heart o! england COMMUNITYFOUNDATION THE HEARTOF ENGLAND COMMUNITY FOU.NDATION (A company Limited by guarantee) REGISTERED CHARITY NO. 1117345 COMPANY REGISTERED NO. 5999452 TRUSTEES, REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024
Table of Contents TRUSTEESANDSTAFF.............................. PROFESSIONALADVISORS................................................................................................... TRUSTEES REPORT (includlng Dlrectors, Report)........................ AUDITOR'SREPORT............................................................ .15 STATEMENT OF FINANCIAL ACTIVITIES (FOR THE YEAR END 31 MARCH 2024)............... .... . .19 STATEMENT OF FINANCIAL ACTIVITIES (FOR THE YEAR END 31 MARCH 2023),............. ........ ..20 BALANCESHEET.... .21 STATEMENTOFCASH FLOW................................................................................................22 NOTESFORMING PARTOFTHE FINANCIALSTATEMENTS....................................................23
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company Ilmlted by guarantee) TRUSTEES AND STAFF YEAR ENDED31 MARCH 2024 Reglstered Office: Stellantis Pinley House, Sunbeam Way Coventry CV3 1 ND Corporate Patron: Patron: Stellantis Mrs Sally Carrick Presidents: Tim Cox, the Lord Lieutenant of Warwickshire Sir John Crabtree OBE, the Lord Lieutenant of thewest Midlands Trust888: Mr Christopherwest Ms Michelle Vincent Mr Paul Belfield Mr Amrik Bhabra MBE Ms Lucie Byron Ms Jude Jennison Mr Daniel Worthing Mrcalum Nlsbet Ms Jasmin Koasha Ms Alethea Fuller Ms Cleo Morris Mr Richard Port MBE Chair Treasurer Resigned 5° October 2023 Senlor Staff: Tina Costello OBE Helen Kendrick Sh8miela Ahmed Jayne Taylor-F8rren Ryan Boyce Charleene Jefferson Chief Executive Officer Senlor Manager Operations Senior Manager Programmes Senior Manager Finance Senior Manager Communications Secretary
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company limlted by guarantee) PROFESSIONAL ADVISORS YEARENDED31 MARCH 2024 Audltors: Dafferns LLP One Eastwood, Harryweston Road Binley Business Park Coventry, West Mldlands CV3 2UB Investment Manager8: James Hambro & Partners LLP 45 Pall M811 London SW1Y 5JG CCLA Rathbones Senator Hous8 Temple Point 85 Queen Victorla Str88t 1 Temple Row London Birmingham EC4V4ET B2 5LG EFG HarrSs Allday 33 Great Charles Street Birmingham B3 3JN M 8nd G Investments PO Box 9039 Chelmsford CM992XG Bankors: CAF Bank 25 Kings Hill Ave Kings Hill West Malllng, Kent ME19 4JQ Santander 88nk Bootle Merseyslde L304GB Sollcltors: Wrlght Hassall LLP Olympus Avenue Leamington Spa Warwickshlre
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) TRusfEES' REPORT (indudlng Directors. Report) YEAR ENDED31 MARCH 2024 The Trustees have pleasure in pr8sentingtheirAnnual Report alongwith thefinancial statements of the charityforthe year ending 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS102) in preparing th8 annual report and financial statements of the charity. The financial statements have been prepared In accordance with the accounting policies set out in Note 1 to the accounts and comply with the Charity's Memorandum and Articles of Association, the Ch8rities Act 2011. and Statement of Recommended Practice applicable to charities preparing thelr accounts in accordance with the Financlal Reporting Standard applicable in the UK and Ireland as amended for accounting perlods commencing on or after 1 January 2019 and the Companies Act 2006. 1. Structur•, Oovernan¢• and Management 1.1 Objects and Activit1•8 The objects of the Communlty Foundation are defined In its Memorandum and Artlcles of Associatlon. The Community Foundation manages a diverse portfolio of grant programmes working with a range of donors to provide charitable and philanthroplc services across the geographical areas of Birmingham, Bl8ckCountry, Coventry, Solihull, and Warwickshlre. The Trustees conflrm that they have referred to the guidance contained in the Charity Commission's general guidance on public beneftt when reviewing the current aims and objectiv88 and in planning future strategies and setting grant msking policies. Our actlvities are determined by ourcharitable objectives: The promotlon of any charitable purposes for the benefit of communities within the County of West Midlands and Warwiekshire, United Kingdom and the advancement of education, the protection of good health andthe relief of poverty and sickness. Any other exclusively charitable purposes, which are. in the opinion of the Trustees, beneficlalto the community in benefit. The Foundation exists to support the local voluntary and community sector across the West Midlands and Warwickshire. We work with a range of donor8 to offer bespoke, tailored philanthropic services. We aim to inspire and encourage local givlng; we are advocates forsmaller organisations who are often underthe radarof nationalfunders but making a huge differencg at the heart of their communities. The Foundation primarily supports notfor profit organisations with grantswhich make an impact at a local level. We endeavour to have a balanced portfolio of grant programmes which enables us to fund a wide cross section of organisations supportingthose most in need.
THE HEARTOFENGLAND COMMUNITYFOUNDATION (A company limlted by guarantee) TRusfEES' REPORT (Ineluding Dlrectors, Report} YEAR ENDED 31 MARCH 2024 The Trustee8 confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance publlshed by the Charities Commission in determiningthe activities undertaken bythe Heart of England Community Foundation and in planning future activities. The benefits of our activities are described In this Annual Report and relate directly to our aims and objectives. 1.2 Board Appolntmènt8 At each AGM, one third of the Trustees must retire, those long88t in off ice retiring first. The Board of Truste8s meet on a quarterly basis. OurAGM was held on 19 October 2023, in which Dan Worthing. Jude Jennlson and Chris West retired from the board by rotation and wgre unanimously re-appointed as Trustees. The nam8s of the Trustees who have served throughoutthe flnancialyear and to the date of this report are shown on page 3. All Trustees have a full induction, are regularly updated on the operational running of the Foundation and have opportunities to play key roles in shapingthe development and future strategy of the Foundation. As part of our 3-5-year strategywhich will be launched in March 2025, we will undertake a full governance review, to include a skills gap analysis and how our current sub committe8s operate. We want a board that reflects the diversity of our region ensuring our board ha8 a range of skills that support the development of the Foundation. 1.3 Board Subcommlttees The Foundation has three main sub-committees: Flnance and Inve8tment Commlttee, responsible for: Budg6ts and overseeing Investment performance Quarterly Investment returns and endowment pertormance Comparlson of Investment Managers Maximisation of Interest rate returns Reviewing investment strategy Annual meetings with all Investment Managers Reviewing asset class investments Considering appropriate avenue for unrestricted core income Reviewing quarterly management accounts Analysingforecast agalnst actual performance Monitoring and reviewfinance resources Management Commlttee. responsible for: Management of governance and operational risks Approval of new and revisions to policies and procedures Maintaining oversight of the risk register
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company Ilmlted by guarantee) TRiISTEES' REPORT Ilncludlng Dlrectors, Report) YEARENDED31 MARCH 2024 Maintaining oversight of the charity's operations Oversight and monitoring of operational projects and programmes Maintaining oversight of operational decision making on HR changes include- disciplinaries, performance management and recruitment Approval of formal HR changes such as staffing re-structures Approval of pay 8wards as the charity's remuneration committee Approval of recommendations for new tenderslcontracts and grant programmes in Ilne with the del8gation of authority policy Grant Sub-commlttees, responslble for: D8¢lslon maklng on our own Found8tlon funds and non-donor-dlrected funds across all our areas of beneflt Including Strategic overview of grant making to ensure equitable and fair distribution of funds Profiling annual grant budgets Review of impact of grants awarded We have two independent decision-making committees, the Coventry, Solihull and Warwick8hire Panel and the Birmingham and Black Country Panel. Both panels have representation from keystakeholders, communityactivists, and chaired by a Foundation Trustee. The Trustees would like to thank our fanta8tic volunteers who glve theSr valuable time, commltment and knowledge to support our decision maklng. 1.4 Buslness Planning The Foundatlon is now at 8 Plvotal point in terms of the Foundation'8 growth and tr8jectory. We have now delivered our 3-year strategywhich focused on the following key priorities, a brief highlight summary is provided below:
We wlll deliver accessible, inclusive and flexible funding We developed several pllot activities, for ex8mple, tri811ing regional panels for declslon making. With the implementatlon of a new CRM system thi8 year, we are lookingto transform our grant making, making it fit tor purpose for the future, for both the Foundation and the organisations we support. We would like to explore re-introducing the single front door, reflecting on why it wasn't successful on the first implementation and how it could be improved to ensure a smooth customerjourney. We delivered on ourfunding strategy, developing new key relationships and our ambition to award £10 million over 3 years has been achieved.
THE HEARTOF ENGLANDCOMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (ineluding Directors, Report) YEAR ENDED 31 MARCH 2024
Maintain strong relationships with existing donors to ensure we retaln their investment to improve lives in the region. We're so proud to have retained over 99% of our donors over the past 3 years. We've implemented a donor care policy, regularly 'spotlight' our donors and the social value they contribute to our local communities. Our donors are our most valuable assets, so w8 continually celebrate our partnerships and work with them to deliver bespoke programmes that make 8 real difference at a local level. Contlnually seek to attract new donors to incr888e our social investment in the West Midlands region. The Foundatlon has been successful in the transfer of several dormant charities and trusts held in local authorities, which has been Instrumental in growing our long-term Investment8. The transfer of South Birmingham Friends, Institute ass8ts has grown our endowment by over a million in the last year and the 5 residential properties have Strengthened the Foundation's assets forthe future. The Foundation has al80 strengthened its relationships with local authorities, dellvering funds on behalf of Birmlngham City Council, Solihull MBC, Warwickshire County Council and the West Midlands Combined Authority. Strengthen ourexistingfinance, governance and leadership to ensure donortru8t and confidence in the charSty's sustainability and longevity. The Foundation successfully passed QualltyAccreditation 5 and we're now preparingfor Quality Accreditation 6 later in the autumn. We've successfully diversified our board in terms of age, ethnicity, gender, and dlversity of thought resulting in a board that truly reflects the region we serve. We've revlewed our staff handbook; increased staff benefits and 8chleved the Thrlve 8t Work Bronze Award for employee 8UPPOrt. We continuallyworkto ensure the workplace Is happy, productlve and Incluslve. To be an equitable, diverse and Incluslve funder. We commlssioned an evaluation of our grant makingthrough Foreverconsulting in 2021, which highlighted performance against indlces of deprivation, soci81 return on Investment and a cost benefit analysis. It also identified 'cold spots, in terms of geography and communities of interest. We have held workshops, webinars and particularly Invested in areas of deprivation. We have now commlssioned an evaluation ot our grant making from 2021-2024 as the report is valuable tor the Foundation, our current donors and future donors we wantto attract to workwlth us. We have held several workshops over the past 6 months with our Board of Trustees and wider staff team to reflect, learn and establish the successes within our 3-year strategy but also objectives thatweren'tfully achieved. We recognise that a global pandemic had a huge influence on our strategy, shiftinggoal poststo ensure thatduringthis challenging
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company Ilmlted byguarantee) TRUSTEES. REPORT {Inciudlng Directors, Report} YEAR ENDED 31 MARCH 2024 time the Foundation was deliverlng on its mission, to support our communlties across the West Midlands and Warwickshire. The board agreed to pause, reflect and pilot several initiatives in this financial year, supportingthe development of our 3-5-year strategywhich will launch in March 2025. We continue to steadily grow the Foundation's resources and we have successfully recruited to S8veral new positions which supportthe Foundatlon's growth. 1.5 Risk Management The principal identlfled rlsks to which the Foundation are exposed 8re Int8grated into the business plan to ensure they are regularly reviewed. The Foundation also m8int8ins a rlsk regi8ter which is reviewed on 8 half-yearly basis bythe Management Commlttee. We continue to review and amend our rl8k reglster. 1.6 Pay Policyfor Senlor Staff The Trustees considerthe senior managementteam to comprlse the key personnelof the Charity in charge of directlng, running, and operating the Charity on a day-to-day basls. The pay of senior staff is reviewed annually bythe Management Committee and is based on performance and average e8rnings across the sector. 1.7 Fundralslng Regulator Statement of Compllance Heart of England Community Foundation does not contract to 8 thlrd partyto undertake any fundraising on its behalf. The charity does employ 8 Head of Communications who initiates campaigns and supports fundraising activlties. We have received no fundraising complaints during the year. The charity only makes fundr8i8ing approaches to contacts who have given expllclt consent to receive such campalgn documentation under GDPR guldellnes. 2. Achlevement8 and Flnan¢ial Performance for 2023-24 It has been, beyond doubt, an extraordinaryyear for th8 Foundation and its history. We have continued to build relationships with our existing donors, In particular, local authorities andthg range of programmestheyentrust in usto deliveron their behalf. They see the benefit and value of outsourcing grant making to the Foundation which has resulted in securingfurther programmes. We retained all our donors vthich is testamentto the positive relationships we have and the exceptional service we strive to offerto our donors. The 2022 Birmingham Commonwealth Games was a huge success not only for Birmingham butthewider region. This resulted in a significant underspend of £70 million on budget which the Treasury agreed could remain in the region to support the legacy of the games.
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES. REPORT (includlng Dlrectors, Report) YEAR ENDED 31 MARCH 2024 The Foundation submitted a tender to the West Midlands Combined Authorityto deliver a £9 million fund for community organisations across the region and we were awarded the tender. Weworked in partnership with United by 2022, the off icial legacy charityfrom the games to jointly promote the Inclusive Communities Fund (ICF) across the West Midlands Region. The ICFfund was hugely popular offeringfour different strands: Large Grants up to £300,000 Medium Grants up to £75,000 Small Grants up to £15,000 Smallworks Capital Programme up to 2100.000 The Foundation received an unprecedented number of appLications to the value of over £76 mlllion. We convened communlty Panels to support our decision making, these panels reflectad the dlversity of our region. Ensurlng representation in terms of geography, diverse communltl88, community knowledge and diversity of thought. The panels worked incredibly h8rd, often having difficult decisions with limited budgets. The Foundation would like to thankthese volunteers for thelr exceptionaL commitment to making the ICF programme a resounding success. The West Midlands Combined Authority secured a further £3 million for the programme which enabled usto support more brilliant community initiatives, funding 388 projectsto the value of £11.8 mllllon. Agaln, working in partnershlp with the West Mldlands Combined Authority, we were successful in tenderingto supportthe deliveryofthe Community Environment Fund. This £1.2 million is a further programme from the successful delivery of Birmingham 2022 Commonwealth Games. The Foundation receives applications to undertake due diligence, butthe WMCA lead on decision making, the Foundation isthen responsible for monitoringand evaluation of each project. Thesefantastlc projects are breathlng life into communities through developing community gardens, green spaces and encouraging communities to access local green space. We are grateful to all donors who choose to work with us and see the benefits of our posltive partnerships. The Foundation has securedfurther programmes. deLivering Fairer Futures Fund across both Birmingham and Solihull. These funds are focused on specific areas where inequallties exist in terms of health and opportunities. The Foundation continues to strive to raise its profile, attending relevant events and conferences to continually build our relationships with the voluntary and community Sector. The Found8tion h05ted its own International Women's Day in March 2024, which was a huge success, a follow-on event took place in August 2024 where the Foundation 10
THE HEARTOF ENGLAND COMMUNrrY FOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (includlng Dlrectors, Report) YEAR ENDED 31 MARCH 2024 launched its own Women and Girls Fund, responding to the rising issues facing women and girls across our region. Our focus for 2024-25 is growing our long-term investments and securing more regional corporates who see the beneflts of giving locally to grassroots organisations often operating right on their doorsteps. This has been 8 successful year tor the Foundation but without the support of all our donor8 we Could not make the impact we strive to achieve in changing lives locally. Key P•rformance Mo88ure8 The Foundation has sever81 slgnlflcant projects In 2024-25, Includlng a new CRM system which we hope will supportthe transformation of our grant making both internally and for our communltles who applyforfunds. We have developed a fund development strategy alongslde a 1-ye8r operatlonal plan In which we will pilot several new initiatives leading to the development and implementation of our 3-5-year 8trate8y in 2025. Human R080urc09 The recrultment market 8eems to have shlfted this year 8nd we've been fortunate to recruit several new positions to support the delivery of the Inclusive Communities Fund and a project manager to leed on the Implementatlon of our new Salesforce system. We recruited a newS8nior Manag8rStrategyand Developmentwho 18 le8dingon learning, Impact, evaluation and development ot our new strategy. Incomlng Re8ourca$ The Foundation's total incomlng resources for 2023-24were £15,620,667 andthe overall funds of the foundatlon Increased by £3,066,799 to £26,649,204. Endowod Donatlon$ We were fortunate to see sorne investment growth in 23-24 but our focus for 24-25 is to grow our long-term investments to ensure funds 8re in perpetuity for generations to come. Investments The Foundation's investment policy, updated and reviewed every three years, is for a balanced portfolio which produces reasonable income for grant making whilst growing the value of the assets to protect them against the effects of inflation or other defining factors in the longer term. This Is considered a relatively low risk approach.
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company Llmited byguarantee) TRUSTEES, REPORT (Ineiuding Dlrectors, Raport) YEAR ENDED 31 MARCH 2024 Our stock market Investments are managed by James Hambro, CCLA and Rathbones. Performance is bench marked against the FTSE APCIMS {Association of Private Client Investment Managers) Index. Investment performance over the 12-month period ending 31. March 2024 stabilised following a period of market volatility linked to the COVID-19 pandemic and other economic factors. The net gain on investments was £1,673,704 in 2023-24. Grants The total grant income for 2023-24 was £13,604,371 which was an increase of £10,895,406 from the previous fiscalyear. Our total grant expenditure w8s £13,111,457, a full report on the foundation's discretionary grant making will be available on our website. Re8trlct•d Core Incom• Restricted core income In 2023-24 was £70,050 compared to £66,714 in the prevlous fiscal year. Unrestrlcted Core Incoma Our unrestricted core income this year is derived from several 80urces, our investments, general donations, rented properties and grant maklng contract fees. The delivery of programmes on behalf of donors such as Wesleyan Assurance, Coventry Building Soclety, West Midlands Comblned Authority, Solihull MBC and Blrmlngham City Council support our operating costs. The balance of our unrestrlcted income Is, at present, used to meet core expenditure which is not covered by restricted income. Unrestricted incomg for 2023-24 was £1,198,912 compared with £495,789 in the previous fiscal year. This increase is largely due to the significant local authority contracts that were dellvered during the financial year. We are eternally grateful to all the donors who choose to workwith us, A partlcular thank you goes to 29th May 1961 Charitable Trust fortheir annual unrestricted don8tion. Expenditure The Found8tion made an operatinggain on unrestrlcted generalfunds of £325,825which compares with a budgeted gain for the year of £52,961 and an operating gain in the previous year of £139.237. Designated Funds Our designated funds as of 31°, March 2024 totallod £1,185,894. These include the current value of £764.575 from the Youell Legacy plus funds of £421,319 for the delivery of grant programmes in 2024-25, which are not regarded as free reserves bythe Trustees. 12
THE HEART OF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (in¢ludlng Dlraetor$' Report) YEAR ENDED 31 MARCH 2024 3. Reserves Policy A considerable part of the Foundation's income is derived from unrestricted core donations of which there is no c8rtainty and managemont fees for the delivery of flow through grant programmes which are usually time bound. The Trustees believe it to be necessary to retain suff icient fre8 reseNes to maintain the Foundation operationally between the times such schemes end, and new programmes come on board. New funding streams are often subject to competitive tendering and cannot be relied upon with certainty. Free reserves mu8t also be retained to cover statutory obligations to our staff should that prove necessary. It is therefore the policy of the Foundation to maintain, 8lw8ys. free reseNes of no less than the equivalent of six months core (support and govern8nce) cost8. At the 31 March 2024, total reserves were £26,649,204 of which endowed funds were £21,411,109 and restricted funds were £2,975,979. Of the remaining unrestricted funds totalling £2.262,116, £1,185,894 has been deslgnated byTrustees. The actualfree reseNes at the end of the fiscal year equate to £1,076,222. However. £350,303 of these free reserves represent non-liquld fixed asset8. The balance of £725,919 is 7 month8 of budgeted core C08ts for 2023-24. 4. Trustees, Responslbllitie8 Statement The trustees (who are also directors of The He8rt of England Community Foundation for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the fin8nci8l statements In accordance with applicable law and United Kingdom Accounting Standards {Unlted Kingdom GenerallyAccepted Accountlng Practice). Company law requlres the trustees to prepare financlal statements for each financlal year. Under company lawthe trustees must not approve the financial statements unless they are satisfied that they glve a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, 5ncluding the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2019 IFRS 102); make judgements 8nd estimates that are reasonable and prudent; state whether applicable UKAccounting Standards have been followed; prepare the financial statements on the going concern basis unless it is Inappropriate to presume thatthe chsritable companywill contlnu8 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 th8 assets of the charitable company and hence fortaking reasonable stepsforthe prevention and detection of fraud and other irregularities. 13
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company Ilmlted by guarantee) TRUSTEES, REPORT (including Directors, Report) YEARENDED31 MARCH 2024 In so far as the trustees are aware: there is no relevant audit information of whlch the charitabl8 company's auditor is unaware; and the twstees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomatlon and to establish that the auditor is aware of that infomiation. The trustees are responsible for the maintenance and Integrity of the corporate and financial Snfonnation included on the charitable company's website. Legislation in the Unlted Kingdom governing the preparation and dlssemin8tion of financial statements may differ from legislation in otherjuri8diGtions. 5. Aud5tor8 A resolution to re-appoint Dafferns LLP as the Ch8rlty'S auditor will be proposed at the forthcomingAnnual General Meetlng. The report of the Trustees has been prepared taking advantage of the small companies, exemption in the Companles Act2006.This reportwas approved bythe Board of Trustees and authorlsed for issue on 18 September 2024 and signed on its behalf by: Chrls We8t Chair 14
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) AUDrfoR% REpoKr YEAR ENDED 31 MARCH 2024 Opinion We have audited the financial statements of The Heart of England Community Foundation (the 'charitable company,) for the year ended 31 March 2024, which comprise the Statement of Financial Activities. the Balance Sheet, the Statement of Cash Flows. end notes to the flnanci81 statements, including significant accounting pollcies. Thefinanci81 reportingframeworkthat has been applied in their preparation is applicable law and United Kingdom Accountlng standards, including Financial Reporting Standard 102 The Financi81 Reporting Standard applic8b18 in the UK8nclRepublic of Ireland (United Kingdom GenerallyAccepted Accountlng Practice). In our opinion the flnanclal st8tements: give a true and falr vlew of the state of the ch8rltable company's affairs as at 31 March 2024, and of its incoming resources and application of resources. including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accountlng Pr8Ctice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls tor opinion We conducted our audlt In accordance with Intern8tlonal Stand8rds on Auditlng {UK} (ISAS {UK)} and applicable 18w. Our responsibilities under those standards are further described in the audltor responsibilities for the audit of the tinancial statements section of our report. We are Independent of the charitable company in accorcl8nce with the ethical requirements that are relevant to our audit of the flnancial statements in the UK, includlng the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibllities in accordance wlth these requirements. We believe thet the audit evidence we have obtained is sufficient and appropriate to provlde a basisfor our opinlon. Concluslons relating to golng concern In audltlng the financlal statements, we have concluded that the trustees, use of the going concern basis of accounting In the preparation of the fln8ncial st8tements Is appropriate. Based on the workw8 have performed. we have not Identifled Bny materlal uncertainties relating to events or conditions that, indivldually or collectively, may cast significant doubt on the charitable company's abilityto 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 other information comprises the inform8tion included in the trustees, annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our oplnion on the financial statements does not cover the other information and, exc8Pt to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other informatlon and, in doing so, consider whetherthe other information is materially inconsistent with the 15
THE HEART OF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) AUDrroRE REPORT YEAR ENDED 31 MARCH 2024 financial statements or our knowledge obtained in the course of 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 thls gives rise to 8 material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude thatthere is 8 material misstatement of this other information, we are required to reportthatfact. We have nothing to report in this regard. Oplnlons on other matters prescrlbed bythe Companles Act 2006 In our oplnlon, b8sed on the work undertaken In the course of the 8udlt: the information given in the trustees, report, whlch includes the dlr8Ctors' report prep8red forthe purposes of company law, forthe financialyearforwhich the financial statements are prepared is consistent with the flnancial statements; and the directors, report included within the trustees, report has b88n prep8red In accordance with applicable legal requirements. Mattern on which we are requlred to report by exceptlon In the light of the knowledge and understanding of the charit8ble company and its envlronment obtained in the course of the audit, we have not Sdentified mat8rial misstatements in the clirectors. report included within the trustees, report. We have nothing to report in respect of the following matters In relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept. or returns 8dequate for our audit have not been received from branches notvisited by us; or the financial statements are not in agreement with the accounting records and return8; or cert8in dlsclosure8 of trustees, remuneration specifled by law are not made; or we have not received allthe information and explanations we require for our audit: or the trustees were not entltled to prepare the financial statements In 8ccord8nce with the sm8ll companies, regime and take advantage of the small companies, exemptlons in preparlng the directors, report and from the requirement to prep8r8 8 Strategic report. Responslbllltle8 of tru8teo8 As explalned more fully in the trustees, responsibilities statement set out on pages 13 - 14, th8 trustees (who are also the directors of the charitable companyfor the purposes of company law) are responsib18 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 enablethe preparation offinanciaL statementsthatarefree from m8terlal 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. discloslng, 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 orto cease operations, or h8ve no realistic alternative but to do so. 16
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company Ilmited by guarantee) AUDITORS REPORT YEAR ENDED 31 MARCH 2024 Audltor responsibilities forthe audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as 8 whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not 8 guarantee that an audit conducted in accordance wlth ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considerecl m8terial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the b8sis of thes8 financlal statements. Irregularities. including fraud, are instances of non-compllance wlth laws and regulations. We design procedures In line with our responsibilities, outllned above, to detect materi81 mlsstatements in respect of irregularities, including fraud. The extent to which our procedures 8re capable of detectlng irregularities, including fraud is detalled below: enquiry of management around actual and potential litigation and claims; reviewing flnanci8L st8tement disclosures 8nd testlng to supporting documentation to assess compliance with applicable laws and regulations; performing audit work over the risk of management override of controls. includingtesting of journal entries and other adjustments for appropriateness, evaluating the business rationale of signrfic8nttransactions outsidethe normal course of buslness, and reviewing accounting estimates for bias. Because of the Inherent Ilmltatlons of an audit, there is a risk that we will not detect all irregularitles, Includlng those leadlng to 8 material misstatement in the financial statements or non-compliance with regulation. This risk increases th8 more that compliance wlth a law or regulation is removed from the events and transactions reflected in the financial st8tem8nts. 88 we will be less likely to become aware of instance8 of non-compliance. The risk 18 also greater regarding irregularities occurring due to fraud rather than error, 88 fraud involves intentlon8l concealment, forgery, collusion, omission or mlsrepresentatlon. A further description of our responsibilities Is 8vailableon the FRC'S website at., hJlP.s'1g..j.r£ .0.w.uklLitstau.tarrdLQ.QdP.s.loli.cyjAdi5.AWA0..a11£LAtiIQ.sL&LdJtQL" r_0s.p.o.s.[ts_L{itLOslQthE1udl11. This description forms part of our audltor's report. 17
THE HEART OF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) AUDrroR'S REPORT YEAR ENDED 31 MARCH 2024 Use of our report This report is made solely to the charitable compary's members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work h88 been undertaken so thatv might state to the charitsble company's members 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, V do not accept or assume responslbllityto anyone Otherthan the ch8ritable company and the ch8ritsble company's members as 8 body, for our audit work, for thls report, or for the oplnions we have formed. Slgned: Geoffrey Cox BA FCA (Senlor Ststutory Auditor) For ancl on beh8lf of Daffern8 LLP One Eastwood, Harryweston Road, Binley Business Park, Coventry CV32UB Date: 18
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THE HEARTOFENGLAND COMMUNITY FOUNDATION IA company Ilmlted by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 1. Accounting Pollcles Basis of preparation Heart of England Community Foundation is a company limited by guarantee in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.The address of the registered office is given inthe charity information on page 3 of thes8 financi81 statements. The nature of the charity's oper8tions and principal activities are to act as a conduitfor philanthropy. linking private and public funders with small community projects across the county of West Midlands. The charity constitutes 8 public beneflt entity as defined by FRS 102. The financial statements have been prepared In accordance with Accounting and Reporting by Ch8rities: Statement of Recommended Practlce applic8ble to charlties preparing thelr accounts in accordance with the Financlal Reporting standard 8pplicable In the UK and Republic of Ireland (FRS 102) 88 amended for8ccounting periods commencing on or 8fter 1 January 2019, the Flnancial Reportlng stand8rd applicable In the United Klngdom and Republic of Ireland (FRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Ganerally Accepted Practice. The financial statements are prepared on a going concern basls under the hlstorScal 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 are rounded to the nearest £1. The significant accountlng policies applied in the preparation of these financlal statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Incomlng Resources All incoming resources are included In the Statement of Flnancial Activities (SOFA) when the charity is legally entitled to the income and after performanc8 conditions h8ve been met. the amount can be measured reliably, and it is probable that the income will be received. For donations to be recognised the charlty will have been notifled of the amounts and the settlement date in wrltlng. If there are condltlons att8ched to the donatlon and this requires a level of performance b8fore entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Donated facilities are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably. and the charity has control over the item. Fair value is determined on the basis of thevalue of the gifttothe charity. For example, the amountthe charity would be willing to pay in the open market for such facilities. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees, Annual Reports. 23
THE HEART OF ENGLAND COMMUNITYFOUNDATION (A Company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2024 For Legacies entitlement is the earlier otthe charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Income from government and other grants are recognised at fair v8lue when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be me8sured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assetsfor investment purposes such as sh8res and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised 88 the charity's right to receive payment is established. Resources expendod and irrecoverable VAT Liabilities 8re recognised 8s resources expended as soon 8S there Is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an 8ccruals basis 8nd has been classified under headings that 8ggr8gat8 8ll costs related to the category. Grants payable are payments made to third parties in the furtharance of the ch8ritable objectives of the Foundation. The grants are accounted forwhere eitherthe Trustees have agreed to paythe grant wlthout condition and the reciplent has a reasonable expectation that they wlll recelve grant, or any condltlon attachingto the grant Is outslde the control of the Foundation. Irrecoverable VAT is charged agalnst the category of resources expended for whlch It was incurred. Allocation otoverhead and support costs Overhead 8nd support costs have been allocated between charitable activity and governance costs. Overhead and support costs relating to charitabLe activities have been apportioned on a basis consistent with the use of resource8. Charltable actlvltles Costs of ch8ritable activities include grants made and support costs as shown in note 6. Governance costs Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. 24
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company Ilmlted by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 Support cost allocatlon Support costs are those that asslstthework of the charity but do not directly represent charitable activities and include off ice costs. governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the ch8rity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings. they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resource. Fundralslng Costs Fund-raising costs are those which are incurred in seeking voluntary contributions and do not include the costs of dissemin8ting information in support of charitable activities. The analysis of these costs is included in note 4. Endowment funds These funds Include expendable endowments whlch 8ro8e from gr8ntS and donatlons given specificallyto be held as capit8l unlessthe Trustees resolve they may be spent. It Is the intention of the Trustee8 that these funds be m8lnt81ned for the forese8abl8 future. Grants are funded from the Income generated from the capital investments. There can be an Inltlal period of income accumulation in accordance wlth the donor's wishes. Restrlcted fund8 These funds are received lor specific purposes set bythe gr8nt funders or donors. These include funds received to enable grants to be paid to beneficiaries and meet the cost of projects and, in additlon, funds received towardsthe Foundation's operating costs in man8gingthose grants and projects. De81gnated funds These funds are unrestricted funds set aslde by the Trustees for specific purposes. Investments Investments in Listed securities and properties are shown on the balance sheet at their open marketvalue. Profits and losses on sales of investments and the movements in marketvalue are taken to the St8tement of Financial Activities. Property in course of construction is valued at cost. Fixed assets and depreciatlon No depreciation is provided againstthe cost of land. Operational assets costing lessthan £1.000 are written off In full through the Statement of Financial Activities in the year of purchase. Depreciation is provided bythe Foundation to write off the cost less the estimated residualvalue of otheroper8tionalfixed assets byequal instalments overtheir usefuLeconomic lives asfollows: Office and computer equipment- 4years 25
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company Ilmlted by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 Debtors and creditors receivable/payable within one year Debtors and creditors with no stated interest rate and receivable or pay8ble within one year are recorded at transaction price. Any loss arising from impairment are recognised in expenditure. Penslon schemes The charity operates defined contribution pension schemes. Contributions payable in the year ar8 charged in the Statement of Financial Activities. Tax The charity is an exempt charity within the meaning of schedule 3 of the Ch8rities Act 2011 and Is considered to pass the tests set out In Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the deflnltlon of a charltable company for UK corporation tax purposes. Golngeoncarn The financlal statements have been prepared on a going concern basis as the Trustees belleve that no materlal uncertainties exist. The trustees have considered the level of funds and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure18 suff icient with the level of reserves for the charityto be able to continue as a going concern. Financial Instruments Financial assets Basicfinancialassets. includingtrade and otherreceivables. cash and bank balances are initially recognised at tr8ns8Ction price. Other flnanclal assets. Includlng Investments in equity instruments and whlch are not subsidiaries, associates or joint ventures. are initially measured 8t fair value which is normally trans8Ction price. Such assets are subsequentlyc8rried atf8irvalue and the changes infairvalue are recognised In profit and loss. Flnanclal liabilities Basic financial liabiLities. Including tr8de and other payables, 8nd bank loans that are cl8ssified as debt are initially recognised at transaction price. Debt instruments are subsequently carrled 8t amortised cost. using the effective interest rate method. 26
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED31 MARCH 2024 2. Donations and Legacles Donors contributed to the following restricted funds during the period: Core Costs Dlstributable Grants Total 2024 Total 2023 29° May 1961 Charltable Trust BRC Fund Communlty Energy Warwickshlre Cost of Llvlng Fund Coventry Bullding Soclety Coventrycityof Culture Fund Coventrywarm Space Fund DCMS Cost of Llving Fund Dulverton Trust Graham Grifflths Fund Helping Hearts High Sherrlf of Warwlckshlre Internatlonal Chlldren's Games JLR Sollhull Employees Charlty Fund John Taylor Knowyour Neighbourhood Leamlngton Fund maLeX UK Ltd M and G Fund NNS Blrmlngham Clty Councll Orblt Indlvldual Grants Orblt Flrst Year Tenancy Orlt Hardshlp Fund PSA Peugeot Cltroen Peddlrnore Posltive Futures R Medwell Sollhull Reslllence Fund The Freemason's Charlty Tlpton Educatlon Fund Vltal EV Solutlons Warwlckshlre Countycouncll Wesleyan WindsorAcademyTrust Communlty Foundatlon 28,000 12,186 7,047 81,892 25.000 loo,000 60,588 99,299 45.000 50,000 2,325 1.191 13,376 1,191 13,376 787 787 321 2,860 135,333 2,767 9,200 13,011 388,310 550 21,000 212,731 66,714 27,000 90,000 2,351 2,351 70,050 70,050 2,000 2,000 50,600 45,000 10,800 4,500 343,748 839,200 9,354 29,059 9,354 99,109 70,050 2,775,679 Donatlons In klnd Duringthe financialyear PSA Peugeot Citroen {Stellantis) again provided office accommodation and facilities free of charge to the Foundation. The estimated value of these benefits is £70,050 (2023: £66,714) has been reflected in the Statement of FinanciaL Activities 88 gifts and as support costs within the restricted core cost fund. 27
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED31 MARCH 2024 3. Income from Grant Contracts Core Costs Dlstrlbutable Grants Total 2024 29th May 1961 Charitable Trust Building Better Opportunitles Fund Breathe BetterAir Fund Bretherton Bristol and West Community Energywarwlckshire Communlty Environment Fund Coventry Buildingsociety Coventrycommunlty Fund DCMS Costof Llvlng Fund Deutsche Bank Dulverton Trust Greggs Foundatlon Gowllngs IM Communlty Fund Inclusive Communltles Fund Income Maxim15atlon Fund Klnghur5t Fund Knowyour Neighbourhood Love My Keresleycommunlty NHS- Small Grants NNS- Blrmlngham Clty Councll Orblt- Indlvldual Grants Orblt Extension Hardshlp Fund Orblt Furnlsh Homes Orblt Hardshlp Trust Peddlmore Fund PHP Fund Posltlve Futures SollhuLi Falrer Futures Fund Sollhull Hong Kong Fund Sollhullwarm Welcome Hub Fund The Davld East Fund Tlpton Educatlon Fund Together In Sollhull Afghan Fund Together In Solihull Asylum Seekers Fund Together In Sollhull Ukralne Fund Warwlckshlre County Councll Wesleyan WMCA Green Grants 3,000 19,701} 8,333 21,000 24,000 19,7011 79,166 3,000 598 8,109 466,163 88,324 7,750 116,754) 30,000 110,332 19,800 11.000 199,500 7,412.552 994,424 10,000 1,204,401 118,200) 72,049 434,085 1441 102,645 111,5761 138,683} 27.750 95,000 92,500 208,000 30.000 55,243 18,000 13,500 19,929 19,929 49,805 1,327,120 852,610 261.052 14.253.378 70.833 3,000 598 7,369 429,579 86,170 7,750 116,7541 27,000 99,299 18,000 10,000 189.500 7,089,864 948,649 10,000 1,171,334 118,2001 72,049 390,960 740 36,584 2,154 3,000 11,033 1,800 1,000 10,000 322.688 45,775 33,067 43,125 17,250 85,395 111.5761 138,6831 27,000 85,000 90.000 200,000 29,000 51,151 18,000 11,700 18,170 18,170 45,410 1,260,000 847,100 250,578 13,604,371 750 10,000 2,500 8,000 1,000 4,092 1,800 1,759 1.759 4,395 67,120 5,510 10.474 649,007 Income from Grant Contracts has been reclassified and shown separatelyfrom Donations and Legacies in the 2024 accounts. Comparatives have not been adjusted. 28
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limited byguarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 4. Fundralslng Costs Unrestricted Restricted Tolal 2024 Consultsncy Staff Costs Other costs 47,321 13,124 60,445 47,321 13,124 60,445 Unrestrlctod RgStrlcted Total 2023 Consultancy Staff Costs Other costs 40,752 17,912 58,664 40,752 17,912 58,664 S. Grants Totsl Totsl 2024 2023 Grants awarded- Restrlcted funds 13,111,157 300 2,858.131 8.000 Grants awarded- Oèslgnated funds 13.111.457 2,866,131 Forfull details of grants awarded duringthe year please visit our webslte to download our 'Gr8nts Making & soclal Investment Report 2023124, at 29
THE HEARTOF ENGLAND COMMUNITY FOUNDATION {A company Ilmlted by guarantee) NOTES FORMING PART OF THE FINANCIAL sfATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 6. Support Costs Grants Admlnlstratlon 2024 2023 Staff Costs (see note 71 Recruitment PRand Advertlslng Training and Conferences Subscrlptlons Traveland Subslstence Staff Welfare Meetlngs Prlntlngand Ststionery Postage and Telephone Offlce Equlpment Legal and Professional fees Rent and Rates Flxed Asset DepreciatSon OfflceAccommodatlon and Facllltles (see note 21 Sundry Expense Insurance 251.410 18.480 4,081 836 251.556 9,576 4,084 837 11,509 2,820 207 960 1,903 3,285 18,423 4,425 502,966 28,056 8.165 1,673 11.509 5,638 413 1,919 3.805 6,568 36,835 8,848 5,178 360 64,026 345,133 13,100 9,077 3,678 10.915 7,067 1,068 2,818 206 959 1,902 3,283 18,412 4,423 5,178 180 32,004 1,891 5,586 26,751 35,959 4,307 1,339 59,375 180 32,022 190 423 344.785 190 423 342,400 380 846 687,185 422 1,758 528,034 The Support costs are incurred from the followingfunds: Unrestrlcted General Fund Restricted Core Fund Restrlcted Grant Fund 617,056 70,050 7. Staff numb8rs and costs The average number of person8 employed by the Foundation during the period was 1412023- 11). The full-time equivalent number of employees was 12.1 (2023- 9.7) and the aggregate Payroll costs were as follows: Total Total 2024 2023 Saiarles 46B,589 343.382 2,100 29,360 11,043 Agency staff costs Soclal security costs Other pension costs 48,058 29,796 550,287 385.885 Support costs (see note 61 Fundralslng costs (see note 41 502,966 47,321 345.133 40.752 550,287 385,885 30
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 The number of employees earning over £60.000 peryear (including benefits) in the period is as follows: 2024 No. 2023 No. £70,000 - £80,000 8. Trust8è8' and key management personnel renumeration and expenses The charity considers it8 key management personnel as Tina Costello. The total amount of employee benefits (including employers Nl) received by key man8gement personnel Is £94,636 (2023: £83,049), The Trustees did not receive any remuneratlon durlngthe year (2023: £nll). No expenses were claimed duringthe year (2023: NIL). a. Third party related transactlon8 The charity paid £20,984 (2023: £16,356) to Adecs Limited, a company related to AmrSk Bhabr8. a Trustee. for IT services. The charity paid £8,820 (2023: £11,116) to Wright Hassall LLP, company related to Lucie Byron. The Charity paid £nil (2023- £1,200) to Leaders by Nature, an organisation related to Jude Jennison. 9. Governance Cost8 Unrestrlcted Restrlued Endowment Total Total 2024 2023 Statutory audlt fees 12.000 12,000 12.912 12.000 12,000 12.912 The auditor's remuneration 8mounted to an auditfee of £11,700 {2023: £12,612) and other seniices of £300 (2023: £300). 31
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 10. Transfer between funds Restrlcted osts D15trlbutable Granis Endowment Funds Oeneral De$lgnated Transferof designated fund to unrestricted Transfer of designated fund to grants Transfer of grant fund to unrestrlcted Transfer of BBO from Deslgnated Transfer of Heart of England Pflorltles to unrestrlcted 64.382 164,3821 135.0001 35,000 500 15001 112.6231 12,623 10,000 iio,0001 74,882 1112,0051 12,623 24.500 11. Tanglble Flxed A88ets Froehold Property Computer Equlpmenl Total Cost l Apr112023 1,185.000 27.471 1,212.471 Addltlons DIsp05ais 7,200 8,629 31 March 2024 1.192,200 28.900 1,221,100 Depreclatlon l Aprll 2023 25,926 25.926 Chargeforyear 395 395 31 March 2024 26,321 26.321 Net Book value 31 March 2023 1.185.000 1,186.545 NetBookvalue31 March 2024 1.192.200 2.579 1,194,779 32
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limitsd by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 12.2 Investment Prop8rties Small Barn Larg8 Barn South Birmingham Properties Total 2024 Total 2023 Valuatlons IAprll2023 Additions Gainslllosses} 31 March 2024 Historical Cost 177,000 1,065,000 340.000 1,582,000 1,005,000 237,000 340.000 1,582,000 1,339,161 177,000 90,511 1,065,000 908,650 340.000 340,000 1,582,000 1,339,161 Two barn buildings and the land they stand on were donated to the Foundation for development into office buildings for letting when complete. The original valu8 of the underdeveloped land and properties don8ted was estimated byth6Trustees at 285,000. Both barns were revalued at 31 March 23 on 30 June 2023 by Roger Stanway FRICS of Holt Commerci8l, Chartered Surveyors on the basis of fair value. The South Birmingham Investment Propety w8S transferred to the Foundation at a valuatlon of th £340,000 on 28 February 2023. 13 Debtor8 Total 2024 Total 2023 Trade Debtors Accrued Income 155,718 1,557,531 1.713,249 5,248 1,718,497 484,313 44,942 529.255 3,113 532,368 Prepayments 34
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limitsd byguarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED31 MARCH 2024 14 Creditors Totsi 2024 Total 2023 Trade creditors Unpaid grants Deferred Income (See note 151 Employees tax and social securlty VAT Staff pension scheme contribution 40,894 7,155,659 150,507 13,268 37,746 3,714 7,401,788 76,467 7,478,255 44,244 362.214 20,733 7,929 8,T70 1,775 445,665 66,155 511,820 Accruals 15 Deferred Income Total 2024 Total 2023 18t April 2023 Additlons Released to SOFA 20.733 280.972 {151,198) 150,507 21.162 87,700 188,129) 20,733 Deferred Income has arisen as a result of rental 8nd other income belng recelved In advance. 35
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THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limlted by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 18 Designated Funds l Aprll 2023 Income Expenses GalnslL055 on Investments Transfe 31 March 2024 BBO Provision Birmingham Clty Councll CoventryBulldlng Soclety CommunltyEnergy Warwlckshlre Heartof England Fund IM Development Mayflex Fund Orblt South Blrmlngham Frlends Fund Warwlckshlre County Councll Wesleyan YoueLi Famlly Fund 120,463 2,650 112,6221 12.6501 107,841 8.190 18.190} 698 1698) 296,791 13,000 800 8,145 38,820 13001 iio,0001 113,0001 18001 18,1451 125,0001 286,491 13,167 26,987 500 15001 30,400 704,551 1,225,008 130,4001 14,291 14,591 64,315 64,315 764,575 1112,0051 1,185,894 13,167 The Youell FamiLy Fund is 8 Legacyfrom the late Alfred Youell MBE. The BBO Provision fund represents an amount set aside to cover any clawback from the BBO programme in the future. The Heart of EngLand Fund Ss 8 fund set up by the Trustees that can be used for Immedlate need In the communlty thatthe Ch8rlty could support. The SBFI Fund Is an amount set aslde for future grant maklng. 19 Analysis of fund balances between net assets General Funds 0851gn4ted Funds Restrl¢ted Funds Endowment Funds Total Funds 2024 Tangible Flxed Assets 9.779 1.185,000 1.194.779 Investments 340,523 764,575 20,052,731 173.378 21,157,829 10,056,354 Bank and Cash Balances Debtors 808.045 421,319 8.653.612 235,471 1,483,026 1.718.497 Credltots 1317,5961 17,160.6591 17.478,2551 1,076,222 1,185.894 2.975,979 21.411,109 26,649.204 42
THE HEART OFENGLAND COMMUNITY FOUNDATION (A company limited byguarantee) NOTES FORMING PAKf OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 20 Reconciliation of net income to net cash tlowtrom operatlng actlvltles 2024 2023 Net Income foryear Dividend Received Rents recelved from Investment propertle5 Interest receivable Depreclation and Impalrment of tangible flxed assets {Gainslllosses on Investments Receipt ofendowment (Increaselldecrease In debtors Increase Ildecreasel In creditors 3.066,799 1475,587) 1124,7391 1174,045) 395 11,673,704) 1393,7981 11,188,129) 6,966,435 2,115,049 1371.2351 190.2771 155,8111 1,505 997,675 12.924,204} {309,102} 1746,969} Net cash flow from operatlng actlvltles 6.005.627 11,383.3691 Analy818 Ot Net Debt 1" Aprll 2023 Ca8hflow 31" March 2024 Cash and cash equivalents £3,307,897 £6,748,457 £10,056.354 21 Control Relatlonshlps The Board ofTrustees is ultlmately responslble forthe control of the Charitable Foundation. 22 Taxatlon The Foundatlon Is a reglstered charlty and Its actlvltles are such that no liability to Corporation tax arises on Its resuLts for the year. 23 Members'Guarantee Every mernber has agreed that, If the charity is dissolved. while he or she remains a member orwlthin twelve months afterwards, to contrlbute up to £10 towards the costof dissolution and the liabilities of the charity. 24 Penslons and Post Retlrement Beneflts Defined contribution pension plans- The charlty contrlbutes to the money purchase pension plan forcertain of Its employees. The amount recognlsed as an expense in the period was £29,796 (2023: £11,043). 43
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL sfATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 25 Flnan¢lal Instruments The carryingvalue of the charlty's Financial instruments 2024 2023 FlnanclalAssets Measured atfalrvalue through net Income l expenditure: Fixed asset Investments (note 12) 19,575,829 17,485,415 Measured at amortlsed cost: Barn rent recelvable 25,493 25,043 The income, expendlture, net galns and net losses attrlbutable to the charlty's flnanclal Instruments are as foLIows: 2024 2023 Netgalns and losses Financial assets measured at falrvalue through net Income I expendlture 1,673,704 1997,675) 26 Operatlng Leases- L088or Totalfuture minimum lease payments collectable under non-cancellable operatlng leases: 2024 2023 Withln one year 1-5 years More than 5 years Total 16.050 72,900 75,000 163,950 63.200 8,661 71,861 The Foundation lets the large and smallyouell Barns and the SBFI propertles. The small barn lease was st renewed durlng2023-24for a perlod of ten years. The rge barn lease was under revlew at 31 March 2024 with terms yet to be agreed. The SBFI propertles are sublectto indlvldual agreements whlch are reviewed annually.