Charity Registration No. 1096788 Company Registration No. 04637252 (England and Wales) 3VA ANNUAL REPORT AND FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BUSINESS ADVISORS &ACCOUNTANTS One Bell Lane Lewes East Sussex BN7 IJU
3VA CONTENTS Page Company information Trustees report Statement of trustees responsibilities Independent auditor's report 8-10 Statement of h'nancial activities 11-12 Balance sheet 13 Statement of cash flows 14 Notes to the h'nancial statements 15-37
3VA COMPANY INFORMATION Trustees Mrj Morton (Chairl Mr P G Dupont Mr M Hussain Mrc Strutt Secretary Mrj Williams Charity number 1096788 Company number 04637252 Re8lStered office Newhaven Enterprise Centre Denton Island Newhaven East Sussex BN9 9BA Audltor TC Group One Bell Lane Lewe5 East Sussex BN7 IJU Bankers Barclays Bank PIC 63167 Terminus Road Eastbourne East Sussex 8N213NE Solicitors Mayo Wynne Baxter 20 Gildredge Road Eastbourne East Sussex BN214RP
3VA TRUSTEES REPORT {INCLUDING DIRECTORS, REPORT) FOR THE YEAR EAIDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. The fbnancial statements have been prepared in accordance with the accounting policies set out in note I 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 chJities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK arnl Republic of Ireland IFRS 1021" leffective l January 20191. Objectives and activities The charitable company is a Council for Voluntary Service ICVSI 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 districts of Eastbourne. Lewes and Wealden and its neighbourhood Ihereinafter 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 benefi't. Better outcomes in society are achieved when local residents and communities are engaged in the dign and delivery of community services. We know that services are more successful when they are designed and informed by those who use than. When this doesn't happen or when communities are not listened to it can result in discrimination based on social class. ethnicity, age, gender, disability, sexuality, or faith. Having shared goals between local public bodies, voluntary, community and social enterprise IVCSEI organisations and communities themselves ensures that the principles of co-design, co-production and community ownership can be embedded and implemented to achieve a fairer society. We believe that the local VCSE is the key to tackling inequality and driving social change. We also believe our work in providing opportunities for all communities to have a greater voice is also crucial. This is why we have refreshed our vision, mission, and strategic objectives to give us greater focus over the next 3 years- 3VA Vision Vibrant, attive, inclusive communitr'es that enable and support positive change in East Sussex 3VA Mission To empower and enable diverse communities in East Sussex, supporting community groups and communities of interest and identity, VCSES, charities, and volunteers in growing strong and dynamic neighbourhoods. To advocate for a thriving voluntary and community settor with local government, statutory authorities and the private sector
3VA TRusfEES REPORT (INCLUDING DIREcfoRS' REPORT) {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 3VA Strdtegic Objertives Enable all voluntary community organisations to thrive By 2027 taking an asset-based approach we will enhance and support the knowledge,skills, and experience within the voluntary and community settor to deliver successful projects, to make successful funding bids and demonstrate the value of the sector Enable sustainable growth and development in the voluntary and community sector By 2027 we will develop partnerships and networks to tsckle issues and provide support ft)r service delivery Continue as the trusted and informed communlty voice for East Sussex By 2027 we will be the voice for the voluntary and community sector in East Sussex, better able to influence public bodies and benefitting from working with others around common themes. The public, private and statutory 5ertors will increasingly value the cTrdesigned work developed with 3VA Become a sustainable, resilient organisation driven by our values By 2027 we will be a sustainable agile organisation and our stakeholders and partners will increa&ngly value 3VA's role as a leader committed to tackling inequalities and working in partnership to benefit the community and voluntary sector Understand and promote the impacts of Climate Change on our communities By 2027 we will be a prominent and respetted voice in supporting UN Sustainable Development goals in East Sussex Delivery of our strateglc objectives in 2023124 We have continued to work closely with colleagues, partners and stakeholders across East Sussex. including ACEVO Eastbourne Borough Council Food Matters Lewe5 District Council NCVO Ouse Valley CARES Public Health England Sussex Nature Recovery UNA Climate and Oceans Wealden District Council East Sussex County Council Feeding Britain Good Food East Su55ex NAVCA NHS Sussex OVESCO Sussex Community Foundation Sussex Police and Crime Commi55ion VCSE Alliance Wealden Volunteering
3VA TRUSTEES REPORT {INCLUDING DIREoR5, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Volunteering During the year, 3VA supported volunteering through the 'Developing and Nurturing Volunteering, fund from East Sussex County Council, by working with the team at ESCC and Tribe to develop and embed the volunteering digital platform hosting 'Where Are We Now,, a collective discussion and review workshop for 50 of the county's leading practitioners and stakeholders in the voluntary and community sector hosting 'Celebr3ting Communities 2023, where over 100 colleagues celebrated the achievement5 of voluntary and community organisations from Eastbourne, Lewes and Wealden delivering quarterly Community Network Meetings. online training and extensive one-to-one support in the communitv * continuing to provide information, advice and guidance to groups, many of whom faced specific and pressing issues around poverty, exclusion and the continuing Cost of Living Crisis. Some sought support from 3VA to undertake general policy updates and to review their frnancial sustainability. Project delivery 3VA has continues to work successfully on these projects.. Addressing Violence and Exploitation Devonshire West Big Local Homes for Ukraine Making it Happen Wealden Food Partnership 2023- 2024 in numbers Delivered 1,191 hours sUPPOrt to 240 community groups 183,657 people's lives positt.vely impacted through supporting community groups 114 groups attended Community Network meeting5 358 hours supportrng Ukrainian Hubs, helping 1,354 people 541 news alerts with 2,414 artrcles 21.061 visitors to www. 3vcl.l)I 26,093 Facebook page users 10 news alerts every week 6 Willingdon Trees Making it Happen groups awarded £21,500 7 Shinewater Making it Happen groups awarded £6,500 4 Hampden Park Making it Happen groups awarded £13,500 2 Communities of Interest awarded £3,500 Achievements and performance Financial review 3VA has ended the year with a balance on the general reserve of £202,313. Details of the designated funds are shown in note 19 to the account5. The analysis of restricted funds is shown in note 20 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 £442.551 out of a total of E655,991. The balances at the end of the year represent projects where monies have been received in advance of the expenditure.
3VA TRU5fEES REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Reserves Policy 3VA continues to be dependent upon the financial support of its statutory funders to deliver the wnning of the organisation. Risk Management Trustees continue to review the Risk Register with the advice and support of the Chief Executive. Plans for future periods Our aims continue to run for the period to 31 March 2025 and we are working on developing four thanes under our two main goals. These will cover our core offer around advice, training and community networks, developing our digital offer. developing our membership offer further, and ensuring that our staff and trustees are equipped to take 3VA forward. Structure, governance and management The charitable company is a company limited by guarantee governed by its Memorandum and Articles of Association. The trustees, who are also the direttor5 for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were- MrJ Morton (Chairl Mr P G Dupont Mr M Hussain Mr Cstrutt Ms A Bicknell Mr A Holter Mr G Walsh Mr A Wenham IResigned 24 August 20241 (Deceased 8 July 20241 (Resigned 17 September 20241 (Resigned 21 September 2023} Recruitment and Appointment of Management Committee Trustees are elected by a majority member vote at the Annual General Meeting. Training and induction occurs. None of the trustee5 has any beneficial interest in the company. All trustees are members of the company and with a limited guarantee of £1. All trustees gave their time voluntarily and did not receive any benefits form 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.
3VA TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Committees The Board has appointed a Finance and Operations Committee, comprising Vice Chairman. Treasurer, Accountant, Chief Executive, Director of Finance and Resource5 and Business Insights and Membership manager. This meets quarterly 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 personnel are issues with clear job descriptions and contracts. Salaries are paid on National Joint Council Scales. Promoting the success of the companv Notes 19 to 22 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 resolub'on proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting. The trustees report was approved by the Board of Trustees. Mrj Morton Ichairl Trustee o>/l/a
3VA STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors of 3VA for the purpose of company law, are responsible fcr preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom AoUnting 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 preparin8 these financial statements, the trustees are required to- select suitable accounting policie5 and then apply them consistentlv; observe the methods and principle5 in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed. subject to any material departure5 disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless It 15 inappropriate to presume that the charitable company will continue in operation. 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 detettion of fraud and other irregularities.
3VA INDEPENDENT AUDITOR'S REPORT TO THE TRusfEES OF 3VA Opinion We have audited the financial statements of 3VA (the 'charitable company'l for the year ended 31 March 2024 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 Financlal Reporting Standard applicoble in the UK ond Republic of Irelond Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements= give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practi,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on AuditinE IUKI IISAS IUKII and applicable law. Our responsibilities under those standaids are further described in the Auditor's respon5ibilitiesfor 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 &hical 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 We have nothing to report in respect of the following matters in relation to which the ISAS IUKI r8]uire us to report to you where.. the trustees use of the going concern basis of accounting in the preparation of the fi'nancial statements is not appropriate; or the trustees have not disclosed in the financial statements any identified material uncertainties that mav cast signih.cant doubt about the charitable company'5 ability to continue to adopt the going concern basis of accountr.ng for a period of at least twelve months from the date when the fi'nancial statements are authorised for issue. Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the fi'nancial 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 h'nancial 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 identr.fy such material inconsistencies or apparent material misstatement5, 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 {COlNuED) 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 matter5 in relation to which the Charities IAccounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees report; or sufficient accounting records have not been kept,. or the financial statements are not in agreement with the accounting records: or we have not received all the information and explanations we require for our audit. Responslbilities of trustee5 As explained more fully in the statement of trustees responsibilities, the trustees, who are also the dirertors 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 goin8 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. Audltor's responslbllities 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 a55urance is a high level of assurance but is not a guarantee that an audit con(bcted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements C3n arise from fraud or error and are considered material if, individually or in the aggregate. they could re&onably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. https.'/lwww.frc.org.uk/Our-Work/AuditlAudit-and-assurancelStandards-and- guidance/Standard5-and-guidance-for-auditorslAuditors-respon5ibilities-for-audit/Description-of-auditors- responsibilities-for-audit.aspx. This description forms part of our auditor's report.
3VA INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF 3VA 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 Reportsl Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trLJStees 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. Tc& David Martin FCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditor Office: Lewes TC Group is eligible for appointment a5 auditor of the charitable company by virtue of its eligibilty for appointment as auditor of a company under of sectr.on 1212 of the Companies Act 2006 10-
3VA STATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOU FOR THE YEAR ENDED 31 MARCH 2024 Current financlal year Unrestrirted Unrestricted funds funds general Designated 2024 2024 Restricted funds Total Total 2024 2024 2023 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 4,434 892,086 1,883 10.280 202,620 3,818 7,002 442.551 645,171 3,818 7,002 Total income 213,440 442,551 655,991 908,683 Expendlture on: Charitable activities Other expenditure 270.408 3.733 515,378 785,786 3,733 806.055 4.861 12 Total expenditure 274,141 515,378 789.519 810,916 Net income/(expenditure} 160,7011 {72,8271 1133,5281 97.767 Transfers between funds 125,872 5,153 1131.0251 Net movement in funds 65,171 5,153 1203.8521 1133,528} 97,767 Reconcillation of funds: Fund balances at l April 2023 137,142 98,087 443.160 678,389 580,622 Fund balances at 31 March 2024 202,313 103,240 239,308 544.861 678,389 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 11
3VA STATEMENT OF FINANCIAL AcfiviTIES (CONTINUEDI INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Prior financial year unStrICted Unrestricted funds funds general Designated as restated Restricted funds Total 2023 2023 2023 2023 Notes Income and endowments from: Donatr"ons and legacies Charitsble activities Investments Other income 4,434 702,015 4,434 892,086 1,883 10,280 190,071 1,883 9,935 345 Total income 201,889 706.794 908,683 Expenditure on: Charitable activities Other expenditure 225,651 4,861 580,404 806,055 4,861 12 Total expenditure 230,512 580,404 810.916 Net income/(expenditure) 128,6231 126,390 97,767 Transfers between funds 21.719 117,7191 14,0001 Net movement in funds 16,9041 117,7191 122,390 97,767 Reconciliation of fund5: Fund balances at l April 2022 144,046 115,806 320,770 580,622 Fund balances at 31 March 2023 137,142 98,087 443,160 678,389 12
3VA BALANCE SHE ASAT31 MARCH 2024 2024 2023 as restated Note5 Fixed assets Tangible assets 14 7.017 9,911 Current assets Debtors Cash at bank and in hand 15 261,744 526,679 26,461 819,103 788.423 845,564 Creditors: amounts falling due withln one year 16 1248,0761 1171,7281 Net current a55ets 540,347 673,836 Total assets less current Ilabilities 547,364 683,747 Provislons for liabilitfes 12.5031 {5,3581 Net assets 544,861 678.389 Income funds Restricted funds Unrestricted fund5 - designated Gener31 unrestricted funds 20 239,308 103,240 202,313 443,160 98.087 137,142 19 544,861 678.389 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 2024, although an audit has been carried out under section 144 of the Charities Att 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Att 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, forthe year in question in accordance with section 476. These financial Statements have been prepared in accordance with the provision5 applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on ......................... Mr J Morton Ichairl Trustee Company Registrdtion No. 04637252 13-
3VA STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash (absorbed byl/generated from operations 24 1294,8131 14,896 Investing activities Purchase of tangible fi'xed assets Proceeds from disposal of investments Investment income received 11,4291 18,5361 50,000 1,883 3,818 Net cash generated from investing activities 2,389 43,347 Net cash used in financing act7vities Net {decrease)/increase in cash and cash equivalents 1292,4241 58,243 Cash and cash equivalents at beginning of year 819,103 760,860 Cash and cash equivalents at end of year 526.679 819,103 14-
3VA NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charlty 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 IFRS 1021" (effective l January 20191. 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 ststements have been prepared under the historical cost convention. The principal affjounting 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 SFecific purposes. The purposes and uses of the designated funds are set out in the note5 to the financial statements. Restricted funds are subject to specific condition5 by donors or grantors as to how they may be used. The purposes and uses of the restrirted 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 ccnditions 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 deed5 of covenant is recognised at the time of the donation. 15-
3VA NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continuedl Legacies are recognised on receipt or otherwise if the charitable company h3s been notified of an i mpending distribution, the amount is known. and receipt is expected. If the amount is not known, the legacy s treated as a contingent asset. Donated professional services and donated facilib.es 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 economr benefi't from the use by the charity of the item is probable and that economic benefi't can be measured reliably. In accordance with the Charities SORP IFRS 1021, 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 recognGed 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 unconditr.onal entitlement to the income and its recognitr.on is deferred and incl(Jded in creditOLE a5 deferred income until the performance-related conditt.ons 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 c05t categories. Where cost5 are attributable to more than one activity, they have been apportt.oned across the cost categories on the basi5 consistent with the use of those resources. 1.6 Tangible fixed assets Tangible lixed assets are initially measured at cost and subsequently measvred at cost or valuation, net of depreciation and any impairment losses. Tangible fixed asset5 are stated at Cost less depreciation. Only assets costing in excess of £l,00) are capitalised. Depreciation is recogni5ed 50 a5 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 fi'nancial activities. 16-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policie5 (Continuedl 1.7 Impalrment of fixed assets At each reporting end date, the charitable company reviews the carrying amounts of its tangible asset5 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 lif anvl. 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 le55. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instrument5, and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its fi'nancial 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 15 an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslcfinanclal assets Basic financial asset5. 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 effettive interest method unle55 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 asset5 cla55ified as receivable within one year are not amortrsed. Basicfinoncial liabilitie5 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 psent 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 5ub5equently carried at amorti5ed cost, using the effective interest rate method. Trade creditor5 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 inits'ally at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition offinonclal Ilablllties Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled. 17-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 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 benefi't5 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 benefi'ts under defined benefi.t plans is determined separately for each plan using the projected unit credit method. and is based on actuarial advice. The change in the net defi'ned benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductr"ons, benefit changes, settlements and curtailments are recognised as incurred. 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. Critical accounting estimates and judgements In the application of the charitable company's accounting policies. the trustees are required to troke judgements. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assLsmptions are based on historical experience and other fartors that are considered to be relevant. Actual results may differ from the estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate5 are recognised in the period in which the estimate is revised where the revision affects cmly that period, or in the period of the revision and future periods where the revision affects both current and future periods. 18-
3VA NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Crltical accounting estimates and judgements (Continued) 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 a55umptions. The assumptions used in determining the net cost lincomel for pensions include the discount rate. Any changes in these assumptions will imp&t the carrying amount of post-employment benefit obligations. Key assumptions for post-employment benefit obligations are disclosed in note 18. Income from donations and legacies Restricted funds 2024 Restricted funds 2023 Donations and gifts 4,434 19-
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3VA NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 3,818 1.883 Other Income Unrestricted Restrlrted funds funds 2024 2024 Total Unrestrlcted Restrlcted funds funds 2023 2023 Total 2024 2023 Other income Advertising income 7,002 7,002 9.535 400 345 9,880 400 7,002 7,002 9,935 345 10,280 21
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Expenditure on charitable activities Grants to institutions Grants to institutions 2024 2023 Oirect costs Staff costs Depreciation and impairment Management fee Rent. utilities, repairs and renewals Printing, postage and stationery Legal, professional and consultancy fees Telephone Marketing, promotion and events Computer costs Travel and subsistence Training Insurance 502,574 4,323 16,570 5,168 4,170 6,218 12,577 7,263 11.367 14.164 666 4,701 10,381 13,603 439,740 3.891 103,046 4,950 2,834 28,341 8,431 4,161 15,481 8,860 3,491 3,781 Subscriptions Other charitable expenditure Administration costs recharged to restricted projects 4,793 17,3371 613,745 624,463 Grant funding of activities (see note 81 140,730 166,487 sha of support and governance costs (see note 9) Governance 31,311 15,105 785,786 806,055 Analysis by fund Unrestricted funds - general Restricted funds 270,408 515,378 225,651 580,404 785.786 806,055 -22-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Grants payable Grants to Grants to Institutions Institutions 2024 2023 Grants to institutions.. Made from Devonshire West Big Local funds Made from East Sussex County Council Made from Lewes District Council Other 26,283 22,097 3,000 89.350 88,332 78,155 140,730 166,487 Support costs allocated to artivlties Grants to institutions Total 2024 2023 Governance 31,311 15.105 2024 2023 Governance cost5 comprise: Audit fees Legal and professional fees Travelling expenses Community AGM expenses Bank charges 8,140 17.824 120 4.673 554 7,022 35 864 5,171 2.013 31,311 15,105 10 Trustees None of the trustees lor any persons connected with them) received any remuneration from the charttable company during the year. 212023 - 11 trustees was reimbursed for meeting expenses totalling £8112023 £571. -23-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Employees The average monthly number of employees during the year was.. 2024 2023 Number Number Employees (full and part timel 17 15 Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 449,922 32,032 20,620 386,843 37,332 15.565 502,574 439,740 There were no employees whose annual remuneration was more than £60,000. Remuneration of key management personnel The remuneration of key management personnel was as follows.. 2024 2023 Aggregate compensation 164,428 65,959 12 Other expenses 2024 2023 Remeasurements- impact of change in assumptions Financing costs 3,528 205 4,703 158 3.733 4,861 13 Taxation The charitv 15 exempt from taxation on its activities because all its income 15 applied for charitable purposes. -24-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 14 Tangible fixed assets Computers Cost At l April 2023 Additions Disposals 46,686 1.429 130,8881 At 31 March 2024 17,227 Depreciation and impairment At l April 2023 Depreciation char8ed in the year Eliminated in respect of disposals 36,775 4,323 130,8881 At 31 March 2024 10,210 Carrying amount At 31 March 2024 7,017 At 31 March 2023 9,911 IS Debtors 2024 2023 Amounts falling due withln one year: Trade debtors Other debtor5 - Staff loan Prepayments and accrued income 261,327 26,235 100 126 417 261,744 26.461 16 Credltors: amount5 fallin8 due within one year 2024 2023 Notes Other taxation and social security Grant5 Trade creditors Other creditors Accruals and deferred income 11,512 191,340 8,033 28,401 8,790 12,185 115,792 11,714 14,869 17,168 17 248,076 171,728 -25-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR EAIDED 31 MARCH 2024 17 Grants 2024 2023 Deferred income is included within.. Current liabilitres 191,340 115,792 Movements in the ye3r'. Deferred income at l April 2023 Released from previous periods Resources deferred in the year 115,792 {115,7921 191.340 167.589 162,0071 10,210 Deferred income at 31 March 2024 191.340 115,792 Deferred income relates to grants received ahead of the projects they are funding. 26-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Retirement benefit schemes Defined benefit schemes Scheme: The Pensions Trust- The Growth Plan The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company 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 intoforce 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 scheme5 in the UK. The scheme is classified as a 'last-man standing arrangement,. Therefore the company is potential liable for other parkncipating 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 shoNed assets of £800.3m, liabilities of £831.9m and a defbcit of £31.6m. To eliminate this funding shortFall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows.. Deficlt contrlbutlons From l April 2022 to 31 January 2025.. £3,312,000 per annum (payable monthly) Unless a conce55i0n 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. Thi5 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 corrtributions From l April 2019 to 31 January 2025: increasing by 3% each on 1st April) £11,243,000 per annum Ipayable monthly and The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series l and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The presentvalue is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. -27-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Retirement benefit schemes (Continued) Key Gssumpt70ns 2024 2023 Discount rate 5.31 5.52 The discount rates shown above are the equivalent single discount rates which, when used to disCot the future recovery plan contributions due, WOLtld give the same results as using a full AA corporate bornl yield curve to discount the same recovery plan contributions. Amounts recognised in the statement of fi'nancial activities- 2024 2023 Net interest on defined benefit liability 205 158 Amounts taken to other comprehensive income.. 2024 2023 Actuarial changes related to obligation5 11431 The amounts included in the balance sheet arising from the charitable company's obligations in respect of defined benefit plans are as follows.. 2024 2023 Present value of defined benefi't obligations 2,503 5,358 Deficit in scheme 2,503 5,358 28-
3VA NOTE5 TO THE FINANCIAL STATEMENTS ICQNTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Retirement benefit schemes {Continued) Movements in the present value of defined benefit obligations: 20Z4 Liabilities at l April 2023 Deficit contribution paid Actuarial gains and losses Interest cost 5,358 13,0621 205 At 31 March 2024 2,503 The defined benefit obligations arise from plans funded as follows.. 2024 Wholly unfunded obligations Wholly or partly funded obligations 2,503 2,503 -29-
3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Unrestricted funds - Designated These are unrestricted funds which are material to the charitable company's activities. At l April 2023 Transfers At 31 March 2024 Legacy reserve Redundancy reserve 80,915 17,172 80,915 22,325 5.153 98,087 5,153 103,240 Previous year: At l April 2022 Transfers At 31 March 2023 Legacy reserve Redundancy reserve 80,915 34,891 80,915 17,172 117,7191 115,806 117,7191 98,087 The legacy and redundancy reserve funds are 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. -30-
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3VA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 21 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. At l April 2023 Incoming resources Resources expended Transfers Gains and At 31 March losses 2024 General funds 137,142 213.440 1274,1411 125,872 202,313 137,142 213,440 1274,1411 125,872 202,313 Previous year: At l April 2022 Incomlng resources Resources expended Transfers Gains and At 31 March losses 2023 General funds 144,046 201.889 1230.5121 21,719 137,142 144,046 201,889 230,512 21,719 137,142 22 Analysis of net assets between funds Unrestrlcted Unrestrlcted funds funds general Designated 2024 2024 Restrirted funds Total 2024 2024 At 31 March 2024: Tangible a55ets Current assetsllliabilitiesl Provisions and pensions 7,017 197.799 12,5031 7,017 540,347 {2,5031 103,240 239.308 202.313 103,240 239,308 S44.861 35-
3VA NOTESTO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR EIVDED 31 MARCH 2024 22 Analysis of net assets between funds (Continued} Unrestricted Unrestricted funds funds Designated 2023 Restricted Total funds general 2023 2023 2023 At 31 March 2023: Tangible assets Current assets/lliabilitiesl Provisions and pensions 9.911 132,589 15,3581 9,911 673,836 15,3581 98,087 443.160 137,142 98,087 443.160 678,389 23 Related party transactions There were no disclosable related party transactions during the year. 24 Cash generated from operations 2024 2023 IDeficitl/surpus for the year 1133,5281 97,767 Adjustments for.. Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Difference between pension charge and cash contributr.ons 13,8181 4,323 12,8551 11,8831 3,891 13,0471 Movements in working capital.. Ilncreasel in debtors Increaselldecreasel in creditors Increaselldecreasel in deferred income 1235,2831 800 112,8101 117,2251 151,7971 75,548 Cash (absorbed byl/generated from operations 1294,8131 14,896 25 Analysis of changes in net funds The charitable company had no material debt during the year. -36-
3VA NOTES TO THE FINANCIAL STATEMENT5 (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 26 Prior period adjustment Reclassification of restricted funds Amounts have been identified as restritted which were included as unrestricted in the prior period therefore income and expenditure each totalling £64k have been reclassifed to reflect this restriction. This has had no impact on the closing fund position as fully expended during the prior year. 37-