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2023-03-31-accounts

Charity registration number 1096788

Company registration number 04637252 (England and Wales)

3VA

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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3VA

CONTENTS

Page
Trustees report 1 - 4
Statement of trustees responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 32

3VA

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's memorandum and articles, the Companies Act 2006 and "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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charitable company is a Council for Voluntary Service (CVS) with its main objects being:

a. to promote any charitable purposes for the benefit of the Community, primarily but not exclusively, in the local government district of Eastbourne, Lewes and Wealden and its neighbourhood (hereinafter called "the area of benefit") and to enable the delivery of services across East Sussex, in particular, the advancement of education, the protection of health and the relief of poverty, distress and sickness;

b. to promote and organise co-operation in the achievement of the above purposes and to that end to bring together in council representatives of the voluntary organisations and statutory authorities within the area of benefit.

Main Aims

Our four-year strategic review 2019-2023 has set out core goals for the period as the following: Being an influential leader in the community

Work in partnership, supporting, developing and inspiring voluntary organisations

Delivery of our aims in 2022/23:

For much of 2022/23, 3VA resources were principally focussed on building alliances and being responsive to community needs.

3VA

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Liaison with local authorities

3VA worked closely with Lewes District Council (LDC), Eastbourne Borough Council (EBC) and Wealden District Council (WDC) to support the setting up of Community Hubs which became the focus for any member of the public needing support. We attended regular multi-agency community hub co-ordination meetings which reviewed the work of the hubs and shared local intelligence on the impact of the pandemic and recovery planning.

Volunteering

During the year, we were helping groups to deliver services in a different way and took on new roles such as telephone support and online groups.

Information, Advice and Guidance

We continued to provide information, advice and guidance to groups. Many groups faced specific and pressing issues around safeguarding and health and safety. Some sought support from 3VA to undertake general policy reviews and to look at how they can become more financially sustainable in the longer term and broaden their pool of volunteers.

Networks

We ran weekly networks in Eastbourne and Lewes with between 20 to 30 participants. In Wealden, where networking has always been a strong focus, groups used networks to harness support and identify opportunities for joint working and resource sharing. Special interest networks emerged during the year, including one based around older people’s services and young people and mental health. Initially, the response of many groups was to not reopen face to face services at the end of lockdown. However, of those that did, we were able to share their experiences with others through these networks.

Food Partnerships

3VA, developed a partnership where collaboration between the community, public and private sector look at tackling issues around food.

Devonshire West Big Local

3VA continued to provide Local Trusted Provider support to Devonshire West Big Local.

Homes for Ukraine

3VA worked with East Sussex County Council in their support of displaced citizens of Ukraine.

Achievements and performance Financial review

We have ended the year with a balance on the general reserve of £137,142. No transfers have been made to the designated funds. Details of the designated funds are shown in note 23 to the accounts.

The analysis of restricted funds is shown in note 22 to the accounts. These represent funds for specific projects. These specific projects represent a significant amount of 3VA’s activities during the year and account for income of £642,794 out of a total of £908,683. The balances at the end of the year represent projects where monies have been received in advance of the expenditure.

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3VA

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Recruitment and Appointment of Management Committee

Potential new trustees with expertise in relevant areas are recruited from the business and voluntary sector.

Trustees are elected by a majority vote by members at the Annual General Meeting. Relevant training is offered and induction procedures are in place.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

All members of the Management Committee gave their time voluntarily and received no benefits from the charity.

Any expenses reclaimed from the charity are set out in note 11 to the accounts. Trustees' indemnity insurance was paid by the charity on behalf of the trustees as permitted by the Memorandum and Articles of Association.

The Board of Trustees is ultimately responsible for the financial control of the organisation and for financial reporting to its members and others.

Committees

The Board has appointed a Finance and Operations Committee, comprising Vice Chairman, Treasurer, Accountant, Chief Executive, Director of Finance and Resources and Business Insights and Membership manager. This meets monthly to review current financial performance and financial projections and to advise the Board on finance matters.

The Committee also maintains a risk register recording the major risks faced by 3VA and implements control measures to manage any identified risks.

Pay and Remuneration of Key Management Personnel

All Key Management personnel are issued with detailed job descriptions and contracts that fall in line with the National Joint Council pay scales.

Promoting the success of the company

Notes 22 to 24 set out a summary of the various funds of 3VA with appropriate description and analysis of the assets contributable to each fund.

Auditor

In accordance with the company's articles, a resolution proposing that Knill James LLP be reappointed as auditor of the company will be put at a General Meeting.

The trustees report was approved by the Board of Trustees.

.............................. Mr G Walsh (Chair)

Trustee

Date: .............................................

3VA

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of 3VA for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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.

3VA

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF 3VA

Opinion

We have audited the financial statements of 3VA (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate 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 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 identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 with 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 determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

3VA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF 3VA

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

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 purpose 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 to 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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an auditor's report 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 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 to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company's governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Trustees' report, remaining alert to new or unusual transactions which may not be in accordance with the governing document.

3VA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF 3VA

The most significant laws and regulations that have an indirect impact on the financial statements are the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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 intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Filsell FCA (Senior Statutory Auditor) for and on behalf of Knill James LLP

.........................

Chartered Accountants Statutory Auditor

One Bell Lane Lewes East Sussex BN7 1JU

Knill James LLP is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

3VA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
-
-
4,434
Charitable activities
4
254,071
-
638,015
Other trading activities
5
-
-
-
Investments
6
1,883
-
-
Other income
7
9,935
-
345
Total income
265,889
-
642,794
Expenditure on:
Charitable activities
8
289,651
-
516,404
Other expenses
13
4,861
-
-
Total expenditure
294,512
-
516,404
Net (outgoing)/incoming resources before
transfers
(28,623)
-
126,390
Gross transfers between funds
21,719
(17,719)
(4,000)
Net (expenditure)/income for the year/
Net movement in funds
(6,904)
(17,719)
122,390
Fund balances at 1 April 2022
144,046
115,806
320,770
Fund balances at 31 March 2023
137,142
98,087
443,160		 Total
2023
£
4,434
892,086
-
1,883
10,280
908,683
806,055
4,861
810,916
97,767
-
97,767
580,622
678,389		 Total
2022
£
-
674,793
38,869
88
3,560
717,310
646,567
(17,764)
628,803
88,507
-
88,507
492,115
580,622

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

3VA

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Prior financial year

Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2022
2022
2022
Notes
£
£
£
Income and endowments from:
Charitable activities
4
252,969
-
421,824
Other trading activities
5
38,869
-
-
Investments
6
88
-
-
Other income
7
3,560
-
-
Total income
295,486
-
421,824
Expenditure on:
Charitable activities
8
339,062
-
307,505
Other expenses
13
(17,764)
-
-
Total expenditure
321,298
-
307,505
Net (outgoing)/incoming resources before transfers
(25,812)
-
114,319
Net (expenditure)/income for the year/
Net movement in funds
(25,812)
-
114,319
Fund balances at 1 April 2021
169,858
115,806
206,451
Fund balances at 31 March 2022
144,046
115,806
320,770		 Total
2022
£
674,793
38,869
88
3,560
717,310
646,567
(17,764)
628,803
88,507
88,507
492,115
580,622

3VA

BALANCE SHEET

AS AT 31 MARCH 2023

2023
Notes
£
Fixed assets
Tangible assets
15
Current assets
Debtors
16
26,461
Investments
17
-
Cash at bank and in hand
819,103
845,564
Creditors: amounts falling due within
one year
18
(171,728)
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets
Income funds
Restricted funds
22
Unrestricted funds - designated
General unrestricted funds		 2022
£
£
9,911
13,650
50,000
760,860
824,510
(240,750)
673,836
683,747
(5,358)
678,389
443,160
98,087
137,142
678,389		 £
5,267
583,760
589,027
(8,405)
580,622
320,770
115,806
144,046
580,622

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................

..............................

Mr G Walsh (Chair) Trustee

Company Registration No. 04637252

3VA

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
26
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of investments
Interest received
Net cash generated from investing
activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(8,536)
50,000
1,883		 £
14,896
43,347
58,243
760,860
819,103		 2022
£
-
-
88		 £
139,155
88
139,243
621,617
760,860

3VA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

3VA is a private company limited by guarantee incorporated in England and Wales. The registered office is Newhaven Enterprise Centre, Denton Island, Newhaven, East Sussex, BN9 9BA.

1.1 Accounting convention

The accounts have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and “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 (FRS 102)” (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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 that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services of facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of the income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

Other income such as rental income, management services and training fees are included in the accounts on an accruals basis. 3VA is not registered for VAT.

1.5 Expenditure

Expenditure is included within the statement of financial activities on an accruals basis. Expenditure which is directly attributable to specific projects has been included within those cost categories. Where costs are attributable to more than one activity, they have been apportioned across the cost categories on the basis consistent with the use of those resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Only assets costing in excess of £1,000 are capitalised. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers 4 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

The charity is a member of the multi-employer Growth Plan defined benefit pension scheme. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme and it accounts for the scheme as a defined contribution scheme. The charity recognises the present value of contributions payable to fund any deficit relating to past service that result from the agreement with the multi-employer plan.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Depreciation

The charity exercises judgement to determine useful lives and residual values of property, plant and equipment. The assets are depreciated down to their residual values over their estimated useful lives.

Post-employment benefit obligations

The present value of the post-employment benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of post-employment benefit obligations. Key assumptions for post-employment benefit obligations are disclosed in note 21.

3 Donations and legacies

Restricted Total
funds
2023 2022
£ £
Donations and gifts 4,434 -

oco00a)￿ (ts (o a o) £71 v O Cy 00)00a)￿ (ts (o o o) o) cry cw- ¢ o)ooNcoo ¥J )ooNcoory) ooop)wty c c LU LU a > u) ro O

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Other trading activities

**Unrestricted ** Unrestricted
funds funds
general general
2023 2022
£ £
Rental income - 38,869
6 Investments
**Unrestricted ** Unrestricted
funds funds
general general
2023 2022
£ £
Interest receivable 1,883 88
7 Other income
Unrestricted Restricted **Total ** Unrestricted
funds funds funds
general general
2023 2023 2023 2022
£ £ £ £
Other income 9,535 345 9,880 -
Advertising income 400 - 400 3,560
9,935 345 10,280 3,560

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Charitable activities

Grants to Grants to Grants to
Institutions Institutions
2023 2022
£ £
Staff costs 439,740 361,249
Depreciation and impairment 3,891 2,736
Management fee 103,046 26,201
Rent, utilities, repairs and renewals 4,950 53,642
Printing, postage and stationery 2,834 2,448
Legal, professional and consultancy fees 28,341 17,990
Telephone 8,431 4,256
Marketing, promotion and events 4,161 9,619
Computer costs 15,481 11,971
Travel and subsistence 8,860 458
Training 3,491 1,349
Insurance 3,781 2,595
Other charitable expenses 4,793 1,769
Administration costs recharged to restricted projects (7,337) (5,209)
624,463 491,074
Grant funding of activities (see note 9) 166,487 144,302
Share of governance costs (see note 10) 15,105 11,191
806,055 646,567
Analysis by fund
Unrestricted funds - general 289,651 339,062
Restricted funds 516,404 307,505
806,055 646,567

9 Grants payable

Grants to Grants to
Institutions Institutions
2023 2022
£ £
Grants to institutions:
Made from Devonshire West Big Local funds 88,332 97,423
Other 78,155 46,879

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

9 Grants payable

(Continued)

Grants from Devonshire Big West Local funds were made to 12 (2022 - 15) local organisations supporting community development in the Devonshire West ward of Eastbourne in accordance with the terms and direction of this particular project. This included grants to Leaf Hall CIC of £38,800, Matthew 25 of £15,000 and Eastbourne Mencap of £10,307 . A further 9 (2022 - 12) smaller grants to organisations working in the Devonshire West area were also made.

Other Grants to institutions relate to Household Support Funds, Food Matters grants, Covid-19 support grants and Food Partnerships Support Funds and were made to 36 (2022 - 22) local organisations.

10 Support costs

Support costs
Support
costs
Governance
costs
£
£
Audit fees
-
7,022
Legal and professional
-
35
Travelling expenses
-
864
Community AGM expenses
-
5,171
Bank charges
-
2,013
-
15,105
Analysed between
Charitable activities
-
15,105		 2023
£
7,022
35
864
5,171
2,013
15,105
15,105		 2022
£
8,319
2,401
221
-
250
11,191
11,191

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charitable company during the year. 1 (2022 - 1) trustee was reimbursed for meeting expenses totalling £57 (2022 - £16).

12 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Employees (full and part time) 15 18

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2023
2022
£
£
386,843
321,181
37,332
25,195
15,565
14,873
439,740
361,249		 (Continued)
2023
2022
£
£
386,843
321,181
37,332
25,195
15,565
14,873
439,740
361,249
361,249

12 Employees

There were no employees whose annual remuneration was more than £60,000.

13 Other expenses

Remeasurements - impact of change in assumptions
Financing costs		 2023
£
4,703
158
4,861		 2022
£
(17,975)
211
(17,764

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Tangible fixed assets

Tangible fixed assets
Computers
£
Cost
At 1 April 2022 38,150
Additions 8,536
At 31 March 2023 46,686
Depreciation and impairment
At 1 April 2022 32,884
Depreciation charged in the year 3,891
At 31 March 2023 36,775
Carrying amount
At 31 March 2023 9,911
At 31 March 2022 5,267

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors - staff loan
Prepayments and accrued income
17
Current asset investments
Unlisted investments
18
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Government grants
20
Trade creditors
Other creditors
Accruals and deferred income
Provisions for liabilities
Notes
Retirement benefit obligations
21		 2023
£
26,235
100
126
26,461
2023
£
-
2023
£
12,185
115,792
11,714
14,869
17,168
171,728
2023
£
5,358
5,358		 2022
£
12,552
225
873
13,650
2022
£
50,000
2022
£
4,541
167,589
12,541
24,719
31,360
240,750
2022
£
8,405
8,405

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Government grants

Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
£
115,792
167,589
(62,007)
10,210
115,792		 2022
£
167,589
54,871
(54,871)
167,589
167,589

Deferred income relates to grants received ahead of the projects they are funding.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

3VA

21 Retirement benefit schemes

Defined benefit schemes

Scheme: The Pensions Trust - The Growth Plan

The charity participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the charity is potentially liable for other participating employers obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 31 January 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April))

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that related to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount is recognised as a finance cost.

Key assumptions
2023 2022
% %
Discount rate 5.52 2.35

3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21 Retirement benefit schemes

(Continued)

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.

Amounts recognised in the statement of financial activities;
Net interest on defined benefit liability 2023
£
158
Amounts taken to other comprehensive income:
Actuarial changes related to obligations
The amounts included in the balance sheet arising from the charitable
company's obligations in respect of defined benefit plans are as follows:
Present value of defined benefit obligations
Deficit in scheme
Movements in the present value of defined benefit obligations:
Liabilities at 1 April 2022
Deficit contribution paid
Actuarial gains and losses
Interest cost
At 31 March 2023
The defined benefit obligations arise from plans funded as follows:
Wholly unfunded obligations
Wholly or partly funded obligations

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3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement
in funds
Balance at Incoming Balance at Transfers Balance at
1 April 2021 resources 1 April 2022 31 March 2023
£ £ £ £ £
Special Reserve 115,806 - 115,806 (17,719) 98,087
115,806 - 115,806 (17,719) 98,087

The special reserve fund is money set aside to cover core expenditure in the event of core funding from statutory funders being withdrawn. Such funds would provide the means to support the work of the organisation whilst alternative funding was obtained. The amount required for this reserve is assessed each year.

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3VA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

25 Related party transactions

There were no disclosable related party transactions during the year.

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate compensation
26
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Difference between pension charge and cash contributions
Movements in working capital:
(Increase)/decrease in debtors
(Decrease) in creditors
(Decrease)/increase in deferred income
Cash generated from operations		 2023
£
65,959
2023
£
97,767
(1,883)
3,891
(3,047)
(12,810)
(17,225)
(51,797)
14,896		 2022
£
65,010
2022
£
88,507
(88)
2,736
(28,267)
250
(36,701)
112,718
139,155

27 Analysis of changes in net funds

The charitable company had no debt during the year.