heart of england COMMUNIIYFOUNDATION THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limitecl by guarantee) REGISTERED CHARITY NO. 1117345 COMPANY REGISTERED NO. 5999452 TRUSTEES, REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2025
Table of Contents TRUSTEESANDSTAFF............................................................................................................ PROFESSIONALADVISORS ................................................................................................... TRUSTEES, REPORT {includlng Directors, Report)............. AUDITOR'S REPORT.............................................................................................................15 STATEMENTOF FINANCIALACTIVITIES(FOR THEYEAR END 31 MARCH20251..........................20 STATEMENT OF FINANCIAL ACTIVITIES (FOR THE YEAR END 31 MARCH 2024)... .. .21 BALANCE SHEET..................................................................................................................22 STATEMENTOFCASH FLOW................................................................................................23 NOTES FORMING PARTOFTHE FINANCIALSTATEMENTS....................................................24
THE HEARTOFENGLANDCOMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES AND STAFF YEAR ENDED 31 MARCH 2025 Registered 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 Trustees: Mr Christopher West Ms Michelle Vincent Mr Paul Belfield MrAmrik Bh8bra MBE Ms Lucie Byron Ms Jude Jennison Mr Danielworthing Mr Calum Nisbet Ms Alethea Fuller Ms Cleo Morris Mr Richard Port MBE Mr Daniel Boardman-weston Chair Treasurer th Resigned 16 October 2024 th Resigned 16 October 2024 th Resigned 16 October 2024 Resigned 16" January 2025 Appointed 4" June 2025 Senior Staff: Tina Costello OBE Helen Kendrick Samantha Davis Shamiela Ahmed Jayne Taylor-Farren Ryan Boyce Chief Executive Off icer Senior Manager Operations Senior Manager Operations (Maternity Cover) Senior Manager Programmes Senior Manager Finance Senior Manager Communications- Resigned th 20 September 2024 Secretary Charleene Jefferson
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) PROFESSIONAL ADVISORS YEAR ENDED 31 MARCH 2025 Auditors: D8fferns Audit Limited One Eastwood, Harryweston Road Binley Business Park Coventry, West Midlands CV32UB Investment Managers: James Hambro & Partners LLP 45 Pall Mall London SW1Y 5JG CCLA Rathbones Senator House Temple Point 85 Queen Victoria Street 1 Temple Row London Birmingham EC4V 4ET B2 5LG Bankers: CAF Bank 25 Kings Hill Ave Kings Hill West Malling, Kent ME194JQ Santander Bank Bootle Merseyside L30 4GB Solicitors: Wright Hassall LLP Olympus Avenue Leamington Spa Warwickshire CV34 6BF
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (including Directors, Report) YEAR ENDED 31 MARCH 2025 The Trustees have pleasure in presentingtheir Annual Report alongwith the financial statements ofthe charityfortheyear ending 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS1021 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 Note 1 to the accounts and comply with the Charity's Memorandum and Articles of Association. the Charities Act 2011, and Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland as amended for accounting periods commencing on or after 1 January 2019 and the Companies Act 2006. 1. Structure, Governance and Management 1.1 Objects and Activities The objects of the Community FoLJndation are defined in its Memorandum and Articles of Association. The Community Foundation manages a diverse portfolio of grant programmes working with a range of donors to provide charitable and philanthfOPiC seNices across the geographical areas of Birmingham, Black Country, Coventry, SolihulL, and Wawickshire. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the current aims and objectives and in planning future strategies and setting grant making policies. Our activities are determined by our charitable objectives: The promotion of any charitable purposes for the benefit of communities within the County of West Midlands and Warwickshire and elsewhere in the United Kingdom and in particular, the advancement of education, the protection of good health and the relief of poverty and sickness. Any other exclusively charitable purposes, which are, in the opinion of the Trustees, beneficialtothe community in the area of benefit. The Foundation exists to support the local voluntary and community sector across the West Midlands and Warwickshire. We work with a range of donors to off er bespoke. tailored philanthropic services. We aim to inspire and encourage local giving; we are advocatesforsmaller organisations who are often underthe radarof nationalfunders but making a huge difference at the heart of their communities. The Foundation primarily supports not for profit organisations with grants which 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 limited by guarantee) TRUSTEES, REPORT {including Director's Reportl YEAR ENDED 31 MARCH 2024 The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 201 I to have due regard to public benefit guidance published 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 Annu81 Report and relate directly to our aims and objectives. 1.2 Board Appointments At each AGM, one third of the Trustees must retire, those longest in office retiring first. The Board of Trustees meet on a quarterly b8SiS. Our AGM was held on 16" October 2024, during which Dan Worthing, Amrik Bhabra and Lucie Byron resigned from the board. The Trustees would like to thank them for their invaluable time and commitment to the Foundation. A resignation was also received from Cleo Morris who resigned from the board on 16 th January 2025. We'd liketothank Cleofor her advice and guidance on diversity, equity and inclusion. th Daniel Boardman-weston was appointed as 8 Trustee on 4 June 2025, Dan brings extensive experience in investment management and will play a key role on our Finance, Audit and Risk Committee. The names of the Trustees who have served throughout the financialyear and to the date of this report are shown on page 3. AIITrustees have a full induction, are regularly updated on the operational running of the Foundation and have opportunities to play key roles in shaping the development and future strategy of the Foundation. 1.3 Board Subcommittees During the year, the Board undertook a governance review to ensure our structures remain effective and fit for purpose. As a result, we streamlined our committee arrangements. We now have two sub-committees, Finance, Audit and Risk and Grants Sub Committee. The full Board of Trustees has assumed the functions previously delegated to the Management Committee and is now collectively responsible for all aspects of the Foundation's governance. Finance, Audit and Rlsk Committee-Responsibilities: Finance and Audit Approve and monitor the Foundation's annual budget Review statutory 8ccounts and recommend to Board for ratification Recommend the appointment of external auditors Discuss and agree the scope of the external audit
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES. REPORT (Including Director's Report) YEAR ENDED 31 MARCH 2025 Review of auditor's annual management letter and recommendations Review and monitor the financial controls of the Foundation Consider appropriate use of unrestricted core income Recommend use of surplus funds Set up of designated funds Review quarterly management accounts Analyse forecast against actual annual budget Monitor and review finance resources Review financial policies and recommend for approval by Board Review compliance with relevant laws, regulations and internal policies Investments Monitor the Quarterly investments returns and endowment performance Compare and contrast Investment Managers and instigate tendering processes for new investment houses M8ximise interest income Review investment strategy Invite Investment M8n8gers to annual meetings Review asset class investments Review Investment policies and recommend for approval by Board Review compliance with relevant laws, regulations and internal policies Risk Monitor the risk management processes of the Foundation Review and monitor the risk reEiSter Approve changes to risk ratings Scrutinise new risks Approve removal of risks from the risk register Review Risk Management policies and recommend for approval by Board Review compliance with relevant laws, regulations and internal policies Board of Trustees - Responsibilities: Set the vision, values and strategy of the Foundation Ensure that the Charity remains value led and vision focussed Monitor progress and performance against our strategic business plan Ensure that the Charity is compliant with the Companies Act 2006, Charity Law and governance Approval of new and revisions to policies and procedures Ensure that the Charity complies with its Memorandum and Articles of Association Act at all times in the best interest of the Charity Set and ratify decisions made at the Charity's Sub Committees including approval of grants Oversee the Charity's property portfolio and compliance with the required property law Oversee the Charity's assets and financial portfolio
THE HEART OF ENGLAND COMMUNITY FOUNDATION {A company limited by guarantee) TRUSTEES, REPORT (including Director's Report) YEAR ENDED 31 MARCH 2025 Approve the programmes, tenders and contracts in line with the Charity's delegation of authority policy Ratitythe Statutory Accounts and appoint auditors Approve formal HR changes such as staff ing re-structures Approve pay structure and awards for staff Ensure compliance with Health and Safety policies and legal obligations GDPR compliance and associated risks Grant Sub-committees As a grant-making charity, we have reviewed our processes to identify more effective ways to senie our communities. While our existing procedures remain in place, we have introduced a system of full officer delegation, with decisions subject to Trustee ratification. This change is designed to streamline our processes and enable faster decision-making for applicant organisations. The Foundation has a number of donor directed panels, in which donors make decisions on their funding programme, with full secretariat provided by the Foundation. The Trustees would like to thank our fantastic volunteers who have given their valuable time, commitment and knowledge to support our (Jecision making. 1.4 Business Planning Over the past year, our Board of Trustees and Senior Leadership Team have worked collaboratively to develop a new five-year strategy. This process included a staff team away day to reflect and plan together, as well as consultation with key stakeholders to ensure the strategy is informed, relevant, and responsive to the needs of the communities we seNe. The Foundation is unique in its understanding of our local communities and the challenges they face. We have 8 clear five-year strategy which ensures we are fit for the future. builds on our strengths while responding proactivelyto the emerging needs of our communities. Over the next five years we aim to transform our grant-making to be even more accessible, responsive, and effective making it easier for local groups to secure the support they need. grow and diversify our funding base to distribute £25 million in grants. ensuring we reach more communities, especially those most in need. celebrate our donors and supporters. strengthening those vital relationships while attracting new partners who share our vision and values. operational excellence will be central to our work. We will invest in our staff and Board, embrace best practice in governance, and adopt new systems to improve the way we work.
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES, REPORT {Including Director's Reportl YEAR ENDED 31 MARCH 2025 Sustainability is also embedded throughout our strategy" we will integrate Environmental. Social, and Governance IESGI priorities across our operations, investments. and grant-making, contributingto the UN Sustainable Development goals at a local level. Ultimately. our strategy is about making our mission a lived reality: supporting communities to create a fairer, happier, and healthier region where everyone has equal access to opportunities, experiences genuine wellbeing, and feels part of a vibrant local community. We hope to attract new donors, retain our existing donors and grow our income base to ensure we can continue to respond to our community needs. 1.5 Risk Management The principal identified risks to which the Foundation are exposed are integrated into the business plan to ensure they are regularly reviewed. The Foundation also maintains a risk register which is reviewed every six-months at Finance, Audit and Risk Committee. We continue to review and amend our risk register. 1.6 Pay Policyfor Senior Staff The Trustees considerthe senior managementteam to comprise the key personnel of the Charity in charge of directing, rLJnning, and operating the Charity on a day-to-day basis. The pay of senior staff is reviewed annually by the Trustee Board and is based on performance and average earnings across the sector. 1.7 Fundraising Regulator Ststement of Compliance Heart of England Community Foundation does not contract to a third party to undertake any fundraising on its behalf. The charity does employ 8 Senior Marketing Off icer who initiates campaigns and supports fundraising activities. We have received no fundraising complaints duringthe year. The charity only makes fundr8ising approaches to contacts who have given explicit consent to receive such campaign documentation under GDPR guidelines. 2. Strategic Report During the year the Foundation continued to deliver impact through targeted grant- making, strategic partnerships and ongoing engagement with stakeholders. The Foundation is committed to ensuring that, in a changing external environment, the new strategy will strengthen our resilience and focus our resources to meet the needs of our benef iciaries.
THE HEARTOFENGLANDCOMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES. REPORT (including Director's Report) YEAR ENDED 31 MARCH 2025 The Foundation continued with the delivery of the Inclusive Communities Fund, which was reported in the 2023-2024 annual trustee report. In total over £11 million was distributed to 388 organisations across the Region. We are incredibly proud that the Foundation has demonstrated its ability to manage large scale grant programmes to incredibly tight deadlines. The Foundation has commissioned an independent evaluation from Forever Consulting to help us understand the effectiveness of our gr8nt-making, capture the outcomes and experiences of funded organisations and communities, and identify learning to inform ourfuture work. By investing in a robust evaluation, we aim to demonstrate accountability for this significant public investment and strengthen our commitment to funding that is responsive, equitable, and evidence led. During the year, the Foundation was fortunate to deliver sever81 large-scale grant programmes in collaboration with key local authority partners, including Birmingham City Council and Solihull Metropolitan Borough Council. Working in partnership with Birmingham City Council, the Foundation has delivered Birmingham Fairer Futures which focuses on addressing health inequalities for communities of identity in specific localities across Birmingham. Again, working with Birmingham City Council, we delivered the Income Maximisation Fund, ensuringthat individuals and families in need were receivingthe correct advice and guid8nce in terms of their income. We continue to deliver a range of programmes as part of Birmingham City Council's Neighbourhood Network Schemes and have built some long-lasting relationships with our NNS partners. Our partnershipwith Solihull Metropolitan Borough Council has continued toflourish and we have delivered various programmes to benefit their residents. Solihull Fairer Futures Fund focusing on health inequalities, Solihull Community Building Programme to improve community spaces and Solihull Winter Prevention Fund to support people through the winter months. We are incredibly grateful to work in partnership with our local authorities, and we hope to develop further relationships with other local authorities across our region. The Department of Culture, Media and Sport Know Your Neighbourhood Fund has been a resounding success. With a focus on Wolverhampton, the programme has increased volunteering opportunities, reduced loneliness 2nd isolation and enabled organisations to pilot a variety of new initiatives to support their local communities. The Foundation continues to work in partnership with our corporate partners, Wesleyan Assurance. IM Properties and Coventry Building Society. It is refreshing to work in partnership with businesses who have a real, genuine focus on social investment and wellbeing for communities. 10
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (including Direclor's Report) YEAR ENDED 31 MARCH 2025 In addition, we laLJnched the South Birmingham Friends Fund and the Coventry Community Fund, both long term investment funds providing vital financial resource in perpetuity. We are incredibly grateful to the donors who choose to work with us to deliver their funding to where it is most needed. By entrusting the Foundation with their charitable funds, our donors enable us to channel vital resources into local communities, changing lives, tackling need 8nd creating lasting change. The Trustees would like to sincerely thank our partners, stakeholders, frien(Js and supporters of our work for supporting our mission and amplifying the power of local giving. Key Performance Measures The Foundation has several significant projects in 2025- 26, including a new CRM system which we hope will support the transformation of our grant making both internally and for our communities who apply for funds. Human Resources The Foundation team is in 8 good, stable position in terms of the staff team, and we look forward to our Senior Manager of Operations returningfrom maternity leave later in 2025. We have created a new position of Business Support Assistant who has a varied role in supporting the wider work of the Foundation. Incoming Resources The Foundation's total incoming resources for 2024-25 were £13.559,348 {2023-24 £15,620,667) and the overall funds of the foundation increased by £1,385,156 to £28,034.360. Endowed Donations Following a period of significant growth in our endowments, 2024-25 endowment income remained static. A strategic objective for the next five years is to grow our long-term investments, ensuring not only the sustainability of the Foundation but a long-term source of funding for communities. Investments The Foundation's investment policy, updated and reviewed every three years, is for 8 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 longerterm. This is considered a relatively low risk approach.
THE HEARTOF ENGLAND COMMUNITY FOUNDATION IA company limited by guarantee) TRUSTEES, REPORT (including Director's Report) YEAR ENDED 31 MARCH 2025 Our stock market investments are managed by James Hambro. CCLA and Rathbones. Performance is benchmarked against the SE APCIMS (Association of Private Client Investment Managers} Index. Investment performance over the 12-month period ending 31" March 2025 was affected by significant economic and world events. The resulting instability was reflected in a fall in investment values during the last quarter. The markets have since stabilised. The net loss on investments was £479,9691£1,673,704 gain in 2023-241. Grants The total grant income for 2024-25 was £11,127,378 {2023-24 £13,604,371). Total grant expenditure was £10.560.15912023-24 £13,111,457), a full report on the foundation's discretionary grant making will be available on our website. Restricted Core Income Restricted core income in 2024-25 was £73,553 (2023-24 £70,050). Unrestricted Core Income Our unrestricted core income this year is derived from several sources, our investments, general donations, rented properties and grant making contract fees. The delivery of programmes on behalf of donors such as Wesleyan Assurance. Coventry Building Society, West Midlands Combined Authority, Solihull MBC and Birmingham City Council support our operating costs. The balance of our unrestricted income is, at present, used to meet core expenditure which is not covered by restricted income. Unrestricted income for 2024-25 was £1,957,908 {2023-24 £1.198,9121 This increase is largely due to the significant local authority contracts that were delivered during the financial year. We are etern811y grateful to all the donors who choose to work with us, A particular thank you goes to 29" May 1961 Charitable Trust fortheir annu81 unrestricted donation. The Foundation made an oper8tinggain on unrestricted generalfunds of £511.909 {2023- 24 £325,825}. An increase in the number and size of local authority contracts during the year contributed to this healthy gain and will enable the Foundation to meet its financial obligations and invest in an ambitious strategyfor growth over the next five years. Designated Funds Our designated funds as of 31" March 2025 totalled £1,413,772 (31" March 2024 £1.185,894). These include the current value of £742,937 (2024 - £764,575) from the Youell Legacy plus funds of £583,335 12024 - £421,319) for the delivery of grant programmes in 2025-26 and £87,500 designated for costs on specific projects. These funds are not regarded as free reseNes by the Trustees. 12
THE HEART OF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) TRUSTEES, REPORT {including Director's Report) YEAR ENDED 31 MARCH 2025 Principal Risks and Uncertainties The Foundation has considered the principal risks and uncertainties and are satisfied that appropriate systems and policies are in place to manage these effectively. Key risks include Financial Sustainability: Potential fluctuations in income due to economic conditions and donor behaviour. This is mitigated through diversified funding and prudent financi81 management. Governance and Leadership: Succession planning for trustees and senior staff impacting on governance, continuity and strategic delivery. This is mitig8te(J through proactive planning and governance oversight. External Environment: Uncertainties arising from political, social and environmental developments could affect the funding landscape and the needs of our beneficiaries. The Foundation mitigates this riskthrough flexible processes and continuous assessment of the developments. 3. Reserves Policy A considerable part of the Foundation's income is derived from unrestricted core donations of which there is no certainty and management fees for the delivery of flow through grant programmes which are usually time bound. The Trustees believe it to be necessary to retain sufficient free reserves to maintain the Foundation operationally between the times such schemes end, and new programmes come on board. New funding stre8ms are often subject to competitive tendering and cannot be relied upon with certainty. Free reseNes must also be retained to cover statutory obligations to our staff should that prove necessary. It is therefore the policy of the Foundation to maintain, always, free reseNes of no less than the equivalent of six months core (support and governance} costs. At the 31 March 2025, total reserves were £28,034.36012024 - £26,649,204) of which endowed funds were £20,875,417 (2024 - £21,411,109) and restricted funds were £4,157,040 {2024 £2.975.9791. Of the remaining unrestricted funds totalling £3.001,903 12024 £2,262,116), £1,413,772 12024 - £1,185,894} has been designated by Trustees. The actual free reserves 8t the end of the fiscal year equate to £1,588,131 1£1.076.222). However, £345.53012024 - £350,303) of these free reseNes represent non-liquid fixed assets. The balance of £1,242,60112024- £725,919) is 1812024- 7) months of budgeted core costs for 2025-26. 13
THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (Including Dlrector's Report) YEAR ENDED 31 MARCH 2025 4. Trustees, Responsibilities Statement The trustees (who are also directors of The Heart of England Community Foundation for the purposes of company lawl are responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company lawthe trustees must not approve the financial statements unless they are satisfied that they 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 period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then applythem consistently. observe the methods and principles in the Charities SORP 2019 IFRS 102); make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed; prepare the financial statements on the going concern basis unless it is 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 financi81 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 8ssets of the charitable company and hence fortaking reasonable steps forthe prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware. and the trustees have taken 811 steps th8t they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. 14
THE HEARTOFENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) TRUSTEES, REPORT (including Director's Report) YEAR ENDED 31 MARCH 2025 5. Auditors A resolution to re-appoint Dafferns Audit Limited asthe Charity's auditorwill be proposed at the forthcoming Annual General Meeting. This report (incorporating the directors, report and the strategic report) was approved by nd the Board of Trustees and authorised for issue on 22 October 2025 and signed on its behalf by: Chris West Chair
THE HEARTOFENGLANDCOMMUNITYFOUNDATION {A company limited by guarantee) AUDITOR'S REPORT 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 2025, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, includingsignificant accounting policies. Thefinancial reporting frameworkthat has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK8nd Republic of Ireland (United 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 2025, 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 Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Internation81 Stan(Jards on Auditing {UK) (ISAS {UK)I and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial st8tements 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 financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded thatthe trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's 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. 16
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) AUDITOR'S REPORT YEAR ENDED 31 MARCH 2024 Other information The other information comprises the information 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 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. 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 obtainecl 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 this gives rise to a m8teri81 misstatement in the financial statements themselves. If, based on the work we have performed. we conclude thatthere is a m8teri81 misstatement of this other information, we are required to report thatfact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report, which includes the (Jirectors, report and strategic report, prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors, report and strategic report included within the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, 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 adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made. or we have not received all the information and exp18nations we require for our audit. 17
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) AUDITOR'S REPORT YEAR ENDED 31 MARCH 2025 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 14. the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the fin8ncial statements as a whole are free from material misstatement, whether due to fraud or error, 8nd to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are inst8nces of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: enquiry of management around actual and potential litigation and claims; reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significanttransactions outsidethe normal course of business, and reviewing accounting estimates for bias. Because of the inherent limitations of an audit, there is a risk that we will not detect 811 irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is availableon the FRC'S website at: https://www:frc.oig.ukllibrary/ standards-codes-policy/audit-assur8nce-an¢.-.ethic&/a.ubiJt r responsibilities-foi-the-audit/. This description forms part of our auditor's report. 18
THE HEARTOF ENGLANDCOMMUNITY FOUNDATION (A company limited by guarantee) AUDITOR'S REPORT YEAR ENDED 31 MARCH 2025 Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable 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, we do not accept or assume responsibility to anyone otherthan the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Signed: Geoffrey Cox BA FCA (Senior StatutoryAuditor} For and on behalf of Dafferns Audit Limited One Eastwood, Harryweston Road, Binley Business Park, Coventry CV32UB Date: 19
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THE HEARTOF ENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) NOTES FORMING PARTOF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1. Accounting Policies 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 memberof the charity. The address ofthe registered off ice is given in the charity information on page 3 of these financial statements. The nature of the charity's operations and principalactivities 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 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) as amended for accounting periods commencing on or after 1 January 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 102}, the Charities Act 2011. the Companies Act 2006 and UK Generally Accepted Practice. 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 are rounded to the nearest £1. 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. Incoming Resources All incoming resources are included in the Statement of Financial Activities {SoFAI when the charity is legally entitled to the income and after performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before 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 gift to the charity. Forexample, 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 st8tements for volunteer time in line with the SORP IFRS 102}. Further detail is given in the Trustees, Annual Reports. 24
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PARTOF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 For legacies entitlement is the earlier of the 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 value 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 measured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assets for investment purposes such as shares and property. It includes diviLJends, 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 as the charity's right to receive payment is established. Resources expended and irrecoverable VAT Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Foundation. The grants are accounted forwhere eitherthe Trustees have agreed to Pay the grant without condition and the recipient has a reasonable expectation that they will receive 8 grant, or any condition attaching to the grant is outside the control of the Foundation. Irrecoverable VAT is charged 8gainst the category of resources expended for which it was incurred. Allocatlon of overhead and support costs Overhead and support costs h8ve 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 resources. Charltable activities Costs of charitable 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. 25
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OFTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Support cost allocation Support costs are thosethat assistthe work 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 charity 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. Fundraising Costs Fund-raising costs are those which are incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of charitable activities. The analysis of these costs is included in note 4. Endowment funds These funds include expendable endowments which arose from grants and donations given specificallyto be held as capital unless the Trustees resolve they may be spent. It is the intention of the Trustees that these funds be maintained for the foreseeable future. Grants are funded from the income generated from the capital investments. There can be an initial period of income accumulation in accordance with the donor's wishes. Restricted funds These funds are received for specific purposes set bythe grant funders or donors. These include funds received to enable grants to be paid to beneficiaries and meet the cost of projects and. in addition, funds received towards the Foundation's operating costs in managingthose grants and projects. Designated funds These funds are unrestricted funds set aside by the Trustees for specific purposes. Investments Investments in listed securities and properties are shown on the balance sheet at their open market value. Profits and losses on sales of investments and the movements in market value are taken to the Statement of Financial Activities. Property in course of construction is valued at cost. Fixed assets and depreciation No depreciation is provided against the cost of land. Operational assets costing less than £1.000 are written off in full through the Statement of Fin8ncial Activities in the year of purchase. Depreciation is provided bythe Foundation to write off the cost less the estimated residual value of other operationalfixed assets byequal instalments overtheir usefuleconomic lives as follows: Off ice and computer equipment- 4 years 26
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEARENDED 31 MARCH2025 Debtors and creditors receivablelpayabLe within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any loss arising from impairment are recognised in expen(Jiture. Pension schemes The charity operates defined contribution pension schemes. Contributions payable in the year are charged in the Statement of Financial Activities. Tax The charity is an exempt charitywithin 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 it meets the definition of a charitable company for UK corporation tax purposes. 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 and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is suff icient with the level of reserves for the charityto be able to continue as a going concern. Financlal instruments Financial assets Basic financial assets, includingtrade and other receivables, cash and bank balances are initially recognised at transaction price. Other financial assets, including investments in equity instruments and which are not subsidiaries, associates or joint ventures, are initially measured at fair value which is normally transaction price. Such assets are subsequently carried atfairvalue and the changes infairvalue are recognised in profit and loss. Financial liabilities Basic financial liabilities, including trade and other payables. and bank loans that are classified as debt are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the eff ective interest rate method. 27
THE HEARTOF ENGLAND COMMUNITYFOUNDATION {A company limited by guarantee) NOTES FORMING PARTOF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2. Donations and Legacies Donors contributed to the following restricted funds during the period: Core Costs Dlstrlbutable Grants Total 2025 Total 2024 High Sheriff of Warwickshlre 583 583 1,191 International Children's Games 17,562 17,562 13,376 JLR Solihull Employees Charity Fund 881 881 787 Leamington Fund 1,981 1,981 2,351 PSA Peugeot Citroen 73.553 73,553 70.050 R Medwell 2,000 WindsorAcademyTrust Community Foundation 14.808 14.808 9.354 Women and Girls Fund 3.466 3,466 73,553 39,281 112,834 99,109 Donations in kind During the financial year PSA Peugeot Citroen Istellantisl again provided off ice 8ccommodation and facilities free of charge to the Foundation. The estimated value of these benefits is £73,553 (2024: £70,050) has been reflected in the Statement of Financial Activities as a donation and as support costs within the restricted core costs. 28
THE HEART OF ENGLAND COMMUNITY FOUNDATION {A company limited by guarantee) NOTES FORMING PART OFTHE FINANCIALSTATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 3. Income from Grant Contracts Core Costs Dlstrlbutable Grants Total 2025 Total 2024 29th May 1961 Charbiable Trust 19.500 19,500 24.000 Blrmingharn Fairer Future5- Citwiide 166.917 1.645,082 1.811,999 Birmingham Fairer Futures- Locèllty 96,099 819.333 915,432 Building Belter Opportunities Fun 19,7011 Breaihe BetterAir Fund 122.7291 122.7291 79,166 BretMertoTh 3.000 Brisioland West 598 Care Leavers Fun(J 2.500 25.000 27,500 Community Energywarwickshire 1.670 15,034 16,704 8.109 Community Environmefit Fund 48,651 486.596 535.247 466,163 Coventry Building Society Covenirycommunity Fund 83.064 91,603 88.324 7.750 DCMS Cosi ol Living Fund 116.7541 Deutsche Bank 2,000 18,000 20.000 30.000 Dulverton Trust 11,033 99,299 110,332 110.332 Greggs Foundation 19,800 Gowlings 11,000 Helping Hearts 30,000 30,000 IM Communlty Fund 10,000 loo,000 iio.000 199,500 Inclusive Communities Fund 687.143 4,727,946 5.415.089 7.412,552 Income Maximisation Fun(J 60.325 60J25 994,424 Kinghurst FuTrd 19,7001 19,7001 10.000 Xnowyour Nel8hbourhood 36,167 10,750 46.917 1,204,401 Love my Kere51eyCommunity 118.2001 NHS- Small Gfanis 6.471 2.623 9,094 72,049 NNS- BirminEham CItyCouncil 34,460 391,000 *125,460 434,085 NNS Mlcrogranis 2,000 20.000 22,000 Orbit- Individual Grants 1441 Orblt Extension Hardship Fund 102,645 Orbit Furnish Homes 111.5761 Orbll HardshipTrust 136.6831 29
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by Euarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 Core Costs Dlstrlbutable Grants Total 2025 Total 2024 Peddimore Fund 2.250 2.250 27,750 PHP Fund 95,000 Positive Futures 10,000 90.000 loo.000 92.500 Solihyll Cornmunity Building5 25,000 258,720 283.720 Solihull Fairer Flrtures Fund 15,283 23,283 208,000 Solihull Hong Kong Fund 30,000 Solihullwarmwelcome Hub Fund 55,243 Solihullwinter Support 5,000 50.000 55,000 Sl George Earl 2.800 25,200 28.000 The David East Fund 18.000 Tipion Education Fund 1.300 11.700 13,000 13.500 Together in Solihull Afghan Fun 19.929 Together in Solihull Asylum Seekers Fund 360 4.500 19.929 Together in Solihull Ukraine Fund Warwickshife Countycouncil Social Fabric Fund 960 12,000 12,960 49.805 67,120 1,240.000 1,307.120 1.327.120 Wesleyan 49,594 847.100 896.694 852,610 WMCA Green Grants 82.077 82.077 261,052 Women and Girls Fund 30,000 11.127,378 30.000 12,473,737 1.346,359 14,253,378 30
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PARTOF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 4. Fundraising Costs Unrestrlcted Restricted Tolal Total 2025 2024 Staff Costs (Note 71 Other costs 61,595 10,095 61,595 17,170 78,765 47,321 13,124 60,445 7,075 7,075 71,690 5. Grants Total Tolal 2025 2024 Gfants awarded- restricted funds Grants awarded- designated funds 10,559,159 1,000 1.311,157 300 10,560,159 1,311.457 For f ull details of grants awarded during the year please visit our websile to download our'Grants Making & Social Investment Report 2024125, 81 www.heartofengiandcf.co.uk 6. Support Costs Total Total Granis Admlnistraiion 2025 2024 Staff costs 314,812 475 263,967 8,640 578,779 9,115 18,534 3,837 13,528 7.188 502.966 28,056 8,165 1,673 11,509 5.638 1.919 Recruitment PR and advertising Training and conferences Subscriplions Tiavel and SubSienCe 10,081 2,087 1,750 13,528 3,278 3.910 Meeiings Printing an($ stationary Postage and telephone Office equipment Legal anis Professional Fees 220 457 383 3,805 6.568 3,482 25,996 2,920 21,798 6,402 47,794 36,835 3.910 3.279 7,189 Rent and raies 4.412 4.412 5,178 Fixed asset depreciation 370 310 680 360 Office actommodation and Facililies Isee note 21 Sundryexpenses Insurance 36.159 30,319 447 66,478 981 64,026 793 534 546 458 1.004 407.451 359,714 767,165 687.185 31
THE HEARTOFENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 The Support costs are incurred from the following funds". Total Tolal 2025 2024 Unreslricted General Fun(i 700,447 66,478 240 617,056 70.050 79 Restricted Core Fund Restricted Grant Fund 767,165 687,185 7. Staff numbers and costs The average number of persons employed by the Foundation during the period was 16 {2024- 141. The full-time equivalent number of employees was 15 (2024- 12) and the aggregate payroll costs were as follows: Total Toial 2025 2024 Salaries 551,285 468,589 3,844 48,058 29,796 Agency staff costs Social security costs Other pension cos15 51.732 37.357 640.374 550,287 Support costs Isee note6 Fundraising cosis lsee note 41 578,779 61,595 502.966 47.321 640.374 550.287 The number of employees earning over £60,000 per year (including benefits) in the period is as follows: 2025 2024 No No £70,001-£80.000 £80.001-£90,000 8. Trustees, and key management personnel renumeration and expenses The charity considers its key management personnel as Tina Costello OBE. The total amount of employee benefits {including employers Nll received by key management personnel is £101,93512024: £94,636). 32
THE HEARTOF ENGLAND COMMUNITY FOUNDATION (A company limited by guarantee) NOTES FORMING PARTOFTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 The Trustees did not receive any remuneration during the year {2024: £nil). No expenses were claimed during the year (2024: Nill. Third party related transactions The charity paid £11,286 {2024: £20,984), to Adecs Limited, 8 company related Amrik Bhabra. a former trustee, for IT services. The charity paid £2,398 (2024: £8,820) to Wright Hassall LLP, a company related to Lucie Byron, 8 former trustee. 9. Governance Costs Total Total Unrestrlcted 2025 2024 Statutory auditfees 12,000 12,000 12.000 12,000 12,000 12.000 The auditor's remuneration amounted to an audit fee of £12,000 (2024: £11,700) and other services of £nil (2024: £300). 33
THE HEARTOF ENGLAND COMMUNITY FOUNDATION {A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 10. Transfer between funds Core Costs Endowment Fvntts General Designated Grants Transfer of Designateij to Grants 1174,4561 174,456 Translei ol Unresirlcied ioGrants 160,0001 60.000 Transfer of Grants to Unresiricied 500 15001 Transfer from Unresiricted to Designaied 1407,5001 407,500 1487,0001 233.044 233,956 11. Tangible Fixed Assets Freehold Computer Tolal Total Pvoperty Equlpmeni 2025 2024 Cost l April 2024 Additions 1.192,200 28,900 1,221.100 1,212,471 8,629 31 March 2025 1.192,200 28.900 1.221.100 1,221,100 Depreciaiion IApril 2024 26.321 26,321 25.926 Charge foryear 752 752 395 31 March 2025 27,073 27,073 26.321 Net Bookvalue 31 Ilarch 2024 1.192.200 2.579 1,194,779 1.186,545 Net Book value 31 March 2025 1.192.200 1.827 1,194,027 1.194.779 34
THE HEARTOFENGLAND COMMUNITYFOUNDATION (A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12.2 Investment Properties South Blrmlngham Plopertles Small Barn Large Barn Total Total 2025 2024 l Aprll 2024 177,000 1,065,000 340,000 1.582.000 1.582,000 A(Sditions 5.008 5,008 G3inslllossesl 31 March 2025 182,008 1,065.000 340.000 1,587,008 1.582.000 Higtorical cost 95,519 908,650 340,0( 1.344.169 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 value of the underdeveloped land and properties donated was estimated bythe Trustees at £85,000. Both barns were revalued at 31 March 2023 by Roger Stanway FRICS of Holt Commercial, Chartered Surveyors on the basis of fair value. The South Birmingham Investment Property was transferred to the Foundation at a valuation of £340,000 on 28" February 2023. 13 Debtors Total Total 2025 2024 Traée Debtors 218.520 155.718 Accrued Income 851.953 1,557,531 1.070.473 1.713,249 Prepayments 10,421 5,248 1,080,894 1,718,497 36
THE HEARTOFENGLANDCOMMUNITYFOUNDATION (A company limited by guarantee) NOTES FORMING PART OFTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 14 Creditors Amoyntsduewlthln one year Total Total 2025 2024 Tratte creditors 71.927 40,894 Unpaid grants Deferred Income 1,679,709 7,155.659 75.803 150.507 Employees tax and socialsecurity VAT 12.787 13,268 66,936 37.746 Staff pension scheme contribution 3,937 3.714 1,911,099 7.401,788 Accruals 39,897 76,467 1.950,996 7.478.255 Amounis Oue e1 oneyear Unpaid granis 516.118 15 Deferred Income Toial Total 2025 2024 IsiApril 2024 Ad¢iiions 150,507 20,733 122.834 280,972 Released io SOFA 1197,5381 1151,1981 31" March 2025 75,803 150.507 Deferred income has arisen as a result of rental and other income being received in advance. 37
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THE HEARTOF ENGLAND COMMUNITY FOUNDATION {A company limited by guarantee) NOTES FORMING PART OFTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18 Designated Funds GalnslLos5es on Investments 315t Maich 2025 IstAprll 2024 In¢om• Expenses Transfeis BBO Provislon 107,841 107,841 Heart ol Engtsnd Fund 286.491 11,0001 100,003 385,494 South Birmingham Friends Fund 26.987 17.472 144,4591 Youell Family Fund Inclusive Comrnuniiies Fund 764,575 15.8401 115.7981 742.937 55.$00 55.500 Technology Fund 17,000 17,000 Pfoperty Maintenance Fund 15,000 15,000 BuFldingBetter Lives Fund 50,000 50.000 Dudley Community Fund 40.000 40,000 1,185.894 17,472 16.8401 115,7981 233,044 1.413,772 The Youell Family Fund is a Legacy from the18te Alfred Youell MBE. The BBO Provision fund represents an amount set aside to cover any clawback from the BBO programme in the tuture. The Heart of England Fund is a fund set up by the Trustees that can be used for immediate need in the communitythat the Charity could support. The SBFI Fund is an amount set aside for future grant making. The Inclusive Communities Fund represents future costs committed to the contract. The Technology Fund is an amount set aside for IT development and new systems. The Property Maintenance Fund is an amount set aside for the upkeep and maintenance of the SBFI properties. The Building Better Lives Fund is a fund set up to provide support to prevent homelessness. The Dudley Community Fund is a fund set aside for activity in underserved areas. 43
THE HEARTOF ENGLANDCOMMUNITYFOUNDATION (A company limited by guarantee) NOTES FORMING PART OFTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED31 MARCH2025 19 Analysis of fund balances between net assets General Funds Designated Funds Restricted Funds Endowment funds Total funds 2025 Tangible Fixed assets 9,027 1,185,000 1.194.027 Investrnents 345,530 744,092 19,343,903 20.433,525 Bank and cash balances 1.360.325 670,836 5,405,712 356,155 7,793,028 Debtors 135,146 945,748 1,080.894 Creditors 1261,8971 11,156 12,194,420) 19,6411 12,467,114> 1,588.131 1.413.n2 4,157.040 20,875,417 28,034.360 20 Reconciliation of net income to net cash flow from operating activities 2025 2024 Nei incorne foryear Dwidend received Rents received from investment propertie5 Inierest receivable Depreciation and impairtnèni of tangible fixed assets IGainslllosses on Investments Receipt ol endowmeni Ilncreaselldecrease in deE)tor5 Inciease Ildecreasel in creditors Nei cash flow frorn opeiating activities 1,385,156 1526,3451 1121,3191 1237,5181 752 479.969 13,9111 637,603 15,011,141) 13.396,7541 3,066,799 1475,5871 1124,7391 1174,0451 395 11,673.7041 1393,7981 11,186.1291 6,966,435 6,005,627 Analysis of Net Debt 1" April 2024 Cashflow 31" March 2025 Cash and cash equivalents 10,056.354 12,263,326) 7,793,028 21 Control Relationships The Board of Trustees is ultimately responsible for the control of the Charitable Foundation, 22 Taxatlon The Foundation is a registered charity and its activities are such that no liability to Corporation tax arises on its results for the year. 23 Members, Guarantee Every member has agreed that, if the charity is dissolved, while he or she remains a member or within twelve months afterwards. to contribute up to £10 towards the cost of dissolution and the liabilities of the charity. 44
THE HEARTOFENGLAND COMMUNITYFOUNDATION {A company limited by guarantee) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 24 Penslons and Post Retlrement Beneflts Def ined contribution pension plans- The charity contributes to the money purchase pension plan for its employees, The amount recognise(I as an expense in theyearwas £37,35712024: £29,796). 25 Financlal Instruments The carryingvalue ofthe charity's financial instruments Flnan¢lalAs$ets 2025 2024 Measured atfairvalue through nei incomelexpend1lu'. Fixed asset investments Inoie 121 18.846,517 19.575,829 Measured at amortiseu ¢ost'. Barn reni receivable 3.828 25.493 The income, expenditure, net gains and net losses attributable to the charrty's financial instruments are as follows: 2025 2024 Netg•lns and losses Financial assets measured at fair value through net incomelexpenditure 1479.wl 1,673.7041 26 Operating Leases- Lessor Total future minimum lease payments collectable under non-cancellable operating leases: 2025 2024 Wlthin one year 1-5 years Moreihan 5years 94,300 212,000 60,000 366,300 16.050 72,900 75,000 163,950 The Foundation lets the large and smallyouell Barns and the SBFI properties. The small barn lease was renewed during 2023-24 for a period often years. The large barn lease was renewed in March 2025 for a period of f ive years subject to a three-year break clause. The SBFI pioperties are subject to individual agreements which are reviewed annually. 45