REGISTERED COMPANY NUMBER: 04258857 (England and Wales) REGISTERED CHARITY NUMBER: 1089951 PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN13DU PROVIDING OPPORTUNITIES AND SUPPORT (PROPS} CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page Reference and Administrative Details Report of the Trustees Report of the Independent Auditors Statement of Financial Activities Statement of Financial Position 10 Statement of Cash Flows Notes to the Statement of Cash Flows 12 Notes to the Financial Statements 13 to 22 PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023 TRUSTEES Mr K A Smith Mr T M S Dutton Mr J Jenkins Ms S J Lewis Mr S Little Mrs K G Driscoll (resigned 8.8.24) Mr M J Hamilton-James (appointed 8.8.24) Mr K C Beattie (appointed 8.8.24) COMPANY SECRETARY Mrs K G Driscoll REGISTERED OFFICE Vassall Centre Gill Avenue Fishponds 8ristol BS16 2QQ REGISTERED COMPANY NUMBER 04258857 (England and Wales) REGISTERED CHARITY NUMBER 1089951 AUDITORS Haines Watts Chartered Accountants & Statutory Auditors Old Slalion House Station Approach Swindon Wiltshire SN1 3DU Page 1 PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial stalements of Ihe charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims The objectives and mission of the Charity are.. To create an inclusive society by empowering adults who have learning disabilities to achieve purposeful and rewarding work opportunities. Our work is deeply integrated within the wider community to challenge perceptions of what people who have learning disabilities should expect from society. Al Props we foster independence and support people to grow in all aspects of their lives. Achievement and performance Charitable activities 2023 has been a challenging period for Props. As part of the preparalion and approval of these accounts a number of financial management issues came to light, most notably a significant fraud perpelrated by a senior member of staff which is the subject of an ongoing criminal investigation. Trainee numbers have remained strong in 2023 as Props continues to develop the number of activities and work focussed learning opportunities for Trainees. To support that addilional provision and to ensure that Props continues to provide quality services that are reflective of Trainees, wishes and aspirations, the staffing levels have remained fairly constant, to ensure a consistent and safe provision of services. For several years, the Props strategic plan has focussed on growth and the ability to support more learning-disabled people to be involved in meaningful work and to be able to participate in work-based opportunities. In September 2023, the charity achieved its primary stralegic objective for the year, with the opening of our Café, 'Crafted' located in Fishponds high street. Following a period of significant redevelopment, CrafteL% now provides a community centred café, workshop and retail space open 6 days per week. This has provided additional community focussed work-based opportunities for our Trainees, who have been engaged across the entire enterprise. Our café at the Vassall centre has continued to thrive providing a daily catering service to all workers and visitors to the Vassall centre. We continue to provide a catering service for conferences and meetings at the centre and we are currently developing a 'food club, which will create and deliver hot meals to those in need in the local community. The charity remains focused on the provision of its social enterprises, and we continue to develop sustainable activities that can deliver meaningful activities and employment opportunities for learning disabled people, while engaging with the wider community. Fundraising and donation totals for the period were slightly down on lasl year al £88k with £59k being unrestricted and £29k being restricted. The unrestricted funds being exclusively due to another very successful Bristol to Bordeaux cycle event which took place in early July. The trustees have due regard to the Charity Commission guidance on public benefit. Page 2 PROVIDING OPPORTUNITIES AND SUPPORT {PROPS} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review Financial position The statement of financial activilies for 2023 is set out on page 9 and shows a reported deficit for the year of £182,075 (2022 deficit £64,239). The deficit over the prior 2 years reflects investments in both Tapestry brewery and the Crafted coffee shop, as we continue to expand our enterprise provision. The 2023 deficit position is more pronounced as a result of fraudulent activity during the year. Investment in the enterprises through 2022 and 2023 has ensured that Props is now well placed to continue to expand ils provision. Further to these periods of investment in the Props proposition, enabling future trainee growth, Props will now focus on consolidation and maximising utilisalion of these enterprises for enhanced trainee provision and where appropriate revenue generation. In order to invest in growth opportunities, the trustees made the decision to reduce reserve levels to below that set out in reserves policy. The focus now in on returning to a level of reserves commensurate with our reserving policy of 3 months operating cost coverage. Reserves policy Further to the agreed investment in enterprises and unfortunate fraudulent activity in the year, reserves are below the targeted position. The reserves at the close of 2023 were £223.928 (2022.. £406,003), which is £45k below the targeted position. The Trustees have committed to reestablishing a reserves level to a minimum of three months, operating costs within the next three years. To accommodate this. we will be undertaking new fundraising initiatives to return reserves to desired levels., at the same time the charity's annual income and expenditure will become more sustainable. Free reserves amounted to £73,087 at 31 December 2023 (2022 £310.645). Future plans Props will continue its policy of sustainable growth over the next few years. We are constantly seeking new opportunities for additional funding, new initiatives and increasing our fundraising and grant income. The new enterprise space we have created at Crafted and the VC café will allow us lo continue to increase the level of trainees we are able to support. We continue to build strong relationships within the community and are actively working with other charities and not for profit organisalions. While providing the best possible service to our trainees is our key focus, we are also able to have a positive impact on the community around us. Page 3 PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document PROPS was established on 27 July 2001 and registered as a charity on 3 January 2002. The board of trustees, who are also directors of the charity for the purposes of the Companies Act, have overall responsibility for the strategy, management and control of PROPS. The Chief Executive Officer, working with the senior management team, is responsible for delivering the Board's vision and strategy and for the day-to-day operations of the charity. Key management remuneration is set with reference to market rates. The Trustees are all volunteers, drawn from a range of backgrounds, in order lo provide a broad skills base for the Charity, and appropriate training is provided to assist in fulfilling their roles within the charity. The Charity regularly reviews the risks arising from its activities and takes appropriate action to minimise the impact of such risks to the charity. The Trustees have reviewed the major strategic, business and operational risks which the Charity faces, and identffied key risks. Actions to address key risk areas have been agreed and progress is reviewed regularly. In addition, strong financial controls are in place to mitigate the risk of financial losses due to theft or fraud. and these controls are also regularly reviewed. TREASURER'S COMMENT Further to investment in our enterprise provision over the past 2 years, we now turn to a posilion of investment consolidation and trainee growth. We are currenuy implementing a new fundraising strategy, welcoming new trainees. growing reserves and longer term creating profitable Enterprises to further support the charities long term financial sustainability- The continued objective of the trustees is to preserve sustainability of Props, while ensuring that the underlying infrastructure of the organisation continues to be fit for purpose and an effective organisation for delivering quality services. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of Providing Opportunities And Support (PROPS) for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland.. Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of Ihe incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements: prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to 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 steps for the prevention and detection of fraud and other irregularities. Page 4 PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEhlBER 2023 STATEMENT OF TRUSTEES. RESPONSIBILrriES - continued In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware.. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDrroRS The auditors, Haines Watts, will be proposed for re-appointrnent at the forthcoming Annual General Meeting. Report of the trustees, inco rdtin a strateg5c report approved by order of the board of trustees, as the company directors. on . 2.3fi.l..i.I . and signed on the board's behalf by.. Mr K A Smith - Trustee Page 5 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) Opinion We have audited the financial statements of Providing Opportunities And Support (PROPS) (the 'charitable company,) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting practi￿>, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statemenls.. give a true and fair view of the state of the charitable company's affairs as at 31 De￿rnber 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion Conclusions relating to going concem In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's abilily lo continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The tru51ees are responsible for the other information. The other information comprises the information included in the Annual Report. other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection wtth our audit of the financial statements, our responsibility is 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to delermine whether this gives rise to a material misstatement 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. Comparative Figures The comparative figures for 2022 are unaudited. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the Truslees for the financial year for which the financial stalemenls are prepared is consistent with the financial statements., and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 6 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatemenls in Ihe Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequale for our audil have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns- or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, 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 statements 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 the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Page 7 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PROVIDING OPPORTUNITIES AND SUPPORT (PROPS) Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when it exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influencE the economic decisions of users taken on the basis of these financial slatements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below- We obtained an understanding of the legal and regulatory framework applicable to both the charity itself and the environment in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102), Charities Act 2011 and relevanl tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included.. making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud", obtaining an understanding of the internal controls established to mitigate risks related to fraud or non