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||||Pages|
|---|---|---|---|
|Legal and Administrative||Details||
|Chair's Report||||
|Trustees'<br>Report||||
|Chief Executive Officer's||Repoit|9 —10|
|Independent<br>Auditors'|Report||11 —13|
|Statement ofFinancial|Activities||14|
|Balance Sheet|||15|
|Notes to the Accounts|||16—24|





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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.a1￿aClIOnS 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 maliage1￿el}t
Becdiise of the ii)liei'ent li1￿ltatIonS 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

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|||||Note|Unrestricted|Unrestricted|
|---|---|---|---|---|---|---|
||||||Fumls|Funds|
||||||2021|2020|
|Income:|||||||
|Donations<br>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<br>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)<br>on investments||||10|434 852|236 144|
|Net movement<br>in funds|during||the year||356,317|(1,354,841)|
|Reconciliation<br>offunds|||||||
|Total funds<br>brougfit forward|||||10,689,494|12,044,335|
|Total funds carried forward||||16|11,045 011|10 689,494|





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||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<br>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<br>Creditors<br>falling due within|one year|11 ~6700|||84 404||
|Net Current<br>Assets||||7,796,760||7,875,295|
|Net assets||||11045 811||10,689,494|
|The funds ofthe Charity|||||||
|Unrestricted<br>funds||16||11,045,811||]0,689,494|
|Total Charity<br>fumls||||11045 011||10,609494|





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|Income fr|om do|nat|ions<br>and legacies|||
|---|---|---|---|---|---|
|||||2021|2020|
|Donations<br>Donations|—gifts|in|kind|5,000<br>158,868|5,014<br>235,551|
|||||263 060|240 565|





|NATWEST SOCIAL & COMMUNITY<br>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<br>Grants|||||||||||263,544|
||Total|||||||7 692||7 692||1 509 405|





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|Provision<br>ofloan finance|Provision<br>ofloan finance|Provision<br>ofloan finance|||2021|2020|
|---|---|---|---|---|---|---|
|Latent provisioning|||||137,894|213,412|
|Insurance|||||1,455|1,180|
|Travel||||||369|
|Marketing<br>and public|relations||||9,144|906|
|Legal and professioiial||fees|||11,825|4,667|
|Sundry expenses|||||154||
|Bank charges|||||494|1,508|
|Auditors'<br>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<br>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'<br>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<br>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<br>for the||year|||2021|2020|
|This is stated after charging|||||||
|Auditors'<br>remuneration|||||6,839|5,480|





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||Fixed asset investments|Fixed asset investments|||||||
|---|---|---|---|---|---|---|---|---|
|||||||Programme|Mixed|Total|
|||||||related|motive|2021|
|||||||investment|investment||
|||||||f.|||
||Cost or valuation||||||||
||At<br>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<br>I .Ianuaiy 2021 and||||||||
||At 31 December 2021|||||25 600||25 600|
||Can3ing amount||||||||
||At<br>1 January 2021|||||220,150|2,594,049|2 814,199|
||At 31 Decentber 2021|||||220150|3 028,901|3249,051|
||Investments<br>comprise|of-||||Programme|Mixed|Total|
|||||||related|motive|2021|
|||||||investment|investment||
|||||||K|||
||Investments||||||||
||The Charity Bank Limited|||||40,000||40,000|
||Black Country<br>Reinvestment||Society Limited|||20,000||20,000|
||East Lancashire<br>Moneyline||(1PS)Liinited|||40,000||40,000|
||Wessex Reinvestment|Society||Limited||20,000||20,000|
||The Ethical Property<br>Company|||Limited||15,750||15,750|
||Portsmouth<br>Area Regeneration|||Trust (IPS) Limited||20,000||20,000|
||ICOF Community<br>Capital Limited|||||10,000||10,000|
||Art Share (Social Help|Association|||for Reinvesting|20,000||20,000|
||in Entetttrise)<br>Limited||||||||
|'|Derby Loans (IPS) Limited|||||20,000||20,000|
||London Rebuilding<br>Society||Limited|||20,000||20,000|
||East End Fair Finance|Limited||||20,000||20,000|
||Equity fnvestmeuts||||||||
||COIF Charity<br>Funds||||||2,000,000|2,000,000|
||Total investments|||||245,750|25000,000|2,245,750|
||Provision<br>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|





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|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<br>ofcapital||element ofloan portfolio||||
|||||2021|2020|
|Balance|at<br>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<br>and fee repayments<br>Latent provisioning||||(583,185)<br>~437,894|(845,676)<br>~213,412|
|Balance|at 31 December 2021|||747,027|1249 737|



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|Creditors: amounts<br>falling due within<br>one yea|r||
|---|---|---|
||2021|2020|
|Trade creditors|1,000|32,584|
|Accruals|5,700|5,400|
|Grants payable||46,420|
||6 700|04 404|



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|The balance <br>follows;|of811,045,811|(2020$10,689,49|4) on the unrest|ricted<br>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<br>Other creditors|||||1,765<br>~6,700|9,517<br>~84,404|
||||||11,045,811|10,689,494|
|||Balance||||Balance|
|||1|||Gains and|31|
|||January|Income|Expenditure|(losses)|December|
|||2021||||2021|
|Unrestricted|funds|g<br>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|



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|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|