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2021-03-31-accounts

Annual Report and Financial Statements 2020/21

Groundwork London

(A company limited by guarantee) 18 – 21 Morley Street London SE1 7QZ

Registered Charity No. 1121105 Registered Company No. 04212532 (England and Wales)

Contents

Page
Report of the Trustees 3
Chair’s Report 4
About Groundwork 5
Objectives and Activities 6
Public Benefit Statement 6
Strategic Report 8
Achievements and Performance 8
Financial Review 13
Future Plans 2020/21 14
Principal Risks and Uncertainties 17
Reference and Administrative Details 19
Structure, Governance and Management 20
Statement of Trustees’ Responsibilities 23
Independent Auditors’ Report 24
Consolidated Statement of Financial Activities 28
Charity Statement of Financial Activities 29
Consolidated Balance Sheet 30
Charity Balance Sheet 31
Consolidated Cash Flow Statement 32
Charity Cash Flow Statement 33
Notes to the Financial Statements 34‐54

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Report of the Trustees for the year ending 31 March 2021

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charitable company and its subsidiaries for the year ending 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Groundwork London’s operational focus is primarily on London; the City of London and the 32 London Boroughs. Groundwork London is also the sole company member of Groundwork South whose operational focus is on the South East and South West regions of England, and that part of the District of Three Rivers within the Colne Valley Regional Park. Where specialist services are required, these are delivered across both Trust areas by specialist teams.

Both Trusts have a Board of Trustees who are principally responsible for the strategic oversight and governance of Groundwork activities within their operational areas. Each Trust has its own business plan defining the activities it plans to deliver in its area of operation. Each Trust will produce an Annual Report and Financial Statements. This report includes the consolidated financial statements of Groundwork London and its subsidiaries, details of charitable activities within the two operation areas will be described separately within each company’s annual report.

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Chair’s Report

2020/21 will always be the year that saw the beginning of the COVID‐19 pandemic, it was also the year the UK left Europe. The long term impacts of these world and life changing events remain unclear.

2020/21 was an extraordinarily challenging year for us all.

Groundwork London works with communities across the capital to transform their lives and the places they live. We are operating in a city facing great social and environmental challenges, which have been further compounded by the impacts of the COVID‐19 pandemic.

Over 2 million Londoners are living in deprivation, with many struggling in areas such as unemployment, social stress and inequality, health and wellbeing, food and fuel poverty, environmental quality, and the impacts of a changing climate.

Our work supports these diverse and vulnerable communities to find practical, long‐term solutions to many such challenges. Last year we delivered over 490 projects that were tailored to the needs of the communities they served. It’s a testament to the people of our city that during such a difficult year we saw tens of thousands of volunteers stepping forward to work alongside us, mutual aid groups rapidly growing in numbers, and the steady rise of the younger generation leaning in and taking the lead in social and climate action.

This is, of course, where the strength of our approach lies: in the relationships we build and maintain. That is why people have, and always will be, at the heart of our work. We would not be able to deliver real and lasting change for London’s most disadvantaged communities without the support and commitment of our funders and partners across the public, private, and voluntary sector, and within the communities themselves.

We offer our sincere thanks and appreciation to our staff, trustees, partners, and volunteers for all the hard work and passion they continually give to everything they do. It reminds us that we all share a vision for the future: where every Londoner can thrive and benefit from a greener, safer, healthier, and more equitable city.

We are pleased to present our 20/21 Annual Report, demonstrating the difference we’ve made to the lives of thousands of Londoners in what was a particularly challenging year for us all. As a member of the Groundwork Federation, we are proud to support our neighbouring Trust Groundwork South as our wholly owned subsidiary. Groundwork South has changed significantly in the last two years to ensure efficient and effective delivery of high quality services across the South East and South West of England, and will present its own Annual Accounts.

Whilst we take this time to reflect on our successes to date, it’s important to also look towards the future. We know that the impacts of COVID‐19 have been immense and will be felt for many years to come, and that the poorest of our communities will be the most greatly affected.

We will continue to create and deliver services to meet the changing needs of London and its most in need communities, by working to three key strategic objectives:

We thank you all and look forward to working with you.

Alan Smith Chairman

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About Groundwork

Vision

Our vision is of a society of sustainable communities which are vibrant, healthy and safe, which respect the local and global environment and where individuals and enterprise prosper.

Mission

Our mission is to transform lives and places in communities in need.

Our core values :

Our Approach

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Objectives and Activities

Charitable Objectives

Groundwork London’s charitable objectives are set down in its Articles of Association, they include:

Strategic Objectives

To deliver our charitable objectives we:

Public Benefit Statement

All Groundwork London’s activities contribute to the achievement of our strategic aims & objectives and are undertaken to further our charitable purposes for the public benefit. Our main activities and who we try to help are described below. We review our aims, objectives and activities each year in the Business Planning process. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are established to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Grant Making Policy

The Trust administers applications for various grants schemes on behalf of partnerships with local authorities and other Public Agencies. The Applications are reviewed against specific criteria and business objectives, which are set out by the grants panels and awarded to constituted groups.

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Strategic Report

Working with Groundwork South

Groundwork London is a member of the Groundwork Federation, together we are working locally and nationally to transform lives in the UK’s most disadvantaged communities. In 2017 Groundwork London agreed to provide financial support and to become the sole company member of Groundwork South, to enable the Groundwork South Trust to continue to deliver Groundwork services in areas of need.

Groundwork South continues to operate with its own identity, its own geographical focus and with its own Board of trustees as an independent charity and company limited by guarantee. We are proud to support the Trust which has undergone significant change to ensure the effectiveness and efficiency in its operations whilst continuing to deliver high quality services across the South East and South West of England.

In future years, Groundwork South will continue to operate as an independent Trust, and will benefit from both Trusts working together through executive, finance and support services functions. Groundwork South, does not currently deliver all ‘Groundwork services’ across its area, in future, highly specialised services will be provided with leadership from Groundwork London whilst delivery will continue to be embedded in local areas; and delivered by the Groundwork South team.

Groundwork South has produced its own annual accounts and business plan for 2020/21. Their annual report and accounts demonstrate the considerable contribution the Trust is making to Changing Places and Changing lives in the South East and South West of England.

Financial Review

Groundwork London has determined to voluntarily provide a Statement of Financial Activity for 2020/21, as well as the required consolidated accounts for Groundwork London and Groundwork South (as its wholly owned subsidiary) for the same period.

The consolidated statement of financial activities for Groundwork London and for Groundwork South for the year ended 31st March 2021 shows a total income of £20.960m. The consolidated balance sheet shows total Funds of £11,168m of which £3.707m is designated and restricted reserves.

Groundwork London’s subsidiary, Groundwork South, has a deficit at 31 March 2021 of £475,685. Groundwork South made financial losses in the years in and prior to 2018/19. Following a restructure of governance and management in 2018, GWS is now operating at a surplus with £79,537 confirmed in the statutory accounts for the year ending 2019/20 and £8,952 in 2020/21. This has reduced the balance sheet deficit to £475,685. GWS targeted a modest surplus in 20/21 and despite COVID‐19 the accounts for the year ending 31 March 2021 show slightly higher than a break even position. GWS is committed to retaining surpluses until GWS has 180 days of unrestricted reserves which we estimate will take 5 years. As explained in the Trustee Report, by virtue of the loans from GWL, GWS continues to operate as a going concern.

The remainder of this Strategic report focuses on Groundwork London.

Related Party Transactions

The Trust is supported by Groundwork UK and the national Federation of Groundwork Trusts and has strong links and collaborative working arrangements with other Trusts within the Federation. Each Trust is an independent charity, but they all share a similar ethos. Each Trust is responsible for its own management and administration, and for developing and delivering projects, that meet its objectives and core purposes.

The SORP determines that a charity is not necessarily related to another charity simply because a particular person happens to be a trustee of both. It will only be related if one charity subordinates its interests to the other charity in any transaction because of this relationship. The Federation of Groundwork Trusts and other Groundwork Trusts are therefore not considered to be related parties under the definition of the therefore not considered to be related parties under the definition of the SORP and the grants made by the Federation to individual Trusts do not require separate disclosure.

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Strategic Report

Groundwork London’s principal focus is on delivering activity to meet the needs of London and Londoners.

Achievements and Performance

Groundwork was established thirty five years ago at a time of political, social and economic challenge as an experiment to help communities find their own answers to the problems they face. Today we face a myriad of similar, emerging and new challenges where the need for Groundwork services and support is even more critical. 2020/21 will always be the year that saw the world changing events of the COVID‐19 pandemic, the impacts of which are hard to predict and for how long will it have influence is unknown. It was also the year the UK left Europe and the impacts of this, either positive or negative are still emerging. 2020/21 was a challenging year for us all.

Yet, in the face of all that, our staff teams have worked relentlessly to deliver much needed services to communities in need. With London’s population at 8.9 million and with the number of Londoners living in poverty at around 2.5million, these hugely diverse and vulnerable communities have faced the greatest impact of COVID‐19. Last year we responded by delivering almost 500 projects targeting the most disadvantaged, hardest hit communities constantly adapting and amending our ways of working in response to government restrictions and addressing the health & safety needs of our staff team.

Our work was delivered in partnership with Local Authorities, Housing Associations, London regional agencies, the private sector and other voluntary organisations. We have progressed positive working relationships within the London Boroughs of Haringey, Camden, Croydon, Barnet, Brent, Islington, Hammersmith & Fulham, Ealing, Hounslow, Wandsworth, Lambeth, Southwark, Lewisham, Newham, Hackney, Waltham Forest, Enfield, the Royal Boroughs of Kensington & Chelsea, Kingston‐Upon‐Thames and Greenwich, and the City of Westminster.

We delivered 41 projects involving Housing Association partners last year, reflecting the needs of residents supported by Housing Associations. Our plans to continue building new and strengthening existing relationships with corporate partners, largely through the employee volunteering route, were significantly affected by the COVID‐19 lockdown. Our employee volunteering programmes had to be put on hold and as a result our interactions with our corporate partners was limited, other than developing an ‘at home’ employee engagement substitute by developing the Groundwork eco‐challenge – a series of fun and educational environmental tasks that are undertaken whilst employees were working from home.

We continued to build on productive relationships with regional bodies and in particular the Greater London Authority (GLA), delivering 26 programmes involving regional agencies. As part of our strategic work, we continued to serve on the Cross River Partnership Board, the All London Green Grid Steering Group and our Community Interest Company – Our ParkLife with Engie, Renaisi and Idverde.

Internally, we delivered a number of business performance and improvement measures. We retained our environmental management standard ISO14001 which we have held since 2008; and maintained our Health & Safety standard CHAS; and Achilles which covers Quality, Health & Safety, Environment and Corporate Social Responsibility. We have also retained our Matrix accreditation in recognition of the advice and guidance we offer our trainees and volunteers; and we have maintained our Volunteer Centre accreditation and Investors in Volunteering accreditation.

With COVID‐19 resulting in almost all staff working from home for the majority of the year we needed to develop new ways to connect and engage with each other across the Trust with formal and informal online meetings to enable us to communicate about projects and as a forum to listen to and understand our team and individual colleagues needs. Staff launched a wellbeing notice board featuring resources such as the Groundwork Employee Assistant Programme with helplines, counselling, online resources and contributed articles and photos about their work and interests to our new staff newsletter. Around 40 colleagues put themselves forward to train as Mental Health First Aiders and have now established a mental health first aid network to support both our staff and beneficiaries. We have also provided mental health awareness training to many senior managers and other staff across the Trust with over a 100 completing the course and being issued with resources to use going forward.

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In 2020 we embarked on the development of our new Groundwork London 2025 strategy through Trust wide engagement seeking the input, views and ideas from Trustees and our colleagues across the organisation. This process began with our teams sharing the work they deliver through a series of 13 ‘spotlight’ sessions. The spotlight sessions provided deeper insight to our wide ranging services and provided the platform for discussing our strategy for delivering services to Londoners over the next 5 years. The outcome of this work underpins our Business Planning for the next 5 years and is reflected in the future plans section of this report.

It also led to the establishment of 3 Task and Finish groups, focused on ‘Recruitment, Training & Development and Induction’. Colleagues from across all teams put themselves forward and came together over a period of 5 months to work on the development of these three areas for the benefit of the whole organisation. With the thread of equity, diversity and inclusion running through the task group thinking, this has led to changes in processes, communications and practices. The work doesn’t end there with the groups identifying further actions in particular in relation to the development of staff induction programmes and Training & development and monitoring the success of our recruitment which will be taken forward in 2021/22.

We identified through our EDI monitoring that people with disabilities may be underrepresented (with a large number of staff not declaring a disability). We have responded to this by becoming recognised as Disability Confident Committed, ensuring our recruitment is inclusive and accessible, communicating recruitment aimed at encouraging diversity through targeted advertising and review of job descriptions and criteria, as well as offering interviews to disabled people in line with the disability confident scheme. We are active in providing reasonable adjustments to optimise the potential of both our current staff team and future employees. Through our ACE programme we have also been able to offer work trials within Groundwork London and this has led in a number of cases to longer term paid employment.

From a financial perspective 2020/21 was no less challenging as our staff teams renegotiated and renegotiated again our contracts and output requirements with various funders, this was an ongoing process throughout the year as COVID‐19 restrictions changed and changed again. We continued to operate our financial management on the basis of full cost recovery achieving our target staff utilisation rate of 84% and maintaining total indirect staff and overheads at 9% of total income.

We continued to make the most of revenues from property rental income and applying these valuable resources to new programme innovation and development.

We have delivered an incredible range of work during the year despite all the challenges of the pandemic, our achievements described below are a result of exceptional time and effort of our colleagues across the Trust adapting to new ways of working, being innovative and determined to continue to support individuals and communities in need.

Improving people’s prospects – delivering support to increase the confidence, skills, wellbeing and employability of those furthest removed from the labour market, in particular young people.

We believe that supporting people into long‐term, sustainable work brings them the economic and social stability that can be life changing for individuals and is an important factor contributing to strong and thriving communities. This is why we deliver an extensive portfolio of employment and skills programmes in London. Through these programmes we help hundreds of Londoners every year to grow in confidence, gain new skills and take that step into work. We work with young people, people with disabilities or health conditions, refugees, and many other Londoners who are facing barriers to employment.

In partnership with our private and public sector employers we deliver training and pre‐employment programmes designed to increase the confidence, skills and overall employability of Londoner facing the greatest barriers to employment.

COVID‐19 and the resulting social restrictions have had a significant impact on our employment programmes. Engagement with new clients proved difficult without face to face contact and the majority of our funders adjusted our targets to accept this. There were fewer job vacancies for our existing clients,

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many of whom were feeling more vulnerable throughout the lockdowns. Our teams played an invaluable role in sourcing other practical support for them and supporting their wellbeing.

The learning from the innovative online delivery we developed will carry forward into future years. Later in 2020, we became directly involved in new programmes established by the DWP to support those who had lost their jobs through COVID‐19: Kickstart, a wage subsidy programme for young people; JET’s an advice and guidance programme for recently unemployed adults; and in the final months of the year we were awarded a contract within Restart, the DWP’s largest COVID‐19 response programme.

Though at a reduced level to the previous years we continued our support for young people not in education, employment or training (NEET); those at risk of becoming NEET; lone parents; the long term unemployed and ex‐offenders. Through 2020/21 we continued to deliver several specialist programmes supporting groups of Londoners who are particularly disadvantaged in the labour market. Our ACE programme which provides supported employment for long term unemployed adults with disabilities. We successfully negotiated with the funder to ensure that all our ACE clients could be protected.

In East, Central and West London, our longer running DWP funded programmes continue to provide job seeking support to individuals from complex family situations. After nearly five years, those contracts saw their last enrolments, though support for those people will continue into early 2023.

Summer 2020 should have been our first year of delivering our new National Citizen Service contracts. Working with NCS, we successfully adapted our summer programme into a blend of face to face team work and online engagement and with the resources from NCS extended a revised programme into schools. In April 2020 we had been due, in partnership with LB Southwark, to open the doors of our new Wellbeing centre for young people. Despite moving the service online we were able to establish a coaching programme for a growing number of young people suffering from poor mental health.

We continued to focus on jobs in the green economy. We launched an additional Green Team in Westminster and, in total, created a further 25 jobs for young people and adults with disabilities, in horticulture and grounds maintenance. Whilst we had to reduce capacity within Rework, our domestic appliance repair workshop, we were able to, with the support of COVID‐19 response funds and support from our corporate partners, divert our goods to people adversely impacted by COVID‐19; such as washing machines for homeless shelters and domestic refrigeration for people having to self‐isolate for long periods. In 2020, in partnership with Westminster City Council and Cycle Confident we opened a workshop and shop employing unemployed young people to refurbish bikes.

While our usual Volunteering offer paused, the nationwide lockdown saw our Volunteering Services in Royal Borough of Kingston, LB Barnet, Westminster and Waltham Forest become a central part of the COVID‐19 picture, becoming interlinked with the NHS, councils and charities who reimagined their services to create a community response. During the COVID response we supported 4,486 volunteers who provided 34,379 hours of frontline support for the shielding, community testing, food distribution, and the vaccine roll out. We also set up new services such as the Barnet Health Champions, a network over 250 local people sharing COVID health messaging to those most affected by the virus.

Promoting greener living & working – helping people and businesses learn more (about their environmental impact and act responsibly to reduce natural resource use and improve their health.

Fuel poverty continues to affect London’s most vulnerable residents, with some GLA modelling showing that it could potentially impact as many as 24% of London households. It is families with young children, the elderly and those with existing health conditions that suffer the most acute effects of this through mental stress, poor health and wellbeing.

Our home energy advisors ‐ Green Doctors transformed their services overnight changing face to face visits into an online phone based ‘virtual visit’. We provided over 4,000 visits across London last year, adding health and COVID checks and offering fuel vouchers to those in fuel debt helping people to reduce their energy bills, improve their health and wellbeing and save energy.

London’s water supplies are being stretched further and further each day as the capital’s population continues to grow. By 2050, if we keep using water as we are today, we will need an extra 250 million litres a day. One of the solutions is for Londoners to use, and waste, less water.

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At the beginning of the year Thames Water set our target of domestic water efficiency visits for 20/21 to 25,000 customers/properties, and a switch to only targeting high water users on the smart meter network. This resulted in downsizing the Thames Water domestic programme team across both London and the Thames Valley areas.

COVID‐19 saw in our home visit service replaced by virtual visits, and the delivery team supporting a number of other Thames Water work streams – in particular helping Thames Water understand the impact of office closures on London’s water balance, and signing up customers to the Green Redeem service (a reward scheme for customers continuing to sustain good water savings). By year end, we had delivered just under 13,000 domestic visits. Our ‘Smarter Business Visit’ programme was also significantly impacted by COVID‐19 with our plumbers diverted to support Thames Water on other activities, including commercial meter reads. The team achieved a total of 6ML per day water savings, largely through focusing extensively on schools during their period of closure. We also worked with Groundwork South to start a new pilot programme with South East Surrey water, again focusing of schools in their service area.

We experienced a drop in our target of domestic water efficiency visits for 20/21 to 25,000 customers/properties, and a switch to only targeting high water users on the smart meter network. This resulted in downsizing the Thames Water domestic programme team across both London and the Thames Valley areas. Covid‐19 saw in our home visit service replaced by virtual visits, and the delivery team supporting a number of other Thames Water work streams – in particular helping them understand the impact of office closures on London’s water balance, and also signing up customers to the Green Redeem service (a reward scheme for customers continuing to sustain good water savings). By year end, we had delivered just under 13,000 domestic visits across the year. Our ‘Smarter Business Visit’ programme was also significantly impacted by Covid‐19. The plumbers also supported Thames Water on other activities, including commercial meter reads, and achieved a total of 6ML per day water saving, largely through focusing extensively on schools during their period of closure. On a positive note we were able to start a new pilot programme with South East Surrey water, again focusing on schools in their service area.

The community reuse hubs, The Loops, which we set up in 2015 on the Pembury Estate and Grahame Park Estate, as part of the EU LIFE funded REPURPOSE programme continue to provide essential services for local communities. Again our services collecting unwanted furniture and household appliances from resident’s homes which are repaired, and sold on to residents at low cost, were put on hold. The Loop @ Grahame Park turned activity into local response continued to support and engage its volunteers, developing online Covid workshops and training on themes such as repair, crafts and food. Through response funding we have continued to develop our offer further creating an online shop. All the money raised from sales is reinvested into the project, to buy workshop equipment, and to provide more local events and free training.

Our REUSE activity resulted in diverting 287 tonnes of waste from landfill, which contributed to an overall saving of over 4,860 tonnes of CO2 emissions across all our activities.

Creating better places – supporting people to work collectively to make their surroundings greener, safer and healthier and be actively involved in the way decisions are made about services in their area.

Our work with communities expanded significantly during the year, supporting over 2900 community groups against our original target of 1000. This arose mainly due to our COVID‐19 response work with Local Authorities and voluntary organisations as well as the Tesco Enablers programme and Grants programmes that set out to support communities during the pandemic.

Nearly 400 projects in London were awarded close to £1m of Tesco’s Bags of Help community grants with funds targeted on children & young people projects and mental health/wellbeing support throughout the COVID‐19 lockdown periods as well as improving open spaces and bringing communities together.

The portfolio of environmental and community grant schemes we manage on behalf of our national and regional partners, supported nearly 900 projects throughout London, awarding over £9.5m to a wide range of groups. These community groups and organisations used the grants to transform forgotten places, plant thousands of trees, increase access to nature and culture, reduce social isolation, tackle hate crime and violent extremism as well as realising hundreds of life changing projects across the capital. Many grantees

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needed additional time or support to reconfigure and deliver their programmes in light of COVID‐19 restrictions.

We continued to provide support to community groups in receipt of European Social Fund monies for training and skills development, and some new grant programmes came on stream ‐ the ‘Grow Back Greener’ fund replaced the Mayor of London’s Greener City Fund and we started to manage several COVID‐ 19 recovery grants for the GLA, as well as new funding to support the regeneration around the Royal Docks.

Last year we worked with communities and funded community groups across London to make improvements to over 600 hectares of public open spaces, including public parks, playgrounds, housing estates, community gardens, hospital grounds, nature reserves, and many more of London’s valuable public open spaces.

Following on from our successful project at Ivybridge Estate, we have been commissioned to work on 5 housing estates for LB Hounslow as part of a new Housing Estate Improvement Programme (HEIP). This annual programme plans to upgrade the open spaces and public realm on housing estates in the borough to complement other major works with £620,000 for improvements to 5 estates in 2020‐21.

We have continued to deliver a significant programme of estate‐wide sustainable drainage retrofit (funded by the GLA, Thames Water and LBHF) on the White City Estate, enhancing our reputation as a leading deliverer of SUDS retrofit in the capital.

Our work continues delivering the EU Horizon 2020 CLEVER Cities Programme now in its 3rd year. Working with London partners GLA, Peabody and Social Finance, the Groundwork Clever Cities team leads on the co‐ creation programme of the Making Space for Nature which builds relationships with local stakeholders and provides opportunities for people in Thamesmead to participate in the development of greener and more socially cohesive open space and to celebrate and improve the abundance of natural resources. During Covid the focus has been creating additional tools for co‐creation to maintain engagement including a micro grants programme for local residents to transform their neighbourhood and home growing kits.

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Groundwork London Financial Review

Groundwork London has determined to voluntarily provide a Statement of Financial Activity for Groundwork London 2020/21 as well as the required consolidated accounts for Groundwork London and Groundwork South (as its wholly owned subsidiary) for the same period. The financial review of the group is described earlier in this report.

Groundwork London shows income achieved in the year of £17,067,655 with expenditure of £16,987,079.

Principal Funding Sources

Funding for Groundwork London was provided by the following sources:

Local Authorities
Public and Regional Agencies
European Union
Private Sector
National Lottery		 £
3,272,401
4,788,332
1,543,464
6,678,814
784,644
17,067,655

Reserves Policy

The Board of Trustees has agreed a long term aim of holding unrestricted, free reserves equivalent to six months’ (180 days) running costs. The Board believes this is a prudent level of reserves for a Charity based in Central London and is in line with other Groundwork Trusts.

The Board has agreed that a reasonable level of reserves is required to:

The Board monitor unrestricted reserves on a quarterly basis and the Reserves Policy is reviewed on an annual basis to assess the needs of the organisation.

At the year‐end unrestricted reserves shown in the balance sheet covered 340 days (2020: 185 days) running costs. The reserves days includes the consolidation of Groundwork South’s accounts into the Groundwork London accounts.

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Future Plans 2021/22

In line with our new strategy: Groundwork 2025, our ambition is continue to be a significant force for changing places and changing lives across London.

We will also ensure that Groundwork activity is sustained and developed across the South of England through our wholly owned subsidiary Groundwork South. Groundwork South will present its own business plan focused on the communities in South East & South West England.

During 2021/22 Groundwork London will work to the following strategic objectives:

1. Creating and delivering services to meet the needs of London and Londoners.

The value of our offer lies in the strategic combination of the services we deliver and the particular qualities we bring to them. Delivering high quality, innovative actions with multiple economic, social and environmental benefits will be central to all that we do. Our priorities are:

Improving people’s prospects – delivering support to increase the confidence, skills, wellbeing and employability of young people & adults.

Creating better places – supporting people to work collectively to make their surroundings greener, more resilient, safer and healthier; and be actively involved in the way decisions are made about services in their area.

Promoting greener living and working – helping people, organisations and businesses learn more about their environmental impact and act responsibly to reduce natural resource use; address food and fuel poverty; and improve health and wellbeing.

2. Building productive relationships and partnerships, influence and shape policies and share learning

The success of our work is reliant on building long‐term, cross sector alliances to develop collaborative business opportunities and by adding value to local and regional strategic partnerships. We will focus on:

3. Maintaining a strong, viable business, achieving excellence in service delivery

The performance of our business will be driven by increasing the quality, consistency and efficiency of our operations through investments in staff training and development, and specialist skills; by developing our ability to secure income from diverse sources; and targeting communications & marketing to key sectors and audiences. We will:

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We will also support Groundwork South to sustain and develop Groundwork activity across the South of England. We will do this via financial support in the form of loans and through leadership and management of defined specialist activities.

We will deliver:

Community spaces: Enabling community led environmental improvements to publicly accessible open spaces.

Green infrastructure: Providing technical expertise in sustainable land management and climate change adaptation. We will:

Health & Wellbeing

Encouraging physical activity, promoting healthy eating and addressing environmental causes of health problems.

Social integration

Using a community participation approach to create stronger, more cohesive communities, to improve the quality of life and opportunity. We will:

Volunteering: Brokering volunteering opportunities for individuals and organisations. We will:

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Employment and Skills: Providing personal advice and guidance, training, work experience and job brokerage. We will:

Youth work: Providing coaching and positive activities for young people to develop their life skills and fulfil their potential. We will:

Green Jobs: Providing practical work experience and training for sustainable employment. We will:

Resource efficiency: Reducing waste, energy and water consumption through advice and action. We will:

Climate Change: Ensuring our programmes and the support we provide to others mitigate the causes and negative effects of climate change. We will:

Innovation and development: Investing in new ideas and development to meet London’s changing needs. We will:

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Principal Risks and Uncertainties

The Board accepts its responsibility under the Charity Commission’s Statement of Recommended Practice (SORP) for ensuring the major risks to which the charity is exposed are identified and reviewed and that there are systems in place to mitigate against them.

The Trust undertakes an annual review of risk, the principle risks identified during the business planning process for the forthcoming year are:

Strategic planning is central to our business management, common features that will help us address these risks are:

Financial management of projects is controlled using PIMS (Project Information Management System). The Trust has strong skills within the staff teams in its effective use. Expenditure is only made on projects once income has been secured. The amount of secured and unsecured income and the expenditure and revenue on all projects is analysed on a monthly basis. Detailed management information is imported from the system to provide up to date financial and operational performance against targets.

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The Executive Team reviews income and contribution secured against business plan, team capacity and project performance together with other business information. These are also reported to the staff teams at monthly Operations and Development meetings and on a quarterly basis to the Board, to focus Trust attention on achieving Business Plan targets.

In addition to reviewing the risk register, quarterly reports to the Board monitor income & expenditure and progress towards financial targets. Detailed management accounts are examined at each meeting. The Trust submits these accounts to Groundwork Federation on a quarterly basis and is monitored on security of income and financial stability.

Financial Instruments

Groundwork London’s financial risk management objective is broadly to seek not to make losses from exposure to any interest rate or currency fluctuations. In the year 2020/21 we have had no exposure to these fluctuations. Our policy has been to finance fixed assets through retained reserves. Other than bank charges, no interest is payable on our bank accounts.

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Reference and Administrative Details

Registered Company number Registered Charity number 04212532 (England and Wales) 1121105

Registered office of the company and principal office of the charity 18‐21 Morley Street, London, SE1 7QZ

Our advisers

Auditors Hartley Fowler 4[th] Floor, Tuition House, 27/37 St George’s Road, London, SW19 4EU Bankers Lloyds Blackheath Branch, PO Box 1000, BX1 1LT Solicitors Bates, Wells & Braithwaite 61 Charterhouse Street, London EC1M 6HA

Key management personnel: Directors and Trustees

The directors of the charity are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Co‐opted Alan Smith (Chair 1/4/14) Graham Beal Dan Davidson Phil Stokes Keith Taylor Sophie Taysom Bradley Pritchard Lanre Bello Sadaf Rasheed Tom Leake John Smith

Groundwork UK nominee Marilyn Baxter Local Authority nominee Susan Wise

Company Secretary

appointed 20/02/2012 appointed 10/03/2014 appointed 08/05/2014 appointed 17/07/2014 appointed 20/03/2017 appointed 20/04/2020 appointed 28/09/2020 appointed 28/09/2020 appointed 28/09/2020 appointed 28/09/2020 resigned 28/09/2020 appointed 20/03/2017 appointed 01/06/2015 Stuart Harrison

Key management personnel: Senior Managers Executive Director Director, Finance & Corporate Services Director, Communities & Environmental Services Director, Youth, Employment & Skills Director, Development & Strategic Partners

Lindy Kelly Stuart Harrison Katrina Baker Graham Parry Ben Coles

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Structure, Governance and Management

Structure

Groundwork London is a registered charity and company limited by guarantee and is governed by its Articles of Association. Groundwork London was registered as a limited company on 8[th] May 2001 under the name Groundwork London Partnership and changed its name by Special Resolution to Groundwork London on 10[th] September 2007. On 1[st] November 2007 Groundwork London merged with Groundwork Southwark & Lambeth, Groundwork South East London and Groundwork Merton. On 1[st] April 2008 Groundwork London merged with Groundwork West London and incorporated the London activities of Groundwork Federation (non‐legal incorporation). Groundwork North and Groundwork East London transferred as mergers on 1[st] April 2009.

Groundwork London is a member of the Federation of Groundwork Trusts in England, Wales and Northern Ireland, each working with partners to improve the quality of the local environment, the lives of local people and the success of local businesses in areas in need of investment and support. The Federation Membership Agreement is a bilateral agreement jointly signed by both the Trust and the Federation, setting out the obligations, defining the minimum quality and ethical standards, setting out the core values and defining the circumstances and procedures whereby Trusts may be required to leave the Federation.

Groundwork London became the sole company member of The Groundwork South Trust Ltd on the 14[th] March 2017. Groundwork South continues to operate as an independent company with its own Board.

The Members of Groundwork London

The company members are the Federation of Groundwork Trusts, Dan Davidson, Eugenie White, Alan Smith, Cate Newnes‐Smith, John Smith and Susan Wise.

Governance

As Groundwork London has evolved so has our Governance ensuring that it is both relevant and effective as well as being resilient to future changes in our operating environment.

Board of Trustees

The Governing body of the Trust is the Board of Trustees. The Board is responsible for major strategic decisions and has ultimate responsibility for the conduct and financial viability of the organisation, it meets formally four times a year. The Board comprises of not more than 15 Directors of whom not more than 6 are either nominated or appointed and 9 co‐opted Trustees:

Trustees generally serve in terms of between 12 months and 3 years and can be reappointed by the Board. The Board has an agreed strategy to enable Board succession to occur on a rolling basis. The Board began a recruitment process in 2020 to fill vacancies and to meet its identified diversity needs. New Board members joined later in 2020.

Committees

The Board has established a number of committees:

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Induction & Training

New members of the Board of Trustees are provided with the Groundwork London Governance handbook and other key documents and have an induction meeting with the Executive Director. The induction includes an overview of the objects of Groundwork London and its Vision and Mission, the structure, its staff and volunteers and finance. Trustees are also encouraged and supported in visiting projects.

– Community Interest Company Our Parklife

Our Parklife was formally constituted in September 2014 by company members; Equans (previously known as Engie prior to name change); Groundwork London; Renaisi and Idverde (previously known as The Landscape Group prior to acquisition). Engie UK appoint two members to the Board and all other members appoint one Director. Groundwork London’s has appointed two Directors who alternate, they are Graham Parry (Director, Youth, Employment & Skills) & Ben Coles (Director, Development & Strategic Programmes).

The objects of the Company are to carry on activities which benefit the community and in particular (without limitation) to promote the social, economic and environmental well‐being of residents in the boroughs immediately surrounding the Queen Elizabeth Olympic Park in Stratford by providing opportunities in the Park:

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Management

The Board delegates day‐to‐day financial and managerial control of the organisation to the Executive Director. The Executive Director, together with the Executive Team, meets monthly to discuss the operational and financial status of the Trust.

Groundwork London’s professional team continues to evolve in response to changes to our organisational structure and changes to the scale of the activities across each of our thematic areas and the needs of our business operational requirements. The framework within which our teams are organised are guided by the following principles:

Projects and programmes continue to be delivered by local teams, with management organised through area management structures and specialist service. At the end of the 2020/21 we had 255 FTE employees.

----- Start of picture text -----
Lindy Kelly
Executive Director
Katrina Baker, Director Graham Parry, Director Ben Coles, Director Stuart Harrison,
Communities & Youth, Employment & Development & Director
Environmental Services Skills Strategic Programmes Finance & Corporate
Services
 Communities &  Employment & Skills  Development &  Marketing &  Finance
Volunteering services Training services Fundraising Communications  Administration
 Landscape Design  Youth Services  Grants Management  EU initiatives  Property
Services  REUSE services  Corporate  IT
 Geospatial and data Partnerships  HR
services  FBCE services  Training &
 Environmental Development
Services
 Social Prescribing
----- End of picture text -----

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Trustees’ responsibilities in relation to the financial

statements

The charity trustees (who are also the directors of Groundwork London for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 other jurisdictions.

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

By order of the board of trustees

............................................. Alan Smith ‐ Trustee

Date: 20[th] September 2021

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Independent Auditor’s Report

to the members of Groundwork London

Opinion

We have audited the financial statements of Groundwork London (the 'parent charitable company') and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the

24 of 54

Independent Auditor’s Report

to the members of Groundwork London (continued)

other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual report, including the strategic 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:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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 group's and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during the audit.

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Independent Auditor’s Report

to the members of Groundwork London (continued)

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non‐compliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the charitable company operates in. The key laws and regulations we considered in this context included the Charities Act 2011, UK Companies Act and tax legislation.

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty.

As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non‐compliance with laws and regulations.

Our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non‐compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

26 of 54

Independent Auditor’s Report

to the members of Groundwork London (continued)

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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

Jonathan Askew, FCA (Senior statutory auditor) for and on behalf of Hartley Fowler LLP Statutory Auditor Chartered Accountants Fourth Floor, Tuition House 27/37 St George’s Road London SW19 4EU

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Consolidated Statement of Financial Activities for the year ended 31st March 2021, incorporating the Income and Expenditure account

Notes
INCOME
Investment income
3
Income from charitable
activities
4
Total Income
EXPENDITURE
Cost of raising funds
5
Charitable activities
6
Total expenditure
Net income before gains/
(losses) on investments
Net (losses)/ gains on
investment properties
14
Net gains / (losses) on cash
investments
18
Net income
Transfers between funds
23
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD
23		 Unrestricted
Funds
£
348,195
13,907,359
14,255,554
246,565
14,044,656
14,291,221
(35,667)
375,000
341,196
680,529
130,195
810,724
8,795,468
9,606,192		 Restricted
Funds
£
‐
6,705,295
6,705,295
‐
6,580,100
6,580,100
125,195
420,283
‐
545,478
(130,195)
415,283
1,146,763
1,562,046		 31.3.21
Total Funds
£
348,195
20,612,654
20,960,849
246,565
20,624,756
20,871,321
89,528
795,283
341,196
1,226,007
‐
1,226,007
9,942,231
11,168,238		 31.3.20
Total
Funds
£
403,845
24,383,964
24,787,809
308,521
23,920,811
24,229,332
558,477
(19,559)
(195,403)
343,515
‐
343,515
9,598,716
9,942,231

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

The notes on pages 34 to 54 form part of these financial statements.

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Charity Statement of Financial Activities for the year ended 31st March 2021, incorporating the Income and Expenditure account

Notes
INCOME
Investment income
3
Income from charitable
activities
4
Total Income
EXPENDITURE
Cost of raising funds
5
Charitable activities
6
Total expenditure
Net income before gains/
(losses) on investments
Net (losses)/ gains on
investment properties
14
Net gains / (losses) on cash
investments
18
Net income
Transfers between funds
23
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD
23		 Unrestricted
Funds
£
353,741
12,644,451
12,998,192
246,565
12,699,908
12,946,473
51,719
375,000
341,196
767,915
33,857
801,772
9,280,105
10,081,877		 Restricted
Funds
£
‐
4,069,463
4,069,463
‐
4,040,606
4,040,606
28,857
420,283
‐
449,140
(33,857)
415,283
1,146,763
1,562,046		 31.3.21
Total Funds
£
353,741
16,713,914
17,067,655
246,565
16,740,514
16,987,079
80,576
795,283
341,196
1,217,055
‐
1,217,055
10,426,868
11,643,923		 31.3.20
Total
Funds
£
443,921
19,828,239
20,272,160
308,521
19,484,699
19,793,220
478,940
(19,559)
(195,403)
263,978
‐
263,978
10,162,890
10,426,868

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

The notes on pages 34 to 54 form part of these financial statements.

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Consolidated Balance Sheet as at 31st March 2021

Notes
FIXED ASSETS
Tangible assets
12
Intangible assets
13
Investment properties
14
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors
17
Current asset investments
18
Cash at bank
TOTAL CURRENT ASSETS
LIABILITIES
Creditors falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
THE FUNDS OF THE GROUP
23
General funds
Designated funds
Fair value reserve
Restricted revaluation fund
Restricted property fund
TOTAL GROUP FUNDS		 31.3.21
£
2,379,520
‐
3,562,047
5,941,567
5,220,401
2,813,193
5,547,273
13,580,867
(8,354,196)
5,226,671
11,168,238
11,168,238
5,622,638
2,145,361
1,838,193
1,079,823
482,223
11,168,238		 31.3.20
£
2,397,954
8,054
2,766,764
5,172,772
7,774,334
2,742,780
2,422,813
12,939,927
(8,170,468)
4,769,459
9,942,231
9,942,231
5,632,327
2,145,361
1,017,780
659,540
679,099
9,942,231

The financial statements were approved by the Board of Trustees on 20[th] September 2021 and were signed on its behalf by:

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

Alan Smith ‐ Trustee

The notes on pages 34 to 54 form part of these financial statements

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Charity Balance Sheet as at 31st March 2021

Notes
FIXED ASSETS
Tangible assets
12
Investment properties
14
TOTAL FIXED ASSETS
NON CURRENT ASSETS
16
CURRENT ASSETS
Debtors
17
Current assets investments
18
Cash at bank
TOTAL CURRENT ASSETS
LIABILITIES
Creditors falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
THE FUNDS OF THE CHARITY
23
Unrestricted funds
Designated funds
Fair value reserve
Restricted revaluation fund
Restricted property fund
TOTAL CHARITY FUNDS		 31.3.21
£
1,352,638
3,562,047
4,914,685
15,948
5,125,693
2,813,193
5,300,340
13,239,226
(6,525,936)
6,713,290
11,643,923
11,643,923
6,098,323
2,145,361
1,838,193
1,079,823
482,223
11,643,923		 31.3.20
£
1,351,219
2,766,764
4,117,983
365,948
7,630,014
2,742,780
2,222,751
12,595,545
(6,652,608)
5,942,937
10,426,868
10,426,868
6,116,964
2,145,361
1,017,780
659,540
487,223
10,426,868

The financial statements were approved by the Board of Trustees on 20[th] September 2021 and were signed on its behalf by:

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

Alan Smith ‐ Trustee

The notes on pages 34 to 54 form part of these financial statements

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Consolidated Statement of Cash Flows for the year ended 31st March 2021

Notes
Cash flows from operating activities
25
Cash flow from investing activities
Investment income received
Income from sale of investments
Purchase of fixed assets
Net cash used in investing activities
Net Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 31.3.21
£
2,612,698
353,741
270,783
(112,762)
511,762
3,124,460
2,422,813
5,547,273		 31.3.20
£
71,174
403,845
‐
(112,145)
291,700
362,874
2,059,939
2,422,813

The notes on pages 34 to 54 form part of these financial statements

32 of 54

Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Charity Statement of Cash Flows for the year ended 31st March 2021

Notes
Cash flows from operating activities
25
Cash flow from investing activities
Investment income received
Income from sale of investments
Cash inflows from new investments
Cash outflows from new investments
Purchase of fixed assets
Net cash used in investing activities
Net Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 31.3.21
£
2,215,827
353,741
270,783
‐
350,000
(112,762)
861,762
3,077,589
2,222,751
5,300,340		 31.3.20
£
(870,112)
443,921
‐
(200,000)
1,110,000
(106,345)
1,247,576
377,464
1,845,287
2,222,751

The notes on pages 34 to 54 form part of these financial statements

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Groundwork London

(A company limited by guarantee)

Registered Number: 04212532

Notes to the financial statements for the year ended 31st March 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation and assessment of going concern

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) (effective 1 January 2019) ‐ (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Groundwork London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. With respect to the next reporting period, 2020‐21, the most significant areas of uncertainty are the impacts of Brexit on Government, Local Authority funding commitments and the impact of COVID‐19‐19.

b) Estimates and judgements

The investment property valuations referred to in note 14 are based on the professional opinion of fair value from a qualified chartered surveyor.

c) Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants receivable, where related to performance are accounted for as the charity earns the right to consideration by its performance. Where income is received in advance, recognition is deferred and included in creditors and where entitlement arises before income is received the income is accrued.

d) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

e) Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. These costs are allocated to projects based on the ration of project time incurred.

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f) Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Items over £2,000 are capitalised.

Long leasehold ‐over the term of the lease Buildings ‐2% per annum Fixtures and fittings ‐at varying rates on cost Motor vehicles ‐at varying rates on cost Computer equipment ‐at varying rates on cost

g) Intangible fixed assets

Amortisation is provided at the following rates: Software ‐ 20% straight line

h) Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve. No depreciation or amortisation is provided in respect of freehold investment properties and leasehold investment properties with over 20 years to run.

i) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

j) Taxation and VAT

The charity is exempt from corporation tax on its charitable activities. The company is registered for VAT and all resources expended are inclusive of irrecoverable VAT. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

k) Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the note 20 to the financial statements.

l) Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease.

m) Consolidation

The financial statements consolidate the results of the charitable company and its wholly owned subsidiary, The Groundwork South Trust Ltd, on a line‐by‐line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charitable company has also been presented. The charitable company also has two dormant subsidiaries as set out in the notes to the accounts.

n) Pensions

Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The company pays fixed contributions, charged to the statement of financial activities in the period to which they relate. The charity contribution is restricted to the contributions disclosed in note 11.

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The money purchase plan is managed by AEGON and the plan invests the contributions made by the employee and employer in an investment fund to build up over the term of the plan.

The Trust has no liability beyond making its contributions and paying across the deductions for the employee’s contributions. A similar defined contribution scheme is operated by the subsidiary company, The Groundwork South Trust Ltd.

o) Debtors

Trade and other debtors are recognised at the settlement amount due. No discounts are offered. Prepayments are valued at the amount prepaid

p) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

q) Investment policy

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust aims to have a portfolio of Financial Investments consistent with a “Balanced Portfolio” profile of risk, return, and liquidity, as identified in an externally conducted assessment of attitude to risk of the trustees when investing the Trust’s assets. In order to achieve this it will select Investment Managers which are able to make informed and timely asset allocation decisions consistent with the objectives of this Investment Policy and which may include Government and Corporate Bonds (UK and Overseas), UK and overseas Equities, Property, Gold and other commodities (excluding coal) and cash.

The Trust aims to utilise returns from financial investments for its day to day operations.

The Trust wishes to keep at least 40% of total assets in investments which can be realised within three months.

A minimum of 10% of total assets should be capable of being liquidated within 7 working days.

The Trust will not invest directly in any organisation whose main business activity is:

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

r) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts available.

s) Government Grants

Government grants are recognised when the entity has reasonable assurance that conditions attached to the grant will be complied with and that the grant will be received.

36 of 54

Revenue grants are recognised using the accrual model and are therefore recognised as income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Revenue grants are measured at fair value, being the amount of cash receivable.

2. LEGAL STATUS

Groundwork London is a company limited by guarantee and has no share capital. The registered office and principal place of business is 18‐21 Morley Street, London, SE1 7QZ. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

3. INVESTMENT INCOME

3. INVESTMENT INCOME
Rents received
Bank and investment interest
Rents received
Bank and investment interest		 Charity
31.3.21
£
258,993
94,748
353,741		 31.3.20
£
285,669
158,252
443,921
Group
31.3.21
£
258,993
89,202
348,195		 31.3.20
£
285,669
118,176
403,845

Investment income includes income received for the leasing out of business units at Artichoke Mews, a public house adjacent to Denmark Hill railway station, income received for leasing out space at Morley Street and Lower Clapton Road, deposit interest received, income from Trust current investments and interest on loans from group undertakings.

4. INCOME FROM CHARITABLE ACTIVITIES

Income was received for:
Communities and Environmental
Service
Landscape Design Services
Youth, Employment & Skills Training
Strategic Partnerships & Programmes		 Charity
Unrestricted
funds
£
5,493,878
1,071,067
4,326,557
1,752,949
12,644,451		 Restricted
funds
£
531,646
1,013,312
738,447
1,786,058
4,069,463		 31.3.21
£
6,025,524
2,084,379
5,065,004
3,539,007
16,713,914		 31.3.20
£
8,060,546
4,795,882
4,369,269
2,602,542
19,828,239

In 2021 the income from charitable activities was £16,713,914 (2020: £19,828,239) of which £12,644,451 (2020: £16,343,526) was income from unrestricted funds and £4,069,463 (2020: £3,484,713) was income from restricted funds.

37 of 54

4. INCOME FROM CHARITABLE ACTIVITIES (cont’d)

Income was received for:
Communities and Environmental
Service
Landscape Design Services
Youth, Employment & Skills Training
Strategic Partnerships & Programmes		 Group
Unrestricted
funds
£
6,404,570
1,446,894
4,338,946
1,716,949
13,907,359		 Restricted
funds
£
1,392,372
1,331,081
2,195,784
1,786,058
6,705,295		 31.3.21
31.3.20
£
£
7,796,942
10,755,951
2,777,975
5,716,041
6,534,730
5,309,430
3,503,007
2,602,542

20,612,654
24,383,964

In 2021 the income from charitable activities was £20,612,654 (2020: £24,383,964) of which £13,907,359 (2020: £18,341,532) was income from unrestricted funds and £6,705,295 (2020: £6,042,432) was income from restricted funds.

Income was provided by:
Local Authorities
Public and Regional Agencies
European Union
Private Sector
National Lottery		 Charity
31.3.21
£
3,272,401
4,788,332
1,543,464
6,325,073
784,644
16,713,914		 31.3.20
£
2,750,020
7,281,964
1,381,375
7,004,366
1,410,514
19,828,239
Local Authorities
Public and Regional Agencies
European Union
Private Sector
National Lottery		 Group
31.3.21
£
4,322,878
5,163,218
1,543,464
7,784,753
1,798,341
20,612,654		 31.3.20
£
4,719,480
7,468,888
1,381,375
8,772,991
2,041,229
24,383,964
Income arose from:
Sale of goods
Rendering of services
Grants
Government grants – employment programmes
Sale of goods
Rendering of services
Grants
Government grants – employment programmes		 Charity
31.3.21
£
329,772
11,218,001
3,626,986
1,539,155
16,713,914		 31.3.20
£
401,798
11,711,816
5,737,190
1,977,434
19,828,239
Group
31.3.21
£
329,772
15,102,118
3,641,609
1,539,155
20,612,654		 31.3.20
£
401,798
16,252,918
5,751,813
1,977,434
24,383,964

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4. COSTS OF RAISING FUNDS

Other operating leases
Administrative expenses		 31.3.21
£
80,709
165,856
246,565		 Charity and
Group
31.3.20
£
93,276
215,245
308,521

Administrative costs relate to the management of business units at Artichoke Mews and a public house adjacent to Denmark Hill railway station, offices at Morley Street and rental space at Lower Clapton Road.

5. CHARITABLE ACTIVITIES COSTS
Communities and Environmental
Services
Landscape Design Services
Youth, Employment & Skills Training
Strategic Partnerships &
Programmes		 Charity
Direct costs
£
6,285,120
1,253,411
4,401,573
3,225,076
15,165,180		 Governance
and support
costs (see
note 7)
£
915,396
96,398
486,280
77,260
1,575,334		 31.3.21
£
7,200,516
1,349,809
4,887,853
3,302,336
16,740,514
 31.3.20
£
7,806,580
4,614,854
4,471,470
2,591,795
19,484,699

In 2021 the expenditure on charitable activities was £16,740,514 (2020: £19,484,699) of which £12,699,908 (2020: £16,064,851) was expenditure from unrestricted funds and £4,040,606 (2020: £3,419,848) was expenditure from restricted funds.

Communities and Environmental
Services
Landscape Design Services
Youth, Employment & Skills Training
Strategic Partnerships &
Programmes		 Group
Direct costs
£
7,921,867
2,570,766
4,819,201
3,225,076
18,536,910		 Governance
and support
costs (see
note 7)
£
1,168,763
292,778
549,045
77,260
2,087,846		 31.3.21
£
9,090,630
2,863,544
5,368,246
3,302,336
20,624,756		 31.3.20
£
10,278,540
5,956,213
5,094,263
2,591,795
23,920,811

In 2021 the expenditure on charitable activities was £20,624,756 (2020: £23,920,811) of which £14,044,656 (2020: £17,981,083) was expenditure from unrestricted funds and £6,580,100 (2020: £5,939,728) was expenditure from restricted funds.

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7. GOVERNANCE AND SUPPORT COSTS

The Trust identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs, together with the governance costs are apportioned between the thematic programme areas in the year. The costs are allocated by staff time. The breakdown of costs are as follows:

Cost type
Support
costs

£
Staff costs
858,799
Office and other costs
657,755
Total costs
1,516,554
Cost type
Support
costs

£
Staff costs
1,024,133
Office and other costs
997,433
Total costs
2,021,566
8. GOVERNANCE COSTS
Staff costs
Legal fees
Auditor’s remuneration
Total costs
9. NET INCOMING/ (OUTGOING) RESOURCES
Net resources are stated after charging
Auditors’ remuneration – audit services
Depreciation – owned assets
Operating lease payments
Government grants
Auditors’ remuneration – Groundwork London
Auditor’s remuneration – Groundwork South
Depreciation – owned assets
Amortisation of intangible fixed assets
Operating lease payments
Government grants		 Charity
Support
costs

£
858,799
657,755
1,516,554		 Governance
costs
£
23,698
35,082
58,780		 Total
2021
£
882,497
692,837
1,575,334


Total
2020
£
935,961
539,871
1,475,832
Group
Governance
costs
£
23,698
42,582
66,280		 Total
2021
£
1,047,831
1,040,015
2,087,846


Total
2020
£
1,101,103
825,810
1,926,913
Group
31.3.21
£
23,698
20,082
22,500
66,280		 31.3.20
£
26,299
24,655
22,500
73,454
Charity
31.3.21
£
15,000
111,343
151,970
543,467		 31.3.20
£
15,000
95,577
144,503
‐
Group
31.3.21
£
15,000
7,500
150,466
13,889
235,983
1,064,468		 31.3.20
£
15,000
7,500
134,700
13,889
223,634
‐

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10. TRUSTEES’ REMUNERATION AND BENEFITS

No payments or remuneration were made to the Trustees during this year or the previous year. Reimbursement of trustee expenses incurred was £nil (2020: £nil).

11. STAFF COSTS

The average number of employees during the year was as follows:
Direct charitable
Fundraising
Governance
Direct charitable
Fundraising
Governance
Staff costs were as follows
Wages and salaries
Social security costs
Pension costs
Wages and salaries
Social security costs
Pension costs		 Charity
31.3.21
246
7
2
255		 31.3.20
243
7
2
252
Group
31.3.21
362
7
2
371		 31.3.20
359
7
2
368
Charity
31.3.21
£
7,211,711
635,202
566,669
8,413,582		 31.3.20
£
7,212,838
623,822
543,402
8,380,062
Group
31.3.21
£
9,727,204
801,228
808,432
11,336,864		 31.3.20
£
9,728,331
789,848
785,165
11,303,344

The company operated a defined contribution pension scheme. The assets of the scheme were held separately from those of the company in an independently administered fund. Contributions payable for the year were charged to the Statement of Financial Activities.

Amount of outstanding pension contributions
Amount of outstanding pension contributions		 Charity
31.3.21
31.3.20
£
£
3,040
3,451
Group
31.3.21
31.3.20
£
£
27,794
28,205

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11. STAFF COSTS – cont’d

Number of employees whose emoluments (excluding pension contributions) exceeded £60,000 in the year:

£60,000 ‐ £69,999
£70,000 ‐ £79,999
£80,000 ‐ £89,999
£90,000 ‐ £99,999		 Charity
and
Group
31.3.21
1
1
3
‐
5		 31.3.20
‐
2
1
1
4

The total employer's contributions paid to defined contribution schemes for the above higher paid employees was £27,775 (2020 ‐ £23,362). The key management personnel of the charity, the Trust, comprise the Executive Director, Director Finance & Corporate Services, Director Youth, Employment & Skills Training and Director Communities & Environmental Services. The total employee benefits of the key management personnel of the Trust were £497,670 (2020 £456,466).

12. TANGIBLE FIXED ASSETS – Group

COST
At 1stApril 2020
Additions
Disposals
At 31st March
2021
DEPRECIATION
At 1stApril 2020
Disposals
Charge for year
At 31st March
2020
NET BOOK
VALUE
At 31st March
2021
At 31stMarch
2020		 Freehold
land and
buildings
£
2,603,300
‐
‐
2,603,300
456,339
‐
36,900
493,293
2,110,061
2,146,961		 Building
improve‐
ments
£
78,334
‐
‐
78,334
40,967
‐
15,722
56,689
21,645
37,367		 Fixtures
and
fittings
£
242,478
64,735
(8,635)
298,578
151,194
(8,635)
40,430
182,899
115,679
91,284		 Computer
Equip’t
£
172,598
48,027
(19,592)
201,063
124,656
(19,562)
33,584
138,678
62,385
47,942		 Motor
vehicles
£
8,104
‐
(5,398)
2,706
8,104
(5,398)
‐
2,706
‐
‐		 Floating
Classroom
£
88,350
‐
‐
88,350
13,950
‐
4,650
18,600
69,750
74,400

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12. TANGIBLE FIXED ASSETS – Group

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Disposals
Charge for year
At 31 March 2021
Net Book Value
At 31 March 2021
At 31 March 2020		 Total
Tangible
Fixed Assets
£
3,193,164
112,762
(33,595)
3,272,331
795,210
(33,595)
(131,196)
892,811
2,379,520
2,397,954

12. TANGIBLE FIXED ASSETS – Charity

COST
At 1stApril 2020
Additions
Disposals
At 31st March
2021
DEPRECIATION
At 1stApril 2020
Disposals
Charge for year
At 31st March
2021
NET BOOK
VALUE
At 31st March
2021
At 31stMarch
2020		 Freehold
land and
buildings
£
1,620,000
‐
‐
1,620,000
431,139
‐
28,500
459,639
1,160,361
1,188,861		 Building
improve‐
ments
£
78,334
‐
‐
78,334
40,887
‐
15,722
56,609
21,725
37,447		 Fixtures
and
fittings
£
163,505
64,735
‐
228,240
84,422
‐
35,399
119,821
108,419
79,083		 Computer
Equip’t
£
134,410
48,027
‐
182,437
88,582
‐
31,722
120,304
62,133
45,828		 Motor
vehicles
£
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐		 Total
£
1,996,249
112,762
‐
2,109,011
645,030
‐
111,343
756,373
1,352,638
1,351,219

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13. INTANGIBLE FIXED ASSETS – Group

Cost
At 1 April 2020
Subsidiary intangible assets at fair value
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Disposals
Charge for year
At 31 March 2021
Net Book Value
At 31 March 2021
At 31 March 2020		 Software
£
49,720
‐
‐
49,720
41,666
‐
8,054
49,720
‐
8,054

14. INVESTMENT PROPERTIES

Fair Value at 1stApril 2020
Net loss on revaluation
Fair Value at 31st March 2021		 **Group ** and charity
Freehold
property
1,875,000
‐
375,000
2,250,000		 Short
leasehold
£
81,764
(19,717)
‐
62,047		 Long
leasehold
£
810,000
‐
440,000
1,250,000		 Total
£
2,766,764
(19,717)
815,000
3,562,047

Groundwork London operates out of a 21 Morley Street. This property is also used for investment income. It was determined during the 2019/20 year that 50% of the property should be treated as an investment property in accordance with SORP FRS 102. An external valuation of £1,875,000 from 2016 was assigned to the investment element of this property. The investment element of the property has been subsequently revalued at 31[st] March 2021 by Avison Young, Chartered Surveyors, with a valuation of £2.25m.

The short and long leasehold investment properties are held in the UK. The historical cost of the properties is £373,000. Artichoke Mews was revalued for a sum of £1.25m on 31[st] March 2021 by Avison Young, Chartered Surveyors, on an open market value in accordance with the guidelines issued by the Royal Institute of Chartered Surveyors.

The above represents investment at fair value in the following properties which were transferred from Groundwork Southwark and Lambeth on 1 November 2007 as follows:

Artichoke Mews (125 year lease from 1 July 1990) ‐ £1.25m. Historical cost £183,000.

Denmark Hill (41 year lease from 5 June 1983) ‐ £62,047. Historical cost £190,000.

15. SUBSIDIARY COMPANIES
Shares in Group Undertakings		 Charity
31.3.21
31.3.20
£
£
2
2

The charity holds 100% of the issued ordinary share capital of Groundwork Environmental Services (West London) Limited (company number 03810135) and Groundwork Environmental Services (East London)

44 of 54

Limited (company number 04308777). Both companies are incorporated in England and Wales. Both companies were dormant during the year.

On 14[th] March 2017 Groundwork London became the sole member of The Groundwork South Trust Ltd, a company registered in England and Wales (registered co number 01982077, registered charity no. 293705) for no consideration and the Group has consolidated its accounts from that date.

The separate accounts for The Groundwork South Trust Limited show the following for the year ended 31 March 2021.

The separate accounts for The Groundwork South Trust Li
March 2021.		 mited show the following for the y ear ended 31
31.3.21 31.3.20
£ £
Total income for the year 4,707,895 6,004,533
Total expenditure for the year 4,698,943 5,924,996
Total surplus / deficit for the year 8,952 79,537
Aggregate amount of assets 1,769,934 1,937,343
Aggregate amount of liabilities 2,245,619 2,421,980
Aggregate deficit on unrestricted funds (475,685) (484,637)

16. NON CURRENT ASSETS

Loans to subsidiary undertakings Charity
31.3.21
£
15,948
15,948		 31.3.20
£
365,948
365,948

Loans to The Groundwork South Trust Ltd are not expected to be repaid within one year. Interest is charged to subsidiary undertakings at 2.85% above the Bank of England base rate, monthly in arrears. The freehold property of the charity has been pledged as security on these funds.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments and accrued income
Other debtors		 Group
31.3.20
6,646,069
1,122,931
5,334
7,774,334		 31.3.21
£
3,507,315
1,617,363
1,015
5,125,693		 Charity
31.3.21
3,708,870
1,507,900
3,631
5,220,401		 31.3.20
£
6,533,604
1,091,821
4,589
7,630,014

18. CURRENT ASSETS INVESTMENTS

Quoted market price at start of year
Additions in year at cost
Disposals in year
Net (losses) / gains on cash investments
Quoted market price at year end		 Group and Charity Group and Charity
31.3.21
£
2,742,780
‐
(270,783)
341,196
2,813,193		 31.3.20
£
2,938,183
‐
‐
(195,403)
2,742,780

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19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade Creditors
Taxation and social security
Deferred income
Other creditors		 Group
31.3.20
1,065,524
1,025,348
5,887,160

192,436
8,170,468
 Charity
31.3.21
555,487
1,080,615
6,604,389
113,705
8,354,196		 31.3.21
31.3.20
£
£
606,825 1,170,405
976,447
889,113
4,841,717 4,488,654
100,947
104,436
6,525,936 6,652,608

20. DEFERRED INCOME

Movements in group deferred income during the year were as follows:

Income from charitable activities Balance
at 1 April
2020
Amount
release to
incoming
resources
£
5,777,392
5,777,392		 Group
Amount
deferred
in the
year
Balance at
31 March
2021
£
£
6,604,389
6,604,389

Net incoming group resources as shown in the Statement of Financial Activities result from the following:

Income from charitable activities Group
Income
received
£
27,217,043
 Transferred
from
deferred
income
Net
income
£
£
(6,604,389)
20,612,654

Movements in group deferred income during the year ended at 31[st] March 2020 were as follows:

Income from charitable activities Balance
at 1 April
2019
Amount
release to
incoming
resources
£
3,434,215
3,434,215		 Group
Amount
deferred
in the
year
Balance at
31 March
2020
£
£
2,343,177
5,777,392

Net incoming group resources as shown in the Statement of Financial Activities result from the following:

Income from charitable activities Group
Income
received
Transferred
from
deferred
income
Net
income
£
£
£
22,040,787
2,343,177
24,383,964

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Movements in charity deferred income during the year were as follows:

Income from charitable activities Balance
at 1 April
2020
Amount
release to
incoming
resources
£
4,488,654
4,488,654		 Charity
Amount
deferred
in the
year
Balance at
31 March
2021
£
£
4,841,717
4,841,717

Net incoming charity resources as shown in the Statement of Financial Activities result from the following:

Income from charitable activities Charity
Income
received
Transferred
to deferred
income
Net income
£
£
£
21,555,631
(4,841,717)
16,713,914

Movements in charity deferred income during the year ended at 31[st] March 2020 were as follows:

Income from charitable activities Balance
at 1 April
2019
Amount
release to
incoming
resources
£
2,787,475
2,787,475		 Charity
Amount
deferred
in the
year
Balance at
31 March
2020
£
£
1,701,179
4,488,654

Net incoming charity resources as shown in the Statement of Financial Activities result from the following:

Income from charitable activities Charity
Income
received
Transferred
from
deferred
income
Net income
£
£
£
21,529,418
(1,701,179)
19,828,239

21. COMMITMENTS UNDER OPERATING LEASES

Future minimum lease payments under non‐cancellable operating leases for each of the following periods:

Not later than one year
Later than one year and not later than five
years
Later than five years		 Group
31.3.21
31.3.20
£
£
196,075
218,156
524,279
625,473
33,860
33,860		 Charity
31.3.21
31.3.20
£
£
114,769
136,850
218,182
319,376
‐
‐

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Future minimum lease receipts under non‐cancellable operating leases for each of the following periods:

Not later than one year
Later than one year and not later than five years
Later than five years		 Group and
Charity
31.3.21
31.3.20
£
£
264,464
258,891
348,257
609,721
‐
‐

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS – Group

Unrestricted
funds
£
Fixed assets
2,379,520
Investment Properties
2,250,000
Current assets
12,931,275
Current liabilities
(7,954,603)
9,606,192
Unrestricted
funds
£
Fixed assets
2,406,008
Investment Properties
1,875,000
Current assets
12,248,094
Current liabilities
(7,733,634)
8,795,468
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS – Charity
Unrestricted
funds
£
Fixed assets
1,352,638
Non‐current assets
15,948
Investment Properties
2,250,000
Current assets
12,746,205
Current liabilities
(6,282,914)
10,081,877
Unrestricted
funds
£
Fixed assets
1,351,219
Non‐current assets
351,157
Investment Properties
1,875,000
Current assets
12,086,445
Current liabilities
(6,383,716)
9,280,105		 Restricted
funds
£
‐
1,312,047
649,592
(399,593)
1,562,046
Restricted
funds
£
‐
891,764
691,833
(436,834)
1,146,763
Restricted
funds
£
‐
‐
1,312,047
493,021
(243,022)

1,562,046
Restricted
funds
£
‐
14,791
891,764
509,100
(268,892)

1,146,763		 31.3.21
Total funds
£
2,379,520
3,562,047
13,580,867
(8,535,196)
11,168,238
31.3.20
Total funds
£
2,406,008
2,766,764
13,180,668
(8,411,209)
9,942,231
31.3.21
Total
funds
£
1,352,638
15,948
3,562,047
13,239,226
(6,525,936)
11,643,923
31.3.20
Total
funds
£
1,351,219
365,948
2,766,764
12,595,545
(6,652,608)
10,426,868

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23. THE FUNDS OF THE GROUP ‐ 2021

Unrestricted Funds
General funds
Groundwork South
Inter Group trans.
Total General funds
Designated funds
Fair value reserve
Total Unrestricted
Funds
Restricted Funds
Revaluation fund
Property fund
Programme funds
Groundwork South
Total Restricted Funds
Total Funds		 Brought
forward
1 April
2020
6,116,964
(484,637)
‐
5,632,327
2,145,361
1,017,780
8,795,468
659,540
487,223
‐
‐
1,146,763
9,942,231		 Incoming
Resources
12,998,192
2,072,063
(814,701)
14,255,554
‐
‐
14,255,554
‐
‐
4,069,463
2,635,832
6,705,295
20,960,849		 Resources
Expended
(12,946,473)
(2,159,449)
814,701
(14,291,221)
‐
‐
(14,291,221)
‐
(5,000)
(4,035,606)
(2,539,494)
(6,580,100)
(20,871,321)		 Net
gains /
(losses)
on
invest‐
ments
341,196
‐
‐
341,196
‐
375,000
716,196
420,283
‐
‐
‐
420,283
1,136,479		 Transfer
s In /
(Out)
(411,556)
96,338
‐
(315,218)
‐
445,413
130,195
‐
‐
(33,857)
(96,338)
(130,195)
‐		 Carried
Forward
31 March
2021
6,098,323
(475,685)
‐
5,622,638
2,145,361
1,838,193
9,606,192
1,079,823
482,223
‐
‐
1,562,046
11,168,238

23. THE FUNDS OF THE GROUP – 2020

Unrestricted Funds
General funds
Groundwork South
Inter Group trans.
Total General funds
Designated funds
Fair value reserve
Total Unrestricted
Funds
Restricted Funds
Revaluation fund
Property fund
Programme funds
Groundwork South
Total Restricted Funds
Total Funds		 Brought
forward
1 April
2019
5,623,024
(564,174)
5,058,850
2,155,361
‐
1,213,183
8,427,394
679,099
492,223
‐
‐
1,171,322
9,598,716		 Incoming
Resources
16,787,447
3,446,814
(1,488,884)
18,745,377

‐
‐
18,745,377
‐
‐
3,484,713
2,557,719
6,042,432
24,787,809		 Resources
Expended
(16,373,372)
(3,405,116)
1,488,884
(18,289,604)
‐
‐
(18,289,604)
‐
(5,000)
(2,519,880)
(3,414,848)
(5,939,728)
(24,229,332)		 Net gains
/ (losses)
on
invest‐
ments
‐
‐
‐
‐
‐
(195,403)
(195,403)
(19,559)
‐
‐
‐
(19,559)
(214,962)		 Transfer
s In /
(Out)
79,865
37,839
‐
117,704
(10,000)
‐
107,704
‐
(37,839)
(69,865)
(107,704)
‐		 Carried
Forward
31
March
2020
6,116,964
(484,637)
‐
5,632,327
2,145,361
1,017,780
8,795,468
659,540
487,223
‐
‐
1,146,763
9,942,231

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THE FUNDS OF THE CHARITY ‐2021

Unrestricted Funds
General funds
Designated funds
Fair value reserve
Total Unrestricted
Funds
Restricted Funds
Revaluation fund
Property fund
Programme funds
Total Restricted
Funds
Total Funds		 Brought
forward
at 1 April
2020
£
6,116,964
2,145,361
1,017,780
9,280,105
659,540
487,223
‐
1,146,763
10,426,868		 Incoming
Resources
£
12,998,192
‐
‐
12,998,192
‐
‐
4,069,463
4,069,463
17,067,655		 Resources
Expended
£
(12,946,473)
‐
‐
(12,946,473)
‐
(5,000)
(4,035,606)
(4,040,606)
(16,987,079)		 Net gains
/ (losses)
on
invest‐
ments
£
341,196
‐
375,000
716,196
420,283
‐
‐
420,283
1,136,479		 Transfe
rs In /
(Out)
£
(411,556)
‐
‐
445,413
‐
33,857
‐
‐
5,000
(33,857)
79,722
(33,857)
‐		 Carried
Forward at
31 March
2021
£
6,098,323
2,145,361
1,838,193
10,081,877
1,079,823
482,223
‐
1,562,046
11,643,923

THE FUNDS OF THE CHARITY ‐2020

Unrestricted Funds
General funds
Designated funds
Fair value reserve
Total Unrestricted
Funds
Restricted Funds
Revaluation fund
Property fund
Programme funds
Total Restricted
Funds
Total Funds		 Brought
forward
at 1 April
2019
£
5,623,024
2,155,361
1,213,183
8,991,568
679,099
492,223
‐
1,171,322
10,162,890		 Incoming
Resources
£
16,787,447
‐
16,787,447
‐
‐
3,484,713
3,484,713
20,272,160		 Resources
Expended
£
(16,373,372)
‐
(16,373,372)
‐
(5,000)
(3,414,848)
(3,419,848)
(19,793,220)		 Net gains
/ (losses)
on
invest‐
ments
£
‐
‐
(195,403)
(195,403)
(19,559)
‐
‐
(19,559)
(214,962)		 Transfe
rs In /
(Out)
£
79,865
(10,000)
‐
69,865
‐
‐
(69,865)
(69,865)
‐		 Carried
Forward at
31 March
2020
£
6,116,964
2,145,361
1,017,780
9,280,105
659,540
487,223
‐
1,146,763
10,426,868

24. THE FUNDS OF THE CHARITY

Unrestricted Funds

General Funds

Funds available are sufficient to permit the company to continue in operation in the short term given the continued support of the funders. Should this support not continue in the longer term, further financial support would need to be sought to replace it. Where funds which are regarded as restricted are awarded based on outputs rather than actual costs any funds not applied against directly identified costs are transferred at the year end to unrestricted funds to cover overhead costs not directly recharged. Income that has not been fully delivered or earned is deferred.

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Designated Funds

The Designated Fund represents funds transferred from the general fund for the purpose of Groundwork London development. This includes the cost of the Morley Street property less the property depreciation charges.

Fair Value Reserve

The Fair Value Reserve is a reserve for the unrealised gains and losses on the charity’s unrestricted fixed asset investments and investment property revaluations.

Groundwork South

These financial statements include the results of The Groundwork South Trust Ltd (registered co number 01982077, registered charity no. 293705) following Groundwork London becoming sole company member on 14[th] March 2017. The funds held in the group accounts represent the general funds of The Groundwork South Trust Ltd at 31[st] March 2021. Funds are transferred from unrestricted to restricted at the year‐end on the basis that no restrictions exist on the income and expenditure recognised.

Restricted Funds

Revaluation Fund

A revaluation fund is required by the Companies Act 2006 where investment properties are revalued subsequent to their acquisition, or in the case of assets held prior to the mergers, transfer to the control of Groundwork London. The balance shown on the revaluation reserve in the accounts, represents the difference between the revaluation of the investment in the Denmark Hill property (in 2003) and its original cost.

Property Fund

The investment property fund represents the valuation of the properties. The properties are the public house at Denmark Hill Station, the workshops and flats at Artichoke Mews and the property at Lower Clapton Road.

The properties at Denmark Hill and Artichoke Mews are intended to be set aside so that the returns are used for the day to day expenses of the charity in relation to projects undertaken within the London Borough of Southwark. The property at Lower Clapton Road is a freehold property transferred from Groundwork East London. The trustees have set aside an amount equivalent to the value of the investment properties as designated funds. The revaluation surplus following the most recent valuation of the properties for Denmark Hill is held in a separate Revaluation Fund.

The investment income less the investment management costs are allocated to a "Property" restricted fund.

Programme Funds

Grants, which are received for specific programmes (Communities & Young People, Urban Landscapes and Open Space, Employment & Skills Training and Environmental Services), are accounted for as restricted funds. The balances on restricted funds arise from grants received for these programmes on which some expenditure is still to be incurred in the coming financial year. Where funds which are regarded as restricted are awarded based on outputs rather than actual costs, any funds not applied against directly identified costs are transferred at the year end to unrestricted funds to cover overhead costs not directly recharged. There were no restricted balances on these grant funded programmes at 31[st] March 2021.

Groundwork South

Income which is received for specific programmes (Greener Living and Working, Youth and Employment, Parks and Open Spaces) are accounted for as restricted funds. These financial statements include the results for the year of The Groundwork South Trust Ltd (registered co number 01982077, registered charity no. 293705) following Groundwork London becoming sole company member on 14[th] March 2017. The balance of funds in the group accounts at 31[st] March 2021 represent the total funds held by The Groundwork South Trust Ltd at this date.

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25. RECONCILIATION OF CONSOLIDATED NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
Net movement in funds
Investment income
Depreciation
Decrease/(Increase) in debtors
Net loss/ (gains) on cash investments
(Decrease)/ Increase in creditors
Cash flows from operating activities		 Group Charity
31.3.21
£
1,226,007
(353,741)
139,250
2,553,934
(1,136,480)
183,728
2,612,698		 31.3.20
£
343,515
(403,845)
148,589
(1,957,339)
214,962
1,725,292
71,174		 31.3.21
1,217,055
(353,741)
111,343
2,504,321
(1,136,479)
(126,672)
2,215,827		 31.3.20
263,978
(443,921)
95,577
(2,546,833)
214,962
1,546,125
(870,112)

26. Analysis of changes in net debt

26. Analysis of changes in net debt
Cash and Cash equivalents
Cash
Overdrafts
Cash equivalents
Borrowings
Debt due within 1 year
Debt due after 1 year
Total
Cash and Cash equivalents
Cash
Overdrafts
Cash equivalents		 Group
31.3.21
£
5,547,273
‐
‐
5,547,273
‐
‐
‐
5,547,273
Charity
31.3.20
£
2,422,813
‐
‐
2,422,813
‐
‐
‐
2,422,813
1.4.20
£
2,222,751
‐
‐
2,222,751		 Cash
flows
£
3,124,460
‐
‐
3,124,460
‐
‐
‐
3,124,460		 Other
Non‐ Cash
change
£
‐
‐
‐
‐
‐
‐
‐
‐
Cash
flows
£
3,077,589
‐
‐
3,077,589		 Other
Non‐ Cash
change
£
‐
‐
‐
‐		 31.3.21
£
5,300,340
‐
‐
5,300,340

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26. Analysis of changes in net debt – cont’d

26. Analysis of changes in net debt – cont’d
Borrowings
Debt due within 1 year
Debt due after 1 year
Total		 At 1 Apr
2020
£
‐
‐
‐
2,222,751		 Cash
flows
£
‐
‐
‐
3,077,589		 Other
Non‐Cash
change
£
‐
‐
‐
‐
 At
31.3.21
£
‐
‐
‐
5,300,340

27. FINANCIAL INSTRUMENTS

Financial Assets
Financial assets measured at fair value through income and expenditure
Financial assets that are debt instruments measured at amortised cost
Financial Liabilities
Financial liabilities measured at amortised cost
Financial Assets
Financial assets measured at fair value through income and expenditure
Financial assets that are debt instruments measured at amortised cost
Financial Liabilities
Financial liabilities measured at amortised cost		 Charity
31.3.21
£
2,813,193
8,808,670
11,621,863
(1,684,219)
9,937,644		 31.3.20
£
2,742,780
8,760,944
11,503,724
(2,163,954)
9,339,770
Group
31.3.21
£
2,813,193
9,259,774
12,072,967
(2,223,771)
9,849,226		 31.3.20
£
2,742,780
9,074,216
11,816,996
(2,393,076)
9,423,920

Financial assets measured at fair value through income and expenditure comprise fixed asset investments in UK listed investments.

Financial assets measured at amortised cost comprise all cash and cash equivalent balances and debtor balances, excluding prepayments and accrued income.

Financial liabilities measured at amortised cost comprise all creditor balances except deferred income.

28. CAPITAL COMMITMENTS

At 31[st] March 2021 there were no capital commitments or contingent liabilities for Groundwork London.

As part of the conditions of a grant agreement between Groundwork South and the Football Foundation in respect of Saltmill Pitch in Cornwall, Groundwork South is required to maintain the pitch to the FA standard. As well as annual maintenance inspections, the pitch had its routine, three year inspection in 2017 and, following some repairs, was awarded a further three years registration. The pitch was due to be inspected in 2020 but, as a result of COVID‐19‐19 lockdowns, this was extended until May 2021. Groundwork South’s Board agreed to commence the works in summer 2021 and a Contractor has been appointed to deliver the works with a contracted value of £193k.

A provision has not been made in the 2020/21 accounts as the liability is not due in this financial year.

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29. RELATED PARTY TRANSACTIONS

Transactions between the charity and its wholly controlled subsidiary are not disclosed, as permitted by the exemptions set out in Section 33.1A of FRS 102 (Related Party Disclosures).

30. ACKNOWLEDGEMENTS

Groundwork London thanks all its supporters. We have been asked specifically to acknowledge the support of the following funders

Source Project BIG Lottery BBO ILM North BIG Lottery BBO ILM South BIG Lottery BBO Coast to Capital

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