REGISTERED COMPANY NUMBER: 04164949 REGISTERED CHARITY NUMBER: 1085867 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR MERTON VOLUNTARY SERVICE COUNCIL A23 ADIDA021• 2011212024 COMPANIES HOUSE #76 MERTON VOLUNTARY SERVICE COUNCIL CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page Legal and administrative information Report of the Trustees 4t015 Report of the Independent Auditor to the Members 16to18 Statement of Financial Activities 19 Balance Sheet 20 Statement of Cash Flows 21 Notes to the Financial Statements 22to38 MERTON VOLUNTARY SERVICE COUNCIL LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04164949 (England and Wales) Registered Charity number 1085867 Tradlng Name Merton Connected Registered office The Vestry Hall London Road Mitcham Surrey CR4 3UD Auditor Kingston Burrowes Audit Ltd 308 Ewell Road Surbiton KT6 7AL Bankers Unity Trust Bank Nine Brindley Place 4 Oozells Square Birmingham B12H8 Invéstments CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET Sollcltors Russell-cooke 3 Putney High Street Putney London SW15 6AB MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also directors of the charitable company for the purposes of the Companles Act 2006) are pleased to present their annual Trustees, Report for Merton Volunlary Service Council (MVSC), together with the audited financial statements for the year ending 31 March 2024. which are also prepared lo meet the requirements for a directors. report and accounts for Companies Act purposes. The financial stalements comply with the Charilies Act 2011. the Companies Act 2006, the Memorandum and Articles of Associalion, and Accounting and Reporting by Charities.. Slatement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) leffeclive 1 January 2019) and UK Generally Accepied Accounting Practice. MERTON VOLUNTARY SERVICE COUNCIL'S {MVSC) MISSION MVSC'S mission Is to inspire and develop an excellent voluntary and community sector In the London Borough of Merton {LBM). MVSC'S Charitable Obj8Cts are.. 1. To promote any charitable purposes for the benefit of the public, principally but not exclusively in the local government area of the London Borough of Merton (LBM), particularly the advancernent of education, the furtherance of health. and the relief of povety, distress, and 5ickne5S. 2. To build the capacity of third sector organisations and provide them with the necessary support, informalion, 'and services to enable th8m to pursue or contribute to any charitable purpose. 3. To promote, organise and facilitate co-operation and partnership working be￿een third sector. statutory and other relevanl bodles in the achievement of the above purposes within the area of benefit. PRINCIPAL ACTNITY The charitable company's principal activity for the year, which is ultimately the objects sel out in the Articles of Association of MVSC was to provide practical support lo voluntary and community organisalions, liaison and advocacy, community engagement, development, standard setting, stralegic partnership working and fund management. The charitable objects in the Articles of Association The social prescribing service promotes health (ln line with Article 1) and partnership working be￿@&n the NHS and thlrd sector {In line with Article 3). PUBLIC BENEFIT The Trustees have glven due considerallon to the Charity Commisslon's published guidance on the Publlc Benefit requirement under the Charities Act 2011. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in plannin9 our future activities. We believe that we have complied with this and seek to demonstrate this within this report. Our objects and funding limit the services wè provide to those delailed in our charitable objectives. A review of the Charity's activilies is set out further in this report. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document MVSC is a registered charity and company limited by guarantee. MVSC has pursued effective governance throughoul the year, following provisions and procedures in its Memorandum and Articles of Association. MVSC also trades under the name Merton Connected (MC). Membership of MVSC is as set out in the Articles of Association. MVSC is reviewing its Arlicles in 202415 lo ensure they are aligned wilh the way of operating and are relevant for the future. Following COVID, and changes of personnel and to data management, we recognised the Articles need to be reviewed and updated. MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Trustees The Trustee Board is made up of not less than five and no more than fifteen persons. New Trustees are provided with an induction programme led by the Chief Exocutive Officer and are also provided with a copy of the Memorandum and Articles of Associalion and the latest Annual Report and Financial Ststements. The induction programme includes a briefing on their obligations under company and charily law, Ihe decision-making processes wilhin MVSC. the Business and Strategic Plans, and information relating to operational and financial management. Trustees can meet slaff. Twslees are also encouraged to p£rticipate in appropriale external training events which can facilitate the undertaking of their role. The Boar¢J of Trustees governs the Charity. Th8 Board meets four to five times a year, with a Finance Committee, meeting and occaslonal task and finish groups to look at specific issues and report back. All task and finish groups have clear terms of reference, which are agreed by the Board before they are established. All Trustees give oftheir time freely and no Trustee received remuneration in the year. Details ofTrustees' expenses and relaled party transactions are disclosed in Noles 11 and 13 to the accounts. Trustee Brian Dillon Chan esin ear Chair and Secretary (from 1 October 2022) ￿tired 19 Februa 2024 Retired 19 Februa 2024 ointed 19 Februa 2024 Kale Wi nall Emma Wile Jennifer Goddard Wend Jane Pridmore Asha Newsum Judilh Brodie el Lawson Chair- A ointed 19 Febwa 2024 Treasurer- A ointed 19 Februa 2024 Management of MVSC The Trustees provide policy and strategic leadership and guidance lo th8 organisation. Day to day rnanagement and decision making of the Charity is delegated to the Chief Execulive Officer (CEO) who works closely with senior and other staff to fulfil the Charily's objectives and ensure the smooth and effective running of the organisation. The CEO reports to the Chair and the Board. Sonlor Management Team Ton Mollo Adwoa Fadahunsl Dave Curtis Ben Halschka Chlef Executive Officer Head of Develo m@n1 and Volunleerln Head of Healthwatch Merlon Head of Social Prescribin Office Mana era oinled 4 Oclob8r 2023 Interim Head of Finance until 30 A ril 2023. Interim Head of Finance a oinled 5 Ma 2023 Andrea Kibble Genieve Jone5 Pay pollcy for the Senior Management Team The pay of the senior staff is reviewed annually and normally increased in line wilh a rate set by the Board of Trustees, considering available funding. In view of the nature of the Charity, the Trustees benchmark against pay levels in other voluniary organisations. other voluntary sector infraslructure organisalions across London as well as with Ihe public sector. Related partios and CO•operation with other organisations None of our Trustees receive remuneralion or other benefit from their work with the Charity. Any connection be￿een a Trustee or a senior manager of the Charity with a supplier. funder, or charitable organisation in the London Borough of Merton (LBM) is disclosed to Ihe full Board of Trustees in the same way as any other contractual relationship with a relaled party. Further detsils of any related p8rty trans8ctions can be found in Note 11 and 13 of the accounts. MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Use of volunteers One of the aims of the Charity is to malch expressions of interest in volunteering to volunteer opportunities offered. with a focus on providing additional capacity to local voluntary and community organisalions. MVSC continues to provide Home Visit Libraries volunteers under contract to the London 8orough of Merton (LBM) and Is grateful for the support of the many volunleers who support local organisations and MVSC itself. OBJECTIVES AND ACTIVITIES High levels of demand have been created by the increased cost-of-living crisis, and pressures on the health service have meant there is greater requirement on services within the voluntary sector. MVSC ha5 continued to inspire, support, and develop the voluntary and community sector in the LBM to enrich the lives of residenls of the borough. Our key objectives for the year were to modlfy as necessary and continue existlng key objectives, including to.. Continue to provide support to existing organisations and help create new voluntary sector organisatlons to strengihen and build capacity in LBM'S voluntary, community and faith sectors for the benefit of the residenls they serve. Create models of partnership working such as Motivate Merton a partnership of len organisalions working lo deliver mentoring opportunities to young people funded by GLA IPropel funding. Continue to work with the Inlegraled Care Systems {ICS) struGlure at borough and Soulhwest London (SWLI level. Work with and deliver pilot I longer term health projects such as the Community Health and Wellbeing project, Ethnic Minorities Improvement Project (EMHIP) and Core Connectors. Continue successful delivery of Social Prescribing in line with the Social Prescribing contract. supporting all GP practices across all six Primary Care Networks (PCNS) in the borough. Ensure Healthwatch Merton remains a relevant consumer health champion, Identifying good practice, opportunities, and challenges within LBM. Work with the Merton Chamber ofcommerce, partners and donors ineludlng Wimbledon Foundation, LBM. Integrated Care Syslems IICS), Clly Bridge Foundalion ICBF) to adminisler funds Ihrough Merton GivirKJ IMG). Support th8 Wellbelng Hub al the Wllson Hospital following Its successful launch April 2023. in partnèrshlp with the Steering Group, the CCG and Public Heallh leam at L8M. MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE This section provides highlights from the annual review of MVSC'S work and forms part of the annual financial statement. Some key highlights for the year are as follows.. Trustee Board During the lalter part of the financial year 2023124 Ihe Chair and Secretary resigned along with a further dedicated trustee. We have recruited a new Chair, Treasurer. and trustee to strengthen our Board of Trustees. Wilson Wellbeing Initiative Funding has been secured by the Integrated Care Board {ICB) to support the aclive dev8lopmenl of w811being activities through to the end of 2024. Merton Giving has provided additional gap funding until June 2025 when the ICS will fund the initiative going forward. This pre58nls additiona5 support for residents and voluntary groups to deliver activities within the Mitcham area and has established itself to be an increasing impacrful resource. Social Prescriblng MVSC were successful in being awarded a year 3 contract in October 2021 for the team of len Social Prescribers supporting all GP surgeri8s in the borough. The dedicated team has grown and continues to exceed the targets and requirements of the contract. In addition. this year has seen MVSC extend the service with an innovativè pilot programme providing a Social Prescribing service to High Intensity Users (HIU). Merton Giving Fund There has been one successful round of grant giving since April 2023 to support Merton residents with the cost-of- living pressures. Motivate Merton fund by the GLA Propel Fund MVSC was awarded a grant to deliver a partnership menloring program to420 young people over a trAo-year period by bringing a partnership of voluntary groups logelher lo jointly deliver the mentoring through a mix of voluntary and paid mentors. Provldlng support to voluntary, communlty, falth, and soclal enterprlse organlsations MVSC continues to provide significant support lo other organisations, including.. We're committed to keeping the volunlary and community sector informed wilh essential news, funding, and volunteering opportunities. We also held a successful skill-sharing marketing workshop with 12 attendees. With our recently consolidated Facebook pages we have 894 followers, we have eslabli5hed a new Instagram presence with 347 followers, and integration with the Next4oor App. Our newsletter Subscription has grown lo 886 from 640 a year ago. This r8fresh, shaped by stakeholder feedback, makes our platfomis more accessible and relevant to our community's evolving needs MVSC continues to deliver one-to-one support sessions to local voluntary. community, and faith sector organisations on a variety of topics including, govemance, safeguarding, income generation, and help and advice. MVSC supported organisations to achieve funding from a range of funders, bringing additional services and income into Ihe borough. MVSC through the GLA Propel scheme was awarded a grant of £590,117 over 2-years (from 2023124 and 2024125) benefiling 10 organisations within the borough. This has proved successful. MVSC also supported organisations with appbcations to Ihe borough's holiday activities and food clubs (HAF Funding). Volunteering supporl wilh over 500 residents re9lStering an interest in volunteering by signing up to a newly launched volunteering datsbase Simply Connecl. We sought lo keep existing and potential volunteers MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 informed by producing regular bulletin5. as well as utilising our social media channels and outreach events to recruit to specific roles. Create models of partnership working, including with the Integrated Care Systems (ICS) to deliver pilotllong-term projects Evolving the setvices we provide to respond to the needs of organisations and the wider operating environment. Examples include.. Worklng with LBM and health colleagues from the ICS lo support several initiatives lo engage even more successfully with communities and indlvlduals lo improve understandlng and engagement with proactive health. initiatives. These include Core 20 Connectors, Ethnicity and Mental Health Improvement Project (EMHIP). Motivate Merton is a young person's mentoring scheme funded by GLA through their Propel Funding where young people aged be￿een 11 and 24 are mentored by 10 organisalions within the London BoTough of Merton and MVSC is the lead co￿rdinal1ng organisation. The project will provide mentoring opportunities for at least 420 young people over a 2-year period. Contrlbutlng and Influenclng pollcy at regional, sub-reglonal and borough level, across the wlder heallh ar)d social care agenda. representing the views and amplifying the voice of the sector, by senior team member presence on key local and regional boards, such as., Care Together Board, Safer Merton Partnership, Children Trust and Merton Safeguarding Children Partnership, Health and Wellbeing Board. Safer Neighbourhood Board, Merton Safeguarding Adult Board and VAWAG Board. Promote, support, and develop liaison, advocacy, joint working. and strategic partnership between sectors. being a strong advocate of partnership working and the power of collaboration. Examples include: The CEO is a member of th8 SWL VCSE Alliance Leadership Group which has grown from the VSCE transition team for the ICS. The group works sub4egionally with the five other CVS organisations across the London Boroughs of Croydon, Sutton, Kingston. Wandsworth. and Richmond in South Wesl London {SWL) The group highlights heallh inequalities and promotes the idea of co-production (between the voluntary and statutory sectors} as an effective mechanism for addressing these societal issues, sub4egionally, as well as at 8orough and neighbourhood level. Supporting partnership and collaborative working between voluntary and public sector organisations. Contracted Home Visits Library Service MVSC continue to njn a home visits library service throughout LBM where volunteers select and deliver library books to those who are unable to visit the library. 11 volunteers have supported 102 housebound r8sidents {an increase of 19 households). investing over 792 estimated volunteer hours (an increase of 112 hours) with 1,444 deliveries (an increase 448 deliveries) including bulk deliveries lo local care homes, to ensure their residenls are also able lo continue to access a library service Continue successful delivery of social prescriblng services MVSC has been delivering and developing the Social Prescribing (SP) model since 2017. Highlights include: ONS Wellbeing Tool The Social Prescribing team has been using the wellbeing tool of the Office for National Statistics IONS) since January 2020.The ONS Wellbeing outcomes for Social Prescribing patients are as follows. ONS Wellbeing outcomes. Apr 2023- Mar 2024 81 % of patienls have experienced positive changes 8 0/0 of patients have experiences no changes 110/0 of patienls have experienced negative changes MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Appointments Delivered The main KPI for our contract delivery is KPI 1.4 "Working with Primary Care to achieve 800/0 service utilisation rale" The team has been overperfomiing since April 2020 and all KPIS have consistently been met far beyond the contractual expeclalions. Apr 2023 730/0 May 2023 870/0 Jun 2023 1030/0 Jul 2023 81 / Aug 2023 1010/0 Sep 2023 93 % Oct 2023 1020/0 Nov 2023 900/0 Dec 2023 690/0 Jan 2024 95% Feb 2024 96% Mar 2024 78.280/0 The annual average utillsation rate for last financial year Is 890/0. Number of New Referrals Received The Social Prescribing team has received 3,572 new referrals between April 2023 and March 2023. In comparison, the team received 2,615 new referrals during previous financial year. The main reasons for referrals during the last financial year have been for Ment81 Health, Loneliness and Isolalion. Housing and Financial Advice and Support for Carers, Data Collectlon The Merton Social Prescribing team uses Elemenlal software to collect and store data safely. Elemental has been interfaced with EMIS,. the software used within Primary Care in LBM. Our team has been clinically evaluated by Oxford University in 2022 and we are one of the most digitally mature Social Prescribing services in the UK. Our data Is shared monthly wilh the ICB and PCN and quarterly with the ICS. Ensure Healthwatch Merton remains a relevant consumer health champion Heallhwatch Merton has continued to dellver on ils rnlsslon ol ensuring local people have a volce In shaping local health and care services. Desplte a challenging year, they have made significantstrldes in both cornmunltyoutreach and influencing change across local, regional, and national health and care strategies. 1. Community Outreach and Engagement From April 2023 to March 2024, Healthwatch Merton engaged with over 800 residents across various outreach events and activities. These efforts helped gather essential feedback on local health and social care Se￿ices, ensurlng that the voices of thos8 most affected by servlce provlsion V￿re heard and considered In future plannlng. Notable outreach activities included.. Blossom Hill Special Needs School.. Engaged with 40 young people about their health and future aspirations. Fusion Multicultural Group, Colliers Wood.. Hosted a health talk on hypertension, engaging 30 BAME women in discussions about their health. Canons House Grounds Outreach.. Engaged with 20 parents, post-school, discussing health seryices and emerglng family needs. Mitcham Carnival, Commonside East.. Gathered feedback from 35 public participants on health services and local needs. Phipps Bridge Community Funday.. Involved 40 Phipps Bridge residents of various ages in providing feedback on health services. Discovery Herilage Day, Civic Centre Engaged 17 residenls. gathering input on heatth service provision. Merton College Freshers Fair.. Spoke with 20 young people. gaining insights into Iheir health concems and aspirations. Ukrainian Refugees Help, Wlmbledon.. Consulted with 12 Ukralnian refugees on heatth seNlces and access to information. MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Women Arise Ministries, Pollards Hill- Engaged with 12 parents to understand health care needs for their families. Additionally, 33 Merlon residents approached Heallhwalch Merton for clear guidance on mental heallh, the cost-of- living crisis. and other urgent health-related topics. 2. InfluenGlng Change and Advocacy Healthwatch Merlon has used feedback to advocate for improvement in local health and key areas of influence.. Virtual Wards.. Healthwatch Merton contributed to the extension of the virtual wards program across SWL and conducted outreach lo gather local opinions and contributed to a joint report with Healthwatch Croydon and Wandsworth, which helped secure the program's continuation. This program enables palients lo receive care at home, reducing unnecessary hospital admissions. Veteran Aware Accreditation for GP Practices.. Heallhwatch M8rton continued lo advocate for better recognition and support for the needs of veterans in the borough. These efforts resufted in an Increase'in accredited Veteran Friendly GP practices from 2 to 8 during the year. Healthwatch Merton aims lo see all GP practices in the borough altain this accr8ditation by the end of 202412025. London Ambulance Service {LAS) Strategy.. In partnership with 19 other Healthwatch organisations in London. we helped shape the LAS 2023-2028 strategy, providing feedback on emergency and urgent care services. This strategy aims to improve access to urgent care for residents across London. Accessible Denli51ry'. Heallhwalch Merton worked closely with dental providers, NHS management, and public health stakeholders lo address access Issues in local dental care services, ensuring that people who struggle to access these seNices are supported with better preventalive care options. Digltal Inclusion: As part of the SWL ICS, Healthwatch Merton advocated for digital inclusion lo ensure that people with limited access lo digital devices, technology skills. or language proficiency are not excluded from n8w digital health seNices being introduced across the region. 3. Communi¢ation and Public Engagement Throughout the year, Heallhwatch Merton distributed 12 e-bulletins lo keep the publlc Informed about health and care services in Ihe borough. These bulletins shared important updates, local opportunities, and invited residents lo engage with ongoing consultations. Sustaln and develop Merton Giving In partnershlp wlth Merton Chamber of Commerce MVSC continues to be the lead partner for place-based giving initiatives in collaboration with Merton Chamber of Commerce, with MVSC taking the lead role with both grant distribution and fundraising. During October 2023 the Merlon Giving Civic Pride Small Granls fund was launched which saw 23 successful applicants lo the fund being awarded £54,209. Of the successful applicants, seven were new groups to Merton Giving. 13 of the successful applicalions mentioned worl restricted funding and a range of grant funds which MVSC manages on behalf of the public sector, including holding and distributing funds. The total of these granls for distribution lo third parti8s is recognised as restricted incom8, however it is worthwhile noting that these funds are not used in direct charitable expenditure rather given to organisations as grants. During this year ihe total of this income was £154,852 (2022123- £218,000}. Full details are Shown in Not8 5. Donations this year have decreased cornpared to last year £2,822 (2023.. £4,877). The total expenditure for the year was £1,363.543 (2023.. £1,478,071) a slight decrease from the previous year. 12 MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The net effect of the above ha5 led to an overall operating surplus of £373,749 a considerable increase from last year1£21,366). Balance Sheel Overall reserves are £1.403,021 {2023- £1,029.580) with unreslricted reserves being £363,488 (2023.. £340,118 after providing for the defined benefit pension liability of £3,734 (2023.. £7.994). Unreslrlcted reserves: £363,488 <2023: £340.118) Unrestricted reserves are available lo spend on activities that further any of the purposes of the Charity. Such cosls can include programmes, fund-raising, management, and administralion as well as the cost of meeting any fulure shortfalls in restricted fund aclivities. These funds are the accumulated balances arising from cost savings and income generation relating to the core functions of MVSC. They also include sums budgeted by the Board of Trustees io be set aside to meet known future cost threats. The Board ofTrustees considers Ihat the total of accumulated unrestricted reserves needs to be sufficient to ensure.. The full funding of adverse changes in income and unavoidable increases in costs which otherwise would result in an overall in-year deficit. That the core of the organisation can be sustained for up to 6 months should all funding from projects be lost and that it has sufficient resources to cease operations in an orderly and efficient manner should this be requlred. The funding of the Pension Deficit repayment that would need to be met in the event of the organisation closing. Restrict•d Reserves: £1,039,533 (2023.. £689,462) These funds represent grants and contract sums provided to MVSC to lund specific expenditure in agreed areas ofwork. They are the outstanding amounts waiting to be spent. They cannot be used for any other purpose without the agreement of Ihe grantor or wntracting commissioner. Reserves Policy The Board of Trustees revlews the reserves policy annually and seeks to maintain a minimum balance of unrestricted ￿seNe9 equivalent to six months of budgeled core net operating costs (including the uncovered pension deficit under FRS102). This equals £194.000 for this financial year. Curr8ntly unrestrlctad reserves at the year-end are £367.223, less £3,734 set aslde for the fulure penslon Ilabilily repayments and £16,103 representlng fixed assels, glving a net unrestrlcted free reserves figure of £347,386 a surplus of £153.386 over the minimum target unrestricted reserves figure of £194,000. Thls subslanllal balance of unrestrlcted reserves will enable MVSC to manage future financlal and operational r15k in its growing programme of support and guidance to the third seclor community within the LBM. Unr8Strict8d funds also n88d to be set aside for future major inv8Stment (8.g., systems and equipment and other infrastruclure asset51. There are no plans for making such investments at the date of this Trustees. Report. A designated fund of £26.000 has been received a5 managernenl fees for the administralion of Merton Giving. To ensure the minimum impact on Reserves MVSC adopts the following principles in relation to ongoing project funding.. Firstly, all annu818udgets only include estimates for grant incom8, whether for unrestricted or ￿StrIcted purposes, if they are supported at minimum by a draft agreement with the fun(ier. When specific project funding ends the associated staffing expenditure and direct overheads incurred in running the project will also cease. There will be no call on unr8slricted reserves. In eX￿ptIOnal circumstances where Trustees expressly wish that activity is to continue and have a 13 MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024. reasonable expectation that new funds will be received, unrestricted reseNes May be used to sustain posts for a limited period. An allowance for redundancy costs for all project staff are included in project funding budgets to avoid the need to fund redundancy costs from general reserves. MVSC does not consider Its fixed assets to be freely convertible and does not include the value of fixed assets In its calculation of working capital. The Board of Trustees will continue to monitor the effectiveness of its Reserves Policy so that it remains relevant to ils current and future position. However, because the Charity operates in a constantly changing environment the TDJstees throughout the year regularly review the Charity's balances of reserves, together with cash flow levels to ensure prudent management of its funds. Details of the various ieserves and their movements are set out in more detail in Nole 23, 24 and 25 on pages 33 to 36. Cash Management The Board of Trustees seeks to retain a prudent sum of cash in the Bank Current Account sufficient to cover two months gross income on unreslricled aclivilies and one month's income on restricted aclivilies. For 2023124 this required an average balance £166,400. The excess over this sum was placed in a short-term investment account, which offered more security Ihan 8 current account and a betlei rale of interest. Current account cash is managed lo ensure availability lo meet the short-term nel budgeted expenditure needs and grant giving requiremenls. Currently these excess funds are Placed with Charity Offices Investment Fund (COIF) under their Charities Deposit Fund scheme. COIF is registered wlth the Financlal Conduct Authorlty under the Flnanclal Sgrvlces and Markels Act 2000 {FSMA) and is an elhical investor. Aside from retaining a prudent amount in reserves each. year, as result of the increase in inleresl rates introduced by the Bank of England through 2022 and 2023, MVSC has received a significant amount of Interest Income which has been added to our unreslricted funds. Grant maklng The Charity makes granls to a wlde range of organisations who are either based In the LBM and neighbouring or adjoining areas or have strong relationships in these areas with a proven track record of benefitting residents. We are particularty keen to help grassroots community groups and small-to-medium-siz8d voluntary organisations. We would always consider a proposal that has the potential to achieve substantial impact in our communily and furthers our Gharitable objectives. All granl programmes are administered primarily through Merton Giving. Trustee Responsibilities The Trustees (who are also Ihe directors of Merton Voluntary Service Council for the purposes of company law) are responsible for preparing the Trustees. Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Slandards (Uniled Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporling Siandard applicable in the UK and Republic of Ireland. Company law requires Ihe Charily's Trustees to prepare financial statements for each financial year, Under company law the Trustees must nol approve Ihe financial statements unless they are satisfied, they give a true and fair view of Ihe slate of affairs of the charitable company, and of the incoming resources and application of resources, including the incorne and expenditure, of the charitable company for that period. In preparin9 those financial statements, the Trustees are required to- select suilable accounting policies and then appty them consistently,. obseNe the methods and principles in the Charity SORP 2019 {FRS102)', make judgments and estimates that are reasonable and prudent., prepa￿ the financial stalemenls on Ihe going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 14 MERTON VOLUNTARY SERVICE COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees are responsible for keeping proper accounting records. which disclose with reasonable accuracy at any time the financial position ofthe charilable company and to enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities. Statement as to Disclosure of Information to Auditor So faras the directors are aware, there is no relevant audit information (as definerj by Section418 of the Companies Act 20061 of which the company's auditor is unaware, and each director has taken all the steps Ihat they oughl lo have taken as a director in order to make themselves aware of any relevant audlt Information and to establish that the company's auditor is aware of that information. The Trustees are responsible for the maintenance and integrily of the corporate and financial information included on the charilable company's website. Legislation in the Uniled Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdlctions. Auditor Kingston Burrowes Audit Ltd was re-appoinled as the charitabl8 company's audilor during the year and have expressed their willingness to continue in that capacity. Small Companies This Trustees report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved on behalf of the Board of Trustees on 17th December 2024 Judith 8rodS8, Chalr Nigel Lawson (Dec 18, 2024 05:47 GMT) Nlgel Lawson, Treasurer 15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MERTON VOLUNTARY SERVICE COUNCIL FOR THE YEAR ENDEO 31 MARCH 2024 Opinion We have audiled the financial statements of Merton Volunlary Service Council (the 'charitabl8 company,) for the year ended 31 March 2024. which comprise Ihe Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows. and noles to the financial statements, including a summary of significant accounting policies. The financial reports'ng framewort( that has been applied in Iheir preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Slandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepled Accounting Practice}. In our opinion the financial stalemenls-. give a true and fair view of the slate ofthe charitable company's affairs as al 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been property prepared in accordance with United Kingdom Generally Accepled Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls of oplnion Wa conducted our audit in accordanc8 With Intemational Standards on Audltlng (UK) {ISAs (UK)) and applicable 18W. Our responsibili118s under those standards are further described in the Auditor's responsibilities for lh8 audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements Ihat are relevant to our audit of the financial stalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wilh these requirements. We believe that the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of Ihe going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfom)ed, we have not identified any material uncertainlies relating to events or conditions that, individually 01 collectively, may cast significant doubt on the charitable company's ability to conlinue as a going concern for a period of at least Iwelve months from when the financial stalements are aulhorised for issue. Our responsibilities and the responslbllilles of the trustees wlth respect to going concern are described in the relevant sections of this report. Other Informatlon The olher informats'on comprises the information included in the trustees, annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other informalion. Our opinion on the fi'nancial statements does not cover the other information and, except to the extent othe￿iSe explicitly stated in our report, W8 do not express any form of assurance conclusion thereon. Our responsibility 15 to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course ofthe audit or otheThvise appears to be materially misstated. Ifwe identify such material inconsistencies or apparent material misstatements, we are required to determine whether Ihis gives rise lo a material misslalement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the Gourse of the audit.. the inforrnation given in the trustees, report, which includes the directors, report prepared for th8 purposes of 16 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MERTON VOLUNTARY SERVICE COUNCIL FOR THE YEAR ENDED 31 MARCH 2024 company law, for the financial year for which the financial statements are prepared is consistent with the financial statements,. and Ihe directors, report included within the trustees. report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of thè charitable company and its environment oblained in the course of the audit, we have not identified material misslatemenls in the directors, report included within the trustees, r8POrt. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequale accounting records have not been kept, or returns adequate for our audit have not been received from branches not Visited by us,. or the financial statements are not in agrgement with the accountlng records and returns. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanalions we require for our audit [', or the trustees were not entilled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies. exemptions in preparing the directors. report and from the requlrement lo prepare a strategic report. Responslblllli•$ of tru8ta8s As explained more fully in the trustees, responsibilits'es statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial stalements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable Ihe preparation of financial slalements that are free from malerial misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's abilily lo continue as a going concern, disclosing, as applicable, matters relaled to going concem and using the going concem basis of accounting unless the truslees either intend to liquidale the charitable company or to cease operations. or have no realistic alternative but to do so. Audllof s responslbllltles for the audlt of the Ilnanclal stalements Our obiectlves are lo obtain reasonable assurance about whether the financial statements as a whole, are free from material misstatement, whether due to fraud or erior. and to issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of assurance but, Is not a guaranleg that an audit conducted in accordance with ISAS {UKI will always detecl a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economi decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delect material misslatemenls in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud Is detailed below.. Enqulry of management and those charged wilh governance about actual and potential liligalion or claims and the idenlificalion of non-compliance with laws and regulations. Reviewing minutes of meetings of those charged with govemance. Revlewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 17 INDEPENDENT AUDITOR'S REPQRT TO THE MEMBERS OF MERTON VOLUNTARY SERVICE COUNCIL FOR THE YEAR ENDED 31 MARCH 2024 Auditing the risk of management override of controls, including testing journal entries and other adjustments for approprialeness., and assessing whether the judgements made in making accounling estsmates are indicative of a potential bias. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of mat8rial misstatement du8 to fraud. Professional scepticism in course of the audit and wilh audit sampling in material audit areas. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that Compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves inlentional concealment, forgery, collusion, omission, or misrepresentation. A furlher description of our responsibilities for the aLAdit ol the financlal statemenls is available on the Financial Reportlng Council's website at.. htl s'.Ilshorturl.aV4UQzV. This description forms part of our auditor's report. Use of our reporl This report is made solely to the charitable company's members, as a body, in accordance wlth Chapier 3 of Part 16 of the Companies Acl 2006. Our audit work has been undertaken so that we might state lo the charitable company's m8rnb8rs those matters we are r8quir8d to state to Ih8m in an auditor's report and for no other purpose. To thè fullest extant p8rmitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as 8 body, for our audit work, for this report, or for the opinions we have formed. Ec K C Fisher (Dec 18, 2024 10..24 GMT) Kevin Fisher BA FCA CTA (Senior Statutory Auditor) For and on behalf of Kingston Burrowes Audit Ltd 308 Ewell Road Surbiton KT6 7AL 1811212024 18 MERTON VOLUNTARY SERVICE COUNCIL STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 note Unrestricled Funds 2024 Restricled Funds 2024 2024 2023 Donations Income from charitable activities Grants and Contracts Other Trading activities Other Income Investments 744 592,426 2,078 1,089,260 2,822 1,681,686 4,877 1,395,656 8,652 44,132 8.652 44,132 39,409 16,763 TOTAL INCOME 645,954 1,091,338 1,737,292 1,456,705 EXPENDITURE Expenditure on Charitable Activities 752,129 611,414 1,363,543 1,478,071 TOTAL RESOURCES EXPENDED 752,129 611,414 1,363,S43 1,478,071 NET INCOMEIEXPENDITURE <106,175) 479,924 373,749 (21.366) Other recognised gainsl(Iossos) Actuarial gainsl(losses) on defined benefit schemes 14 (308) {3081 (23) Transfor and repayment of funds 24 129.853 (129.853) NET MOVEMENT IN FUNDS 23,370 350,071 373,441 121,389) FUNO BALANCES BROUGHT FORWARD AT 1 APRIL 2023 340,118 689,462 1,029,580 1.050,969 FUND BALANCES CARRIED FORWARD AT 31 MARCH 2024 363,488 1.039,533 1,403,021 1.029,580 All income and expenditure is derived from contlnuing activities. The Stalement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 22 - 38 form part of these financial statements. 19 MERTON VOLUNTARY SERVICE COUNCIL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 note 2024 2023 FIXED ASSETS Intangible assets Tangible assets 16 17 11,298 4,805 12,912 CURRENT ASSETS Debtors Cash at bank and in hand 18 329,242 1,179,619 1.508,861 152,491 1,410,494 1,562,985 LIABILITIES CREDITORS - Amounts falling due wllhln on• year 19 (121,943) (542,8911 NET CURRENT ASSETS 1,386,918 1,020,094 TOTAL ASSETS LESS CURRENT LIABILITIES 1,403,021 1,033,006 CREDITORS- Amounts falllng due after more than one year PENSION LIABILITY 20 (3,426) NET ASSETS 1,403,021 1,029,580 TOTAL FUNDS OF THE CHARITY Unreslrlcted Funds: Restricted Funds Total Funds 24 24 368,488 1.039.533 1,403,021 340,118 889.462 1,029,580 These financial stalements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating lo small companies. The notes on pages 22 - 38 form part of Ihese financial statements Approved by the Board of Trustees on 171f+ Oecember 2024 and signed on its behalf by: Judith Brodie, Chair Nigel Law50n IDec 18, 2024 05.'47 GMT) Nigel Lawson, Treasur8r 20 MERTON VOLUNTARY SERVICE COUNCIL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 Cash Flow note 2024 2023 Net cash provSded byl(used In) operating activities 270,171 308,070 Cash flows from Investing actlvltles Interest from Investments Purchase of intangible assets Net cash provided byl(used in) investing activities Change in cash and cash equivalent Cash and cash equivalent at the start of the year Cash and cash equivalent at the end of the year 44,132 <4,836) (230,875) 16,763 324,833 1,410,494 1,179.819 1,085,661 1,410,494 Roconciliallon of net movement In funds lo net cash flow from operatlng activilies Net lexpendlturè>llncome for the reportlng perSod (as per the statement of financial actlvilies) Adjustmenls for.. Add back depreciation charge Interest from investments Decrease (increase> In debtors (Decrease)Ilncrease in creditors 373,441 {21.389) 16/1T 1,645 144,132) 1176,751) (424,374) 1,614 (16,763) 202,107 (4,5451 Net Gash used in operatlng activili•s 1270.171) 308,070 Analysis of cash and cash equivalents note 2024 2023 Bank and cash in hand Total cash and cash equivalents 1.179,619 1,179,619 1.410,494 1,410.494 The notes on pages 22 - 38 form part of these financial statements 21 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Company status Merton Voluntary Service Council is a charitable company limited by guarantee and registered in England and Wales. The registered office and company regislration number are detailed on page 3. Basis of pr8paration Merton Voluntary Service Council meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the Uniled Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounling Practice. The financial statements are presented in sterling. which is the lunctional currency of the Charity. The slgnificant accounting pollcles applied in the preparatlon of these financlal slalements are sel out below. These policies have been consislenlly applied lo all years presented unless otherwise slated. Preparatlon of the accounts on a golng concem basls The financial stalements are prepared on a going concem basis under the historical cost convention modified to Include certain items al fair value. The Trustees have made this assessment considerlng the Charity's unrestricted free reserves, secured funding going foNard and current and planned activities. Income All income is recognised in the Statement of Financial Activities when the Charity has entitlement to the funds. any perfomianc8 conditions attached to th8 itom(s) of income have been m8t, it is probable Ihat the income wlll be received, and the amount can be measured ieliably. Income received in advance of a project or other specified service is deferred until the criteria for income reGognition are met (see Note 21.). Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. It is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure Is classified under the following activily headings: Costs of raising funds comprise the costs of engaging professionals to support with preparation of fundlng bid5. Expenditure on charitable activities includes the costs of activities undertaken lo further Ihe purposes of the Charity and their assoeialed support costs. Donated 8ervlc•s and faciliti•s Donated professional services and donated facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and Ihal economic benefit can be rneasured reliably. In accordance with the Charities SORP 2019 (FRS 102), the general volunteer time contn'buted is not recognised and refer to the Trustees, annual report for more information about their contribution. On receipi. donated professional services and donated facilities are reGognised on the basis of the value of the gift to the Charity which is the amount the Charily would have been willing lo pay to obtain services or facilities of equivalent economic benefit on the open market- a corresponding amount is th8n recognised in expenditure in the period of receipl. Other expenditure represents those items not falling Into any other headlng. 22 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES continued Allocatlon of support costs Expenditure includes those costs of a direct nature, which can be allocated to a specific activity. It also includes indirect costs, including governance costs that do not relate to a specific activity but are necessary to support those activities. Support costs are apportioned on the basis of staff lime. Support costs are those funclions that assist the woik of the Charity bul do not directly undertake charitable activities. Support costs include back-office costs, finance. personnel, payroll, and governance costs which support MVSC'S charitable activities. Penslon costs and other posl-retlrement beneflts The Charity contributes 5°/0 to a defined contribution pension scheme for all of its employees. Contributions payable to the Charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relale. Please refer to Note 14 for further details on Pension arrangements. Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity. this is normally upon notification of the interest paid or payable by the Bank. Fund accountlng The unrestricted funds 8r8 availab18 to SP8nd on activities that further any of Ihe purposes of Charity. Designated funds are unrestricted funds of the Charity, which the Trustees have decided at their discretion lo set aside to use for a specific purpose. Restricted funds are donations and grants. which the donor has specified. are to be solely used for particular areas of the Charity's work or for specific projects being undertaken by the Charity or funds, which are ralsed for particular restricted purposes. Corporation Taxation The Charity is exempt from tax on income and gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied - to its charitable objects. Intangible fixed assets Intangible fixed assets include the development of a new website and database. The estimated useful years and amortisation method of the intangible assets are calculated on a straighl-line basis as follows.. Asset Category Website Database Annual Rate 100/1 on cost 1 of/*• on cost Tangible fixed assets Individual fixed assets costing £2,000 or more are capitslised al cost and are deprecialed over thelr estimated useful economic lives on a straight-line basis as follows.. Asset Category Computer and office equipment Annual Rate 330/0 on cost Deblors Trade and other debtors are recognised at the settlement arnount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trad8 discounts due. Cash at bank in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 23 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES continued Credltors and provlslons Creditors and provisions are recognised where the Charity has a presenl obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Flnanclal Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their selllemenl value with the exception of bank loans. which are subsequently measured at amortised cost using the effective interest method. Operatlng leases The Charity classifies the lease of the offices in Vestry Hall as operating leases; rental charges are charged on a straighl-line basis over the term of Ihe lease. INCOME FROM DONATIONS AND LEGACIES 2024 2023 Donatlons 2,822 4.877 Income from donalions was £2.822 (2023.. £4,877) ofwhich £744 was unrestricted (2023.. £495) and £2,078 was restricted (2023.. £4,382). INVESTMENT INCOME 2024 2023 Interest received 44,132 16,763 All of the Charity's investment income arises from money held in interest bearing deposit accounts and is unrestricted. INCOME EARNED FROM OTHER ACTIVITIES 2024 2023 Service Income Other income 3,430 5,222 8,652 33,042 6,367 39,409 Income earned from other activities was £8,652{2023.. £39,409) all being unrestricted income. 24 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 5. INCOME FROM CHARITABLE ACTIVITIES Grants and contracts rec8ived are as follows: 2024 2023 Unrestricted Comm Hub Jigsaw Model Research Project Community Links Bromley Croydon Voluntary Action Healthwatch Sutton LBM (Transactional SeNices Team) City Bridge Trust Canon House LBM - Notional Rent L8M - Strategic Partner Fund Contract LBM - Volunteering in Libraries Contract LBM - Lunch club LBM- Vaccine Champlons fund London Ambulance Service Engagement Merton Clinical Commlssioning Group- Social Prescriblng Contract Others 6,708 9,382 10,000 3,000 7,986 5,726 15,234 37,949 37,949 175,000 17,500 24,800 50,000 5,000 475,378 2,349 830,778 17,500 518,323 3,420 592,426 Restrlctod - Prolecl based Core20 Plus Connector's Programme City Bridge Trust Merton Giving Grant GLA- Young Londoners Fund Local Networks Grant LBM - Community Accountancy and Merton Giving Support LBM- Healthwatch Grant LBM- Transforming Communltles Wimbledon Foundation Grant LBM- Civic Pride LBM- Community Hub Jigsaw Propel- Motivate Merton CCG Capacity Building Fund 61.100 56,500 30.900 74,325 125,000 24.775 130,500 37,500 20,500 207.113 6,708 383,576 62,637 934,409 33,538 26,615 346,878 Restricted . Grants for third parties Clarion Futures LBM- Merton Partnership Community Giving Grants Moat Homes Limited Wimbledon Foundation LBM - Inequalilies 17,000 121,000 5,000 25,000 50.000 218,000 135,130 19.722 154,852 Total Restricted Total Income from Charitable Activittes 1,089,261 564,878 1681687 1395 656 25 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 S. INCOME FROM CHARITABLE ACTIVITIES continued MVSC manages a rang8 of grant funds on behalf of the public sector, including holding and distributing funds. Thè total of these grant funds is recognised in restricted income, shown above. how8V8r it is worthwhile noting that these funds are not used in direct charitable expendilure rather given to Ofganisations as grants. During this year the total of Ihis income was £154,852 (2023 £218,000). 6. ANALYSIS OF EPENDITURE ON CHARITABLE ACTIVITIES Total Charitable Exponditure 2024 Direct Charitable Expenditure 2024 Support Costs 2024 Total 2023 Ggnoral Activltles City Bridge Trust- Merton Giving CCG Capacity Bulldlng Fund Comm Hub Jigsaw Model Research Year Project Greater London Authorlty - Young Londoners LBM- Clvic Prlde LBM- Community Accountancy Support LBM- Healthwalch 585.633 85,331 5,000 166.496 752,129 85,331 5,000 780,811 54,318 26,615 8,333 38,537 49 145,864 327 105,913 49 145,864 327 23,709 123,722 7,369 105,913 LBM- Transforming communities capacity funding Motivate Merton Merton EMHIP Inequalities Project Social Prescribing Contract Sutton and Merton CCGS. Charitable Funds Big Lottery Merton Giving Grant Distribution Fund Wimbledon Foundation - Step Up 192,434 1.591 192,434 1,591 507 7,455 236.361 66,856 8,048 1,197,046 66.856 8,048 1,363,542 170.334 166,496 1,478,071 DIRECT CHARrrABLE EXPENDITURE 2024 2023 Grants given (Note 7.1) Staff and related costs Direct Project costs Premises and hall hire cosis Office costs Professional fees and other costs 267,270 710,649 108,340 38,093 61,794 10.901 1,197,047 433,017 699,502 100,860 42,610 55,787 47,440 1,349,216 28 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GRANTS GIVEN The following instituts'ons were given cumulative grants in the year- Grants Given 2024 2023 Accoulre Centre for Learning CIC AFC Wimbledon Foundation Age UK Merton Ashdon Jazz Academy Association for the Polish Family ATS Creative Academy CIC Attic Theatre Company (London> Limited 8am8 Voice 8gs of Taste Ltd CARAS 2,500 37,055 10,000 12,300 12,000 10,000 8,943 2,500 78,000 10,000 9,877 10,000 9,522 7,096 9,454 9.853 10.000 10.000 7.015 Carers Support Merton Combination Dance Commonside Commonside Community Development Trust Community Drugs & Alcohol Recovery ServirAs CroydonPlus Credit Union Duffus Cancer Foundation (DCF) Ethnic Minority Centre. Fayre n Square CIC Filmanlhropy CIC Five Aside Theatre Focus 4 1 Free28 Alliance CIC FROG Leaming CIC Ghanaian Parents Assoclatlon CIC Graphitè & Diamond Ltd Heslia Housing and Support Incommon Foundation Inner Strength Network CIC Jigsaw4U Ig) Lantern Arts Centre 2,500 4,994 2,500 12,300 2,500 2,514 7,980 6,788 2,500 2,500 2,500 7,370 12,275 10,000 10.000 23,000 10,000 10,000 Leam English Together in Merton CIO Learning Keys CIC London Borough of Merton Maggies at the Royal Marsden Maroon Solis CIC 1.910 1,905 6.480 10,000 10,000 2,800 27 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 May Projects Garden CIC Merton Cenlre for Independent Living. Merton Community Transport Merton Goan Senior Citizens Association Merton Mencap Merton Somali Cornmunity (MESCO) Mitcham Arts Collective CIC Mitcham Town Community Trust Somali Community CIC Sherwood Park Hall CIC Soulh London Tamil Welfare Group South Mitcham Community Association South West Law Centre South Wesl London Law Centres South Wesl Runs Studio Upstairs Sustsinable Merton Sutton African and Carlbbean Cultural Organlsallon Th8 Nervè of my Multiple Sclerosis Tooting and Milcham Community Sports Club Ltd Unique Talent CIC Ukrainian Refugee Help CIO Veterans Community Choir CIC Wimbledon Guild Women Arlse Ministries 10,000 9,650 10,000 2,500 2.500 9,945 2.482 28.700 2,500 2,500 10,000 9,840 7.744 20,000 5,000 2,500 5,000 17,021 4,984 2,500 2,500 49,255 20,267 2,365 2,500 2,500 2.500 267 270 8,143 3,460 SUPPORTCOSTS 2024 2023 Staff and related costs Premises and hall hire costs Office costs Professional fees and other costs Governance costs (Note 9) 105,954 15,091 18,775 10,476 16,200 166,496 66,012 6,173 41,498 10,808 4,364 128,855 28 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GOVERNANCE COSTS 2024 2023 Audit fees Committee & Strategic Planning costs 5,000 11,200 16,200 4,261 102 4,364 10. NET INCOMINGIIOUTGOINGI RESOURCES Net resources are stsled after chargingl(crediting)'. 2024 2023 Audit fees Operallng lease rentals Amortisation and depreciation 5,000 17,440 1,645 4,261 41.857 1,614 11. STAFF COSTS 2024 2023 Wages and Salaries Social security Costs Pension cosls 628,083 55,460 36,530 720.073 615,068 55,128 30,596 700.792 One 8mployee had total employee ben8fits (excluding employer pension cosls) (2023 nil) in excess of £75,000. Pension costs are allocated to aclivilies in pioportion lo the related staffing costs incurred. The Charity Trustees were not paid or received any other benefits from employmenl with the Charity in the year 12023 £nil) neilhar w8re they r8imbursed expenses during th8 year12023.' £nil). No Charity trustee received payment for professional or other services supplied lo the Charity (2023.. £nil). The key management personnel of the Charity are detailed on page 5 of the accounts. The total employee remuneration of Ihe key management personnel (Trustees and CEO) of the Charity was £82,945 {2023.. £46,375. Under FRS 102, to181 employee benefits include gross pay, benefits in kind, employerfs nalional insurance contributions and employers pension costs. 12. STAFF NUMBERS The average monthly number of employees (including casual and part time staff) during the year was as folloKE.' 2024 Numbers 2023 Numbers Senior Management Team Other Direct Charitable Staff 17 22 18 22 29 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. TRANSACTIONS AND RELATED PARTIES There were no related party transactions during the year or the previous. year, other than the remuneration of key management personnel set out in Note 11. 14. PENSION COSTS The charitable company has a defined Contributlon pension scheme. which all employees are entitled to join. Previously, the charitable company operated a defined benefit scheme. which is now closed to new members. This is a multi4mployer scheme operated by TPT Retirement Solutions and, whilst il is not possible lo estimate the share of the assets and liabilities of the scheme attributable to Merton Voluntary Service Council. TPT Retirement Solutions has estimated that the employers, debt on withdrawal liability at Ihe most recent annual funding update of 30 September 2023 would have been £44.126 (30 September 2022.. £60,260). Please note a full acluarial valualion for the scheme was carried out on 30 Septembef 2020. This valuation showed asset of£800.3m, liabilities of £831.9m and a deficit of £31.6M. The Truslees of TPT Retirement Solutions, following advice from the Actuary, have now implemented a recovery plan. Under the new plan, the total deficit Contributions due from employers will reduce from 1 April 2022 and each employer's share of the new amount will continue lo be based on its own percentage share of the Plan's liabilities. The deficit contributions will be £3.312m per annum from 1 April 2022. No annual increase will be applied lo these conlributions and the recovery plan will remain unchanged, with an end date of 31 January 2025. The Charity's Trustees consider that it is unlikely that any liability will crystallise in relation lo this in the foreseeable future. Under FRS102. provision is required for the net present value of any agreed deficit recovery plan contributions relating to the Plan. During the year ended 31 March 2024 payments have continued to be made in accordance with this plan and the provision for the nel present value of deficil Gontributions was £3.734 (2023 £7,994) The amounts recognised in the statement of financial activities are as follows: 2024 2023 Net interest from net defined assevliability 305 305 237 237 Changes in Ihe present value of the defined benefit obligation are as follows.. 2024 2023 Defined benefit obligation Contribution by scheme particlpants Interest Cost Re-measurement from changes in financial assumplions Re-measuremenl from amendments to the contribution scheme (7,994) 4,568 {305) 13) (12,539) 4,568 1237) 214 3.734 7,994 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. PENSION COSTS contlnued The amounts recognised in other recognised gains and losses are as follows: 2024 2023 Actuarial l(lossesygains from changes in financial assumptions 308 308 23 23 2024 2023 Discount rate 5.310/0 5.520 The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. 15. CORPORATION TAX As a regisler8d charity MVSC is axèmpl from Corporation Tax in raspect of its investment and charitable income and in resped of capital gains. 16, INTANGIBLE FIXED ASSETS Webslle 2024 Dalabase 2024 Total 2024 COST At 1 April 2023 Additlons 10,200 5,940 16,140 At 31 March 2024 AMORTISATION At 1 April 2023 Charge for year 2.040 1.020 1,188 594 3,228 At 31 March 2024 NET BOOK VALUE At 31 March 2024 At 31 March 2023 7.140 8.160 4,150 4,752 11.298 12,912 31 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. TANGIBLE FIXED ASSETS Computer and Office Equipment 2024 Total 2024 COST At 1 April 2023 Additions Disposal At 31 March 2024 27,700 4,836 27.700 4,836 32,536 32.536 ACCUMULATED DEPRECIATION At 01 April 2023 Charge for the year Disposal At 31 March 2024 27,700 31 27.700 31 27,731 27,731 NET BOOK VALUE At 31 March 2024 At 31 March 2023 4,805 4,805 18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors Other Debtors Accrued Income Prepayments 123,256 2,133 128,672 75,181 329,242 80,946 45,267 26,278 152,491 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Funds held on behalf of other organisations Other creditors Accrued expenses Deferred income Pension Conlributions Credit Union Grant Holding Account Pensions Taxation and social security 56,213 18,826 602 2,969 150,771 75,934 1,112 39,001 255,865 9,577 300 12,538 3,734 17,184 121,943 4,568 15,640 542,891 32 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR 2024 2023 Pension liabih'ties 3,426 21. DEFERRED INCOME Amount8 released from previous year Balance Brought Forward Income deferred in the current year Balance Carried Forward Deferred Income 255,865 (255,865) 255.865 22. OPERATING LEASE COMMITMENTS Total future minimum lease paymenls for non-cancellable operating leases are as follows.. 2024 2023 Expiring: Within one year Between one and five years More than five years 17.440 41,857 17,440 17,440 59,297 The above commltments include service charges as well as rent. 23. ANALYSIS OF NET ASSETS BETWEEN FUNDS Current year information for the net assels belween funds,, Unrestricted Fund8 Reslricted funds 2024 Gon•ral Funds Designat•d Pension Funds Funds Tolal Funds Fixed assets Current assels Current liabili118S Pension liability < 1 year Pension liability > 1 year 16,103 16,103 26,OOD 26,000 3,734 3,734 16.103 26.000 3,734 45.837 33 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 23. ANALYSIS OF NET ASSETS BETWEEN FUNDS continued Comparative year information for the net assets between funds.. Unreslricted funds General Deslgnated Penslon Funds Funds Funds Restricted funds 2023 Total Funds Fixed assets Current assets Current liabilities Pension liability < 1 year Pension liability > 1 year 12,912 696,455 (387,255) 12,912 1.562,985 (538.323) {4,568) (3,426) 1.029.580 26.000 840,534 (151,068> (4,568) {3.426) 17.994) 322,112 26,000 689,462 24. MOVEMENT IN FUNDS Transfers Balance at Incomln9 Oulgolng bebNeen 0110412023 Resources Resources funds Unrestricted Funds Galns & Balance al losses 3110312024 General Fund Designated Fund Pension Fund Total Unrestri¢led Funds 322,112 26,000 {7.994> 340,118 645,954 {752,129) 125.285 341,222 26,000 (3,734) 363,488 4,568 645,954 (752,129) 129,853 (308) (308) Restricted Funds City Bridge Trust Merton Giving CCG Capacity Bullding Fund Comm Hub Jigsaw Mod81 Research Year Project Greater London Authority - Young Londoners LBM - Community Accountancy Support LBM - Heallhwatch LBM - Transforming communities capacity funding Merton EMHIP Inequalities Project Propel Sutton and Merton CCGS, CharStable Funds LBM Civic Pride Young Londoner's Fund Core Connectors Merton Glvlng Grant Distribution Fund Wimbledon Foundalion - Merton Start Up 4,244 61,100 62,637 (85.331) 15,000) 19,987 57,637 25.205 6,708 31.913 55,049 24,775 <327) 130,500 (105,913) 37,500 79,497 12.873 37,460 37,500 19,722 (1.591) (13.131) 383,576 (192,434) (64.010) 5,000 127.132 488,306 488.366 207,113 (145.864) (52.712) (491 8,537 149) 98,644 137,208 166.856) (19.987) 149.009 5,141 20,500 18,048) 689,462 1,091,339 (611,413) (129,853) 1,029,580 1,737,293 (1,363,542) 17,593 1,039,535 1,403,023 TOTAL FUNDS (308) MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 24. MOVEMENT IN FUNDS continued Comparative year information for movement In funds: Transfers Balance at Incornlng Outgolng between 0110412022 Resources Resources funds Unrestrlcted Funds Galns & Balance al losses 3110312023 General Fund Designated Fund Pension Fund Total Unrestricted Funds 255,396 885,971 (780,811) (38,444) 26,000 4.568 885,971 (780,811) (7,876) 322,112 26,000 {7,994) 340.118 (12,539) 242,857 (23) (23) Restricted Funds Cily Bridge Trust - Merton Giving CCG Capacity 8uilding Fund Comm Hub Jigsaw Model Research Year Project Greater London Authority - Young Londoners LBM - Community Accountancy Support LBM - Healthwatch LBM - Transforming communiti8S capacity funding Merton EMHIP Inequalilies Project Social Prescribing Contracl Sulton and Merton CCGS, Charitable Funds Merton Giving Grant Dlslribution Fund Wimbledon Foundalion - Merton Start Up 2.062 56,500 26,615 (54,318) (26,615) (8,333) 4,244 33,538 25,205 7,637 30,900 (38,537) 4,433 10.616 74,325 (23,709) 125,979 (123,722) (7,369) (507) (7,455) (236.361) 55,049 12,873 7,369 507 7,455 724,667 488,306 46,101 222,877 (170,334) 98,644 5,141 5,141 808.112 570,734 (697.260) 1,050,969 1,456.705 1,478,071 7,876 689,462 1,029.580 TOTAL FUNDS (23> 35 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. FUNDS RESTRICTED FUNDS The surplusesldeficils on restricted funds arise because of timing differences where funding has been received in advance of expenditure and will be utilised over the duration of the relevant projects. The restricted funds recognised in these accounts were provided for the following purposes.. Name of restricted fund Description, nature, and purposes of the fund To enhance the knowledge and skills of local BAME organisations with regards to housing, planning and regeneration issues, enabling Ihem lo belter support their rnembgrs and 8AME residents lo present and campaign on the issues that affect thern. The underspend on this fund was used to continue the project work which was delayed by the pandemic. Capacity Building - Trust for London City Bridge Trust- Merton Giving This element of the City Bridge Trust funding provides funding to both MVSC and Merton Chamber of Commerce to jointly generate income and arrange subsequent grant funding rounds through Ihe Merton Giving Fund. The funding targets and outcomes have been over- achieved as a resutt of the continued activity of the Merton Giving Coronavirus Fund and its successors, Greater London Authority - Young Londoner Network Project YLF Network project is a three-year programme supported by the Mayor of Londoners fund. aimed at building the capacity and quality of Voluntary Secloi youth provision across the South West London sub- region. Through training, peer support, partnership, and collaboration the programme seeks to 8nsur8 Young People across the sub-region have a variety of good quality activities and projects to participate in that will help them to achieve and develop into well balanced, civically active, adults. This project has been extended to 31 December 2022 by the funder. LBM - Community Accounting Support As part of the work done wlthin the Merton Giving team, we have also supported organisations with community accountancy during the appllcation proc8SS. LBM - Heallhwatch Healthwatch is the consum8r champion for health and social care seprfices in LBM. LBM - Your Merton Engagement The London 8orough of Merton undertook an extensive programme of engagement with citizens. partners, businesses, and local VCS organisations to help develop a new long-term vision for Ihe borough. Part of this programme was lo ask VCS organisations to undertake engagement with Iheir users, members. and volunteers. Small grants were made available for VCS organisations who will be facilitating Your Merton engagement, and thi5 was managed by MVSC. 36 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. FUNDS continued LBM - Transformin9 Capacity Funding Merton EMHIP Inequality Project Merton Giving Grant Distribution Fund Current year grant funding was received from LBM and The National Lottery Community Fund, along wilh donations from other charitable trusts. public donations. and fundraising events. This funding was then used to support local organisations in Ihe borough in the way of granls through Ihe Merton Giving scheme. Social Prescribing Project Merton Council and Merton CCG provided MVSC wilh funding to run a project, which connected patients at Ihree East Merton GP practices wilh services in the communily provided by volunt8ry organisations. Grant funding ended in Seplember 2019 and a new expanded social prescribing contract was negotiatad with the CCG from October 2019. The remalning balance on the 2019 lund will be used for future work within Social Prescribing In the borough, Sutton and Merton CCG - MVSC 2025 fund Thes8 funds were transf8rr8d to MVSC in February and March 2020 from an 'umbrella' charity managed by the Sutton and Merton CCGS. The transferred funds will be managed by MVSC and channelled through Merton Giving as grants to voluntary organisations and other not-for-profil bodie5 within the Borough of Merton to provide services with a focus on supporting residents and patients accessing local health and wellbeing services. MVSC will be promoting the development of social prescribing seNices throughovl Ihe borough and undertaking other activities, taking advi￿ from Ihe local PCN. Wimbledon Foundation - Merton Step-up The Merton Slep-up programme was conceived as a natural progression to the Merton Skill-up project (a capacity building prolecl funded by Wimbledon Foundalion for a three-year period). Ils aim is to provide a coherent and structured framework to support organisalions evolulion and ratify that they have met at least a foundation level of quality in terms of organisalional govemance and service delivery. The pilot programme has been used to respond lo inequalities expose(I by the pandemic. engaging with small local organisations who have eilher themselves been disproportionately affected by the pandemic andlor whose beneficiaries have been so (these include three local community cenlres, Iwo of who are new and Ihe third is undertaking a fundamenlal review of their organisalion). 37 MERTON VOLUNTARY SERVICE COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 26. CAPITAL COMMITMENTS The Charity has aulhorised and contracted for expenditure of £Nil. The Charity has authorised but not contracted for expenditure of £Nil in its capital budget for the upcoming year. 27. CONTINGENT ASSETS Total grant funding awarded as at 31 March 2024 but not yet received and recognised as income due to the recognition criteria not being met amounts to £0 (2023-. £290,997>. Funds 2024 2023 Cornerstone City Bridge Trust Wimbledon Guild of Social Welfare Wimbledon Foundation Grant 92.000 100.000 192,000 28. LEGAL STATUS OF THE CHARITY Merton Voluntary Service Council is a registered charity {charity number 1085867) and private company (Company No.. 04164949) incorporated in Great Britain and registered in England and Wales. The company is limlled by guarantee and has no share capital. In Ihe event of the Charity belng wound up, the liabillty In respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Legal and Administrative Information on page 3. 38