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2023-03-31-accounts

SKILLS FOR COMMUNITIES LIMITED (a company limited by guarantee)

FINANCIAL STATEMENTS

31 MARCH 2023

CONTENTS Page
Company information 1
Report of the trustees 2-6
Independent report of the auditors 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10-14

Company registration number: 5213346 Registered charity number: 1108566

1

SKILLS FOR COMMUNITIES LIMITED

COMPANY INFORMATION FOR THE YEAR ENDED 31 MARCH 2023

SERVING DIRECTORS/TRUSTEES:

Mark Bevan Valerie Gascoigne Alphonse Ilunga

REGISTERED OFFICE:

271 Anlaby Road Hull East Yorkshire HU3 2SE

COMPANY NUMBER: 5213346

SOLICITORS:

Andrew Kingston & Co Solicitors Ground Floor, Lowgate House Lowgate Hull HU1 1EL

ACCOUNTANTS/AUDITORS:

Small Business Accounting & Payroll Services (SBAPS) C/O Rafah Ltd, Suite 4, Third Floor, Roxby House 20-22 Station Road Sidcup, Kent DA15 7EJ

PRINCIPAL BANKERS:

Unity Trust Bank plc Nine Brindleyplace Birmingham B1 2HB

2

SKILLS FOR COMMUNITIES LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their report and the audited financial statement of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities as updated by Bulletin 1 in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

The Directors of the charitable company (the charity) are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

OBJECTIVES AND ACTIVITIES

The principal activity of the company in the year under review was that of a registered charity to support the vision and objectives listed.

Its objectives are, for the public benefit, to strive for the relief of illiteracy, poverty, sickness, and distress particularly as a result of inequality, lack of resources and opportunities, HIV/AIDS, disability, war, homelessness and forced migration. The governing documents define those charitable means in furtherance of those aims. There have been no material changes to these objectives since the last Annual Report.

Our Mission:

Our Vision

Skills For Communities is to become a place where people of all cultures and backgrounds can learn and work together and the provider of choice for:

How We Hope to Achieve the above:

The above will be achieved by the provision of various support services including recreational/sporting, educational, social, cultural, housing and youth facilities that enable the disadvantaged and under privileged individuals, families, children, and young people to maximise their educational, employment and career potentials in the midst of social exclusion.

Strategy for Year Ending 31 March 2023

To ensure our long-term sustainability through service and income diversification and provision of specialist support services.

Public benefits and eligibility

The Charity Commission’s general guidance on public benefit has been used for reference when compiling this report and in planning future developments and activities.

3

SKILLS FOR COMMUNITIES LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 (continued)

Common eligibility criteria are:

Review of activities

The Statement of Financial Activities for the account period is detailed on page 12 of the accounts. A summary of the financial results and the work of Skills for Communities is set out below.

Income generation

Incoming resources from charitable activities included payment through provision of affordable housing, crisis payments during Covid-19 pandemic for the provision of limited services, continue to fulfil charitable objectives. Total generated income decreased mostly due to the pandemic and impact on funding and service contracts. We continued our cost cutting exercise and streamlining of services (Focus on key services – functional skills, employability, ESOL and IA and provision of social housing). Nonetheless, expenditure on salaries and volunteering costs for delivery staff/volunteers remained in proportion.

The Trustees continue to monitor financial performance against budget and the going concern as the primary key performance indicator.

Current services/activities delivering public benefit include

Accredited and non-accredited Training including:

Information, Advice and Guidance on the following issues:

Business & Enterprise Support services:

Affordable housing:

4

SKILLS FOR COMMUNITIES LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 (continued)

ACHIEVEMENTS AND PERFORMANCE

Skills For Communities’ objects are set out in its Memorandum and Articles and the Trustees’ current interpretation of these are set out in parts 2 and 3 of this report, while the report as a whole covers the organisation’s activities and achievements, its strength is based on active support for its operational values within and outside it.

During year 2022-23 and against all odds, the charity has continued to operate without core services as it focused on diversification of income stream through the provision of social/affordable housing targeting those economically and socially excluded, BAME and young unemployed in East Yorkshire and Humber (England, UK)

It continued to provide limited access to free Internet, job search and CV clinics through its UK online centre status. It continued to identify needs in the community through focus groups and feedback from delivery staff in order to create new services and improve existing ones with a view to meeting its objects and vision and achieving public benefits.

Future Development

FINANCIAL REVIEW

The results for the year and financial position of the company are shown in the financial statements.

Funding

The majority of Skills For Communities income came from commercial contracts brought forward from previous year, grant and loan from the Key Fund towards in order to complete a renovation/conversation of available space into social/affordable accommodation.

Reserves and Reserves Policy

During 2022/2023 Skills For Communities had a challenging year in relation to its reserves policy as a result of the scarcity of funds and Covid-19 pandemic.

Under normal circumstances, Skills for Communities is committed to using the reserves in pursuit of its charitable objects. It is also committed, however, to maintaining a level of reserves that is prudent to meet ongoing liabilities, sufficient to ensure all service delivery commitments can be met and to project the longterm future of its operations. Skills For Communities seeks to balance these priorities by holding a level of reserves sufficient to:

Skills For Communities distinguishes unrestricted funds freely available from restricted funds. We do not include fixed assets which could only be realised by disposal and refinance, or restricted funds but designated funds.

5

SKILLS FOR COMMUNITIES LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT Status

Skills For Communities is a charitable company registered in England and Wales, constituted in 2003 and working in the UK and overseas to create opportunities, advance education, empower, improve standards, and promote the independence of the socially excluded, particularly people from the BME Community, immigrants, refugees and asylum seekers. The Company is governed by its Memorandum and Articles of Association

Staff

The Chief Executive is assisted an Admin and Finance officers, delivery team members and volunteers.

Recruitment, Appointment, Induction and Training of Trustees

The company has established procedures for recruiting and supporting trustees and trustees’ skills appraisal is carried out yearly. Where there are areas necessary for which additional trustees would be helpful, an open recruitment process is scheduled utilizing wide and inclusive search methods such as advertising and networking with other charities.

Recommendations could also be made of suitable people by board members and the chief executive. An induction and ongoing training programme allow the trustees to know more about Skills for Communities in a structured way so they are able, from the start to understand the charity’s objectives and subscribe to them with conviction. It also ensures that new trustees are aware of their responsibilities, policies and procedures including Child Protection, Health & Safety, and Equality of Opportunities. Training needs are identified which the Company takes measures to ensure that these are met.

Governance and Decision Making

The Board meets four times each year to discuss and review strategy, planning, development, financial and administrative matters. Business risks are also measured to ensure effective mitigation measures are in place.

The Board of Trustees set policies and strategy; however, day-to-day management of the organisation is delegated to the Chief Executive in accordance with the delegation of authority policy.

Internal controls and risk management

Systems and procedures have been established to identify, monitor, and manage the risks that Skills for Communities may face. Trustees and management monitor performance, review and update risks and mitigating actions through an internal audit committee.

The most significant risks relate to cuts in the level of grant available and managing the impact that this has on delivering key strategic objectives. scarcity of funding, Covid-19 pandemic, and the decision to streamline services has resulted in the loss of several staff members.

We continue to review, assess, and respond to challenges from the external environment and to maximise service development opportunities.

The organisation’s operations expose it to a variety of financial risks.

6

SKILLS FOR COMMUNITIES LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 (continued)

Risk management framework

The key procedures which the organisation has established with a view to providing effective internal control are as follows:

Trustees’ Responsibilities Statement

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the situation of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent Examiners

Each of the persons who is a director at the date of approval of this report confirms that:

ON BEHALF OF THE BOARD

Approved by the board and signed on its behalf by

Valerie Gascoigne Director/Trustee Dated: 24/11/2023

7

SKILLS FOR COMMUNITIES LIMITED

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF SKILLS FOR COMMUNITIES LIMITED

YEAR ENDED 31 MARCH 2023

Independent Examiner’s Report to the members of Skills for Communities Ltd

I report on the accounts of the Centre for the year ended on 31st March 2023, which comprises the Statement of Financial Activities, the Balance Sheet and the related notes.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The charity’s trustees are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

BASIS OF INDEPENDENT EXAMINER’S REPORT

My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

INDEPENDENT EXAMINER’S REPORT

In connection with my examination, no matter has come to my attention:

  1. Which gives me reasonable cause to believe that in any material respect the requirements:

  2. To keep accounting records in accordance with section 130 of the 2011 Act; and

  3. To prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or

  4. To which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Hilda Seleji

Independent Examiner Small Business Accounting & Payroll Services Dated: 24/11/2023

8

SKILLS FOR COMMUNITIES LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2023

Notes
Income from Investments
Bank interest receivable
Income from Charitable Activities:
Contracts and Other Income
2		 Unrestricted
Restricted
Total 2023
Total 2022
Funds
Funds
Funds
Funds
£
£
£
£
64
64
0
38,586
-
38,586
32,935
Other Incoming Resources
2		 -
-
12,779
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Expenditures on Raising Funds
Management and Administration Costs
2
Expenditures on Charitable Activities
2
Net Gains/Losses on investments
TOTAL RESOURCES EXPENDED
Net income (expenditure) before fund transfe
2
Transfer between Funds (revaluation surplus)
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward		 38,649
-
38,649
45,714
580
580
480
47,090
47,090
58,510
47,670
-
47,670
58,990
(9,021)
-
(9,021)
(13,276)
173,826
631
174,457
128,130
164,805
631
165,436
174,457

Continuing operations

None of the charity’s activities were acquired or discontinued during the current year.

Total recognised gains and losses

The charity has no recognised gains or losses other than the surplus/(deficit) for the current and previous periods.

The notes form part of these financial statements

9

SKILLS FOR COMMUNITIES LIMITED

BALANCE SHEET

YEAR ENDED 31 MARCH 2023

Notes
Fixed Assets
Tangible Assets
7
TOTAL FIXED ASSETS
Current Assets
Cash at Bank and in hand
TOTAL CURRENT ASSETS
Creditors: Amounts falling due within One Year
Other Creditors
8
Net Current Assets / (Liabilities)		 Unrestricted
Restricted
Total 2023
Total 2022
Funds
Funds
Funds
Funds
£
£
£
£
315,179
315,179
323,659		 Unrestricted
Restricted
Total 2023
Total 2022
Funds
Funds
Funds
Funds
£
£
£
£
315,179
315,179
323,659
315,179
-
315,179
323,659
5,096
5,096
4,296
-
5,096
-
5,096
4,296
38,857
38,857
28,714
(33,762)
(33,762)
(24,418)
Total Assets less Current Liabilities
(33,762)
-
(33,762)
(24,418)
Creditors: Amount falling due after more than One Year
Loans
9
115,980
115,980
124,784
Net Assets
165,437
-
165,437
174,457
THE FUNDS OF THE CHARITY
Unrestricted funds
164,806
164,806
173,826
Restricted
631
631
631
TOTAL CHARITY FUNDS
164,806
631
165,437
174,457
(33,762)
-
(33,762)
(24,418)

Loans
9
Net Assets
THE FUNDS OF THE CHARITY
Unrestricted funds
Restricted
TOTAL CHARITY FUNDS
165,437
-
165,437
174,457
164,806
164,806
173,826
631
631
631
164,806
631
165,437
174,457

These financial statements were approved by the board of trustees and authorised for issue on 24 November 2023, and are signed on behalf of the board by:

Mark Bevan Director/Trustee Dated: 24/11/2023

The notes form part of these financial statements

10

SKILLS FOR COMMUNITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2023

1. Summary of significant accounting policies

(a) General information and basis of preparation

Skills for Communities Ltd is a registered charity in the United Kingdom. The nature of the charity’s operations are to create opportunities, advance education, empower, improve standards and promote the independence of the socially excluded, particularly people from the BME Community, immigrants, refugees and asylum seekers and is detailed further in the trustees report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1 (who are also directors for the purpose of company law).

No reconciliation of movements in shareholders’ funds has been prepared as the company is limited by guarantee and therefore has no shareholders.

Restricted funds

Restricted funds are earmarked by the providers or trustees for a particular purpose.

Unrestricted funds

Unrestricted funds are donations and other income received or generated for the objectives of the charity without further specified purpose and are available as general funds to the extent that they have not been designated by the trustees for other purposes.

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. Revenue grants and donations are credited to incoming resources on the earlier of the date when received or when they are receivable.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources. Premises overheads have been allocated on a floor area basis and other overheads have been allocated on the basis of the head count. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.

11

SKILLS FOR COMMUNITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

31 MARCH 2023

The basis of allocation of costs is shown in note 2 of the financial statements.

(e) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the assets capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

(f) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated, and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

(g) Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes.

(h) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material

uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. With a viable income diversification plan in place and reduced operations; the budgeted income and expenditure along with valuable fixed assets is sufficient with the planned level of reserves for the charity to be able to continue as a going concern.

12

SKILLS FOR COMMUNITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

31 MARCH 2023

2 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

**2 ** Building Better Opportunities (BBO)
Grant
Hull CC
Key Fund
Other
Total Incoming Resources
Total Resources Expended
Charitable activities
Salaries		 Building Better Opportunities (BBO)
Grant
Hull CC
Key Fund
Other
Total Incoming Resources
Total Resources Expended
Charitable activities
Salaries		 Unrestricted
Restricted
Total 2023
Total 2022
Funds
Funds
Funds
Funds
£
£
£
£
-
-
12,779
-
-
-
-
-
38,649
38,649
32,935
38,649
-
38,649
45,714
Unrestricted
Restricted
Total 2023
Total 2022
Funds
Funds
Funds
Funds
£
£
£
£
-
-
14,160
Light, Power, Heating - Utilities & Supplies
Social Security & Staff Training
Travel & Subsistence
Volunteer and charity Expenses
Professional Fees and Fund Raising
Repairs & Maintenance
Postage, Freight & Courier
Telephone & Internet
Office stationeries & Photocopies
IT Software and Consumables
Premises cost & Cleaning
Insurance
Rent, rates and Water
Consulting
Depreciation Expense
Bank Fees
Interest Paid
Entertainment-100% business
Employers National Insurance
Pensions costs
General Expenses
Redundancy costs		 11,272
11,272
4,495
-
-
331
3,427
3,427
811
131
131
-
4,145
4,145
8,616
3,960
3,960
4,416
27
27
121
850
850
1,166
5
5
526
227
227
673
185
185
473
452
452
744
2,260
2,260
1,556
-
-
722
9,159
9,159
8,465
174
174
84
800
800
290
533
533
562
-
-
1,268
-
-
459
9,481
9,481
8,573
-
-
-
TOTAL CHARITABLE ACTIVITIES
Governance costs
Audit / Independent Examination Fee
TOTAL GOVERNANCE COSTS		 47,090
-
47,090
58,510
580
580
480
580
-
580
480
TOTAL 47,670
-
47,670
58,990

13

SKILLS FOR COMMUNITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

31 MARCH 2023

3 TRUSTEE/ DIRECTORS REMUNERATION

Trustees received no remuneration during the year (2022 = £ nil).

4 Number of Staff Total 2023 Total 2022 Administrative and Support 0 1

No employees received aggregate remuneration amounting more than £60,000 in the year (2022: None)

5 STAFF COSTS Total 2023 Total 2022 £ £ Wages and salaries - 14,160 Social Security Costs 1,599 15,759

6 Exceptional Items and Post Balance Sheet Update:

The Charity has a contingent liability of £17,000 as redundancy pay of all staffs and decided to temporarily suspend most operations till gets a surety of regular source of Fund either through charity organisations or renting the property.

7 TANGIBLE FIXED ASSETS

7 TANGIBLE FIXED ASSETS
Cost
At Apr 2022
Additions
Less: Disposals & Donations
Depreciation
At Apr 2022
Charges for the year
As at March 2023
Net Book Value
As at March 2023
Net Book Value
At Apr 2022
8 Creditors: Amounts falling due within one year		 Freehold
Fixtures
Fittings &
Property
Equipment
Total
£
£
£
342,909
47,168
390,077
679
679
-
342,909
47,847
390,756
22,091
44,328
66,419
7,536
1,622
9,158
29,627
45,950
75,577
313,282
1,897
315,179
320,818
2,840
323,658
Total 2023
Total 2022
£
£
Other creditors 38,857
28,714
38,857
28,714
9 Creditors: amounts falling due after more than one ye
Total 2023
Total 2022
£
£
Bank loan Instalment
31,129
32,133
Unsecured Loan
84,851
92,651
115,980
124,784