REGisfERED COMPANY NUMBER: 03571884 (England and Wales) REGIsfERED CHARTfY NUMBER: 1073312 REPORT OF THE TRUSTEES AND FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FOR MEirroN COMMUNITY TRANSPORT Hartley Fowler LLP Statutory Auditors Chartered Accountants 4th H(xJr Tuition Hou 27-37 St George's Road Wimbledon London SW19 4EU MERTON COMMUNrrYTRANSPORT CONTEKfs OF THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page Rwt ofthe Thisteeg I to 9 Rwort of the Indep¥thnt Auditors 10 to 12 Statement of Finandjl Artlvltles 13 statemwt of Flnandal Ilo•itl 14 StatemeTrt of Cjsh Flows 15 Nots¥ to th• Statement rf C•gh Flo 16 Notss to the Finandjl Ststements 17 to 28 MERTON COMMUNITY TRANSPORT (REGISTERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 Mlsslon, Aims, Objectlves and Vlsion . Mission: To help peopte stay connected and as5i5t in reduang the impart of sodal excluslon in society due to the kck of sutsble and affordatle, accessible transport xslutions. Aims: Merton Community TranspKJrt (Mcf) aims to pro￿de relief to the inhabitsnts of the L(￿dOn Borough of Merton and its surrounding districts who need affordable and accessble transp)rt because of age, mental or physical disability, sen￿ry impairmen¢ povety, loneliness, and social i￿latiOn. Objectives: Our charity's purposes, as set c4Jt in the thj'ethves contsined in the companvs MeMc￿nduM of assoclatKJn. are.. - To tenefft the public by providing transport relief to the London Borough of Merton resklents and Its surrouThJlr¥J distrlcts who ha￿ need because of age, mental or physKal di5abllity, sensory impairmert, or ￿vth. - To assist the char6tsble wLYk of cyganlsatlons and t•)dles that pronKte the relEf of such persons by provldlng approprlate servlce5. Vision.. To be the first point of contsrt for accessible travel and transpjrt that will support the enablement of organlsatSons and individuals, workn'ng in collaboration and partnershlp with the London Borough of Merton and the voluntsry secLor. Helping the people who are marginalised or have no access to publlc transport Wems. To devek)p varled transport solutions and projKts that prowde the servlce5 thal the people in the communty need. m￿ strives to redu￿ loneliness, isolation, and g)cial exclusion by c￿ne￿ng Feople to places and organisations to customerslclients whlle prwding a carlngi comprehensive approach to travel. OBJEcfivES AND AcrIvmES Eniuring our work dellvers our alms, objectsw vlslon, and mimlon: Mcfs constant and fccused review of our mlsslon, alms, and vlslon to deliver the obJectNes and attl￿t*S agreed upon each year was the catalyst to achieving an improved outcome over the preVic￿S 12 months. Being re￿lient during the past year's challenges and ct05ety watchlng our key activity also contrlbuted. eststli5hed the pmwgon of ow starKlard seryKes to the main groups of rEople we are Set up to helpi ensuring we remained fc£used on ￿r stated purp￿5. The charity's trustees strictly odhere to the Charlties Act 2011 sectTh 17(5) to ensure that It is an integral part of every actiwty that is for the public berft. The charity is well represented in the Community Transport Market environment through regular upjates and guidan￿ from the Community TranspLYt Asscciation UK (cfA). UK-Generdl Data Protecth)n Regulation, and through registratiors wlth The Infomiation Commissioner's offi￿ (ICO), and the Heet Operabon Recognition Schen* (FORS). The charty is a manber of the LOndL￿ Strategic Community TransFort Forum (Lscf), the London BOr(￿h of Merton Sustsinable Communitses & TranspJrt Partnershlp Board, the London Strateglc ￿ Forum, Merton Safeguarding Community Champion, Merton Connected Communty Engaganert Ne￿rk Rq)s, Merton Ccrfnmunity R&For6e Steering Groupi and Merton* Resp￿Se NetthDrk. MERTON COMMUNffYTRANSPORT (REGISTERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 OBJEcfivES AND AciivrrIES CHA￿Ty FOCUS m￿ has b￿n developing supp)rknng servkes and pro]￿, and this vision ha5 kept thri￿ng an(J growirvJ during the past year. Fc£using ￿ strategic appraisals and critical strategic objectives has present￿ m￿ wth a significant challenge: enhancing our fundrdi5ing effotts. Th regular tssk group meetings on finan￿ and furMlraisirMJ have helped steer the Charity through the varied thallenges it has faced. The Fundraisng and Development thjrdinatw and the Ccffimunity DeVelO￿ent and Training Cojrdinatrff have proven benefiaal to the Operational Team. Mcf contlnues to Champi(￿ communty Colla￿ratiVe relationship5 and closer partnerships, worklng hard to •Japt to the fvndraising envlronment to stture funding for delivering supportive servi￿. The funding we gained has strengthened our pjs1tlL￿ Within the communty. Mcf's close worklng relationship with the London Borough of Merton and the voluntsry sertor organisotior6 continues to assist in developing various sffies that support and benefit Merton's communlties in tsckting the varied social challenge& Those who benefit from our servlc Mcfs services continue to benefit the community of Merton and the surrounding dlstricts by offering varied transwrt solutions to our affillated member5 who find it difficult to mainstream transwrt. We also promde a dwr-to-door service to tske them to a cliniclhospitsl appointment or a GP surgery. Mcfs whole customer care approach to tKovidlng community transwrt seNices has placed us in good standing to deliver SFedal Education Needs and Disabllity (SEND) transport promsion, worknng With LBM to deliver transport travel solutions to children and young people with SEND, and to care Homes, individual resklents who are atfiliateJ and benefit from our seryices. Mcf continues to deliver Multi-occupancy Accessible TransFrfJt (MOAT), Transport for London (ffL) ￿'a1-A-l￿.de Servi￿ under tender. This present tender is delivered across seven torougts. We also work closely wlth communlty organisations, statutory tr￿dieS, and affillated schools by supplwng accesslble transwrt Worklng Wbth the Communlty Trnn5PQrt Assodatlon UK (cfA UK) Ckn 19th February 2025, the cfA-UK held its cfA Community BuildirKJ Session onllne on Zoom. Mcfs CEO was invlted to be one of the speakers to deliver a talk on how succession planning is vital to ensure your organisatrijn continue5 to thrlve and that the skills and knowledge y¢xJ have built up are not lost. ￿A advocates f￿ unsung heroes, organisatlons, and individuals who go above and beyond to ensu￿ everyone in our communities can access reliable tranS￿rt s￿nCes. IRnefits from being a member of the ￿A. They [Koft￿ ex￿llen￿ in the community transport sector through training, resour￿, publications, advice, events, consultancy, and project support for voluntary, communty, and accessible transwrL We amplfy the collective efforts of community trarwrt ky0￿derS in building stronger, more inclusive, and sustalnable communities through tranSpOrta￿On acros5 the UK. structure and Stsbillty Mcf has an Operations Team comprislng full-time, part-tlme, and contracted stsff. We are worklng hard to Increase the number of volunteers SUPFKSrting the Charity. Thls mixture helps us meet the many servi￿ requests from our member5. The team strurture starts with a strorrfJ board of TrusteeslDirectors and Operational Staff Team: Chief Executive Officer, Deputy Chief Executive offi￿r, Depot and Operational Manager, Community Deveknpment and Training Manager, Fundraising and Development CDJrdinator, Contracted Bookkeeper, Administration & Volunteerlng Coordinator, MIDAS Trainers, Ca9Jal Drive￿, and Passenger Assistsnts (PA). The Charity's volunteers play on essential role in ensuring the quality of our servi￿, including pro￿ding admlnistrative supwrt, drivlng, business developmenL fundraisirKJ, and serviThJ as trustees. Mcfs rejirtered Offi￿ is the Depot at Unft 2a Bat￿rth Road, CR4 38X. This sts swes the organisation's OFerntional need The vthides are parked at the dw and regulady serviced to compty with legislative requirements. Driv￿$ and PAS must undertake MIDAS training and Disdosure and Barring servi￿ (DBS) Ch￿ks. has implemented six-mwthly eyesight checks all drivers and one visit a year to an optiaan. MERTON COMMUNITY TRANSPORT (REGIsfERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 OBJEcfIvES AND AcrIvrrIES ACHIEVEMEMf AND PERFORMANCE Charitsble Attivities Pollcles & Procedures The Charitys polioi d¢xuments detsrmine the scope and quality of our $￿iCeS and are belng continually revie￿￿ and revised as necessary. We are reviewing and updating the Memorandum and Articles of Asso0ati￿ to set out a clear Mission, Vision, and Aims, and to align with our objectlves, Partnership Wothng Mcf strongly advocates for a good worklng relationshlp atross all departments wthin trte London Borough of Merton (LBM). The grant received each year from the Adult S¢xlal Core Fund has been helpful, including assisting Mcf in obtaining funding from various other funders, The various grant funding received enables Mcf to conbnue delivering transport services to people whe public or private transport is not avallable or does not meet the needs of Sery1￿ uS￿S with disabilities or general mobillty requ1￿men15. m￿,5 seryices help to redu￿ swal Isola￿On and empower people to live a better quality of life. The delivery of Dial4-Ride Servi￿ under the Multiple Occupancy AccessSble Transport (MOAT) contratts for Transport for London (TFL) remains one of Mcfs main income streoms. Our core servlces and Affiliated Group have grown. There has been a corsiart dedlne In the use of the Personallsed Tran5POrt '￿ (PTS). We have also slgnificantly increased our work with LBM through its online commissioning platfomi, providing sgble minlbuses and MPVS with drivers and passeThJer assistants to deliver SEND contracted work. This LBM service provis•)n has helped grow and balance its income. We continue to receive bookings for minibuses and MPVS from our affiliated organisations and Individuals. We are also looknng to increase the provision of Care Home Transpot Servi￿, which Is provided under contrart. The outstandlng challenge is to s&k out opportunitles to work closely with the National Health Service (NHS). The work we provide to Connect Health has not grown as expected, however, we continue to transport thelr clients to GP appointmentsi providing waitlng and retum services. Networks and Affiliatsd User Groupl The Charity's CEO attends regular coundl and voluntary communSty organisation5' meetings and has representation on several trA)ards. The CEO continues representlng ￿ at the Merton Communlty Response St*ring Group and the Focd Poverty Reswnse Network. Mcf, as a frontllne service provKler, develops and offets support serVI￿S to the communities as we work closely wlth partners such as L8M, Merton Connected, voluntary community groups, and affiliated Individuals. Minlbus Management and Poollng of Vehlcle% Mcf minlbus management and vehicle p)ollng se￿1￿ for affillated member organlsations that own their own vehicles is still being Offe￿d. This servlce consi5tentty provides supwrt to groups that cannot manage their vehicles. ha5 worked collaboratively wlth community organisations to use their vehicles to maximise resources, reduce costs, and benefit both organisats'ons. Although thi5 service ha5 been reduced, we are still looknng to develop It as it will help provide a more ny)dem fleet of vehicles to the community. The challenges of the Ultra-Low Emission Zone (ULEZ) extension have afferted many vehide 0￿ratiOnS, and the cost of purchasing new vehicles to upd&e Mcfs fleet Aso, second-hand market pr1￿5 have gone up. M Is close to m&ling this acbon of having all its fleet compliant by Cttober 2025. Training Mert(In Communty Transwrt (Mcf) continues to deliver hvJh-quallty training under the Minibus Driver Awaren￿ Scheme (MIDAS) and the Pas￿nger Assistance Training Scheme (PATS). scJpme5 have recertly been modernbsed, wth the dassroorn-basej theory modules now delivered entirely onllne. This trans￿On has significantly reduced the time and resour￿ Mcf ne&J5 to allocate to the th&￿ry compJnent of training. now ftKuses on prowding the dri￿ng and accesslble practical dements of iY)th MIDAS and PATS courses. Although the number of Driver Assessor Trainers (DATS) has decreased, this has not impacted N￿'S ability to deliver its In-hyw staff training or extemal training to schools, colleges, and volurtary sector oryanisations. As a result of these operatlonal improvements, Mcf has iEen able to streamline its trainlng schedule, reducing the frequency of regular monthly sessions and on-demand MIDAS training requests, while maintaining the same high standards of delivery and compliance. MERTON COMMUNITY TRANSPORT (REGIsfERED NUMBEIL. 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 OBJECllVES ANO ACnVmES Pemnalised Transport Servi￿5 (PTS) Mcfs Personalised Transport SeNce (PTS) wovkles essential tranS￿t for Merton residents who experience difficulties accessing main*ream wblic transport due to mobility impairments. The service is currenuy undergoing an operational review in ￿spOnSe to changing comrnunty needs. The number of PTS requests has dedlned Sin￿ the COVtD-19 pandemic, while the co* of paid drivers ond the shortage of volunteers have both increased. rerognises that many socially isolated and vulnerable individuals CO￿nUe to fa￿ challenges due to the cost-of-livirmj crisis, leaving them further isolated in their homes. Through the review, m￿ aims to revitalise the PTS model-encouraging greater portiopation and supporting individuats to overcome soclal exclusion and isolation. This work forms part of m￿'S broader commitment to reducing isolatlon, improving accessibillty, and ensuring that vulnerable residents remain connected to their community. Out and About Proiert and Excur51ons In 2023, Mcf successfully secured funding through the Communty Transp￿ Asx)ciatlon (cfA-UK) from the Department for Tran4Jort's (Dff) initiatSve to redu￿ loneliness across the UK. Using this grant, delivered the Loneliness and Isolation Project (UP), which brought together l(xal organisations to support individuals ft￿st affected by loneliness and S￿la1 isolatlon. The UP project enabled many peoF4e to reconnect with their communities through accessible communlty trdnsprt, empowerlng them to attend actfvitles and soaal events once again. It also supparted members to join organised trips to places of interest-helplng rebulld confidence, independentr, and sodal comections. Building on the success of UP, m￿ has sln expanded and rebranded the Excurslon Club as ,￿ut and At￿￿t, with funding sUPlXJrt from Merton Council's Civic Pride Fund. Membership has grown signiflcantty, and the project has had a measurable Fosltive impac¢ ￿ducing loneliness, fostering new fri￿Ships1 and Improwng parbclpants, overall well-being. Out and Ab)ut Project has qulckly become o hlghly popular and ovetsubS￿'be￿ service that consistently exceeds its particlpation and satisfaction tsrgets. The projert provides safe, accesslble, and affordable transport for social, cultural, arKI leisure actiMties-dir&tly benefiting older and dlsobled residents who would otherthise be unable to tske part due to moblllty challenges CK I￿k of sultable transp3rL The growing d￿and ftjr the Out and AtK)Ut Project dearly demonstrates its vital rde in promoting ￿la1 inclusion and enhancing the qualty of life for Merton's older and disabled communty. To meet this ongolng need, sustained funding will be essertSal to maintain and expand the service in future years. srRATEGIC RepoRT Flnancial positlon and rejults for the perlod The results are shown on the Statsment of Financial Attiwties. Income from charitable actiTrAties In 2025 was £1,480,192 compared to £1,167,022 in 2024, an increase of £313,170. Expenditure on charitable athvities in 2025 was £1,418,668 compared to £1,036,048 in 2024, an increase of £382,620. However, we are stlll on target to achleve an Improved budget for the coming year. The aim is to minimise costs by working effertively and stsbilbsing our tharity's activities income. The CEO work5 closely with the stsff team and receNes clear guidan￿ from the Board of Trustees. Constantty reviewlng mcc(y financial position at each board meeting and arranging financial sub-group meetings when requlred help for smarter deci5ion-makwig. Mcf is making monthly payments to reduce the £50,0¢)O Boun￿ Back Loan from the governmenL We conttnue to grow our stake In the delivery of SEND work. MCT 15 working towards reducing costs where w55ible and developing a more robust operational p3sition to be and able to QFerate and grow its core community transport Servi￿ as we expand SEND delivery and Oial-A-R"sde, We aim to continue to increase the ￿Selves, in line with rnccoy reserves policy. A detailed analysls of mccoy restricted funds is shown in nots 19 of these financial 5tstements. MERTON COMMUNITY TRANSPORT (REGIsfERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 STrATEGIC REPORT Finandal review Principal funding sources These continue to be our main sources of generatiT¥J iTKome. (l) Transport for Londm Dial-A-Ride (worlvng to Incre￿ the provision) (2) London Borough of Merton (Speoal EdLration Needs and Disabllity Transport Provision) (3) Q)ntract Care Home Tran5POrt Service (4) Group and Personal Transport Service {5) Grant inc(Nne. Investment pollLy and obiectlveg Charitable funds must be available for immediate use. therefo￿, should the￿ be any surplus funds, these bvould be held in an intttest-generating deposit account. Reserveg pollcy and going concern pollcy We operate on a reserve p)Ilcy that states that the level of unresbicted funds required should equal three months of operations to safeguard the organisation's core activities, protect options for future developmenL and achieve a level of worklng ca￿￿1, ensuring continulty as a going concem. The level of unrestricted funds on 31 March 2025 was £339,093, compared to £280,069 In 2024, which aligns with the three-month operational reserves target. The b)ard of trustees Is worklng wlth the CEO to shore up and strengthen the Mcfs reserves poliq po$￿'0n,, a) Mcf has been resilient in facing past challenges. We are revlewing our current community ServI￿S to achieve full cost recovery and are See￿ng new opportunitÈs to expand our and raise our Income in line with Mcfs Strategk ScNtiny by the board. We are particularly interested in expanding the Group arKI Personallsed Transport servi￿ (wrs) and increasing our vOlunt￿r Servi￿$, alLMg with other relevant se￿CeS, for the benefrt of our community. b) m￿ will continue to work closely wf(h LBM and the voluntsry community sector through the Community Response Steering Group meetlngs, also attending other Voluntsry Community Sector meetings. c) The trustees have revleNed and agreed on various options tt) ensure that the reserves are replenlshed and that Mcf remalrs going concem. These options inclthe revlewing sector to decide on vtable alternative Sour￿ of income. Mcfs fundralser and operations team are working hard to improve fundraising income. Prfnclpal rllks and uncertainties The trltstees Consid￿ and assess the risks to whlch the charity may LE exposed and have establlshed systems and procedures to review and manage them. The fi'nan￿ and Risk 5ub-commttee reviews and assesse5 all risks and puts in pla￿ suitable and suffiaent measures to mitigate them. This Info￿natIon is then recorded on the ￿sk Register and reported to the Trustee at quarterfy board m*tings for discussion and agreemenL The most ￿gnIfICant sp￿lfIC risks for whlch we tsve artive m￿gatiOn strategies in place are as follows.. l. Movement and replacement of lead staff (Sucwsion Plannlng Review) 2. Premises (Awaiting communication from LBM regarding any changes to the present Lease) 3. Vehide re￿acement (Replacing all vehicles that do not meet the ULEZ required standard by Ottober 2025). MERTON COMMUNrrY TRANSPORT (REGISTERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 srRATEGIC REPORT Future plans Sustalnability of the Charity The &Jard continues to review Charity's operatwl costs relative to its revenue and has planned to ensure future sustsinabilty. revievts its costs to ensure they are controlled to break even or increase ow the coming year. We are constantly reviewiNJ the effett of TfL's expansion and implernentation of ULEZ. Mcf Is considering how to address the challenges of cleanlng up London's air by removing pollutlng vehicles and ensuring all vehicles are compliant. MCTS only elertric vehicle is a mini-box van Used to supp)rt Commtsnity Moves ond the tranS￿rt of goods as and when required. Thls vehide Is also uwj for short-di5tance deliveries on behalf of voluntary sector organisations. Mcf has one electric cargo bike, primarily used as a shuttle for vehicle Maintenan￿ trips and for attending local meetings. extended ULEZ has xcelerated Mcfs phastrout of older mlnibuses through sales (Y scrapplng, and by repbclng them with new, compliant vehicles. This will redu￿ maintenance costs and enable Mcr to operate a more sustalnable fleet. Premisa continues to operate its servlces site from the Depot at Unlt 2a Batsworth Road. Focusing on working from the de￿t has allow&J us to grow the Community Transport charity business In Mert(m. The dedslon to expand the Depot Offi￿ and kitchen footprint has allowed Mcf to provide MIDAS classroom training from this spa￿. During the year, Mcf commissioned an extension to the Opuations Teorn's Offi￿ space by addin9 an Offi￿ for the Deputy Chief Execub've Offi￿r. The Offi￿ Spa￿ expansion wlll help to mitrgate current Spa￿ difflcutty due to irfftased Offi￿ staff numters. Charlty's Operation•1 Planlstrategy The Board worked with the CEO to develop a succession plan. Thls involved creating a staff successlon oryanisation chart, and an outlined implementation process in the development of the sU￿Ssion plan. This was reviewed at the board meeting during the year, Regulor operatsons staff meetin9s were held throughout the year, and we are working to update the core servi￿ that have been well established and have underpinned MCT over the years of OFeration as part of the long-temi organisotion's operational plan, Preparations are in place to amend QFerdtional practi￿ in re5p)nse to any changes or growth w(thln the Dial-a-Ride contract, We contlnue to strengthen our worklng relationship with LBM and the delivery of SEND transFQrt as we grow and establish strong relationshlps with Mcfs voluntary settor partnets and individual& srRucfuRE, GOVERNANCE AND MANAGEMENT Governlnq document The organi5ation Is a charitsble company Ilmit8J by guarantee, Incorporated an 28th May 1998 and registered as a charity (Wl 14th lanuary 1999. The company was establlshed under a Memorandum of A5￿ciation, which established the objertives and powers of the chartsble company and 15 governed under its Artides of Association. In the evert of the company being wound up, members are required to contribute an amount not exceedSng £1 each. Recruitment and appointment of new trustees Trustees are recruited by various means, including advertising on varlous Sc(lal Medla platfomis (Llnkedln), our own publlcatlons and on our website. The Board is elected in accordance ￿ the Articles of Associab'on. Trustees serve for a term of ￿ year and may be re-elected; any Trustee elected as Chair may serve for a maxlmum of five years. Appointment Is by eiettion at the Annual Generdl Meeling, which usually takes place in March each year. Oryanisatlonal stNcture m￿ has a Board of 10 who are responslble for the stratejic dirtt￿n and pjlty of the charlty. The current board members a from a variety of professional backgrounds. A scheme of delegation Is in Pla￿ among the present board mernbers, Decislon maklng The day-tQ-day respJn5ibllty for the provision of Servi￿ rests with the CEO, who works with the Management Team and OFmt#Jnal staff. The CEO, alorKJ with the management team, is resp)nsible for ensuring the charity delivets the specified services and meets key perf0m￿nCe indicators, and regularly upjates the risk register. The CEO is accountable for delegating sFecific ts5ks to the OFerational stAff, monitorfng their performance, and conductlng annual appyaisals. The CEO works closely with the knrd of Tnjstees and plans strategically for service development and imFKovements. Board of Tnjstees meets fomially at least four times a year, wlth sub-ccffimittee groups meetlng oddllonalty as and wh ne￿SSary to conslder FInan￿, Funding, Personnel, Policies, and prO￿jU￿. The Management Commtiee seeks to ensure that the needs of the charitys client group are appropriately refiected in the diversity of the Tnjstees. MERTON COMMUNITY TRANSPORT (REGISTERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE. GOVERNANCE AND MANAGEMEKr Inductson and training of new trustees TThstee5 are inducted and trained, and cary out their respxjnsibilities gukled by advlce and support provided by The National Cwncil for Vduntary Organi5ations and The Charty Commissi￿. Memters of the &)ard of Trustees are famillar wlth the charitvs practical work, having been inducted Into their p0S￿onS ￿ the Board of Tnjstees and the CEO. Board members are encouraged to visit the charity's office and are supplled with a copy of the Memctrandum and ArtKle5 of Associatlon along with the latest financial statements. At each meeting, financial and operational infOmati￿ is prowded, wf(h appropriate explanats'ons. Board membets are expetted to be aware of the various Charity Commission publications available to assist them in thelr duties as Trustee5. Key management remunerdtlon The Board sets the Chief Executive's pay. The pay of the remaining s￿l0r Management Team and staff is reviewed annualty, and prcwsal is submitted to the Board for thelr approval. Related partks TNstees must conduct Charity business solely for the gwd of the Charity and ts beneftciaries and dedare any relevant outslde interests. If a potential confilct of interest - actual or ￿tr￿1Ved - we to arlse, the relevant Trustee(s) would be recused from the decision-rnaking process. When management commlttee members represent an oryanisation that uses Mcfs servlcas, all transattlons ￿ undertaken on an am's-length basls, in accordance with standard ccmtractual tem)s. Shoutd a confilct of intsrest arise during a b)ard meeting, the Member ￿711 be excluded from partldpating In elther discuss1c￿ or voting. Risk manag•nert The Board of Trustees constantly reviews the major risks to which the charlty is exposed in its operations, human resour￿$, and finan￿. Operational risks are minimised by implementing suitable pollcie5 and procedures, which are regularly ￿VIewed. Insuran￿ FK)licles are in place to cover public Ilability, premises and contents, professional indemnity, vehldes, drivets, and voluntee￿. These are reVI￿d annually by the Board of Trustees. We fully oppreelate that funding from our principal funders, LBM and TIL, is not secure. We alm to develop stronger, secure, long-term relationships with these providers. It is imperative that other sources of funding and contrattual Income are sought. REFERENCÉ AND ADMINisfRATIVE DEfAILS Reglstsred Company number 03571884 (England and Wales) Reglstered Ch•rfty number 1073312 Reglstered office Unit 2a Batsworth Rood, Mrtcham Surrey CR4 3BX PrincipJl address Unit 2a Batswcrth Road Mitcham Surrey CR4 3BX MERTON COMMUNITY TRANSPORT (REGIsfERED NUMBER: 03571884) REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 Mr R J Makrn Chair Mr O Osayameh Treasurer Mrs C Chatles Mrs B Fraser Mrs F M Hibbert Mr S Hickey Mrs R Hocper Ms A Ocan Mr M Oiite Mr A Savage Company Secretary Mr F L Daw51 Auditors Ha￿eY Fowler LLP Statutw Auditors Chartered Accountants 4th Flcw Tuib'on House 27-37 St Ge¢yge's Road Wlmblojon L(md SW19 4EU Bonkers Barclays Bank UK PLC Barclays House 8 Alexandra Road London SW19 7JZ CAF Bank Limited 25 ￿ngS Hill Avenue Kings Hill West Malling Kent ME19 4JQ Chlef Executlve Offic4r Mr F L Dawson srATEMENT OF TRUSTEES, RESPON51BILrrIES The trustees (who are a150 the directors of Merton Community Transpcrt for the purposes of company law) are responsible for preparing the RepJrt of the Tru5t&s and the financial statements in accordan￿ with applicable law ond United Kingdom A￿OUntIng Stsndards (United Kingdom Generally Accepted Paounténg pracU￿). Compjw law reqLrires the trustees to prepare financHI statements each financial year. Under that law, tr￿tee5 have elected to wepare the financial statsments in accordance wlth United Klngdun Generally AC￿pted AccountirwJ Pracke (United 'ngdom Accounung Standards and applicable law). Under company taw the trustses must not approve the financial ststements unless they are satisfied that they glve a true aThJ fair vlew of the state of affairs of the charitable company and of the incoming resources and application of resources, Ir￿lUdI￿ the income and expenditu￿, of the charitsble company for that period. In preparing those financial ststements, the trustees are required to Sel￿t suitatde accounting policies and then appty them C{￿51*endy. obS￿e the methods and principle5 in the Charities SORP; make judgements and estimates that are reasonable and prudent; stste whether applicable accounting standards have been folk)wed, subjett to any material departures disck)sed and explained in the financial statements. prepwe the financial statsments on the goirg concem b3515 unless It is inarproprlate to presume that the charitsble company ill continue in busines5. MERTON COMMUNrrY TRANSPORT {REGIsfERED NUMBER: 03571884) REPORT OFTHE TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 srATEMENT OF TRUSTEES. RESPONSIBILfnES- continued The tnJstee5 are responsible for keeping proper accounting records which d15close with reasonable accuracy at any time the financial ￿￿tIOn of the charitable company a￿1 to enabte them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitsble company and hen￿ for tsking rea9￿able steps for the prevention and detectwjn of ftaud and ¢)ther irregularitles. In so far as the trustees are aware: thwe is no relevant audlt Infomiatton of which the charitsble company¥ auditOTS are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant a￿lIt Information and to establish that the aud￿Or5 are aware of that infonnotion. AUDrroRS The audi￿, Haruey Fowler LLP, wlll be proposed for re-appolntment at the forthc(Knlng Annual General Meetlng. RepK)rt of the trustees, incorporating a strategt repJL approved ty order of the knrd of trustees, as the company directors, on 28 January 2026 and signed on the board's behalf by.. Mr 0 05ayameh - Tnjstee REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MERTON COMMUNITY TRANSPORT Opinion We have audited the financial statements of Merton Qmnmunity Transport (the 'charita￿e companv) for the year ended 31 March 2025 ￿lch comprise the Ststement of Finanaal Activiti4 the Statement of Financlal Posiuon, the Statement of Cash Hows and notes to the finanaal statements, including a summary of significant accounting policies. The financial reporting framework that has been op￿led in their preparats.￿ ts applicable law and United Kingdom Accounts'ng Stsndards (United Kingd￿ Generally A￿pted Accounting Practice). In our oplnion the financial statements: give a tnje and fair Mew of the state of the tharitable companvs affairs as at 31 March 2025 and of its Incoming resour￿ and application of resources, including its Income and expenditure, for the year then ended. have property prepared in accordance with United Kingdom Generally Accepted Accounting Prdctice. and have prepared in accordance with the requirements of the Companie5 Act 2006. 8asls ftr opinion We coThJuLted our audit in accordan￿ wlth International Standards on Auditing (UK) (ISAS (UK)) and applicable law, Our responsibilities under those standards are further described in the Audltots, responsibllities for the audtt of the finanaal ststements section of our report. We are inde￿ndent of the charitable company in accordan￿ wlth the ethical requirements that are relevant tD our audit of the financkil Stst￿ents in the UK, includlng the FRC'S Ethical Stsndard, and we have fulfilled our other ethica responlbilities in aCCord￿ce with these requirements. We belleve that the audr( eviden￿ we have obtslned Is Suffia￿t and awjropdate to P￿de a basis for our opinion. Condugions relating to going concern In auditlng the financial ststements, we have concluded that the trustees, use of the golng concem basls of accountlng in the preparats'on of the financial statements is approprlate. Ba*d on the work we have perforrned, we have not IdentSfl&J any materlal un￿rtaIntieS relating to events or condIti￿$ that indNidually or collectlvelyi May cast significant thjubt on the charltable corrpany's abillty to continue as a going concem for period of at least ￿e1ve months from when the finarKial ststements are aUtI￿rised for issue. Our respjnsitm'lities and the respx)nsibllities of the tr￿tea8 wlth respect to going concem are described in the relevant s*ions of this ￿Port. Other Informatlon The trustees are responsible for the other infomiation. Ttr￿ other Infomatlon comprises the Informatlon }￿lUd￿l In the Annual Rewrt other than the financial statements and our Rewrt of the Independent Auditors thereon. (￿r opinion on the financial statements does not cover the other information and, ex￿pt to the extent otherwlse eXplic￿Y stated In our report, we do not express any form of assurance conclusion thwn. In connection with our audlt of the financial ststements, our responsibillty is to read the other information and, in dolng so, consider whether the other infomiauon is materially inconslstent w¢th the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we Id￿tify such material inconsistendes or appa￿nt material Misstateff￿nts, we are required to determlne whether thls gives rise to a material misststement in the finanaal statements themselves. If, based on the work we have performed, we conclude that there Is a material misstaternent of thi5 Other infomation, we are required to report that fatt. We have nothing to rep￿t in thls regard. Opinions on other matters prescrlbed by the Companles Att 2006 In our opinion, based on the work undertaken in the course of the audit: the infO￿nation given in the Repxjrt of the Trustees the financial year for wthich the financial statements are prepared Is consistent wth the financial statements. and the Rq)Q*t of the Trustees has been prepared in accordan￿ with applicable legal r4uirements. Matters on whlch we are requlred to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtzined in the course of the audit, we have not Identifi￿ material misstatements in the Report of the TnIst￿. We have nothing to report in respect of the following mattws where the Componies kt 2006 requlres us to repc#t to you if, in our opinion: adequate accounting records have not teen kept or returns adquate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting r￿d$ and retums. or rtain disdosures of trust￿5, reMUnera￿On spErified by law are not made. or we have not received all the information and explanati￿5 we require for our audiL -iO- REPORT OFTHE INDEPENDENT AUDITORS TO THE MEMBERS OF MERTON COMMUNITY TRANSPORT Responslbilities of trustees As explained rn0￿ fully in the Statement of Trust￿. Responsibiiiiles, the trustees (who are also the directors of the charitable cornpany for the purpow of company law) are reSp￿￿Ible for the preparation of the finanaal statements and for being sat15fied that they give a true and fair view, and for such internal control as the trustees determine is nLre&Eary to enable the preparatlon of financial Stat￿￿ents that are free from matenal misstatemenL whether due to fraud or error. In preparing the financial statements, the trustees are responsible ts assessing the charrtable company's ability to continue as a going concem. disclosing, as applicable, matters ￿lated to going cOn￿M and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease owations, or have no realistic altemative but to do so. Our responsibilitles for the audit of the financlal statements Our objectives are to obtain reag)nable assurance about whether the financiol sL*ements as a whole are free from material misstatdnent, Wheth￿ due to fraul or error, and to Is%Je a Rewt (rf the Independent Auditors that includes our opini￿. Reason*le assuran￿ is a high level of assurance, t￿t 15 not a guarantee that an audft conducted in accordan￿ wlth IS4s (UK) will always det&t a material mlsstatement when it exssts. m￿ternents can arise from fraud or error and are consldered material if, individually or in the aggregate, they could reasonabty be exFECted to Influence the emnomlc decisions of users tsken on the basis of these financial statements. The extent to which wr procedures are capable of detecting Irregularibes, induding fraud is detsiled below: We Identlfy and assess rlsks of material mlsstatement of the flnanclal statements, whether due to fraud or error, and then design and perform audit procedures ￿sponSive to those rlsks, includlng obtslning audlt evfjden￿ that Is sufficient aTrJ appropriats to provide a basls for cMJr opinion. In Identlfylng and assesslng rlsks of material mlsstatement In rwect of irregularitles, includlng fraud and non-complian￿ wlth law5 and regulauons. we considered the follo5￿ng. - the nature of the industy and s*ir, control environment and the tharitles activities; - results of our enquirles of management atout their own Idents'flcatK￿ and assessment of the risks of Irregularities. any matters we Identifl&a having obtsined and revlewed the charitsble company's dc£umentstion of their wI￿leS and ocedures; identifying, evaluating and complying with laws and regulations and whether they were aware of any instan￿5 of non-complian￿. - detecting and rwnding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. the intemal controls estsblished to mitigate risks of fraud or ￿)n-coMplIants with lows and regulatlons; and the matters discussed among the audit engagement team regarding how and where fraud might occur In the financlal ststements and any potential Indicators of fraud. Ns a result of these prcc8Jures, we considered the oppjrtunities and In￿ntIVeS that may exist withln the organisatlon for fraud. In c(xnmon with all oudits we are also required to perform SFecific pr[￿edureS to reswnd to the rlsk of management override, We also obtained an understsnding of the legal and regulatory ftamework that the charitable company operates In. The key laws and regulations we considered in this context Included the charl￿eS 2011, UK Companles Att and tsx legi51atlon. In addition we considered provlslons of other laws and regulations that do not have a dirKt efttt on the financral sL*ements but Complian￿ with whlch may be fundamental to the charitsble companvs abillty to operate or to avoid a material penalty. As a result of performlng the above, we did not identrfy any key matteJs related to the wtential risk of fraud or non-complian with laws and regulations, Our procedures to respond to rlsks identffjied included the following: revkwing the financial statement disclosu￿5 and testlng to supporting dooJmentstiDn to asses5 Complian￿ with provision of relevant laws and wulations described as hamng a direct effect cffi the financial statements, -enquiring of management concerning actual and potsntial lttigation and claims; -perforning analytical prO￿ureS to identify any unusual or unexFLfted relatimships that may indicate risks of matertal mi5ststement due to fraud. -revw4ing minutes of meetsngs of those charged wSth governan￿, reviewing internal ￿portS, and -in addressing the risk of fraud through management override of controls, testing the appropriateness of joumal entrles and other adjustments, asse55ing whether the judgements made in making ￿cOUntIng estimate5 a￿ indicative of a wtential bias and evaluating the busine55 rots"unale for any significant transadims that are unusual or (xtside the nomal course of business. -li- REPORT OF THE INDEPENDENT AUDThORS TO THE MEMBERS OF MERTON COMMUNITY TRANSPORT We also communicAted relevant identified laws and regulations and tM)tential frd￿l risks to all engagem8tt team menbers and remairEd alert to any I￿lication of fraud or n(TrcoxntAiance with laws and regulations throughout the audit. A fvrther description of our reswnsibilitses fcy the audit of the financial statements is I￿ated on the ￿nanCIal Repjiting Coundl's website at w￿W.rrQorg.Uklauditor5reS￿KMslt1lltleS. This description fomis part of our Report of the IndepeThaent Auditors. Use ol our report This report is made soldy to the charftsble companvs members, as a ￿dy, In accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audlt work has t￿n undertaken so that we might state to the charltsble company's members those matters we are rqulred to state to them in an auditorg report and for no other purpose. To the fullest extent permitted by law, we do not a￿pt or assume respjnslbility to anycK* 0￿r than the charitable company and the charitable company's members as a ￿dy1 for our audit work, for this re[￿, or for the opini￿$ we have fomHI. Jonatsn As nior St for and on behalf of Hartl Statutory Auditors Charttted Accountants 4th Flcor Tuition House 27-37 st Georgds Road Wimbledon L(mdon SW19 4EU Auditor) wler LLP Date: .... -12- MERTON COMMUNITY TRANSPORT srATEMENT OF FINANCIAL AcrIvmES (INCORPORATING AN INCOME AND EXPENDrruRE AccouKn FOR THE YEAR ENDED 31 MARCH 2025 2025 Totsl funds 2024 Total funds Unrestrirted fvnd Restrirted nds Notes INCOME AND ENDOWMENTS FROM Charitable artivities Transport servi 1,385,989 76,537 1,462,526 1,148,807 Investment Income Other inccyne 16,677 16,677 17,831 Totsl 1,403,655 76,537 1,480,192 1,167,022 EXPENDrnIRE ON Raising funds 1,391 1,391 Charftable artivitles Transpjrt seprflces 1,343,240 74,037 1,417,277 1,036,lJ48 Total 1,344,631 74,037 1,418,668 1,036,048 NEf INCOME 59,024 2,500 61,524 130,974 RECONC[L￿TION OF FUNDS T(rtal funds brought forward 280,069 5,613 285,682 154,708 TOTAL FUNDS CARRIED FORWARD 339,093 8,113 347,206 285,682 The ￿ fom part of these flnandal 5tstern￿ts -13- MERTON COMMUNrrY TRANSPORT (REGISTERED NUMBER: 03571884) srATEMENT OF FINANCIAL posrrIoN 31 MARCH 2025 2025 2024 TarvJlble a55ets 14 306,938 103,402 Debtor5 Cash at bank and in hand 15 135,915 150,265 202,216 71,985 286,180 274,201 CREDrroRS Amounts falllng due wlthin one year 16 (135,898) (74,421) NEf CURREKf ASSErs 150,282 199,780 TOTAL ASSEfs LESS CURRENT UABILrrIES 457,220 303,182 CREDITORS Amounts falllng due after more than one year 17 (110,014) (17,500) NEf ASSETS 347,206 285,682 FUNDS Unre5tr1tted funds Restricted fjjnds 21 339,093 8,113 280,069 5,613 TufAL FUNDS 347,206 285,682 The financlal ststements were approved by the Board of Trustees and authorlsed for issue on 28 January 2026 and V￿re signed on its behalf by,, Mr 0 05ayameh - Trustee Mr R l Makjn - Twstee The notes form part cf these financial statemu -i+ MERTON COMMUNrrY TRANSPORT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Cash flows from operating activltles Cash generated from oFerations interest pald Intwt element of hi￿ purchase payments paid 212,276 (572) (3,624) 16,019 (825) Net cash provtded by operating actlvities 208,080 15,194 Cash flows frtyn Investing attivitie• Purchase of tangible fixed assets Sale of tsnglble fixed assets Interest rtteNed (270,332) 17,85D 989 (71,016) 17,831 Net cash used In Investing attmdes (251,493) (52,801) Cash flows from flnanclng actlvltie• Loan repoyments In year Capltal repayments In year (10,000) 131,693 (10,000) Net cath FKovlded byl(used In) financing activitles 121,693 (iO,O(M)) ChJnge In cash and caih equlvalents In the reportlng perlod Cash and ush equlvalents at the beginnlng of the reportlng perlod 78,280 (47,607) 71,985 119,592 Cash and cash equfvalents at the end ol the reporting period 150,265 71,985 The notes fomi part rf these finarrtjal ststern￿ts -15- MERTON COMMUNITY TRANSPORT NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 RECONCIUATION OF NEf INCOME TO NEf CASH FLOW FROM OPERATING AcnvIfIES 2025 2024 Net Income for the reportlng period (as per the Ststement of financial Artivsties) Adjusbnents for: Depreciation charge5 Profit on di5P05al of fixed assets Interest received lrterest paid Irtere5t element of hi￿ purchase and finan￿ lease ￿nts1 payments Decreasel(increase) in debtors Increasel(decrease) in creditors 61,524 130,974 65,623 (16,677) (989) 572 3,624 66,301 32,298 32,579 (17,831) {384) 825 (118,019) (12,125) Net cah provlded by operjtlons 212,276 16,019 AfiALYSIS OF CHANGE5 IN NEf FUNDS At 114124 Cash flow At 3113125 Net cash Cath at bank and in han 71,985 78,280 150,265 71,985 78,280 150,265 Finan￿ leases Debts falling due within l year Debts falllng due after l year (131,693) (131,693) (10,000) (7,500) (io,ooo) (17,500) 10,000 (27,500) (121,693) (149,193) Total M,485 (43,413) 1,072 The notes forni part ofthe5e fiwcial ststements -16- MERTON COMMUNXTY TRANSPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 GENERAL INFORMATION The charitable company is incorporated and thjmiciled in the United lfjngdom. The address of its registered Offi￿ is Un 2a Batsworth Road, m￿chaM, Surrey, CR4 3BX. The regIst￿ed number of the company is 03571884. Tr ￿gIStered number of the charity is 1073312. ACCOUNTING POLICIES Bas15 of preparing the financial statements The financial statements of the charitable companyt whith is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reportin9 by Charities., Ststement of Recommended Prartice appllcable to charities preparing their accounts in accordan￿ with the Financial Repjrting Stsndard applicable in the UK and Republic of IrelaNI (FRS 102) (effectNe l Jantsary 2019),, Financial Reporting Standard 102 The Flnancial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Art 2006, The financial statements have been prepared under the historical cost conventlon. a) Preparat¢on of the accounts on a going concem basls The tn&ees consider that there a￿ rn) material Un￿rtaIntieS abjut the charity's ability to continue as a going concem. The trustees have undertsken a review of going concern and have put in plats a set of guidelines, as set out in the reseNts policy section of the Trusiees Report, to mitigate any further reduction In the reserves of the charity. The trustees have agreed varlous options to replenlsh the reserves so as to ensure that the charity is a going concem, these options are noted in the Flnancial Reviebv sectK)n of the Trustees ReporL b) Signlficant judgements and estimates Preparation of the financial ststements requires monagement to make signIf￿ant Judgements and estimates. The items in the financial statements where these judgements and eskn'mates have bttn made include: (l) Tanglble fixed assets. Plant and machinery and motor vehicles are detYLriated over the useful Ilve5 taking into account residual values, where appropriate. (li} All(Kadon of costs. Tre allocation of supp(wt and governan￿ costs between charitsble and expenditure categories. Incryne Tumover is the amount derived from the wovlsion of gootslseThlces, and stated after trade discounts, other sales tsxes and net of VAT. All income Is r&ognised In the Statsment of Finandal Att￿ltIeS On￿ the charty has entitlement to the funds, it Is probable that the Income will be received and the amount on be measured reliably. Income from donatlons or grants Is recognised when the charlty has entitlement to the funds, any perfom)an conditicns attached to the donations or grants have been met, It Is probatle that the income will Le r￿e1Ved and the amount can be measured reliably. [r￿￿e from contracts In resFect of servKes provided is recognlsed whpffj, and to the extent that, perf0rrnan￿ cKcurs and is rnea5ured al the falr value of the consideration re￿1Vable. Donated seNices provided by volunteers have not been IndUd￿ in these accounts. Investment Income 15 Included on a re￿1vable basls. Expenditure aiylities are rerognised a5 expenditure as swn as there is a legal or con5truttive obligation committiw the charity to that expenditure, It is probable that a transfer of ￿onOmIC benefits will be required in settlement and the amount of the obligation can iE m&isured reliably. Expenditure is accounted for on an accruals basi5 and has been classified uThJer headings ihat aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been all(xateJ to activities on a basis consistent wlth the use of resources. ChJr•table activities Charitsble expenditure comprSses those costs incurred by the charity in the delivery of its activities and service5 ts its beneficiaries. It include5 both costs that can be allc(ated diredy to such actiwbes and those costs of an indirect nature necessary to support them. -17- MERTON COMMUNITY TRANSPORT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POUCIES - continued fj0vernan￿ costs Governance costs include those costs asscKiatsd with meeting the constitutional and ststutory requirements of the charity and indude the Independent examiner's fee. Allocatlon and apportionment of costs As the charity has only one activity, that of supplying ￿ible transpjt to the Community, costs of charitable artiviknes comprising the cost of running the organisation induding support costs are charged to the total activty. Tangible flxed assets Dep￿lation is prowded at the following annual rates in order to write off each asset over fs estlmated useful Ilfe or, if hdd under a finance lease, over the lease temi, whithever is the shortw. Improvements to property offi￿ equipment M¢Jtor vehicle5 io% to 25% on cost 33% ijn cost 250h ￿ cost Tangible fixed assets a￿ stated at cost or valuation less depyeclatlon. Fixed assets costlng more than £500 are capitallsed. Taxation As a registered charity, the organisation Is &Kempt from income and cOrp[Kat￿ tsx to the extent that ts Income and gains a￿ applicable to charitable purposes. Fund accountlng Unrestnrted general funds czn be used In accordan￿ with the charitsble objettives ot the discretion of the trustees. Restricted funds can only be used for particular restrlcted purposes within the objects of the charity. Restrictions arlse when specified by the donor or when funds are rai*d for particular restricted purposes. Local Authority grants are treated as restritted fiJnds with any unspent balan￿ carrled forward unt51 the temis of the grant hove been fuffill8J. Further explanatlon of the nature and Purpl￿ of each fund Is induded in the n¢)tes to the finanaal statements. Hlre purchase and leaslng commitments Assets obtalnd under hire purchase contracts or finan￿ leases are capitsllsed in the Ststement of Hnanaal Positlon. Those held under hire purchase contracts are depreLiated over their estimated useful lives. Those held under finan leases are deprecSated over thelr estlmated useful Ilves or the lease term, whlthever is shorter, The interest element of these obligations Is ctrorged to the Statement of Financlal Attlvities over the relevant FerlLMI. The capltsl element of the future payments is treated as a liabillty. Rentals pald under operatlng leases are charged to the Ststanent of Finandal Activities on a straight Ilne basis over the iod of the lease. Pension costs and other post-retlrement ben¢fits The tharitable company operates a defined Contribution t￿nsIOn scheme. Contributions payable to the charltable company's pension scheme are charged to the Ststement of Financial ktivities in the period to which they relate. Basic financial InstNments The charity only has financial instruments of a klnd that qualify as basic financial in5tnJments. Basic financi31 instruments are initially recognised at transaction value and subsequenuy nEa5ur&J at their settlement value. Cash at bank and in hand Cash at bank includes bank deposit accounts and short term highly liquid investments with a shLYt mabjiity of three rn￿th5 or less from the date of acquisition or OFening of the dep)sit or ￿MIlar occount. Trade and cther debtors are r￿￿nISed at the setuement amount due. Prepayments are recognised at the invcic&J cost epaid. -18- MERTON COMMUNrrY TRANSPORT NOTES TO THE FINANCIAL STATEMENfs - Cl￿tInued FOR THE YEAR ENDED 31 MARCH 2025 AccoufimiG POLICIES- continued fJeditots are reccM]nised vihen the charity has a present obllgatsn resulting fr(m a past evert that will probabty result in the transfer of fuTrJs tt) a third paty and the amount due to settle the obligation can be measured or estimated reliaLIy. Creditor5 are noM￿llY recognised at the settlement aff￿unL Impairnient Assets not measured at falr value are reV￿d for any indlcatlon that the asset may be impairèj at eath balano she& date. If such indicatlon exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated arKI compared to the carrylng amourt. Where the carrying amount exceeds its recoverable amount, an impairment loss is rLrognised In kyofit or loss unless the asset is carried at a revalued amount where the impairm￿t 1055 is a revaluation decrease. INVEsfMENT INCOME 2025 2024 DepDSit account interest INCOME FROM CHARrrABLE AcnvrriES 2025 2024 Activlty Transwt Se￿￿5 TransP¢Yt service5 Income for the use of buses Grants 1,385,989 76,537 1,057,652 91,155 1,462,526 1,148,807 Grants re￿ived, Included in atNJve, are as ft)Ilows'. 2025 2024 London Borough of Merton - Adult Social Care Grant The Edward Gosllng Grant West Indian Families and FrIe￿IS Assoclatlon Grant Merton Givlr¥J Grant London Borwgh of Merton - Cfvlc Prlde Grant LorKlon Communty Foundabon - Happy Shopper Grant Bru￿ Wake Grant The aothworkers Grant The Percy &'lton Grart 35,000 35,O¢Jl 10,000 lo,￿0 10,000 14,655 11.500 18.335 11.613 2,500 5,LK)O 4,089 76,537 91,155 -19- MERTON COMMUNrrYTRANSPORT NOTES TO THE FINANCIAL STATEMENfs - contlnued FOR THE YEAR ENDED 31 MARCH 2025 RAISING FUNDS other trading activitses 2025 2024 Bad debts 1,391 CHARrrABLE ACTIVMES cosrs Dirett Costs (see note 7) Support Costs ( note 8) Totsls TrdnSPOrt servtss 1,087,770 329,507 1,417,277 DIREcr cosrs OF CHARrrABLE AcrivrriES 2025 2024 staff costs Vehicle runnlng costs DepreciaUon 661,283 360,864 65,623 454,308 255,078 32,579 1,087,770 741,965 SUPPORT cosrs Governance costs Management Finan Totsls Transwt seivi 301,666 4,196 23,645 329,507 SupFX)rt costs, induded in the above, are as follows: Managwnent 2025 Trar6port serv1￿$ 2024 Total acuvities Wage5 S(Kial securty Pen51ons Other operatsrvj leases Rates and w [￿uranCe Light and heat Telephone Postage and 5taknEry Sundries Repairs and renewals Training staff experLses Travel and sub95t￿ Equipm C(mputer expenses Sub5crlptions 178,937 18,292 12,039 24,0(Ki 629 5,418 4,3LM) 4,049 8,372 1,412 162,420 16,221 11.510 25,031 237 3,422 5,882 3,272 10,530 593 4,136 1,764 s￿80 2.228 2,569 5,O¢XI 2J62 6,420 2,922 5,656 2,8CkS 6,156 3,470 Carried forward 293,338 263,063 -20- MERTON COMMUNrrY TRANSPORT NOTES TO THE FINANCIAL STATEMENTS - C(￿tinUed FOR THE YEAR ENDED 31 MARCH 2025 SUPPORT cosrs. contirnied Management. ￿ntInued 2025 Trarwjort servlces 2024 Tctsl artivities Brought ftjrward Legal and prirfessional fees Bank charges 293,338 7,836 492 263,063 7,227 378 301,666 270,668 Flnjnce 2025 Transport service5 2024 Tctsl Bank loan Intuest Hire purchase 572 3,624 825 4,196 825 2025 TranS￿t servi 2024 Totsl activities Auditorfs remuneration ALKlitors' remuneration for non audit w