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2023-03-31-accounts

Reading Community Welfare Rights Unit

Charity No. 1074557

Company No. 03626105

Trustees' Report and Unaudited Accounts

31 March 2023

Reading Community Welfare Rights Unit Contents

Pages
Trustees' Annual Report 1
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Accounts 8
Detailed Statement of Financial Activities 15

Page 1

Reading Community Welfare Rights Unit Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 03626105

Charity No. 1074557

Principal Office

South Reading Community Hub 252 Northumberland Avenue Reading Berkshire RG2 7QA

Registered Office

South Reading Community Hub 252 Northumberland Avenue Reading Berkshire RG2 7QA

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

M. Ayub J.L. Hughes P.G. Kayes R. McEwan M. O'Connell L.K. Owen P. Thomas

Key Management Personnel

Chair Peter Kayes Chief Executive Officer Matt Harrison

Accountants

Lambert Martin Ltd 33 Old Bath road Sonning Reading Berkshire RG4 6SY

Page 2

Reading Community Welfare Rights Unit Trustees Annual Report

OBJECTIVES AND ACTIVITIES

The objectives of the service are to benefit the population of Greater Reading by the relief of poverty, sickness and distress. These objectives are achieved by giving advice and assistance to people in respect of their rights to benefits as required.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit both when reviewing the service's aims and objectives and when planning its future activities.

RCWRU provides advice and support to people on their benefits claims, including to people in work, not in work and to those seeking to get into work. Examples of when the support is needed are when people are wrongly denied benefits by the Department of Work and Pensions (DWP), when people have their benefits cut after a review where the assessment is faulty, or where the process of completing the complex paperwork is beyond the individual applicant’s capabilities. Support can consist of simply providing advice including what their entitlement should be but more often involves helping clients make formal appeals and taking unresolved cases to tribunals where we will work with the clients to make their case.

ACHIEVEMENTS AND PERFORMANCE

The 2022-23 financial year has seen Reading Community Welfare Rights Unit (RCWRU) continue to provide its service to clients across Reading. Methods of working have been developed as a result of the Covid pandemic and experience gained while continuing to support the residents. This has resulted in a more flexible service to clients where we endeavour to use the most suitable arrangements for working with clients. This includes continuing to meet clients by appointment at our office, as well as providing support over the telephone or email but also meeting clients at other venues which are easier to get to, including meeting them at home where necessary.

During the year we also joined a partnership with six other charities in Reading, The Tackling Poverty Partnership, in order to strengthen our ability to support people in a wider variety of ways through the work of these other charities to whom we can pass clients on as well as receiving referrals from these charities to us. The partnership has secured funding to continue our work for the three years. In addition we have been successful in gaining a grant from the Henry Smith Charity to expand our work and a number of other smaller grants from local charities

Across the year we supported 553 clients and the work of the team secured £408,468 in benefits from DWP, money which is paid directly by DWP to the people we have supported. This is a significant contribution to our Clients' ability to live independently, avoiding poverty and getting into debt. In the past 3 years the total benefits secured for clients has been over £1.6m

Once again I must thank our staff and volunteers, including trustees, for their commitment to our work, which is often life saving for our clients.

FINANCIAL REVIEW

The 2022-23 financial year has seen Reading Community Welfare Rights Unit (RCWRU) continue to consolidate its position and finances. The organisation continues to be impacted by the effects of the pandemic and the cost of living crisis, and the funding that is available to meet our growing demand. RCWRU is still committed to securing reserves of 2 months of funding

PLANS FOR FUTURE PERIODS

Page 3

Reading Community Welfare Rights Unit Trustees Annual Report

Looking to the future RCWRU is aware of an excess in demand for our services and anticipates a significant increase in demand post pandemic. We trust we will be able to continue to support our community in years to come.

STRUCTURE, GOVERNANCE AND MANAGEMENT

RCWRU is controlled by its governing document, The memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. In accordance with the Memorandum of Association each present member has undertaken to contribute the sum of £1 in the event of winding up. As the service is a registered charity, any surplus upon a winding up would be distributed to another charity with similar objects, as the members are prohibited from benefiting from the company.

The Board seeks to recruit new trustees from the wider community in Reading to provide a range of skills and views.

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

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

P.G. Kayes Trustee 21 July 2023

Page 4

Reading Community Welfare Rights Unit Independent Examiners Report

Independent Examiner's Report to the trustees of Reading Community Welfare Rights Unit

I report to the charity trustees on my examination of the financial statements of Reading Community Welfare Rights Unit for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

2023-10-13

Samun Omer

Holy Brook Accountants

Curious Lounge, 1st Floor, Pinnacle Building Tudor Road Reading RG1 1NH

Page 5

Reading Community Welfare Rights Unit Statement of Financial Activities

for the year ended 31 March 2023

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Total
Expenditure on:
Other
6
Total
Net gains on investments
Net income/(expenditure)
7
Transfers between funds
Net income/(expenditure)
before other gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Unrestricted
funds
2023
£
2,525
0
Restricted
funds
2023
£
-
137,302
Total funds
2023
£
2,525
137,302
Total funds
2022
£
6,929
128,819
2,525 137,302
132,094
139,827
132,094
135,748
139,301
- 132,094
-
132,094
-
139,301
-
2,525
-
5,207
-
7,732
-
(3,553)
-
2,525 5,207 7,732 (3,553)
2,525
6,950
5,207
17,986
7,732
24,936
(3,553)
28,489
9,475 23,193 32,668 24,936

Page 6

Reading Community Welfare Rights Unit Balance Sheet

at 31 March 2023

Company No.
03626105
Notes
2023
£
Fixed assets
Tangible assets
-
-
Current assets
Cash at bank and in hand
74,986
74,986
Creditors:Amount falling due within one year
9
(42,262)
Net current assets
32,724
Total assets less current liabilities
32,724
Net assets excluding pension asset or liability
32,724
Total net assets
32,724
The funds of the charity
Restricted funds
10
Restricted income funds
23,193
23,193
Unrestricted funds
10
General funds
9,531
9,531
Reserves
10
Total funds
32,724
2022
£
2,259
2,259
50,684
50,684
(28,007)
22,677
24,936
24,936
24,936
17,986
17,986
6,950
6,950
24,936

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 March 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 21 July 2023

And signed on its behalf by:

P.G. Kayes Trustee 21 July 2023

Page 7

Reading Community Welfare Rights Unit Notes to the Accounts

for the year ended 31 March 2023

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 8

Reading Community Welfare Rights Unit Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 9

Reading Community Welfare Rights Unit Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 10

Reading Community Welfare Rights Unit Notes to the Accounts

3 Statement of Financial Activities - prior year

3 Statement of Financial Activities - prior year
Unrestricted Restricted
funds funds Total funds
2022 2022 2022
£ £ £
Income and endowments from:
Donations and legacies 6,929 - 6,929
Charitable activities - 128,819 128,819
Total 6,929 128,819 135,748
Expenditure on:
Other 96 139,205 139,301
Total 96 139,205 139,301
Net income 6,833 (10,386) (3,553)
Net income before other
gains/(losses)
6,833 (10,386) (3,553)
Other gains and losses:
Net movement in funds 6,833 (10,386) (3,553)
Reconciliation of funds:
Total funds brought forward 117 28,372 28,489
Total funds carried forward 6,950 17,986 24,936
4 Income from donations and legacies
Unrestricted Total Total
2023 2022
£ £ £
2,525 2,525 6,929
2,525 2,525 6,929
5 Income from charitable activities
Unrestricted Restricted Total Total
2023 2022
£ £ £ £
Contract Income 0 79,066 79,066 79,000
Grant Income - 58,236 58,236 49,819
0 137,302 137,302 128,819

Page 11

Reading Community Welfare Rights Unit Notes to the Accounts

6 Other expenditure

6 Other expenditure
Unrestricted Restricted Total Total
2023 2022
£ £ £ £
Employee costs (55) 105,912 105,912 111,000
Premises costs 0 3,039 3,039 3,052
Amortisation, depreciation,
impairment, profit/loss on 0 2,258 2,258 949
disposal of fixed assets
General administrative costs 0 15,018 15,018 19,558
Legal and professional costs - 5,867 5,867 4,742
(56) 132,095 132,039 139,301
7 Net income/(expenditure) before transfers
2023 2022
This is stated after charging: £ £
Depreciation of owned fixed assets 2,258 949
8 Staff costs
2023 2022
Salaries and wages 99,175 102,499
Social security costs 4,053 3,878
Pension costs 2,475 2,223
105,703 108,600
No employee received emoluments in excess of £60,000.
The average monthly number of full time equivalent employees during the year was as follows:
2023 2022
Number Number
Manager/Caseworker 1 1
Caseworker/ specialist
advisor
3 3
Volunteers 1 5
Office Administration
- -
Assistant
Accountant - -
5 9

Page 12

Reading Community Welfare Rights Unit Notes to the Accounts

9 Creditors:

amounts falling due within one year

Trade creditors
Other taxes and social security
Other creditors
Accruals
Deferred income
10 Movement in funds
Restricted funds:
Restricted income funds:
Reading Borough Council
National Lottery
Reaching Communities
Total
Unrestricted funds:
General funds
Total funds
At 1 April
2022
17,986
-
-
17,986
6,950
24,936
2023
£
259
(9)
871
(1)
41,142
42,262
Incoming
resources
(including
other
gains/losses
)
£
79,066
-
58,236
137,302
2,525
139,827
Resources
expended
£
(82,355)
(49,740)
-
(132,095)
1
(132,094)
2022
£
208
-
665
247
26,887
28,007
At 31
March
2023
£
14,697
(49,740)
58,236
23,193
9,476
32,669
Purposes and restrictions in relation to the funds: Purposes and restrictions in relation to the funds:
Restricted funds:
Reading Borough Council Closing the Gap
National Lottery Reaching Communities
Reaching Communities Staff Funding

11 Analysis of net assets between funds

Analysis of net assets between funds
Net current assets Unrestricted
funds
£
1
1
Restricted
funds
£
32,723
32,723
Total
£
32,724
32,724

Page 13

Reading Community Welfare Rights Unit Notes to the Accounts

12 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents
Net debt
At 1 April
2022
£
Cash flows
£
At 31
March
2023
£
50,684 24,302 74,986
50,684
50,684
24,302
24,302
74,986
74,986

13 Commitments

Operating lease commitments

Annual commitments under non-cancellable operating leases are as follows:

2023
Land and
buildings
£
Operating leases with expiry date:
Pension commitments
The pension cost charge to the company
amounted to:
14 Related party disclosures
Controlling party
2023
2022
Other
Land and
buildings
£
£
2023
£
2,475
2022
Other
£
2022
£
2,223

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 14

Reading Community Welfare Rights Unit Detailed Statement of Financial Activities

for the year ended 31 March 2023

Income and endowments from:
Donations and legacies
Charitable activities
Contract Income
Grant Income
Total income and endowments
Expenditure on:
Employee costs
Salaries/wages
Employer's NIC
Pension costs
Staff training
Staff welfare
Premises costs
Rent
Premises repairs and
maintenance
General administrative costs,
including depreciation and
amortisation
Depreciation of
Bank charges
General insurances
Software, IT support and related
costs
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Legal and professional costs
Accountancy and bookkeeping
Other legal and professional
costs
Unrestricte
d funds
2023
£
2,525
2,525
0
-
0
2,525
(55)
-
-
-
0
(55)
0
-
0
0
0
0
0
-
-
-
0
(1)
-
-
-
Restricted
funds
2023
£
-
-
79,066
58,236
137,302
137,302
99,230
4,053
2,475
-
154
105,912
3,003
36
3,039
2,258
291
2,207
5,476
579
2,405
669
3,391
17,277
5,617
250
5,867
Total funds
2023
£
2,525
2,525
79,066
58,236
137,302
139,827
99,175
4,053
2,475
-
154
105,857
3,003
36
3,039
2,258
291
2,207
5,476
579
2,405
669
3,391
17,276
5,617
250
5,867
Total funds
2022
£
6,929
6,929
79,000
49,819
128,819
135,748
102,499
3,878
2,223
2,400
-
111,000
3,052
-
3,052
949
295
1,965
11,226
221
2,458
622
2,771
20,507
4,742
-
4,742

Page 15

Reading Community Welfare Rights Unit Detailed Statement of Financial Activities

Reading Community Welfare Rights Unit
Detailed Statement of Financial Activities
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net income/(expenditure)
Net income/(expenditure) before
other gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
(56)
(56)
-
2,581
2,581
-
2,581
6,950
9,531
132,095
132,095
-
5,207
5,207
-
5,207
17,986
23,193
132,039
132,039
-
7,788
7,788
-
7,788
24,936
32,724
139,301
139,301
-
(3,553)
(3,553)
-
(3,553)
28,489
24,936

Page 16

Signature Certificate

Reference number: ZYQD7-PCBNE-CP3QO-BU5GE

Signer

Timestamp

Signature

Samun Omer

Email: samun.omer@holybrook.com

Sent: 13 Oct 2023 11:26:34 UTC Viewed: 13 Oct 2023 13:09:14 UTC Signed: 13 Oct 2023 13:10:20 UTC

Recipient Verification:

✔ Email verified

13 Oct 2023 13:09:14 UTC

IP address: 95.150.60.124 Location: Wokingham, United Kingdom

Peter Kayes

Email: peter.kayes@talktalk.net

Sent: Viewed: Signed:

Recipient Verification:

✔ Email verified

13 Oct 2023 11:26:34 UTC 13 Oct 2023 19:40:02 UTC 13 Oct 2023 19:46:40 UTC

13 Oct 2023 19:40:02 UTC

IP address: 92.17.44.114 Location: Reading, United Kingdom

Document completed by all parties on: 13 Oct 2023 19:46:40 UTC

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