 498.335 2,418,829 Depreciatlon Al 1 April 2023 Charge for the year Disposals 419,876 37,319 18,7841 448,411 13,112 3,023 11,2571 14,878 432,988 40,342 {10,0411 At 31 March 2024 463,289 Carrying amount At 31 March 2024 1,900,000 49.924 5,616 1,955,540 Al 31 March 2023 1,900,000 77,245 8,638 1,985,883 All fixed assets are used for direct oharilable purposes, namely that of approved premises. Land and buildings were revalued on 13 February 2023 on an existing use basis by Sanderson Weatherall, Chartered SurveyoTS and valuers. The trustees do not consider there to have been any material change in value al 31 March 2024 and therefore the valuation has not been updated. The historic cost of the land and buildings is £83,88712023.. £83.8871. 16. Investments Listed investments Cost or valuation Al fj April 2023 Other movements 2,067,547 241,729 At 31 March 2024 2,309,276 Impairment At 1 April 2023 and 31 March 2024 Carrying amount At 31 March 2024 2,309,276 Al 31 March 2023 2.067,547 All investments shown above are held at valuation. Flnancial assets held at falr value Investments of £2,309,27612023-. £2,067,547) represent UK quoted investrnenls held in Central Board of Finance ol the Church of England. The historic Cost of inveslmenls is £1,042,879 {2023.' £1,042,879). 19
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (contlnuedj Year ended 31 March 2024 17. Debtors 2024 2023 Trade debtors Prepayments and accrued income Other debtors 735 80,813 6,385 108 71,863 2.261 87,933 74,232 18. Credltors: amounts falling due within one year 2024 2023 Trade creditors Accruals and deferred income Other creditors 3,832 71,670 78,297 12.079 48.165 2,962 153,799 63,206 19. Penslons and other post retirement benefits Deflned contrlbutlon plans The amount recognised in income or expenditure as an expense in relation lo defined contribution plans was £130,609 12023: £49,654). Defined benefit plans The disclosures below relate to the funded liabilities within the Wesl Yorkshire Pension Fund I'the Fund") which is part of the Local Government Pension Sch6me I'LGPS"). The funded nature of the LGPS requires the charitable company and ils employ&es lo pay contributions into the Fund. calculated at a level intended lo balance the pensions liabilities with investment assets. The employer's regular contributions to the Fund for the year endlng 31 March 2025 are estimated tts be £242,000. Additional contributions may also become due in respect of any employer discretions to enhance member benefits in the Fund over the next accounting period. The scheme was cltssed to new members with effect from 30 September 2014. The latest actuarial valuation of the charitable company's liabilities look place as al 31 March 2022. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the projected unil credit method. The principal assumptions used by the actuary in updating the lalesl valuation of the Fund for FRS 102 purposes were.. 20
Progress to Change Company Limited by Guarantee Notes to the Flnancial Statements (continued) Year ended 31 March 2024 19. Pensions and other post retlrement bengfits (contlnuedj Principal Actuarlal Assumptions Rlpon Housè 2024 4.8Q 2.6% 2.6% 2.6% 3.850 2023 2022 Discount rale CPI inflalitsn Rate of increase lo pensions in payment Rate of increase lo deferred pensions Rate L)f general increase in salaries 3.0'/0 3.OQ/o 3.OQ/o 4.250 2.70/0 3.950 Cardlgan House 2024 4.89 2.6% 2.6Q 2.6% 3.850 2023 4.79 2.7Q/o 2.70/0 2.70 3.95% 2022 2.7% Discount rate CPI inflation Rate of increase lo pensions in payment Rale of increas6 lo deferred pensions Rale of general increase in salaries 3.10 4.35'10 All other assumptions below are the same for Ripon House and Cardigan House. The mortality assumptions are based on the recent actual Tnortalily experienee of members within the Fund and allow for expected future mortality improvements. The assumed lire expectations on retirement age 65 are.. 2024 2023 2022 Retiring today.. Males Females 21 24 22 25 22 25 Retiring in twenty years.. Males Females 22 25 23 26 23 26 The approximate split of assets for the Fund as a whole (based on data supplied by the Fund Administering Authorilyl is shown in the table below. 2024 79.4¥0 2.8V 8.50/0 4.20 1.8'/0 2023 80.80A 3.30/0 6.90 2022 79.80 4.OQ/o 7.40/0 Equities Property Government bonds Corporate bonds Cash Other 2.1V/o 1.1Q Total 100.0% 100.0% The adual return on the scheme assets was £346,000 {2023'. £52,01)0). Sensitivity analysis on defined benefit oblig81ions are= 2024 2023 2022 Discount rale + 0.1./ Discount rate- 0.1 Q/0 Mortality assumption + 1 year increase Mortality assumption - 1 year decrease Salary rate + 0.1 % Salary rale - 0.1 % 3,959,000 4,08fj.000 3.919.000 4,125,000 4,026,000 4,014,000 4,051.000 4,177,000 4,007,000 4,221,000 4.121,000 4,107.000 5,279,000 5,482.000 5,190,000 5.566,000 5,389,000 5,367,000 21
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2024 Pensions and other post retlrement beneflts (continued) The statement of financial position nel defined benefit asset is delemin8d as follows.. 2024 2023 Present value of defined benefit obligations Fair value of plan assèts 14,020,000) 5,525,000 14.114,0001 5,086,000 1,505.000 11,505,000) 972,000 1371.000) Asset restriction 601,000 In accordance with paragraph 28.22 of FRS 102, the surplus has been restricted to the amount that can be recovered through redueed contributions in the future. Changes in the present value of the defined benefit obligations are as follows-. 2024 At 1 April 2023 Current service cost Past service credit Interest expense Benefits paid Contributions by plan participants Remeasur6menls'. Actuarial gains and losses 4,114,000 74,000 {1,0001 190,000 {165,0001 25,000 1217,000) 4,020.000 At 31 March 2024 Changes in the fair value of plan assets are as follows.. 2024 At 1 April 2023 Interest income Benefits paid Conlribijlions by employer ConlTibulions by plan participants Remeasuremenls.. Actuarial gains and losses 5.086,000 239,000 {165,0001 233.000 25,000 107,000 At 31 March 2024 5,525.000 The lolal costs ftsr the year in relation lo defined benefit plans are as follows: 2024 2023 Recognised in income of expenditure: Current Servi cost Past Servi credit Nel interest income 74,000 11,0001 (49,0001 24,000 131,000 10,000 141,000 Recognised in other recognised gains and losses.. Asset reslriclion Remeasuremenl of the liability.. Actuarial gains and losses 11,134,000) 1371,0001 324,000 1,327,000 1810,0001 956,000 22
Progress to Change Company Limited by Guarantee Notes to the Financial Statements {contlnued) Year ended 31 March 2024 20, Analysls of ¢harilable funds Unrestrlcted funds Gains and losses Al 31 Mar 2024 At l Apr 2023 Income Expenditure Transfers Unrestricted Funds Revaluation reserve Pension 1.804,669 1,816,113 601,000 2,484.550 12,497.156} 1806,0001 241,728 1,227,791 1,816,113 209.000 {810.000} Designated funds Cessation fund Redundancy fund Building fund Pension fund 90,000 124,000 220,000 330,000 60,000 86,000 430.000 230,000 150,000 210,000 650.000 560,000 4.985.782 2,484.550 12,358.156} 1498,2721 4,613,904 Gains and losses Al 31 Mar 2023 Al 1 Apr 2022 Income Expendilure Transfers Unreslricled Funds Revaluation reserve Pension 1.892,699 1.816,113 1498,0001 2,216,025 12.274,652) (29,4031 1,804,669 1,816,113 601,000 143,000 956,000 Deslgnated funds Cessation fund Redundancy fund Building fund Pension fund 90,000 124,000 220,000 330.000 90,000 124,000 220,000 330,000 3.974,812 2,216,025 12,131.6521 926,597 4,985,782 The description of the designated funds are as follows.. Cessation fund The anticipated costs that are likely lo be incurred in the event of cessation of the MOJ contract which runs until 31 March 2026. Redundancy fund - The calculated redundancy for all employees. Building fund - The estimate for potential major works lo Ripon House and Cardigan House. Pension fund The annual lump sum pension contributions for the next 3 years arising out of the 2019 Triennial Review of the charity's funds within the Wesl Yorkshire Pension Fund. 23
Progress to Change Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 21. Analysis of net assets between funds Unrestricted Funds Total Funds 2024 Tangible fixed assets Investments Current assets Creditors less than 1 year 1,955,539 2,309,276 502,887 1153,7981 1.955.539 2.309,276 502,887 1153,7981 Net assets 4,613,904 4,813.904 Unrestricted Funds Total Funds 2023 Tangible f xed assets Investments Current assets Creditors less than 1 year Delined benefit pension 1,985,883 2.067,547 394.558 163,2061 601,000 1,985,883 2,067,547 394.S58 163,2061 601,000 Net asset5 4.985,782 4,985,782 22. Analysis of changes In net debt Al 1 Apr 2023 Cash flows At 31 Mar 2024 Cash al bank and in hand 320,326 94,628 414,954 23. Operatlng lease commltments The total future minimum lease payments under non-cancellable operating leases are as follows". 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 3.214 5.573 2,786 3,214 8,359 24. Related parties No related party transactions took place in the period of account, other than certain trustees. remuneration and expenses already disclosed in note 14. 24