REGISTERED COMPANY NUMBER: 03717865 (England and Wales) REGISTERED CHARITY NUMBER: 1074840 REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR VALLEYS KIDS MHA Chartered Accountants and Stalulory Auditor Elfed House Oak Tree Court Cardiff Gato Business Park CARDIFF CF23 8RS VALLEYS KIDS CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Pago Report of th¢ Trustees 1 to 17 Report of the Independent Audttor 18 10 20 Consolldated Statèment of Financlal Actlvltles 21 Consolldated Balance Shoet Charity Balance Sheet 23 Con501idated Cash Flow Ststement 24 Notes to thè Con501idated Cash Flow Statement 25 Notes to th• Financial Statements 26 to 43 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also directOf8 of the charfly lor the p¥Jrposes of the Companiès Act 2006, present their report together with the consolidated financial statements of Ihe group for the year ended 31 March 2024. The trustees have adoptsd the provisions of Accounting and Repotling by Charities-. Statement of Recomrnended Practice applicable to charities preparing their accounts in accordan￿ with the Flnaneial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 {effeclive 1 Janu8ry 20191. OBJECTIVES AND ACTIVITIES Objectives and alms As ststed in the Memorat)dum of Association. Ihe ¢h8rfty8 objectives are: To provide and assist in the provisron of facilities and services for education. play, arts, recreation and other leisure time occupation for the ben¢fit of Ihts residents of South Wales, these bein9 facilities and servicEs which.. people need by reason of their youLh. povety 01 social and economic ¢ir¢umstsnces'. will improve the condilK>ns of lrfe for such people by promoting their phy5i¢al. mental and spiritual well-being. The charity meets these objectives by provi(Jing community support through a range of different Projects which change as the needs of the community change. Public benefit The trustees confimi that they have complied with the duty in Section 17 of the Charities Act 2011 (i.e., lo have due regard to public benefit guidance published by the Charity Commissionl- Our objectives and our woik provide benefit to the public. All our work lakes pla￿ in areas experiencing social disadvantsge and we provide our WTe activities free of charge. While focusing on those most in need. the fa¢illties are open to everyone in the areas we serve and ptomde substsntial benefit to the children and families who participate. as demonstrated in this report. Significant activities Evèry ¢hSld Is valued. Every Child ¢Jeserves the best slart in life and Ihts is the aim of our pre-school provision. Because we believe that play has a key rolo in the development and well-being of children. providing ovt-of-5chool play opportunilles has been one of our commitments from the beginnirig. Valleys Kids, play services offer exciting opportunities for children to experiment and help them grow. Most imporlanty. all our play is about children having fun and discovering they ¢an do many different things. Everyone matters. In pursuit of our commitmenl to place-based community developmerkt. Valleys Kids Cornmunity and Family Hubs welcome everyone who wants to attend local facilities that offer pre-s¢hool. play, youlh or adult servi￿5 and activities. We also provide time-limited. targeted ptovision which helps people to deal wltt) parbcLFlar issues. problems or needs. Offen these important programmes are supplemented by continued support 8vailable through open 8¢cess provision. Nobody should be left behind. Ev¢ryone has potential. Valleys Kids believe that evéryone has potential. Our iole is to en￿l￿e people of all ages lo believe in themselves. grow In Confiden￿ and realise their ambi11011s. We take considerable pride in creating the many pathways to inuease(I well-being and achievements needed by people of all ages in all our communities. This can range from a young person getting re- engaged in education and succeeding in schooll¢ollegeluniversity. training and employment lo an isolated older person taking advantage of opportunilies lo socialise, gettin9 involved in arts and acting as a volunteer. Our Youth Work is about helping young people face up lo the challenges in their lives and to seek solutions. Valleys Kids. aim is to provide for 811 young people bul with a ¢ommitrnenl to engage the most challenging and challenged. To do this. we Cfeale situations where young people wanl to participate. places which they feel belong lo them and which are warm. welcoming 8nd friendly spaces staffed by quality youth workers. In4epth youth work happens when young people feel comfortable and able to develop relationships with trusted adults. For over 40 yeaF¥, V8lley5 Kids has Wofked in communitie5 in the South Wales Valleys. 5UPPOrting people to grow in self*confiden¢e, Improvin9 their skills and knowledge and encouraging them lo have high aspirations and high expectations lo achieve their potential. We now have three Community and Family Hubs in disadvantsged communities where activities and services are provided for all ages, from babies lo those over ninety. We have also developed a Hub for the Atts and Cultural Industries so that the people from Valleys communit(es can gain the skills and knowtedge which ill enable them to secure employment in this growing industry in Wales. The Family Team provides largeled services for the most challenged families. Our residential factrlity in the Gower, Litue Bryn Gwyn, has been rebuilt so that il Can provide young and old with new opportunities. We are developing social enterprises.. the Play Yard. Coffoe Shops and events at The Factory. Sparc and Art in the Attic continue lo thrive and to grow. Pa9e 1 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Significant actlvltles Annual reports for ea¢h ¢entrelprogrammelspa¢e: l. Penygraig {Soar and th& Old Library) Soar Centre and The Old Llbrary April 23 - Mar¢h 24 Stay & Play We have been delivering a quality preThschool pfovlsion where we have 147 individuals attending. 415 adults and 452 children made 867 Visits during the 31 sessions. The Stsy & Play curriculum includes messy play. dental hygiene. baby weaning, sexual health. song time and healthy snacks. These sessions are d8lNered by our pre-school staff who Create an inclusive, ¢omfortable environment for both children and adults which is educational. infomalive and fun. After School Club We are able to wn two play sessions lafters¢hool clubl a week with funding from Shared Prosperity Fun and Garf￿ld Westem. These 59 session5 are very well atlended with 2.780 visiis by 237 children 5 - 10 years old. The plaYwO￿erS cr¢ale an environment where children can explore the wortd around them. They can build dens. dimb tfees. build slide5. create ynazes in the pews of the building. Masterpie¢e$ are created in the activity room with paint, glue, glitter, artd recycled resources such as. trjiltrt ro115 and boxes. The whole building and gardens are used.- thildren are able have physical exercise by bouncing on the l)oun¢y castle. running and jumping through and over the pews. "I love Bike Club. I can play in the gaTilen.' Female 9 yrs hen I come to Bike Club it's like my best day ever.. Male 8 yrs Holiday play Playscheme is delivered during sch(K)I holidays for children 5 10 11 years old. We had 692 visits from 239 children during 14 Playscheme sessions. The afjlivilies are the same as the afterschool club. They are designed lo encourage children to buitd imagination. Creativity fostets cognitive growth. delivers emotton81 and behaviourAI benefits, improves literacy. encourages grÈaler independence. and promotes physical fitness. Middle Club We have been able lo ¢reate a group that bridges afterschool and youth club as some of the children were loo timid to go into youth club. btsl their behaviour was nol always suitable for the younger children. MFddle club is for childrenlyoung people 10 to 13 years_ We have 123 young people on our register and approximately 70 attend the weekly sesslon. Over the year. we have had 1.268 visits. During these 40 sessions, young people have been learning cooking skills. sexual health. healthy relationships. Mcing Ènd digital arts. They created amazing projects. "I love coming lo see all my friends.. Female 12 yrs 'It's fun and I get to use the bouncy ca5Ve.' Female 12yts .1 get to meet my friends in a safe place.. Male 12 yrs Youth Club Youth Club sessions are for young people aged 11- 25 year5. We had 389 visits wilh 78 new youn9 people attending the 22 sessions. The sessions have three qualified members of staff delivering a progiamme that incfudes Well-￿ing. sexual health, healthy relationships and cook¢ng. These sessions njn once a week out of Soar (Bike Clubl. Youth club has made me feel valued by staff and peers,. Female 14 years 'If I didnl ¢ome to youth. I would be on the streets wandering about.. Male 13 years The Old Llbrary The library has become a real Community hub. Thwe is a range of groups meeting weekly at the library. The Knit and Natter group averages 20 people per session. They have individual prolects and then bring their conlribullons together. Their main prolecl this year is an aquarium for the Old Library. This is an amazing piece of work that includes treasure chest, mermald, shells, and jellyfish. It has been on display al the old1Sbrary. Page 2 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Coffee mornings have been noll¢eably quiet as our members have had lots of illnesses. Their ages are from 76 yrs- 96 yrs. Thls group have been part of Valleys Kids for the last 15 years., We have been maklng check4Jp calls, doing shopping and paying bills as some have not been able to leave their homes. We have been discussing with them how lo develop the group and bring in new people. The Friendship Café averages five people attending regulady. Again. we are looklng at how we can develop these sessions and bulld nun)bers. Card Bingo is a great session with an average of 15 people attendSng, having lols of fun and winning lots of glfts. Quite few ofthem will have lunch before the session; this adds to the takings of the coffee shop. We have 10 regular volunteers at the library, working in the charity shop and the coffee shop. Threa of the votunleers have additional learning needs. they have benefilod from opportunities to grow in confid¢n¢e 8fKI leam new skills- chalting 10 17Jslomers. using the till System, operating the steamer to clean cxothes and answering the telephone. The seNice offered by the library is going from strength to strength, building our customer base with lols of daily visits and our toasties are getting quite a reputation. All the services are moving into the Soar Centre after the new financial year as Ihe library building has been sold as part of our recovery plan. Views from participants.. .1 really do not know what I would do without this place, thi5 is my safe place., Hazel 62 yeais .1 would be 50 lost and lonely tf I didnl come here. you're all so kind. 'Jan 82 years A pasl member said. "I loved Bike Club if il was open l came because I knew if I was here I wasn't getting in trouble out there." Tarian 37 yrs 2. Penyrenglyn P¢nyrenglyn Centie Mar¢h 23 - April 24 We supported seven groups. Group Name After School Middle Club Youlh G￿uP Setf Help Women Quilling Group Only Girls Ajlowed Feeling good group Total in Group 59 102 Sesslons 105 79 46 19 21 27 Attendeè Vislts 1.281 1.325 526 119 200 162 17 70 15 10 These groups cater for a wide range of people from thg local community. We host Black Mountain College for a tWO-y8ar initiative whts￿ they dry hire rooms. We host community events and work in partnership with local agencies such as Welcome to our Woods. In our youth groups. we have focus8d on exercise. health and nutrition. 3. Dlnas Dinas Centre April 23 - March 24 Number of individual ¢hildren and young people who used thg provlslon.'120. Groups catgr9d for.. After school Number of sessions delivered.. 74 Playschemes= 3 Number of Out-of￿n1re trips.. 4 Events.. pa￿e$ for Halloween and Christmas. Stay and Play Number of sessions dellveied- 30 Number of oul-of4entie trips.. 2 Number of events deliv9rod'. 1- Halloween paty and Christmas. Page 3 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Junlor Youth Club Number of sesslons delivered'.74 Number of oul-ofPToduclion No. of people signposted lo additional support No. of people reporting increased SOCFal connection and felling less Isolated Funding for older adults We submitted a 'regional' RIF bid last year which was successfvl and we were the only organisalion to succeed because of our evidence regarding collaborative partnership working. The panel asked rfwe would resubmit the b?d to Include fv40 olhei organisalions and agree to be the lead partner. This collaboralion wothed really well. and the bid included stage 1 and stage 2 for the following year. We met regularty and we were asked to submit a full bid for the second year for the full amount, again regionally and in collaboration. Afi partners were confident th8t some of this fijnding would be corning our way at this crucial lime. However. the bid was unsuccessful, and all partners were devastated. 800 371 28 52 233 This has meant a big cut lo our programme, and we have budgeted the befriending grant as best we can to mainlain crucial engagement and we are looking to other fundin9 to Sustain the project thi5 year. The level of f¢Jod poverty is at ¢risis level and small grants from Interfink have enabled Lts lo support our most needy paFticipanls. We recognise and value the vast krE0s￿edge and experience of our older adult population that helps develop community cohesion and iesilience and we could not run sessions without them. Real costed volunteer lime = £23,000 over 6 months. Our community ¢Jevelopment approach enabled our befriending project lo grow within our lamily and community hubs that support community *ngagement across the 8ges and has given us opportunity to increase engagement with older adult community. Fun4Jing to allow for the continued development of new servi¢ts5 and methods of delivery is cru¢ial lo allow for the long-term interaction with thls target group of older people to strengthen theii restlience to overcome the challenges they face now and in the future. 6. Vallèy$ Volce5 Valleys Voices is our National Lottery Heritsge Fund project Ih8t was approved in 2023 and started in December thal year. The Rhondda Valleys became synonymous with coal minin9 and induslrialisation through the 19th and 20th centuries. This project looks to refieet grassroots perspecttrves of whal happened in valleys. communities after Ihe end of coal. Valleys Kids. a community-led regeneration charity bases in RCT. is uniquely placed lo record, publicise and share the storie5 of individuals. families. and agencies across all sectors and strata in Society. Together, these wll comprise a living history of the valleys throughout the pasl 40 years. We will have wdely available a social Commentary that exposes and expounds upon the spectrum of real-life experiences from poverty and despondency, through developing resilience. lo regeneration arKI new challenges. Significant steps, 51ages. critical events and ¢ri5e5 in the organisational development of Valleys Kids will provide a parallel chronology within which participants will gather, collate. organise. archive and disseminate written. audio and visual records. At the same lime. the longevFty of the charity means it has engaged with several generations. This proje¢l 15 an ideal vehicle for intergeneralional communication and connectivity. which will show the shared nature of the heritage of people and cornmunit19s. Aiming to enable pgople in our projects to takg responsibility for curating and sharing their stories and those of their communities. Our intention is lo see heritage become a mainstream activity within the organisation and all a550cialed with it. We will do this by inviting people lo continue lo 8dd their stories and to conlribule images and olher ielevanl data on an ongoing basis. The project wll build upon the organisation's experience of and capacity for working with local communities to explore and understand the importance of culture and heritage acros5 boundaries of age, place and experience. Page 7 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES The project will place heritage prominently In people's consctousness In communities across the area. It w511 place the preservation of heritage as a priority for Valleys Kids. Approaching half a century of embedded involvement with communities in RCT. there is realisalion that the records and anecdotes which caplijre and Convey the chara¢ler, the moods, the struggles, the gritty determination, and the resilience and su¢ces5es of valleys people need lo be kept alive. For the benefit of past. present and future generations of this world- renowned region of Wales, the project will collate this data before it is lost irretrievably. raising awareness of the valleys and Wales more widely. developing links to people with family roots here who are now part of the diaspora and reachin9 Out to simi18r communities across the globe. In our experience, people connect with other people best through sharing their stories. Communities connect with communities by comparing and wrbtfasling their lived experiences. After visiting Valleys Kids. Desmond Tulu spoke of chrldren from Wales and South Africa as the nations diamonds. and 'blazing Icoall fire.. This reignited Valleys Kids, commitment to play and youthwork. An exchange visit by people of the townships and of the valleys ￿lebrated common humanity and made a la51ing impact upon the h051s and visitors. The project will present local people with opportun£lies lo reflect upon their lived experiences, individually and collectively. Some of the people supported by Valleys Kids have chaotic lifestyles. Few have opportunities to reflect upon their qualities of ￿SI11e￿ce and creativity or the impa¢t of the care they provide for their families. Sharirsg their stories will enable them to realise strenglhs and achievements beyond the immediacy of Iheir struggles. Through our methodologies, we encourage people to appreciate positive aspects of their culture and heritsge, its influen¢e upon past events and behaviours. and its power 8nd potential to shape and develop themselves and their infiuenee on society and Iheircommunilies. There is much leaming lo be derived from telling again in new forma(s the slory of Valleys Kids.. tts place-based methodology for community en9agemenl and commLFnily develop￿ent. Through our work. we en¢ourage people to appreciate positive aspects of their culture and heritage, its infiuence upon past events and behavSours, and ils power and potential lo shape and develop themselves and Iheir influence on society and their communities. This initiative aims lo evidence the social impact and social value of the work we do. It wll offer a shop front view of vthat an be achieved_ It is contemporary and innovative. Already since inreplion, the following has been a¢hieved'. Project facilitator appointed. Project Pmgramme Board established {3 meelings to datel. Project with associated project management tools (Monday sysleml. Training undertaken delivered by partners above. Central and local timelines estsblished. Content sourced and collaled {onyoingl. ProjeGt evaluator sourced. 7. Sparc (Valleys Klds Youth Arts Project) Aprll 23 to March 24 Feedback from partlcipants 'Sp8rc is a family for Lite.. G?￿ Fach participant .1 have been able lo gxpress My idea wilhoul being judged.. Sparc participant .1 like thls group because il gets me out of my house and my household is really stressful. Il's really fun.. Join the Dots Parti¢Spant -1 never felt l Could be myself. bul everyone here accepts me." Join the Dots Participant 'The way you support eariy career a￿$1$ Ss unparalleled.. I hope the industy is taking note.. Early Career Artist al Litue Bryn Gwyn Make f(1 Residential Page 8 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES "I have been commissioned by 8 national company and now have the confidence atid ablllty to take Opportun￿¢$ that are presented" Make it! participant Sesslons and Attendances 618- Perfomiance Arts Sessions (theatre, drama, dance, muslc, digital arts, visual arts. radiol 948 - Mentoring and support sessions for young people and famSlles 136 - Student and volunteer placement attendances 205- Digital Arts training sessions 51 Emerging artists and freelancers employed through Make itl and Sparc Assoaales 232- Participants al'join the Dots. workshops (widening engagement) 1000+- Visitors to G￿y1 Fach Imini Fest lo Celebrate 25 years of Spar¢ This year was Sparc's 25 anniversary as a lully funded Youth Arts Project., it could not have been more inspiring and impactftjl. Staff - pald and voluntary Staff represent of one of the greatest ass&ts for any organisalion. We are immensely proud of all our paid staff and over 100 volunteers. Valleys Kids seeks to create 8 workplace withtn which stsff can flourish by operating in a creative, constructive and fair enwronmenl. 1115 only with qualrfied and experienced staff thal we can deliver the high-quality seNi¢es deserved by the ¢ommunilies where we work. An important part of Valleys Kids. approach to community evelopment is to encourage local people lo get involved as volunteers. We could not have delivered Ihe programmes rithout their input and sustained commitment. Both paid and voluntsry staff continue lo access training lo enable thom lo fulfil their role lo the highest stsn¢JaTds. Some paid Staff began as community volunteers bul are now qualified professionals. Ajob evaluation undertaken in the previous financial year has been successfully imp16menled. Page 9 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL REVIEW Flnanclal posltlon This year the expendiluro on charitable activities wlth children and famllles was £1.798.211, and cost of raising funds was £106,101, leaving toial expenditure of £1,904.312 The total income for 202312024 was £1,530.260. This has resulled in a deficit in the Statement of Flnancial Activities of £374.052. Al 31 March 2024, we are reporting a k)ss for the year of £374,052 and the managernenl accounts for the nine month period lo 31 December 2024 show a loss of £244,000. which will have a substantial impact on cash flow. We are anticipating a surplys for the financial year ended 31 March 2026, and latest cash flow fo¥e¢asts show a positive cash position from April 2025. The forecasts do rely on proceeds of Ihe Cros5 Slreet sale, which is expected to be sold al auction in April 2025. As a result of the uncertainty regarding timing of cash ￿0w$ the trustees have concluded that there is a material uncertainty relating to events or condition5 that may cast significant doubt on the entity's ability lo ¢>Jntinue as a going concem. As part of a'lessons leaml. exercise, we analysed the factors that led to this delerioralion in the finandal position. Lack of funding opportunities via traditlonal funders. Historically, the charity geneiated two-thirds of its income independently from grants, commissions. ¢on(ra¢ts. fundraisers and donations IFY 2022 £1.227 Million FY 2023 £1.228 Million FY 2024 £1.115 Million) and the remaining third from RCT County Borough Council I'lhe Council'l. {FY2022 £518k FY 2023 £195k FY 2024 £183kl. However, none of these sources of fun(Jing ar¢ immune from financtal pressures and they have been unable to conts'nue with the lovel of support prevK>usIy provided. An inctease In d¢mand for our servlc¢s and the impact of Covid. The pandemic led to a substantial in¢re3se in the need for seivices that Valleys Kids were providing lo indiwduals and the wider ¢ommunily. During that lime, ¢on5ideiable access lo addTrkn'onal. temporary fvnding was made available for organisations like ours. However. when the immediate crisis ended. these temporary funds dried up although demand for services remained exceptionally high. As Valleys Kids Wds unwilling to deny help lo growing numbers of people in need of long-term support, they did not respond quickly enough in adapting lo thi5 Sltualion. A lack of robustness In flnanclal reporting. Our finan¢ial Systems were not robust enoLTrgh and 8udi1Sng processes linlemalty and extemallyl were insufficiently rigorous lo alert us in a b.mely enough way lo the changing funding environmenL The charity was slow in producing a¢¢urate and limety data to assist good ecision-making. The fwansitlon Programme {2020-20221. which organised our response to the retirement of the ft)unding senior managers helped us make good progress in tackling organisalional shortfalls and introduced a more focused Senior Management Team sttuGlure. The focus on transition and with the Covid pandemic meant, however. that less headway was achieved in areas such as incomè geneiation. robust ffinanaal management. divesling non-core 855ets and a mLEch-needed change of approach to how we commercialise Soctal Enterprise elements of the organisalion li.e. Valleys Creative}. Urgent actions tsken to address the fundlng gap: Using cash reserves.. Initsal cash reserves of £305.000 las of 3110312023} have been depleted to cover operational costs. SecuriNJ overdraft fa￿litieS. A temw)rary overdraft facility extellded to 3010412025 from Unity Tnjst Bank has been used to mana9e immediate cash flow needs. Implementsng staff cost reduction measures.. A combination of attrition. voluntsry redundancies. an¢J reduced working holtrs has ￿sUlted in savÉngs of £407.000 since 2021. Lease termination= Early temiinalion of the leasg on Rhy¢Jyfelin Community Centre saved £26.000 annually in rentsl and servicing costs. Valleys Kl¢Js has since put in place a Budget RecoVery￿ransfOrn1ation Plan which recognises the recommendations of an independ¢nl busines5 review. The plan ¢onsider5 the impact of cost savings. income generation and cash flow. There ale immediate prioritie5 W71hin the overall pathway. To implement our BusÉTress ReCovery￿ranSfOrMall0n Plan by increasing in¢ome lo ensur¢ ongolng sustainability and reduce expenditure where possible on non-funded aclivilies. focusing on the 4 slronds of Income generauon People - Property Service redesign. To agree ongoing support from our current and future major partners. Our prioritles for the next year In key areas. Valleys Klds Is well equipped to respond to the financial challenges. However. lo sutvivg and deliver the vital ts)mmunSty seNlces that il has been deliverlng for over 45 years, Ihe current funding model musl continue lo shift Page 10 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 radically and urgently. Our response to the financial d)allenges facing Valleys Klds reftects a belief shared by the charlty and significant stakeholders that its long-temi fvture can be secured through 8 slimmed down org8nisation wilh a smaller but still highly skilled workforce and a more focused property portfolio, logelher with better business planning and strict financial discipline. FUTURE PLANS Our recovery plan sets out the factors which led lo the current position. the journey and actions taken so far, 8nd the plans in place lo provide a more secure future. 11 describes how we intend to transform the financial position of Valleys Kids through wmbined measures that include.. reviewng the services it provides. increasing income. reducing costs lincluding siaffing cosls}- disposing of non-core properties. ensuring better financial management at strategic and operational levels. The recovery plan incorporates advice from an independent finaneial report provided by FRP Advisory Trading Ltd which sets out option5 and recommendations that trustees and the S¢nior Management Team have taken on board as ¢he best approach lo resolving the current dirricullies. The Watershed Group was set up in July 2023 in response to signals that the charlty would be facing a financial crisis. The main putpose of the group is to manage Valleys Kids IhroLtgh Ihe current situation and to devise a plan for navigating the immediate cash shortfall and to p￿pa[erIMpIeMenI action5 that will secure Ihe long-term future of the charity. Comprising the Sen￿r Executive Team and various trustees and board members, the Watershed Group has met w¢¢kly moving to fortnightly by the end of 2024. To continue acting as an integral pillar of support for the communities il serves, Valleys Kids needs lo change subslanlially. Securing support from its thr* main long-term sponsors and otherstakeholders in Pfoviding short, medium and long long-temi finance will be ¢ru¢ial in ensuring that the Transformation BusFness Plan (recovery plan} suc¢eeds. The measures being taken to increase income, dispose of propety and reduce costs lead us to ¢ondu¢Je thal= this financial support provided can be serviced. we can meet commitmènts to funders in respect of Servi￿ provision levels and quality. the Charity has a k)ng-term sustainable future. Valleys Kids Senior Leadetship Team and the Trustees￿lreCtors are committed to securing the viability of Valleys Kids by carrysng out the actions proposed in this plan and lo bringing about change, however diffi¢uli the task. In addressing the current ¢hallenges, all three key business st)onsors and other long-term partllers and stakeholders have provided considerable support for our own efforts. Between 2016-2021. Valleys Kids was able to generate over £2m in income annlrally lincluding a signifi¢ant contribution from funding for capital proiectsl. The years 202213 and 202314 saw the financial position significantly deler40rate cumulative defials of £1m. Decreases in grant income and inflationary cost increases contribulod lo the £580k Tret defi¢il in FY23124. during which lime ¢ash reserves of £355k were used to support the organisalion. During 2024. while the re¢overy plan was being actioned. funning costs of the Charity were supported by a monthly ￿neWable overdraft fa¢ility from Unily Bank of £140k. It was apparent that urgent and tough rJeci5ions were required 8boLTrI the tevels of sermce Valleys Kids could provide to the community. the way w8 resource the organisation and how we manage our propety Portfolio. To date. deficits have been funded by- opening cash reserves which sto¢xl al £305k on 3110312023 bul have now been fully uts'lised. arranging and ijslng a temporary overdraft facllity provided by Unity Bank and approved on a monlh-by-monlh basis. as referred to above. reducing stsff costs by ensuring that only essential allritson is backfilled and inlroduclng a programmg of voluntary redundancyl reduced hours. leading lo savings of £407k since 2021. giving up thè lease on Rhydylelin Community Centre when funding ceased, leading to an annual saving of £26k. These measures were designed lo be short-term solutions. bul they have givgn us 1Sme to design robust plans for the short-. rnodium- and long-lerm sustainability of the charity and lo begin implementing a Transformation Buslness Plan that would bring about substsnlial changes for Valleys Kids. We recognise th¢ amount of work still needed and we will Continue to ¢ollaix)rale closely with stakeholders lo maintsln strong relationships moving foThvard. Page11 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 To design and implement the Transformation Buslness Plan. it was clear that the Watershed Group would ne8d tsmely and accurate financial information to assist with good planning and declsion-making. With the help of the Finance Team at RCTCBC and FRP Advlsory Trading, the charity now has a much clearer view of current and future cash flow projections. The engagement of a professional a¢¢ountsnt to prepa￿ these reports has been invaluable. The Wate￿hed Group revlews the reports weekly. In addition lo achieving timely and accurate ieporting, the Transformalion Business Plan focuses on four main areas that are essential lo overcoming the currenl cash flow challenges and securing the long-lem future of the charity= People-. Propertyi Incomè Generatlon and Cost Control: SeNlce Provl$lon. There is an action plan for each strand. People People are the biggest expense lo the charity, wllh an averag¢ monthly cost of £75k from April lo September 2023 but falling to £60k post introduction of a compulsory redundancy programme and continuing to fall lo £46k by not repLacing staff that have left th6 organisalion. A luTh assossment of the people porlfolio was undertaken with specific consideration given lo the skills needed for a future streamlined and effective organisation. Various steps were introduced to reduce staff costs. These included: A policy of only backfilling cruaal roles or funded rojes was introduced in 2021- Total sayings to date £326k. A voluntary Redundancy Programme in Q412023 - Total annual savings £63k. A voluntary reduced hours programme in Q412023- Totsl annual savings £18k. Further savings have been identified through a compulsory Redundancy Programme in Q412025 (Subject lo funding) - Projecte(l annual Savings £30k. The table below demonstrates the fall in staff costs be¢ause of measures taken since January 2021. 125L Iiiillllllllllhi Property A Property Sub-Group was established lo assess the current property portrolio and identify which properties werè ijeemed Core to the seNice provision of Valleys Kids. A plan was then drawn up for the disposal of all non-core properties. Part of the a￿lee glven by FRP Advisory Tradlng was lo divest all non-core assets in the property portfolK). In effe¢L the charity was asset rich but cash lean. In Febwary 2024, it was identified that four of Ihe sgven proporties could be put on the market witholrt a delrimenlal impact on the prowsion of setvices. Valleys Kids has sold three of these {BLile St. Tylacelyn Rd and the Library. bringing a cash injection of £279k Ihis finan¢ial year)- The sale of Cross Street is expected in 2025 and will contribute a further cash injection of £195k. In January 2024. the lease on Rhydyfelin Community Centre was temiinatgd early. saving £26k p.8.In ￿ntaI and servicing costs. Income Gengratlon and Cost Control Historically. Valleys Kids has been highly successfvl in SIS fund-raisin9 efforts. with over £1rn secured in 2023. However. because of the tactors referred to earlier in this report, it has become evident that a new appfoach is n9$ded to generate sufficient income and contfol costs effectively. The way we manage, spend. co-ordinate and appiove grant and fijnding applications are all in th& process of change. In addition to the appoinlmenl of 8 Flnancial Controller, we have recently secured £100.000 from Walertoo FoLsndation over three years towards core ¢osls and income generation. Page 12 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 As the competition for limited funds is becoming tougher, marketing and evldence of positive outcomes are becomlng increasingly Important. How we sell the ambition of Valleys Kids and the impact il has on individuals and communlties are critical factors in securing funds. Valleys Kids has fostered a good working relationship wth Manchestèr Business School whlch for Ihe pasl years has conducted annually a Not-for-Profit project on our behalf. In Q4 of Ihis year. they will collaborate with us lo design marketing strategy and specificalty make recommendations aboul who we should be applying to for fijnds and how we should conduct this programme. This seNice comes flee of charge but It Is estimated lo be worth £10k in consultancy fe@s. Valleys Kids is neady one year into a three-year budget recovery plan which should deliver a retum to profil by Ihe end of yeat two (as idefttrfied below}. Valloy Klds 3 Year Buslness Recovery Budget 2024- 2026 Ba$ellne 23.24 Transfomiatlon Year 1 24125 Planned Year 2 25126 Planned Total Income £1.288,447 £1.161.845 £1.168A01 Expendlturè Property Supplies & SeNi¢es Project Cosls Extemal Support Traintrng Chaiges People I Staffi £191,542 £73.662 £96.196 £23.171 £450 £61.705 £783.506 £179,OJO £68.000 £110,000 £24.000 £2.000 £55,000 £612,000 Total Expenditure £1.641.982 £1.230.232 £1.050.000 Surplus l {Defictt) Income from propety sales Opening Cash Closlng Cash 353.535 68,387 £279.ClOO 71.354 68.398 £118.401 £210.000 68.398 £50.213 £304.881 71.354 Page 13 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Service Provision The Service Redesign strand looks at areas for which there is confirmed funding. It assesses where and how the seNices we provide the community needs lo change in adapting to a new environment which initially involves lower staffing numbers, less funding and fewer properties. The action plan considers how we can best protect Se￿iceS delivered to Ihe community, how we can maximise the contribution from our very skilled complement of staff and from volunteers. While the transfomiation bLtsiness plan was evolving. a new management structure was put in place that induded interim posts of Chief Operating Officer and Lead Co-ordinator which has helped to ciarify designated areas of responsibility. It is evident that Valleys Kids needs to change substantially rf we are to continue to act as an integral pillar of support for the communities we serve. The measures being taken to increase income, dispose of property and reduce costs lead us Conclude thal.. this financtal support can be servI￿d- we can meet commitments to fvnders in respect of service provision levels and quality- the Charity has a long-term sustainable future. Investing in key new roles to drive the plan forward is critical to success but it is essential also that the considerable talent we have within Valleys Kids is kept and nurtured. This means maintaining an environment which is open. supportive and enlrepreneurial and where staff and volunteers are highly motivated and feel happy and valued. Also critical is retaining a transparent and close working relationship with all stakeholders. particularty RCT CBC, Unity Bank and the WCVA. The Valleys Kids Senior Leadership Team and the TrusleeslDirectors are committed to securing the long-term future of Valleys Kids by carrying out the actions proposed in this plan and to bringing about necessary change. however challenging. The risks Valleys Kids truslees and staff have considered the major risks Ihal affect our work and have pul in place controls to deal with them. The controls include clearly documented accounting procedures and risk I benefit assessments throughoul the organisalion. We review our risk register regularly to ensure thal we are aware of any emerging threats lo Ihe organisation. Reserves policy The Iwslees believe il is necessary to maintain reserve funds to ensure thal the charity is able to meel ongoing commitments. At the 31 March 2024 tolal funds amounted to £3,043.017. The unrestricted funds were £2,882,233 and the free reserves after excluding fixed assets and associaled loans were (£325,445). The trustees intend to gradually increase reseNes to meet the trustees, policy of having sufficient funding lo cover up to three months operating costs. which is approximately £300,000. Page 14 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Valleys Kids is a iegislered charity and is a ￿MpanY limilod by guarantee, incorporated in 1999, governed by Its Memorandum and Artides of Association. Valleys Kids, mlssion is to work with and support people living in disadvantsged communities enabling them lo roalise their potential. The people we work with are involved In shaping the seryices we provide. Our centres provide a welcoming atmosphere. are not judgmental and operate open access actTrvilies free at Ihe point of access. We offer targeted actiwties including aclivilies for adults. parenting, youth programmes and provide challenging activities enabling people to explo￿ their lives and see that they have polenlial, that they can change and improve the quality of their lives and of the communtties where they live. We consult with our local people in a variety of ways lo ensure that our adivities and Services meet the needs of the communitie5. We continually explore divetse way5 and methods of working lo ensure that wè offer the best opportunities to people. The Charity has a trading subsidiary. Valleys Creative Limited. which undertakes all non-charitable trading a¢tiwly. Organlsational structure Members of the Board of Trustees are also the d1￿ClOr5 of the company. They are tesponsible for overseeing the management of all the affairs of Valleys Ktds. They are subject to ffixed-temi appointments and eledion or re*lection according lo pro¢odures set out in our Memorandum and Articles of Association. Working groups are estsblished to ndertake spe¢ifi¢ pieces of work. New Iruslees take part an an induction to the ¢harTrty that includes meetings with staff and existing tsustees. They are provided wth a history of tho charity and copies of the Charity Commission's GLFidance for Trustees. The Board Seeks lo ensure that all activities ale within UK law and eome within agreed charitable objeclives. Its wo includes Setting strategic dire¢tion agreeing the financial plan. The Board acts on advi¢e and infomiation from regular metrtings with the senior managers. Decisions made al other levels of the organisation are reported lo the Board. Tnjstees are able. where appropriate. to lake iTrdependent professional advice. The Board is putting in place a Ihre&year strategiG plan Strategic Plan wlh the followng se¢tions= Organisalional purpose Leadership Strategy Risk Board capability Board behavaours Board development and support Deltvery Intemal control and reporting Stakeholder relations This wll be supplemented each year by an operational plan lo lake forward the work. Equal opportunlti?s Valleys ￿"d$ Is committed lo the pr¢n¢iple arid practice of Equal Opportunities. Our a¢tivilies are open to all. and we take every opportunity to integrate those wilh disabilities wthin our everyday work. We aim to be an equal opportunities employer and seek lo ensure that all staff receive equal treafmenl. Policies and procedures are rn place for Child Protection, Whistle Blowin9 and Health and Safety. Key managemènt rernuneration Valleys Kids aligns its pay structure with Local Govemment NJC pay scales. Staff are pald between point 12 and 41. Key managemgnl personnel are paid behvggn potnt 36 and 41. No member of stsff is paid above point 41. Page 15 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAILS Reglstèred Company number 03717865 (England and Wales) Reglsterad Charlty number 1074840 Registered office 1 Cross Street Penygraig Tonypandy Rhondda Cynon Taff CF40 1LD Trustees Chair Vice Chair Treasurer Tnjslees Philip Evans Nadine Hussien Marian Stokes Ceri Assiratti Rebecca Boolh Howell Edwards Lyn Evans Rhiannon Howells Jason Camilleri Company se¢retary Lynne Thomas Executive team Elise Stewart Lynne Thomas Gary Foreman Kalh Edwards Miranda Ballin Debra Jones Resigned 31 October 2023 Resigned 15 December 2023 Auditors MHA Chartered Accountants and Ststtjtory Auditor Effed House Oak Tree Court Cardiff Gate Business Park Cardiff CF23 8RS Sollcltors DaJwin Gray Solicitors Helmont House Churchill Way Cardiff CF10 2HE Bank Unity TnJ$t Bank PLC 4 Brindleyplace Bimiingham BI 2JB Bardays Bank UK PLC 1 Churchill Place London E14 5HP Page 16 VALLEYS KIDS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF TRUSTEES. RESPONSIBILITIES The Injstees Iwho are also the directors of Valleys Kids for the purposes of company lawl are responsible for preparing the Report of the Trusie6s and the financial statements in accordance with applicable law and United lQngdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law ￿quIreS the trustees to prepafe financlal stslements for each financtal year which give a true and fair Mew of the stale of affairs of the chariioble company and of the incoming resources and application of resources. induding Ihe income and expendlture, of the charitabto Cornpany for that period. In Prepa￿￿￿ those financial stslements, the trustees are required to select suitable accounllng policies and then apply them conslstentfy- obserye the methods and principles in the Charity SORP.. make judgements and estimates that are ￿asonable and prudent.. P￿pare the financial stalefflents on the going concern basis unless it is inapproprtate to presume that the charitable company will continue in business. The trustees are responsble for keeping proper accounting Tecords which disclose with reasonable accuracy at any tima the financial position of the charitable company and lo enable them to ensure that the financial slalements comply wrfh the Companies A¢t 2006. They are also responsible for safeguarding the a5sols of the charitabltr company and hence for taking reasonable steps for the prevention and (Jelection of fraud and other irregular¢ties. In so far as the Iruslees are aware-. there is no relevant aLidit information of which the charitable company's auditors are unaware- and the trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo establish that the auditors ar¢ aware of that infomalion. This report has been Prepared in accordance with the special provisions of Part 15 of the Companie5 Acl 2006 relating tr) small Gompanies. 21 Feb 2025 Approved by order of the Board of Trustees on ..... and signed on its behalf by= P J Evans- Trustee Page 17 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF VALLEYS KIDS Oplnlon We have audited the financial ststements of Valleys Kids (the'parent charitable company'l and its subsldlary Ilhe'grwp.) for the year ended 31 March 2024 which comprise the Consolidated Statement of Flnancial Actlvities, the Consolidated Balance Sheel. the Charily Balance Shael, the Consolidated Cash Flow Statem6nl and notes lo the financial slalemenls, Including significant accounting policies. The financial reporbng framework thal has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financ¢al Reporting Standard 102 The Finanryal Reporting Standard applicable in the UK and Republic of Ireland (Llniled Kingdom Generally Accèpted Accounting Pracllcej. The parent charitsblo company prepared thelr accounts LFnder Financial Reporting Standard 102. In our opinion. the financial slatoments.. give a true and lair view of the slate of Ihe group's and parent Charitable companys affairs as at 31 March 2024 and of the group's incomsng resources and application of resources, including its income and expenditure. for the year Ihen ended- have been property prepared in accordance with United KFngdom Generally Ae¢epled AccountiNJ Practice., and have been prepaTed in accordan¢g with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our atjdll In accordance with Inlemalional Standards on Auditing (UK) IISAS {UK)l and applicable law. Our responsibilities under those stsndards are further des¢ribed in the Auditor responsibililies for the audit of the financial statements section of our report. We are independent of the gTOUP accordance with the ethical requirements that are relevant to our audit of the financTral statements in the UK. in¢luding the FRC'S Ethi¢al Standard. and we have fulfilled our ethical fysponsibililies in accordance wlh those requirements. We believe that the audit evidenc6 we have obtained is sufficient and appropriate to provide a basis for our opinion. Material unc#rtalnty relating to going con¢¢m We draw attention to Note 2 in the finan¢ial stalemenls. which indicates that a loss for the nine month PeTiod lo 31 December 2024 of £244,000 combined wilh the losses incurred in the Current financial yeaF. has had a significant impact on anticipated cash flow for the 12 months post sigfting of the financial statements. As stated in Note 2. Ihese events or conditions. along with other matters set forth in Note 2. indi¢ate that a rnalerial un￿rtaintY exists that may cast srgnificant doubl on the group's ability io continue as a going concern for up to 12 months post signing of the financial stalemenls. Our opinion is not modified in respect of this matter. In auditing the financial slatetnents. we have conclLEded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appn)priale. Our responsibilities and the ￿SponSIbl1111eS of the tntstees with respect to going con￿rn are described in the relevant sections of this Teport. other Information The other infomation comprises the information included in the annual report. other than the financial statements and our Report of the Independent Auditor thereon. The trustees are responsible for Ihe other infomalion contained within the annual report. Ouf opinion on the financial statements does not ￿Ver the other infomiation ¥nd. except to the extent otherwise expliciuy stsl$d in our report. we do rK)t express any fomi of assurance conclusion thereon. Our responsibility is lo read the other infomation and. in doing so. consider whether the other infomialion is materially in¢onsislenl with the financial statements OT Ottr knowledge obtained in the course of the audit or otherwise appears to be malerially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required lo detemiine whether this gives rtse to a material mis5talemenl in Ihe financial 5tstements themselves. If. based on the work we have perfomed. we condude that there is a material misstatement of this other infomiation. we are required to report that fact. Wo have nothing to roport Sn this regard. Oplnlons on other matt•i$ prescribed by the Companle$ Act 2006 In our Opin￿on, based on the work undertaken in the course of the audlt.. the infomialion given in the Report of the Trustees. which includes the diredors, reporl prepared for the purposes of company law for thg finan¢i81 year for which the finan¢i81 statements arg p￿pared is consistsnt with the financial stalemenls: and the Report of the Trustees, including the diredors. report, has been prepared in a¢¢ordance with appli¢ablg18gal requlrements Page 18 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF VALLEYS KIDS Matters on whlch we are requSr•d to report by exceptlon In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the Course of the audit, we have not identified malerf81 misstslements in the Report of the Trustees which includes the directors, report. We have nolhlng to report in respect of the following matters where the Companies Act 2006 requires us lo report lo yo in OLtr opinion.. adequate accounting records have not been kept by the parent charitable company or returns adequate for our audit have not been re¢eived from branches not visited by us., or the parent charitable company financial statements are not in agreem¢nl wilh Ihè aco)unting r¢cords and relums., or Gertain disdosures of trustees, remuner8lion specified by law are not made-, or we have not re￿￿Ved all the information and explanatk)ns we require for our audit.. or the Iwstees were not entitled to prepare the financial statements in accordance with the small companies regime and t8ke advantage of the sm811 companies exemption in preparing the dire¢lors' ￿port and from the reqLFiremenl lo prepare a Strategic Report. Responslbllities of trustees As ex￿arned more fully in the Statement of Trustees Responsibilities. the trustees (who are also the directors of the charitable company for the purposes of company lawl ar& responsible for the pieparation of the financial slatomenls and for being salisffed that they give a tru8 and fair view. and for su¢1) intemal control as the Imslees determine is necessary to onable the preparation of financi81 statements that are flee from material misstatement, whether due to tiaud or error. In preparing the financial ststements. the trustees are responsible for assessing the group's and the parent ¢haritabte company's ability lo continue as a g(Mng concem. disclosing. as applicable, matters related to going concem and using the going con¢em basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no ¥ealisli¢ altemative but lo do so. Audltor responslbllltl•s for the audlt of the financlal statements Jr objectÈve5 are lo obtain reasonable assurance about whether the financial ststem¢nls a5 a vthole are free from material misstatement. whether duè to fraud or error. and to isstje a Report of the Independent Auditor that indudes our opinion. Reasonable assurance is a high level ol assurance. but is not a guarantee that an audit conducted in accordance with ISA5 {UKI will always detect a malertal misstatement when il exists. Misstatements car> arise from fraud or error and are consldered material if. indNidually or in the aggregate. they ¢ould reasonably be expected to influence the economrc decision5 of users taken on the basis of these f5nancial statements. Irregularities. induding fraud. are instances of non-complianc¢ with laws and regulatsons. We ¢Jesign procedures in line with our responsibilities. oullTrned above. to delecl material misstatements in respect of irregularities. including fraud_ The specific procedures for this engagement and the extent lo which these are capable of delecling irregularities. ncluding fraud is detailed below- We evalualed management's incenlives and opportunities for fraudulent manipulation of the financial statemen15 linduding the risk of override of controls) and deleTmined that the principal iisks were ielaled to posting inac¢urale joumals. We addressed these risks by carrying out specifically tsrgeled procedures. which included.. Enquirfes of management, those charged with govemance around actual and potential litigation and claims,- Perfomiing audit work over the risk of management override of conlrots, induding testing of joumal entries and other adjustments for appropriateness and evaluating the busines5 iationalg of signifi¢anl transactv)ns oulsidg the norn)al course of business.. Reviewtng minutès of meetings of those charged wilh govgrnance., Evaluating the ieas¢>ns for any large or unusual transactions., Reviewng financial statement disclosures and testing to supporting documentation lo assess Complian￿ with applicable laws and regulations.to underlying SUPPQrting documentation. Because of the inherent limitations of an audit there is a risk that we wlll not detect all irregularities, including those leading to a nRterial misstatement in the finartcial slalements or non-compliance wilh regulation. The risk increases the more that compliance with a law or regulation is removed from Ihg events and transactions reflected in the financial statemen15 a5 we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities oceurring due lo fraud rather than error, as fraud involves intentional concealment, forgery. collusion. Omis$￿n or misrepresentation. A further description of gur responsibilit(es for the audit of the finandal slalements is located on tho Flnancial Reporting Council's website al www.frc.org.uklauditoisresponsibilities. This description forms part of our Report of the IndeperKlenl Auditor. Page 19 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF VALLEYS KIDS Us• of our report This report is made solely to the charitable company's members, as a body, in a￿ordance wllh Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale to the charilable CoMpan￿S membefs those mallers we are required lo slate to them In an auditor's report and for no other purpose. To the fullest exlent permitted by law. we do not ae¢ept or assume responsibility lo anyone other Ihan the chaiitable company and the chaiilable company's membgrs as 8 body. for our audit work. for this report, or for the opinions we havè fomied. Julia Mortimer FCCA {Senior Statutory Auditor) for and on behalf of MHA Stslulory Auditor CARDIFF CF23 8RS Date= ..I02£ MHA is the Irading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales {regislered number OC3123131 Page 20 VALLEYS KIDS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING AN INCOME AND EXPENDrfuRE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 2024 Total funds 2023 Total funds Unrestricted funds Reslricled funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 147.790 166,576 314,366 354.226 Charltsble activtties Community support 392.680 461,503 854,183 959.079 Other trading activities Investment Income Other income Property revaluation galn 134.451 53.832 1,495 171.933 134,451 53,832 1.495 171.933 121.544 39.527 2,290 Total 902,181 628,079 1.530.260 1,477 296 EXPEND￿￿RE ON Raising funds 106,101 106.101 128,308 Charitable a¢tivities Community support 1.178.327 619,884 1.798.211 2,004.536 Property impairment 970.621 Total 1,284.428 619.884 1.904,312 3.103.465 NET INCOMEI(EXPENDITUREI BEFORE TAX 1382,2471 8.195 1374.052) 11.626.169) Tax 1.710} NET INCOMEIIEXPENDITURE) AFTER TAX 1382.2471 8.195 {374,052} (1.627.879 Transfers bètwèen funds 23 82.703 82.703 Net movement in funds 1299,5441 {74,5081 1374.052) (1,627,879) RECONCILIATION OF FUNDS Total funds brought fO￿ard 3.224.078 197.367 3.421,445 5.049.324 TOTAL FUNDS CARRIED FORWARD 2.924.534 122.859 3,047.393 3.421.445 The notes lorm part of these financtal stalgments Page 21 VALLEYS KIDS CONSOLIDATED BALANCE SHEET 31 MARCH 2024 2024 Total funds 2023 Total funds Unreslrtcled funds Restricted funds Notes FIXED ASSETS Tangible assets 17 3,704,625 3.704,625 3.658.820 CURRENT ASSETS Stock Debtors Cash al bank and in hand 1,916 36,129 23 8321 1.916 41,620 93.536 1,873 48,9( 3SS,705 18 5,491 117.368 14,213 122,859 137,072 406.484 CREDITORS Amounts falling due wthin one year 19 1342.866) {342.8661 1169,108} NET CURRENT ASs￿s 328.6531 122.859 205.7941 237.376 TOTAL ASSETS LESS CURRENT LIABILITIES 3.375.972 122.859 3.498.831 3.896,196 CRED￿oRs Amounts falling due after more than one year 20 1451.4381 (4S1.4381 {474.751) ASSETS 2,924.534 122.859 3,047.393 3.421.445 FUNDS Unrestricted funds Restrtcted funds 24 2.924,534 122,859 3.224,078 197.367 TOTAL FUNDS 3.047.393 3,421,445 These financial statements have been preparetl in accordance with kne provisions applicable to charitable companies subject lo the small companies regime. PF., "al statements were approved by the Board of Tru51ees and authorised for issue on . anij We￿ signed on its behalf by= P J Evans- Trusteé The notes form part of these financial statements Page 22 VALLEYS KIDS CHARITY BALANCE SHEET 31 MARCH 2024 2024 Totsl funds 2023 Total funds Unrestricted funds Reslrlcled funds Notes FIXED ASSETS Tangible 8ssets 17 3.645.978 3,645.978 3,597,295 CURRENT ASSETS Deblors Cash at bank and in hand 18 111.189 59,610) 5,491 117.368 116.680 57,758 119,427 304.881 51,579 122.859 174.438 424,308 CREDITORS Amounts falling due wtlhin one year 19 {323.399) 1323,399) (148.6711 NET CURRENT ASSETS 271.8201 122,859 148,961) 275.637 TOTAL ASSETS LESS CURRENT LIABILITIES 3.374.158 122.859 3.497,017 3.872.932 CREDITORS Amounts falling due after more than one year 20 1447.7051 (447.705) {470,0851 NET ASSETS 2.926.453 122.859 3,049,312 3,402,847 FUNDS Unreslricled funds Restricaed funds 24 2,926.453 122.859 3.205,480 197.367 TOTAL FUNDS 3.049.312 3 402,847 These financial statements have been prepared in a¢¢ordance with Ihe provisions applicable to Charitsble companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorsed for issue on 21 Feb 2025 and were signed on its behalt by.. P J Evans- Trustee The notes form part of these financial stalemgnts Page 23 VALLEYS KIDS CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating actlvltlgs Cash generated from operations Interest paid 1333,080) 35.076 1352,8451 23.5661 Nel cash used in operalirFg aclivTrlies 368,156> 376.411) Cash flows from Investing actlvltles Purchase of tsngible fixed assets Sale of tangible fixed assets Interest received {7.322) 1,499 464 (10,1471 1.000 Nel cash used in investing activities Cash flows from finanelng activit1•$ Loan repayments in yoar 17.766 19.994 Nel cash provided byllused in} ffrlancing activities 17.766} Change In ea5h and cash equlvalént5 in the reporung period Cash and cash equivalents at the beglnnlng of the reportlng perlod {391.281) (405.5081 355.705 761.213 Cash and cash equtvalents at the #nd of the reporting period 35.576} 355,705 Page 24 VALLEYS KIDS NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 RECONCILIATION OF NET EXPENDrruRE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net expendlturè for the reportlng p¢riod (as per tho Ststement of Financial Actlvltie$) Adjustrnents for: Depreciation charges Loss on disposal of fixed assets Interest received nlerest paid Impainnent of pioperty Property revaluation 9aift Decrease in debtors Increase in CTeditOf5 Increase in stock (374.052) 11,626,169) 129,784 2,167 14641 3S.076 153,579 540 1441 23,566 970,621 1171.933) 7,286 39,099 43 53.446 72.109 493 Net cash used In operatlan$ 395.4271 352,8451 ANALYSIS OF CHANGES IN NET DEBT Al 114123 Cash flow At 3113124 N•t cash Cash at bank arid in hand Bank overdraft 355.705 {262.169} 129.112 93,536 355.705 391.2811 35,576 Debt Debts falling due within 1 year Debts falling duo after 1 year {17.2921 470.085 14.614} 22,380 121.9061 447.705 487.3771 17,766 469 611 Tatal 131.672 373.5151 505,187 Page 25 VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 STATUTORY INFORMATION Valleys Kids is a company limited by guarantee incorporated in Wales w¢thin the United Kingdom. Thg rggistered office is 1 Cross Street, Penygraig. Tonypandy, Mid Glamorgan, CF40 1LD. The nature of the charilable companYs operations is lo provide and assisl in the provision of facilities and seNices for education, play. arts. ro¢reallon and other leisure time occupations wth the object of improving the conditions of life. Valloy Creative Limited is a 100Qkn owned subsidiary of Valleys Kids. It 13 a company incorporated in Wales within the United Kingdom. The registered office Is the same as the Pa￿nt company The nature of the operations is that of providing recreational, educational and wellbeing facilities for the public al large and in particular people in need. The financial stalemenls are Pfesented in Stefling 1£). the company's fvnctional cU￿ency. and rounded to the nearest pound. The significant accounting policies applied in the prepaialion of these financial statements are set out below. These policies have been consistently applied to all years presented unless Otherwise stated. ACCOUNTING POLICIES Basls of preparing the financial statements The fJnan(ial staternenls of the charitabl¢ wmpany. which is a publi¢ benefit erktity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 Accotjnting and Reporting by Charities= Slalement of Recomment5ed Practice applicable to charilitrs preparing their ac¢Dunts in accordance with Ihe Financial Reporting Standard appli¢able in the UK and Republi¢ of Ireland {FRS 1021 leffe¢tive 1 January 2019).. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial slalements have been prepared under the historical cost cx)nvention. There have been no material departures from Financial Reporting Standa¥d 102. Goln9 ¢on¢ern The trustees have assessed the charity's ability to continue as a going concern and based on the ¢hall¢n9ing financial situatton Ihe charity is facing, a detailed analysis has been undertaken considering the potential income streams availablè. ongoing reductions in costs and the extent to which assets can be liquidated to generate cash. The charity is reporting a loss of £244,000 for the nine month period to 31 December 2024. The charity is fore¢asling that a surplus of £15k will be generated for the year ending 31 March 2026. The charity has generated cash from the sale of assets. implemented staff cost reductson measures. including *edLindan¢ies. and early termination of leases lo ensure they are able to meet liabilities as they fall due. Further assets are in the process of being sold and the charity has also secured an overdraft fa¢ility vthich has been extended to 30 April 2025. After considering the informatron available to them. the tiustees, have a reasonable expectation that the charity has adequate resouices to continue iri operational exislen¢e for the foreseeable ftFlure, Accordingly. they continue lo adopt the going concem basis of accounting in preparing these financial statemen15. This assessment has been made aftèr taking into account a fange of information in respect of future income and costs, cash flow projections and the reduction in unrestricted reserves, however. they ackno￿edge Ihal material uncertainty does exist that may cast significant doubt on the entity's ability lo continue as a going con¢em, in Telalion lo the timtng of certain re￿Ipts including the sale of asse15, and secured granl funding. The ¢harily's cash flow forecasts show that, W41h the continued support of the b8nk. the charity should be able to continue lo operate and is well placed lo man8ge 115 risks successfvlly for al least 12 months from Ihe dat8 of approving these finanual ststements. Further delai15 of the financial impact of ¢h8ng85 made 51nce the year end and forecasts are given in the future plans section In the RepDrt of the Trustees. Consolldatlon The Statement of Financial Acliwlies (SOFA) and Balance Sheet consolidate the financlal statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidalgd on 8 line by line basis. Ineome All income is recognised in the Statement of Financlal Activilies once the charity has enlillement to the funds. Ft is probable Ihal the income will be re￿Ived and Ihe amotsnl can be measured reliably. Donatlons and legacies income Donalions and legacies income includes donations. gifts and grants that provide core lunding or, are of a genèral Page 26 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES . ¢ontinued nature and are recognised where there is enlillemenl, probability of receipt and the amount can be measured wllh sufficienl reliability- Su¢h income is only deferred when Ihe donor specifies it must be used in futu ac￿uftting perlods or the donor has imposed conditions whlch musl be mel before the charity has unconditional enbtlement. Investment In¢ome Investment income is recognised on a receivable basis. Expenditure Liabilities are recognised as expendiluie as soon as there is a legal or conslruciive obligalion committing the charity lo that expenditure. it is probable that a transfer of economic benefits will be required in selllemenl and the amount of the obligation ¢an be measured reliably. Expenditure is a¢¢ounled for on an accNals basis and ha5 been classified under headings that agg￿gate all cost related to the category. Where costs cannot be direcuy atlribuled to particular headings Ihey have been allocated to activities on a basis consistent with the use of resources. Expenditure on charitable activities comprises those costs incurred by the charity in th¢ dolivery of its activities and services for its beneficiarie5. It indudes both costs that can be allt)cated directly to such acb"vilies and Ihose costs of an indirect nature necessary lo support them. Support costs are thoso costs IhaL whilst necessary lo delwer an a¢livity. do not themselves produ¢e or ¢onslitule the outpul of the ¢haritable acttvity. This in¢ludes govemance costs which are those costs associated wilh meetirig the constitutional and statutory requirements of the charity and include the audit and accounkncy fee. Tanglble flx¥d as$et$ Fixed assets are initially recorded al cost. DepTe¢iation 15 tralculated so as to write off the cost of an asset. less tts ¢stimate residual value over the useful economic life of the asset as follows= Property and propety improvemgnts Vehicles Equipment 2% straight line 20¥0 Straight line 20Yo straight line Taxation The charily is exempl from corporation tax on its charttable activities. Fund accounting Unreslricled funds can be used in accordance with Ihe charitable objectives at the dES￿ellon of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the ¢harity. Restrictions arise when specified by Ihe donor or when fund5 are raised for parttcular restricted purposes. Further explanation of the nature and purpose of each fvnd is Induded in the note5 tr) the finan¢i81 statements. Penslon ¢osts and other post-r•tlroment benefits The Charilable company operates a defined cortrlribulion pension scheme. Contributions payable lo the charitable companys pension scheme are ¢htrged to the Statement of Financial Activiligs in the ￿riod to vthi¢h they relate. Termlnatlon payments The charitable company Teco9nises temiination benefits as a liability and an expense only when the enllty is dernonstrabty committed either lo lerminal¢ the employment of an employee or group of employees belore the normal retirement dale or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. OperatSng leas•s Rentals applicable to operating leases where substantially all of the benefits and risks of ownership romain with the lessor are charged against profits on a slralghl line basis over the period of the lease. Financial instrumènts The charity only has financial assets and financial liabiltties of a kind that qualify as basic financial instrLsments. Page 27 ntinued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES-¢ontlnued Flnan¢ial instruments Icontlnu¢d) Trade deblots and other debtors are reeognised at the settlement amount due and prepaym&nls are valued at the amount prepaid. Creditors are recogn*sed where the charity has a present obligalSon resLFlting from a past event that will probably resutt in the transfer of funds lo a third party and the amount due to selue the obligalion can be measured or estimated reliably. Creditors are nom)alty recognised al Iheir setuemenl amount after allowing for any trade discounts due. Slgnificant accounting ludgements and estimates Eslimates and judgements are continually evaluated and are based on hlstorical experience and other relevant factors. including expectations of future events that are believed to be reasonable under the circumstsnces. The preparation of the finanaal slalements requires management to make estimates and assumptions conceming the future. The resulting accounting estimates wll, by definition. be likely lo differ from the ielated actual results. Property Valuation Propety has been revalued based upon formal valuatlon provided by independent expert. The valuation is by nalu*e an estimate. though the expert is qualified to be able to provide this valuation. Depreciation Depreualion is based upon Ihe useful economic life of the asset which has been estimated by the ¢har¢ty based upon knowledge of the assets. The manual fiatu￿ of this estimale makes it a riskj DONATIONS AND LEGACIES 2024 2023 Donation5 Gift aid Lega¢ies Grants 62,790 64,739 1.034 57.535 230.918 251,576 314,366 354.226 Grants received. incluifed in the above. are a5 follows: 2024 2023 Interlink RCT Arts Council of Wales Janet and Peter Swinburn Fund - CAF America Children in Need The Watèrloo Foundation Garfield Weston Foundakn"on The Hodge Foundation The Tudor Tnjst The Lealhersellers, Foundation Department for Work and Pensions Arts & Business Cymru RCTCBC 1,000 3.893 49.245 500 50,000 23.576 50,000 45.OIK) 60.000 48,000 25,000 25,000 48,000 25,000 6.511 6.562 15.207 251,576 230.918 OTHER TRADING ACTIVITIES 2024 2023 Retail income Income from Valleys Creative Limited Exhibition sales 12,132 122,319 9,815 111,364 365 134.451 Page 28 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2024 INVESTMENT INCOME 2024 2023 Rents r¢coived Deposit account interest 53.368 464 39,483 44 53.832 39,527 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Community activities Grants Party and play Hire income 212,234 452,875 118.334 70.740 238.099 549.114 122.380 49,486 854.183 959.079 Grants received. included in the above, are as follows.. 2024 2023 Department of WoTks- lQckstart Interlink RCT Arts Council of Wales Big Lottery Fund- Working Families Gwendoline and Margaret Davies Charity Welsh Govemment Cwm TafMor9annwg Universty Health Board Children in Need Peny Y Cymoedd Community Fund Colwinston Charitable Trust Oakdale Trust The National Lottery Heritsge Fund Ponlypridd Town Council RCTCBC- other grants Community Foundation Wa165 RCTCBC - Summer of Fun Arts & Business Cymru The Darkley Trust Alex Ferry Foundation WCVA.- Thiid Sector Resilien￿ Fund 3 Newydd Housing Asso¢T81ion Weslem Power Distiibulion National Grid Electricity Distribution- Community Matters Fund National Lottery Community Fund Voluntary Action Merthyr Tydfil - Regional Integration Fund Welsh Church Act Fund Save the Children Tlny Rebel RCTCBC - Community Dementia Prevention Programme cwvys The Neighbourly Food Grant RCTCBC - Food Support Fund RCTCBC- Community Micro Grant RCTCBC- Winter Hardship Fund RCTCBC- Energy Costs Grant RCTCBC- Neighbourhood Fund RCTCBC- Fun, Food & Friends National Grid Electricity Dislrtbulion- Wam Place Energy Club 1.493 7,831 179,748 188,363 108.027 5.000 4,152 9.098 30.577 25.500 10,000 2.000 29.935 1,167 120.045 250 26.404 4,642 10,629 5,817 2.000 9.978 46.382 750 2,SOO 9,935 9,948 24,132 8,237 1.800 1,500 2.492 9.509 45.120 7.000 1.899 9.500 5.500 1,000 2,000 2,700 1,000 15,615 9.814 452 875 549,114 Page 29 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2024 OTHER INCOME 2024 2023 Insurance daim Sundry Income 1.495 2,290 1.495 2,290 RAISING FUNDS Ralslng donatlons and lega¢l&s 2024 2023 staff costs Activities Premises costs Trading subsidlary costs 27,190 32.492 6.750 14.355 74,711 10.699 68.212 106,101 128.308 CHARITABLE ACTIVITIES COSTS Direct Costs (see note 101 Support costs {see note 11) Totals Community Support 1.424.498 373.713 1.798,211 10. DIRECT COSTS OF CHARITABLE ACTIVITIES 2024 2023 Staff ¢xists Travel Staff training Telephone and postage Prinltng and $181ionery Activities Premises ¢osls Depreciation Loss on salo of as5els 857,963 17.010 1,031 2.094 1.569 219.184 219.896 103.584 2.167 1.054.310 14.430 16.072 1.943 19Y,589 195.334 112,282 540 1.424,498 1.592.500 Page 30 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . ¢ontinued FOR THE YEAR ENDED 31 MARCH 2024 11. SUPPORT COSTS Governance )sts Management Finance Other Totals Communlty Support 104,846 203 421 20.356 373,713 12. NET INCOMEI{EXPENDITURE) Net income11expendi￿reI is stated after chargingllcreditingl: 2024 2023 Auditors. remuneration Auditors. remuneration for non-audit work Proporty revaluation gain Impairment of tsngible fjxed assets Depre¢iats"on 17,057 3.299 {171.9331 9.100 4.529 970,621 153,579 129.486 13. TRUSTEES. REMUNERATION AND BENEFITS TheTe were no Iruslees. remuneration or other benefits for the year ended 31 March 2024 or for the year ended 31 March 2023. Trustses. expenses There were no trustees. expenses paid for the year ended 31 March 2024 or for the year ended 31 March 2023. STAFF COSTS 14. 2024 2023 Employee costs durlng the year Wages and salaries Employerfs National Insuran￿ contributions Pension ￿$15 973.315 68,181 17,926 1.145,813 90.260 21.917 1.059,422 1.257.990 Number of employees Equivalent full lime employees 55 46 51 No employee received emoluments in excess of £60.000. The lotal key management personntrl femuneralion benefits paid during the year was £106.101 12023= £101.570). In¢ludgd wlthln staff cos15 are lemiinallon paymenls of £14.56412023-. £Nil)l. 15. RESULTS OF PARENT CHARITABLE COMPANY No Separate statement of financial aclivilie5 has been included for the parent Charitsble company. The Income ol the parent charitsble Company was £1,116,514 and net expenditure as £353.535 Page 31 conbnued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 16. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTMTIES Unrestricted funds Restricted funds Totsl funds INCOME AND ENDOWMENTS FROM Donations and legacies 191,774 162,452 354.226 Charitable actlvltlés Community Support 305.453 653.626 959.079 Other trading activities Investment income Other Trn¢omè 121.544 39,527 2,920 121,544 39.527 2.920 Totsl 661,218 816,078 1,477.296 EXPENDITURE ON Raising funds 89.066 39,242 128,308 Charitable activities Community Support 1.114,213 890.323 2.004.536 Other 970.621 970,621 Total 2,173.900 929.565 3,103,465 NET INCOMEIIEXPENDITURE) BEFORE TAX 11.512.682) {113.487) {1,626,1691 Tax 11.7101 {1,7101 NET INCOMEIIEXPENDITUREI AFTER TAX 11,514,392) 1113,487) 11.627.879} Transftrs bètween funds 21.241 21.241 Net movement In fund$ 11.493.151) (134.728} {1.627.6791 RECONCILIATION OF FUNDS Total lunds brought forward As Previously reported Prior year adjustment 4,738.782 21.5531 332,095 5.070.877 21.553 A$ restatsd 4.717.229 332.095 5.049.324 TOTAL FUNDS CARRIED FORWARD 3.224.078 197.367 3.421,445 Page 32 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2024 17. TANGIBLE FIXED ASSETS - GROUP Freehold property Plant and machinery Motor vehicles Totals COST OR VALUATION At 1 April 2023 Additions Disposals Revaluations 5,182,381 320,754 7,322 1147,848) 20.000 5.523.135 7.322 {167.8481 171.933 120,0001 171.933 At 31 March 2024 5 354.314 180.228 5.534.542 DEPRECIATION At 1 April 2023 Charge for year Eliminated on disposal 1.604.461 103.647 245.187 24,470 147.8481 14,667 1,667 1.864,315 129.784 16.334} At 37 Maich 2024 1 708.108 1,829.917 NET BOOK VALUE At 31 March 2024 3,646.206 58,419 3.704.625 At 31 March 2023 3.577,920 75,567 5.333 3.658.820 TANGIBLE FIXED ASSETS - CHARITY Freehdd property Plant and ma¢hinery Motor vehiclos Totals COST OR VALUATION At 1 April 2023 Additions Disposals Revaluations 5.135,722 256.092 6.902 (147.848) 20.000 5,411.814 6.902 {267,8481 171.933 120.000} 171,933 Al 31 March 2024 5.307.655 115.146 5.422,801 DEPRECIATION Al 1 April 2023 Charge for year Eliminated on disposal 1.600.729 102.714 199.123 22,105 147.8481 14.667 1,667 16.334} 1,814.519 126.486 164,1821 At 31 March 2024 1.703,443 73.380 1.776.823 NEf BOOK VALUE Al 31 March 2024 3,604.212 41.766 3.645,978 Al 31 March 2023 3.534.993 56,969 5.333 3.597.295 Page 33 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . contlnued FOR THE YEAR ENDED 31 MARCH 2024 17. TANGIBLE FIXED ASSETS ￿ontInued Professional valuallons were perforrned by Bnjton Knowles Chartered SuNeyors. Rees Richards Chartered Surveyors. Herbert R Thomas Estale Agents and DLP Chartered Surveyors on the Valleys Kids properties in 2023-2024. the values assessed were as noted below- Valuatlon 1.050,000 800,000 60,000 130.000 95.000 Little Bryn Gwyn The Factory 78 Tylacelyn Road Library- 75,76 76a T￿a￿lyn Road 156 Bute Street Other than Little Bryn G￿n the properties are held al carrying value which is lower than the valuation: Th¢ Fa¢tory- hisloTlC COSt- £528,750. accumulated depreciation £148,050. cairying value £380.700. 78 Tyl¢aGelyn Road- histoii¢ cost £25.000. accumulated depreciation £13,750. carrying value £11250. Library- historic cost £86.798, a¢Gumulated depreciah.on £15.488. carrying value £71.310. 156 Bute Stfeel- historic C05t £59.126, accumulated depreciation £32.520. carrying value £26.606. Little Bryn Gwyn was revalued lo £1.050.000 during tho year resulting in a rovaluation gain of £171.933. As the property had previously been revalued down lo £900.000 in p¥ior accounting period. If held under Ihe historic cosl model the carrying value of Liitle Bryn Gwyn would be £1,829.276. (Cost £2.067.250. accumulated deprecialion £237,975} 18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR- GROUP AND CHARITY Group 2024 Group 2023 Charity 2024 Charity 2023 Trade debtors Other debtors Amounts owod by group undertaknngs Prepayments and accrued iricome 26,941 980 28.875 1.690 26.941 980 76.973 11,786 28.475 1.690 71.943 17.319 13.699 18,341 41,620 48,906 116.680 119.427 Page 34 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . ¢ontinued FOR THE YEAR ENDED 31 MARCH 2024 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR- GROUP AND CHARITY Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loans and overdrafts Isee note 20} Other loans {see note 20) Trade creditors Social security and other taxes Cotporation tax Other credito VAT Acciuals and deferred income 144,952 6,066 48,294 32.318 11.369 5,923 28.404 423 1.710 27.387 8.809 85.063 144.952 6.066 41.207 32.318 11,369 5,923 28,136 423 22,688 9.677 80,871 19,079 22,835 79.985 342.866 169,108 323.399 148.671 In¢luded within deferred in¢ome above is the following.. 2024 2023 The Hodge Foundation Children in Ne Little Bryn Gvryn - HiTe income RCTCBC capital grant 35.000 35.000 14.902 13,835 1.167 10.700 933 46,633 64.904 The deferred income relate5 to income received in advance of proje¢t deltvery. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - GROUP 20. Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loans and overdrafts (see note 21} Oiher loans {see note 211 Accrvals and deferred income 438.776 31.309 3,733 438.776 31.309 4.666 422,461 25,244 438,776 31.309 451,438 474.751 447.705 470.085 21. LOANS An analysis of the maturity of loans is given below.. 2024 2023 Amounts falling due within one year on demand: Bank ovefdrafts Bank loans Other loans 129,112 15.840 6,066 11,369 5.923 1S1.018 Amounts fralling between one and years: Bank loans- 1-2 year5 Other loans- 1-2 years 17,148 6.212 11,328 6,067 23.360 17,395 Page 35 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS. continued FOR THE YEAR ENDED 31 MARCH 2024 21. LOANS- contlnued Amounts falling dLte between two and five years.. Bank loans - 24 years Qlher loans- 2-5 years 64.979 8.74 39.815 12,407 73.725 Amounts falllng due in morg than five years.. Repayable by inslalments: Bank loans Other loans 340.334 10.286 387.633 12,835 350,620 400 468 22. LEASING AGREEMENTS Minimum lease payments under non4xncellable operating leases fall due as follows.. 2024 2023 Within one year Between one and five years 1.410 23,706 44.592 1.410 68,298 Total operating lease payments recognised as an expense in the year were £16.915 {2023.. £38.782) SECURED DEBTS 23. The following secured debts are ineluded within credÈtors'. 2024 2023 Bank loans 438.301 450.145 The bank loan is secured by: A FITS1 Legal Charge over the Property known as The Pop Factory. Porth, Rhondda cYr￿n Taff A secOr￿ Legal Charge over the propety known as Little Bryn Gwyn. Gower. Swansea A Deed of priority to be made between Unity and the Welsh Ministers for £502.000. 24. MOVEMENT IN FUNDS Net movement in funds Transfers be￿een funds At 3113124 At 114123 Unr•stri¢ted funds General fund 3.224,078 1382.247) 82.703 2,924,534 Restricted fund$ Sparc The Tudor Twst Interlink- Advers¥ Chlldhood Experiences General Children and Young People Family work 6.332 19,495 20.876 86.867 1,798 {6.332} (19,4951 120,8761 2,066 11,7981 163.2081 25.725 61.999 {59,3621 94,497 2.637 94.497 Valleys voices 197.367 8,195 82,703} 122.859 TOTAL FUNDS 3.421,445 374.0521 3,047,393 Page 36 ontinued.-. VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . ¢ontinued FOR THE YEAR ENDED 31 MARCH 2024 24. MOVEMENT IN FUNDS - ¢ontinued Net movement in funds, included in Iho above are as follows: Incoming resources Resources expended Movement in funds Unrèstrlcted funds General fvnd 902.181 11,284.4281 1382,247) Restrlcted funds Sparc Interlink- Adverse Childhood Experien￿$ General Children and Young People Older people Family work Arts Valleys voices 16.3321 {20.8761 1179,0191 146,7141 147.1201 148.3591 {245.9161 {6,3321 {20,8761 2.066 11.7981 181.085 44.916 47,120 48,359 186.554 120.045 159,3621 94.497 628,079 619.884 8,195 TOTAL FUNDS 1.530,260 1.904.312) 374.052 Comparatives for movamtnt in funds Prior year adjustrnent Net movement in fijnds Transfers between ftjnds Al 3113123 At 114122 Unrestricted funds General fund 4.738,782 121,5531 {1.514.3921 21.241 3,224.078 Restrlcttrd funds Sparc CoEwinslon Charitable Trust BBC Children in Need Waterloo Foundation WCVA- Third Sector Resilience Fund The Tudor Trust RCTCBC- Parent Support RCTCBC- Young Gifted and Welsh Interlink- Adverse ChÉldhood Experiences South Wales Police Charities Foundation America Trivallis - Together Agairs General Children and Youn9 People Older people Arts 102,834 196,502} 6.332 14.000 3.219 3.942 {14,000) {3.219) 13.942} 74,960 23.184 18.592 174.9601 13,6891 {18.592) 19,495 3.000 {3.000) 23.800 34.147 12.924) 134.1471 20.876 25,882 4.555 125.8621 14,5551 106,520 119,653) 86,867 1.798 1.588 1,798 11,588} 61,999 332 095 113.487 197,367 TOTAL FUNDS 1.627.879) 3,421,445 Page 37 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 24. MOVEMENT IN FUNDS- continued Comparallve net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movernenl In funds Unrestricted funds General fund 661,218 (2,175,610) 11,514,392) Rèstri¢ted funds Spar¢ Colwinston Charitable Trust BBC Children in Need Waledoo Foundation WCVA- Third Sector Resilience Fuftd The Tudor Trust RCTCBC - Parent Support RCTCBC~ Young Gifted and Welsh Interlink- Adverse ChÈldhood Experiences South Wales Police Charities Aid Foundation Ameri¢8 Trivallis- Together Again General Children and Young People Older people Family work Arts {96.502} 114.OlX)} 13,2191 13,9421 174.9601 13.689) {18,592) {3.000} (2,9241 134.1471 125.8621 14.5551 {120.499) {127.7251 150.9571 1199.8221 145,1701 (96,5021 114.0001 13.2191 {3.9421 174,9601 {3,6891 {18,5921 13,0001 12.924} 134,147} 125.8621 {4.5551 106.520 1.798 1,588 227.019 t29.523 52.545 199.822 207.169 61.999 816.078 929.5651 113.487 TOTAL FUNDS 1,477,296 3,105.175) 1.627,8791 BBC Chlldren In Nèed provided grant funding to fund a part-time Play Worker las well as training and travell. sessional staff. small equipment and trips and activities in Dinas. Grant funding was received from the followng organisations as contiibutions toward the Spar¢ programme which focuses on involving young people in a range of art activities.. Arts Council of Wales Esmeg Falrbalm Foundatlon Colwlnston Charitable Trust contributed funds lo support the Artist in residence salary plus 8 contribution towards participatory arts workshops and the exhibilions programme. Charities Aid Foundation America the Swinbuin Trust awarded Valleys Kids £50.089 to fund ? new Dlrector P05t as part of the 2021 Irdll5ition process lo a new senior management Structure. Waterloo Foundation supported the appointment of a new CEO within a new senior management & fundraisiro slru¢ture duiing a critical transition period wtlh a grant of £150.000 over three yeats. The fif5t inslalmenl of £50,000 was received this year. Tudor Trust supportfyd the transition period with a donatlon of £49,000 to enable the employment of a full lime Direclor of Programmes. Rhondda Cynon Taf CBC . Parenting Support awarded £276,212 to Valleys Kid5 for the delivery of parenting support service. Rhondda Cynon Taf CBC - Young Glfted and W•lsh awarded £11.685 for delivery of the Young Gifted and Welsh project lo address Mentsl Health and Wellbeing for youn9 people in RCT who have been impacted by repeated lockdowns dLtring the Covid pandemic. The grant contributed to two Freelance Level 3 Youth Workers. activities. four residential stays. travel and food. Page 38 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS . ¢ontinued FOR THE YEAR ENDED 31 MARCH 2024 MOVEMENT IN FUNDS. Continued Interlink Community Respons8 to Adverse Childhood Experience awarded Valleys Kids £23,800 for Ihe development of community and partner involvement in a place based and community development approach lo advorse Childhood experiences. The purpose of the work including th& identification and involvement of members of the community of relevant practitioners in the promolion of opportunities lo be involved In conversations and awa￿ne$S and training. and to work with the community, InleTlink and other stakeholdèrs and to identify the next steps in relation to future work, priorities and fvnding. Funding was awarded lo deliver wnsul¢ancy and staffing days January- March 2022. Trauma Informed Educator training for two people, Network meeting$131 Rhydyfelin, Upper Rhondda and Mid Rhondda. focus gTOUPS and questionnaires with six agency partners and evaluatlon and findings to in¢lude an extemal validation. South Wales Poli¢e UK - Good H¢alth programmes awarded Valleys Kids a gTant of £34.147 to support ¢ommunity-based. self-help and peer support groups which are helping lo tackle Adverse Childhood Experiences {ACEs}. The grant was provided to enable beneficiaries to support women Irom racially and elhnically minoritised backgrounds- support women and children who have exp¢Tienced domestic or sexual abuselMoience- support women with neurodiversity needs and enabl¢ beneficvaries to be better informed l empowered to ael on infotmatton. Trivallis- Together Again awarded Valleys Kids £4.555 to deliver the Together Again project to provide children, betsveen the ages of 5 and 11 years of age. from Penygraig and the surrounding area. opportunities to play and )cialise twi￿ a week al the Soar Centre. Valleys Kids received £74,960 from the WCVA Third Sector Resilience Fund 2 to fijnd an integrated team to develop our social businesses. fundraise from individuals. companies, ITVSts etc and market the organisation and so¢ial businesses. This led lo the employment of 8 full-lime Fundraislng Manager. a part time Trusts and Foundations Furidraiser and a full lirne Communications Officer. Arts Funding was received from the following organisalions as contribution5 loward the Arts programme which fo¢uses on involving young people in a range of art activities.. Arts Council of Wa￿S Colwnston Chartiable Trust The Dafkley Trust Action Sn Caerau and Ely Famll Work Funding was received from the following organisalions as contributions toward the Famity Work programme which focuses on providing comprehensive assistance to families in achieving their goals by equipping them with the necessary tools and support to develop their skills.. RCTCBC Save the Children National Lottery Community Fund Children and Youn Peo Funding wa5 received from the following organisations a5 contributions toward the Children and Young People programme which focus&s on supporting every child's right to play. learn and discover ar￿ working with young people lo develop their self-confidence and encourage the development of aspirations and goals.. Arts & Business Cymru Westerri Power Dtrstribu¢ion - Community Matters Fund Gwendoline and Margaret Davies Ch8Tity Communily Foundation in Wales Cwm Taf Morgannwg Universlty Health Board Welsh Government Children in Need RCTCBC Interlink RCT Older Peo Funding was received from the followng organisalions as contributions toward the older adults, programme which Is delivered across accessible Community and Family Hubs and provides a welcoming and exciting range of social and creative activities Ihal encourages older people to develop new ne￿OrkS of friend5 and explore new interests, inclv(Jlng engaging with the digital worfd: Page 39 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS - contlnuèd FOR THE YEAR ENDED 31 MARCH 2024 24. MOVEMENT IN FUNDS-eontlnued Alex Ferry Foundation Pontypridd Town Council Newydd Housing Association RCTCBC National Grid Electricity Distribution- Community Matters Fund Voluntary Action Merthyr Tydfil- Regional Integration Fund General F¢Jnding was received from the followng organisalions as contributions toward salaries, opèrational costs and repairs and maintenance-. Charities Aid Foundation America WCVA.. Thlrd Sector Resilience Fund 3 Welsh Church Acl Fund RCTCBC Waterloo Foundation The Tudor Trusl National Lottery Community Fund Prlor ear restricted funds The N￿onal Lottery Community Fund provided grant funding of £143,083 towards Working Families which is a project, based in Rhondda Cynon Taf. worktng in partnership with Spi¢8 lo provide opportunttses for working familles experiencing in-work poverty. By using a time ¢￿di1 model. individuals will increase in confidence, 5elf*steem and health and well-being, whilst also building iesilience and increasing social capital. and being empoweied to participate in acliwties and experiences that they ¢annol ordbnarily ac¢e5s, thus improving Ihoir quality of life. The Millennium Stadium Charitable Trust conlribuleil £5,100 in the 2019120 financial year towards restoration and upgrade work on the Soar Centre. The National Lottery Communlty Fund awarded grant fvnding in support of the People and Places - Farnily Links project which focuses on worknng with families in pover¢y or struggling to cope following austerity measures in RCT. The gTant will fund one full lime project Co-ordinator. two full lime famTrly support workers. two part time family support workers and one part lime monitoring and evaluation officer. The grant will also be used for project delivery costs. trairting and expenses and projed overheads. The National Lottery Heritage Fund provided a grant lo be used for the Femhill Colliery Heritage Trail. The Hodge Foundation provided grant thjnding of £13.452 to be used for the Families in Need project. Rhondda Cynon Taf CBC Gommunily and Family Hub. Rhydyfelln Grant contributed £15.101 towards the staffing of Rhydyfelin Integrated Car8 Fund Keeping Conne¢led awarded Valleys KSds a grant of £9.272 for a befriending projoct for older people. including a dementia café al the Rhyd￿elin Community and Family Hub and a number of therapy sessions and other actiwlies to bring togglher isolated and vulnerable people in a supported environment. National Lottery Heritage Fund donated £6,500 lo Penyrenglyn Community and Family Hub lo deliver a heritago trail up in the Colliery Sile. The projecl was y¢ung-people-led and in¢luded designing and commissioning the maklng of inlerpretstion panels, running a S￿la1 media Campaign and holding 8 launch event. Integrated Care Fund Thlrd Sector Small Grant Scheme awarded Valleys Kids £10.000 to deliver the 'A Place and fime ft)r You. project, developed froffl close collaboialion wilh participants and key stakeholder5 who continue lo inlom the development of this discrele project established lo engage adulls in the first slages of dementia and their families and creatsng OPPOrtunilies tailored to indlvldual need and supwrting those with d8menlia and their families to continue lo engage in their community. Community First - Famlly Engagernent awarded Valleys Kids a Family Engagement grant of £81,548 to deliver farnily and youth activities at Valleys Kids Community and Family Hubs. Page 40 continued... VALLEYS KIDS NOTES TO THE FINANCIAL STATEMENTS kn contlnued FOR THE YEAR ENDED 31 MARCH 2024 MOVEMENT IN FUNDS-continued Interlink - Mental Health Covid Response provided a grant of £36.000 for the projecl'A Space for Us.. working th the community lo improve mental wellbeing. to deliver sessior¢s. aclivities and prov¢de support to Children, Young People and Families whose levels of 8nxSely and depression increased dramatically as a rosult of the Covid epi¢Jemic in Rhondda and Taff - especially in the communities of Rhydyfelin. Penygraig. Dinas, Porth and PenyTrnglyn. A followthon grant of £26.640 was received to conlinue the project. which provided Weekly Drama Workshops, online drama workshops. emotional wèllbeing support, counselling via a partner organisalion. wellbeing pad(s. play packs and youth activity packs. Interlink - Winter Pressures grant of £10.441 to Valleys Kids to ensure the physical and mental wellbeing of disadvantaged and isolated older people in Penygraig, Penyrenglyn, Din8s and Rhydyfelin over the wnter season. This was delivered through connected projects.. hampers for eldedy and vulnerable people. a Christrna5 party for older people who would otherwise be alone at Christma5 the chance to ¢ome together and enjoy a Cup of lea and a mince pie. Tes¢0 YaTd Grant a grant of £1,100 to support the food parcel scheme operated of the Play Yard and Ihe work in partnership with local schools. The furkding was used lo purchase equipment to SLEPPOrt the delivery of the food parcel scheme (shelving, refrigeration and heavy-duly Irolliesl- Pobl Tru$t - Yard Grant a grant of £1.000 to SUp￿rt the food parcel scheme opeiated out of the Play Yard 8150 expand on the work we do with schools we purchased kit¢hen equipment which has enabled us to deliver training with young people and hold healthy eatinglcooking workshops wlh school childreri. Parent Infant Foundation awarded Vall¢ys Kids a grant of £4.400 to condLtct a consultation of parents of childTen O-2 years in Bridgend and RCT. South Wales Police UK - ACES awarded grant of £3,779 to engage wklh