| Pages | |||
|---|---|---|---|
| Legal and Administrative | Details | ||
| Chair's Report | |||
| Trustees' Report |
|||
| Chief Executive Officer's | Repoit | 9 —10 | |
| Independent Auditors' |
Report | 11 —13 | |
| Statement ofFinancial | Activities | 14 | |
| Balance Sheet | 15 | ||
| Notes to the Accounts | 16—24 |
Page 13 REI PORT OF THE INDCPENDfNT AUDITORS TO THC MCMBERS OF NATWEST SOCIAL & COMIWJUNITY CAPITAL (Conliniieill FOR THE YCI AR EifiDEID 31 DECEMBER 2021 Au(litor's respoilsibilities for the lidit of the finnncial statemen15 Oiii. objective5 are to obtain I'ea5011able assiiiiiice <iboiit wlieiliei. the finaiicial statenienls as a whole al'e fl'ee fioiii Inalerial niisstaleinent, wliethei, due lo fraud OL ei'roi., and to Issue ai) lluditor's I'ep(Ii't tlial incliides oui. opini(Tri). Reasonable a5siiiance is a hi£l) level of assui'aiice bul is iiol a gwii'anlee Ilthl an aiidil ¢ondLlCted li) 8¢coI'd8n¢e willl ISAS (UK) will always detect a matei'ial 11)isstatei)ienl wlien il exists. Misstateinents ¢aii ai'ise fi'oin fi'aud or eKI'or ai)d al'e consideied niatei'ial if, iiidividiially oi. in tlie aggi'egate, they coiild I'easoiiably be expected lo infliience the ecoi)oJnic decisions of iisei's takeii 01) tlie basis ot iliese financial statenients. Tlie extent to Nvhicli oiii. pi'ocediires are capable of deleeliiig iri'egulayities, ii)eliiding fi'aud is detailed below: Pei'foniiiiig alidit woi'k ovei. tlie i-isk of iiianagemeiil override of conli'ols, iiicluding testing of joui'nal ¢nti'ies and olliei. adjLislinenls foi appi'opriateness, evaliiating tl)e busiiiess I'ationale of significai)t ti.a1aClIOnS outside the iiorinal COLiIEe of business and Yeviewiiig accountii)g estiinates foi. bias. Pei'ffii'minE Eilidit woi'k ovei. tlie i'isk of undei%tateinenl of income including substantive lesling and obtL4iniiig corroborated e,xplanation5 from Managenienl. Pciloi'iiiing audit woi'k oli tlie latent pi'ovision reviewing foi. In8nagenient bias and obtaining coi'i'oborated explanatioi)s from maliage1el}t Becdiise of the ii)liei'ent li1ltatIonS of an aLidit, there is a I'isk that we will not delect all ii'regularilies, incliiding those leading to a Inatei'ial iiiisstateiiieiit in the financial stateinenls or Iion-coinpliaiice with I'egLilation. Tlie I'isk is also gi'eatei. regai'dinLT iri'egTulai ii1¢s VL¥llI'rinL, due lu fvaiid i?tl)ei' tliai) ei'i'oi., &8 fraud involves intei)tional coiicealinenl, foigtti'y, colliision, omission or misrepir5cnlation. A fiirther descriptioii of our i'esponsibilitles. is available on the Financial Reporting CDuncil'5 website at.. Iillps.'l/www.fi'c.orgF.uklOur~Woi'klAudiLIAudit-and-assui'aiioclStaiidards-and-giiidaiice/siandard5-and-guidance-fol._ audiloi'4Auditorg-responsibilities-for-audit/Description-of-aiidit015-IEsponsibilities-fDi-.aLidit.aspx. This description foims pait of our auditoi's I'cpori. Use of oui. Jtpoi't This report is Iiiade solely lo Ilie chai'ilablc coinpany's Ineinbei's, as a body, in accordance with Chapter 3 of Pa11 16 of Ilie Coiiipanies Act 2006. Oiir audit woi'k lia5 been undci1aken so that we miglit state lo the charitable con)pany's Dieinbers those iiiattei's we are I'equii'ed to state lo tliein in an auditor's iepoi'l and foi. no otliei. purpose. To tlie fullest extent pei'mitted by law, we do not accept oi. assuine I'espoiisibility to aiiyone otliei. 15iaii tlie cliai'itable coinpany attd tlit cliai'itable cofflpany's fflenibei'5 as a body, foi. oiii. aiidit work, for this repoil, oi. for the opinions we have forined. J/r F/, Pllul Manllion FCA FCCA (Senlor Statutory Auditor) For aiid on belialf of BK Plus Alidit Limited, Statiitoiy Aliditor 2 Higlilands Couit Ci'anmore Aven¢ie B90 4LE 22 June 2022
| Note | Unrestricted | Unrestricted | ||||
|---|---|---|---|---|---|---|
| Fumls | Funds | |||||
| 2021 | 2020 | |||||
| Income: | ||||||
| Donations aml legacies |
163,868 | 240,565 | ||||
| Income from charitable | activities: | |||||
| Provision ofloan finanbe | 103,369 | 67,304 | ||||
| Income from investments | 593 | 12,873 | ||||
| Total income | 267,830 | 320 742 | ||||
| Expenditure: | ||||||
| Expenditure on Charitable |
activities: | |||||
| Grants | 7,692 | 1,509,405 | ||||
| Provision ofloan finance | 338,673 | 402,322 | ||||
| Total expendihi re | 346365 | 1911727 | ||||
| Net surplus/(deficit) | (78,535) | (1,590,985) | ||||
| Net gains/(losses) on investments |
10 | 434 852 | 236 144 | |||
| Net movement in funds |
during | the year | 356,317 | (1,354,841) | ||
| Reconciliation offunds |
||||||
| Total funds brougfit forward |
10,689,494 | 12,044,335 | ||||
| Total funds carried forward | 16 | 11,045 011 | 10 689,494 |
| BALANCE SH | BALANCE SH | BALANCE SH | EET | |||
|---|---|---|---|---|---|---|
| FOR THE YEAR ENDED 31 | DECEMBER 2021 | |||||
| Note | 2021 | 2020 | ||||
| Fixed assets | ||||||
| Fixed asset investments | 10 | 3,249,051 | 2,814,199 | |||
| Current assets |
||||||
| Debtors falling due ivithin one year | 11 | 225,254 | 469,468 | |||
| Debtors falling due after one year | 11 | 523,538 | 789,786 | |||
| Cash at bank and in hand | 7,054,668 | 6,700,445 | ||||
| 7,803,460 | 7,959,699 | |||||
| Liabilities Creditors falling due within |
one year | 11 ~6700 | 84 404 | |||
| Net Current Assets |
7,796,760 | 7,875,295 | ||||
| Net assets | 11045 811 | 10,689,494 | ||||
| The funds ofthe Charity | ||||||
| Unrestricted funds |
16 | 11,045,811 | ]0,689,494 | |||
| Total Charity fumls |
11045 011 | 10,609494 |
| Income fr | om do | nat | ions and legacies |
||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| Donations Donations |
—gifts | in | kind | 5,000 158,868 |
5,014 235,551 |
| 263 060 | 240 565 |
| NATWEST SOCIAL & COMMUNITY CAPITAL |
|---|
| NOTES TO THE ACCOUNTS (continued) |
| FOR THE YEAR ENDED 31DECEMBER 2021 |
| Income from | charitable | charitable | charitable | charitable | activities | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||||||||
| Loans interest receivable | 100,819 | 58,661 | ||||||||||
| Loan administration | fees | 2 | 550 | 8,643 | ||||||||
| 103369 | 67 304 | |||||||||||
| 5. | Income from | investments | ||||||||||
| 2021 | 2020 | |||||||||||
| g | ||||||||||||
| Bank interest | receivable | 593 | 12 873 | |||||||||
| 593 | 12,873 | |||||||||||
| Grants provided | during | the year | Grants to | Support | . | Total | Total | |||||
| institutions | costs | 2021 | 2020 | |||||||||
| g | ||||||||||||
| 20"Anniversary | Grants | 202,152 | ||||||||||
| Coronavirus | Response | Fund Grants | 7,692 | 7,692 | 1,043,709 | |||||||
| Customer Grants |
263,544 | |||||||||||
| Total | 7 692 | 7 692 | 1 509 405 |
| Provision ofloan finance |
Provision ofloan finance |
Provision ofloan finance |
2021 | 2020 | ||
|---|---|---|---|---|---|---|
| Latent provisioning | 137,894 | 213,412 | ||||
| Insurance | 1,455 | 1,180 | ||||
| Travel | 369 | |||||
| Marketing and public |
relations | 9,144 | 906 | |||
| Legal and professioiial | fees | 11,825 | 4,667 | |||
| Sundry expenses | 154 | |||||
| Bank charges | 494 | 1,508 | ||||
| Auditors' remuneration |
6,839 | 5,480 | ||||
| Portfolio administrative | se)vices and back office | support | 12,000 | 12000 | ||
| 179,805 | 239,522 | |||||
| Gifts in kind —Donated | bank official time | 68,072 | 68,000 | |||
| Gifts in kind —Loan Officer and associated costs | 90796 | 94800 | ||||
| Provision ofloan finance | 338,673 | 402)322 | ||||
| Analysis ofResources | Expended | |||||
| General | Governance | Total | Total | |||
| Support | Function | 2021 | 2020 | |||
| f. | ||||||
| Insurance | 1,455 | 1,455 | 1,180 | |||
| Marketing and public relations |
9,144 | 9,144 | 906 | |||
| 'Travel | 369 | |||||
| Legal and professional | fees | 11,825 | 11,825 | 20,867 | ||
| Sundiy expenses | 154 | 154 | ||||
| Bank charges | 494 | 494 | 1,508 | |||
| Agency costs | 7,692 | 7,692 | 23,076 | |||
| Auditois' remuneration |
6,839 | 6,839 | 5,480 | |||
| Pottfotio admin services | &back office support | 12,000 | 12,000 | 12,000 | ||
| 30,764 | 18,839 | 49,603 | 65,386 | |||
| Gifts in kind —Donated | bank official time | 40,572 | 27,500 | 68,072 | 82,534 | |
| Gifts in kind —20 ' Anniversary grant costs |
58,217 | |||||
| Giffs in kind —Loan Officer and associated | 90,796 | 90,796 | 94,800 | |||
| costs | ||||||
| 162&132 | 46,339 | 208,471 | 300,937 | |||
| Net movement for the |
year | 2021 | 2020 | |||
| This is stated after charging | ||||||
| Auditors' remuneration |
6,839 | 5,480 |
| Fixed asset investments | Fixed asset investments | |||||||
|---|---|---|---|---|---|---|---|---|
| Programme | Mixed | Total | ||||||
| related | motive | 2021 | ||||||
| investment | investment | |||||||
| f. | ||||||||
| Cost or valuation | ||||||||
| At 1 January 2021 |
245,750 | 2,594,049 | 2,839,799 | |||||
| Revaluation | 434,852 | 434,852 | ||||||
| Disposals | ||||||||
| At 31 December 2021 | 245,750 | 3,028,901 | 3,274,651 | |||||
| Irupairment | ||||||||
| At I .Ianuaiy 2021 and |
||||||||
| At 31 December 2021 | 25 600 | 25 600 | ||||||
| Can3ing amount | ||||||||
| At 1 January 2021 |
220,150 | 2,594,049 | 2 814,199 | |||||
| At 31 Decentber 2021 | 220150 | 3 028,901 | 3249,051 | |||||
| Investments comprise |
of- | Programme | Mixed | Total | ||||
| related | motive | 2021 | ||||||
| investment | investment | |||||||
| K | ||||||||
| Investments | ||||||||
| The Charity Bank Limited | 40,000 | 40,000 | ||||||
| Black Country Reinvestment |
Society Limited | 20,000 | 20,000 | |||||
| East Lancashire Moneyline |
(1PS)Liinited | 40,000 | 40,000 | |||||
| Wessex Reinvestment | Society | Limited | 20,000 | 20,000 | ||||
| The Ethical Property Company |
Limited | 15,750 | 15,750 | |||||
| Portsmouth Area Regeneration |
Trust (IPS) Limited | 20,000 | 20,000 | |||||
| ICOF Community Capital Limited |
10,000 | 10,000 | ||||||
| Art Share (Social Help | Association | for Reinvesting | 20,000 | 20,000 | ||||
| in Entetttrise) Limited |
||||||||
| ' | Derby Loans (IPS) Limited | 20,000 | 20,000 | |||||
| London Rebuilding Society |
Limited | 20,000 | 20,000 | |||||
| East End Fair Finance | Limited | 20,000 | 20,000 | |||||
| Equity fnvestmeuts | ||||||||
| COIF Charity Funds |
2,000,000 | 2,000,000 | ||||||
| Total investments | 245,750 | 25000,000 | 2,245,750 | |||||
| Provision for Gain I (impairment) |
~25 600 | I D28.901 | I,D03,301 | |||||
| Net book value at 31 | December 2021 | 220,180 | 3,028,901 | 3249 DDI |
| Debtors | |||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| Loan portfolio | 1,648,995 | 2,123,092 | |||
| Latent provisioning | (920,250) | (905,273) | |||
| Accrued | loan interest | and fees receivable | 18,282 | 31,918 | |
| 747,027 | 1,249,737 | ||||
| Accrued | bank interest | receivable | 1,513 | 1,633 | |
| Prepayments | 252 | 7 884 | |||
| 748,792 | 1,259,254 | ||||
| 2021 | 2020 | ||||
| Amounts | falling due aher more than one year and included | in debtors | 523 538 | 789786 | |
| Summary ofcapital |
element ofloan portfolio | ||||
| 2021 | 2020 | ||||
| Balance | at 1 Jattuary |
2021 | 1,249,737 | 1,533,236 | |
| New loans during the year | 115,000 | 708,285 | |||
| Interest | and fees char'ged | 103,369 | 67,304 | ||
| Capital, interest and fee repayments Latent provisioning |
(583,185) ~437,894 |
(845,676) ~213,412 |
|||
| Balance | at 31 December 2021 | 747,027 | 1249 737 |
| Creditors: amounts falling due within one yea |
r | |
|---|---|---|
| 2021 | 2020 | |
| Trade creditors | 1,000 | 32,584 |
| Accruals | 5,700 | 5,400 |
| Grants payable | 46,420 | |
| 6 700 | 04 404 |
| The balance follows; |
of811,045,811 | (2020$10,689,49 | 4) on the unrest | ricted fund at the |
balance sheet da | te was held as |
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| g | ||||||
| Investments | 3,249,051 | 2,814,199 | ||||
| Loan pottfolio | 747,027 | 1,249,737 | ||||
| Cash at bank | 7,054,668 | 6,700,445 | ||||
| Other debtors Other creditors |
1,765 ~6,700 |
9,517 ~84,404 |
||||
| 11,045,811 | 10,689,494 | |||||
| Balance | Balance | |||||
| 1 | Gains and | 31 | ||||
| January | Income | Expenditure | (losses) | December | ||
| 2021 | 2021 | |||||
| Unrestricted | funds | g 10,689,494 |
267 830 | ~346 365 | 434,852 | 11,045,811 |
| Analysis of | net assets between funds | |||||
| Fixed asset | Net | Total | ||||
| investments | current | |||||
| assets | ||||||
| g | ||||||
| Unrestricted | funds | 3249 051 | 7 796760 | 11,045 811 |
| Income and expenditure | incurred | on nornial | commercial | terms relating to NatWest Group PLC | during the year |
|---|---|---|---|---|---|
| ended 31 December 2021 were | as follows | ||||
| ' 2021 | 2020 | ||||
| Income | |||||
| Gifts in kind | 158,868 | 235,551 | |||
| Donation | 5,000 | 5,014 | |||
| 163,868 | 248565 | ||||
| Expenses | |||||
| Gifts in kind —Donated | bank official time | 68,072 | 82,534 | ||
| Gifts in kind —Loan Officers and associated | costs | 90,796 | 94,800 | ||
| Gifts in kind —20"' Anniversary | grant costs | 58,217 | |||
| 158,868 | 235,551 |