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← Groundwork Greater Manchester

2024-03-31-accounts

Groundwork Greater Manchester

Annual Report and Financial Statements 2023/24

Charity registration no. 1124508 Company registration no. 06543150

Registered Office Trafford Ecology Park, Lake Road Trafford Park Manchester M17 1TU

CONTENTS

Page

Overview Activity highlights Our Impact Financial performance Principal risks and uncertainties Statement of Trustees’ responsibilities

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TRUSTEES REPORT, INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Board of Trustees presents its report for the year ended 31 March 2024. Statements about Groundwork (page 3), governance (page 8), objectives and public benefit (page 10), our plans for the future (page 15), financial review 2022-23 (page 17), advisors (page 37) and the details of the Board of Trustees, Committees and Executive team (page 38) form part of this report.

ABOUT GROUNDWORK GREATER MANCHESTER

Groundwork Greater Manchester is a registered charity which exists to create:

A Greener Fairer and Stronger Future for All People, Communities and Places in Greater Manchester

The people who live here, and the communities they make up, are unique and inspiring. They’re passionate about their home, which is exactly why they tell us they want to make it even better!

Our core team of over 120 people, plus sessional staff and associates, supports individuals to fulfil their potential, communities to become stronger, and together, we make spaces greener and more resilient to the effects of climate change. In 2023/4 we delivered programmes to a value of nearly £6.5m and benefited almost 10,000 people.

The focus of our work is in Greater Manchester, but we also deliver in parts of Lancashire, and in the wider North West where we have agreements with other Groundwork Trusts. Our head office is at Trafford Ecology Park, a designated local nature reserve and Site of Biological Importance - a green oasis in the heart of Europe's largest industrial estate. We also have office bases and depots Ashton under Lyne and Rochdale, as well as numerous project delivery sites around Greater Manchester.

We organise our work around the themes of People, Place and Communities, delivering services in 6 key areas:

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We are driven by our values which are embedded in the way we operate and the decisions we take every day.

Our work is underpinned by 3 key principles:

Groundwork Greater Manchester is a member of the Federation of Groundwork Trusts which operate throughout England, Wales and Northern Ireland, working to the shared aspirations and common goals set out in the Groundwork 2023-8 Strategy.

Locally our commitments are as follows:

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All our work is delivered within the framework of our ISO9001 and ISO14001 accredited Quality and Environmental Management System.

Our work is designed to address the needs of all sections of the community and we provide equal access to our services regardless of people’s backgrounds, circumstances or characteristics. We monitor levels of diversity within our staff team and trustees to strive to reflect the communities of which we are a part and regularly gather feedback from colleagues about our culture and employment practices.

As a charity dedicated to supporting people who are vulnerable, we are committed to ensuring that our operations are delivered safely. We have robust and effective Safeguarding and Health and Safety policies and procedures. We are committed to ensuring that our staff, volunteers and service users are able to speak freely and safely about any concerns they have.

A headline review of our impact during 2023/4 can be found on page 12 and more information about us can be found by visiting

https://www.groundwork.org.uk/greatermanchester/

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TRUSTEES REPORT, INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

CHAIR’S STATEMENT

Groundwork Greater Manchester is one of two Groundwork Trusts operating in the Northwest, as part of a wider national Federation of like-minded organisations. We consider ourselves lucky to operate in Greater Manchester where we have clear political leadership and direction and a spirit of partnership like no other. However, we have also faced on-going uncertainties within our wider economic, political and funding context; and the people and communities we support continue to experience unprecedented economic and well-being challenges, set within the context of a global climate and nature emergency.

Over the past 12 months we have continued to focus on supporting those who need our help the most whilst ensuring our organisational viability for the longer term. We are proud of the work we have undertaken and, in particular, our collaborative efforts with our partners in Greater Manchester. We have continued to strengthen our relationships across sectors, leading to the delivery of impactful programmes that:

The last year has been an impactful year centred on sustainable growth, focus and learning.

Following the significant changes in our Leadership in 2023/4 we have kick-started an organisational development programme, designed to increase development capacity within our senior leadership team to support delivery of our 2023-6 Strategy, as well as creating progression opportunities for staff. To date our journey has gone well and resulted in the promotion of two Heads of Service to new Director roles

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There has also been quite a lot of change within our board of trustees with 3 excellent new recruits from backgrounds in justice, digital and natural environment. Our new trustees have brought skills, insight and new energy and experiences to the boardroom. Within this context my fellow trustees and I, with the support of our Executive Team, have continued to challenge ourselves around good governance, to ensure we are the best we can be particularly focusing on our listening and learning culture, living our values and embedding diversity.

We have achieved good progress in the first year of our 2023-6 strategy and our strategy remains highly relevant. I believe it provides a route map that achieves the right balance between work to assure our longer-term resilience, and targeted development activity which will allow us to deliver against our charitable objects and mission, whilst adapting to the economic, political and environmental challenges which we all face. We will continue to reflect and adapt as we go.

Finally, I would like to pay a personal tribute to the often, unsung heroes of our communities – those volunteers and champions who give freely of their time to support local people and places. I would also like to give my heartfelt thanks to all the dedicated and passionate staff at Groundwork Greater Manchester who go above and beyond every single day to deliver on our mission and achieve positive outcomes for those people and places who need us the most.

Katrina Cunliffe Chair - August 2024

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HOW WE ARE ORGANISED AND GOVERNED

Charity Registration Number: 01124508 Company Registration Number: 06543150

Groundwork Greater Manchester is a registered charity and a company limited by guarantee. The governing documents are its Memorandum and Articles of Association, which were last amended at a General Meeting of the Members of the company held on 18[th] February 2021.

Our Board of Trustees

The Groundwork Greater Manchester Board of Trustees comprises up to 12 trustees, in accordance with the Charities Act 2011. Each Trustee is also a Director of the Company in accordance with the Companies Act 2006. Our Trustees are all co-opted trustees and bring a range of skills, expertise, networks and lived experience to the Board.

Our Trustees are responsible for ensuring Groundwork Greater Manchester is managed effectively and efficiently, with appropriate systems, processes and policies governing our fundraising, financial management, our assets and investments and our responsibilities to our staff, volunteers and beneficiaries. Trustees pay particular attention to issues of quality, health & safety, environment (including carbon reduction). safeguarding, data protection and information security and people management (including Equality Diversity and Inclusion). We maintain comprehensive business continuity and risk management arrangements.

Our Board of Trustees is supported by a team of expert associates to the Board, filling skill gaps and supporting the Board in their specialist areas. This currently includes experts in: health and safety and teaching and learning.

The work of the Board is supported by 2 Sub-Committees:

We also have a scrutiny and advisory Panel covering Teaching, Learning and Safeguarding. This panel has a specific function in relation to these three areas ensuring all policies and practices and fully scrutinised, including in line with Ofsted expectations, and that appropriate recommendations are made to the main board. This Panel is comprised of two specialist Associates and two Trustees who ensure a direct link back to the main board.

We also have a number of Internal Management Groups, supported by Associates and / or Trustee representatives including Health and Safety, Safeguarding and Equality Diversity and Inclusion (EDI).

The Board meets quarterly and retains authority for the overall strategy and policy of the Trust and approves the Strategic Vision and Plan and the annual Business Plan, delegating development of the planning process to the Executive Team, whilst retaining responsibility for overall scrutiny of performance.

The Board regularly reviews its performance, most recently completing a full Good Governance Review in August 2023 following the Charity Commission Governance Code. Over the remainder of the year we have followed a detailed action plan focused on: culture, values and behaviours; succession planning; and listening and learning. Key highlights have been the recruitment of four new trustees from diverse backgrounds and the introduction of our impact slot at board meetings where staff and participants share their experiences with the board, bringing our work to life for our trustees.

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Our Executive Team

The Trust’s Executive team is headed up by our Executive Director, appointed by the Board to lead the day-to-day operations of the Trust. They are supported by: our Director of Finance and Resources, responsible for financial and business support functions; our two service Directors (newly appointed in April 2024) who oversee programme delivery, fundraising and income generation in their respective Directorates.

We are in the process of establishing our new Strategic Management Team incorporating Strategic Leads for both internal functions and external service delivery.

To facilitate effective operations, the Executive Director has delegated authority, via our Scheme of Delegation approved by the Board, for a range of operational matters including finance, human resources and service delivery. The Executive Team is directly accountable to the Board and its Committees, to which they provide regular reports on financial and operational performance and compliance.

Our Relationship with the Groundwork Federation

We are a member of the Groundwork Federation of charities, which comprises 14 local Groundwork trusts and Groundwork UK. Each Groundwork Trust has similar objects to Groundwork UK but delivers in local areas across the UK. A membership agreement sets out our internal roles, relationships and behaviours and the whole of Groundwork operates to a collectively agreed Federation Strategy, overseen by Federation Board. Trusts are free to adapt that strategy to local context and circumstances, in order to deliver locally in the most effective and impactful way.

Our Executive Director is a member of Federation Executive Team and our Senior Leaders, Managers and practitioners are involved in a wide range of federation forums and development groups, all of which seek to continue to improve the efficiency, quality, scale and impact of our services.

The Federation of Groundwork Trusts and other Groundwork Trusts are not considered to be related parties under the definition of the SORP. Although the elected trustees of the Federation Board are also, by definition, trustees of Groundwork trusts, neither charity subordinates its interest to the other in any transaction. Therefore, the grants made by Groundwork UK (operating as the Federation of Groundwork Trusts) to local Groundwork trusts do not require separate disclosure.

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TRUSTEES REPORT, INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

CHARITABLE OBJECTS AND PUBLIC BENEFIT

Our charitable objects are set down in our Memorandum of Association and are as follows:

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  1. the protection or conservation of the environment, and the promotion and maintenance of sustainable community-based projects

  2. the provision of public health facilities and childcare

  3. the promotion of public safety and prevention of crime;

  4. such other means as may from time to time be determined subject to the prior written consent of the Commission

  5. To promote sustainable development within the area of benefit by:

  6. the preservation, conservation and the protection of the environment and the prudent use of resources

  7. the relief of poverty and the improvement of the conditions of life in socially disadvantaged communities

  8. the promotion of sustainable means of achieving economic growth and regeneration

  9. To advance the education of the public in subjects relating to sustainable development and the protection, enhancement and rehabilitation of the environment and to promote study and research in such subjects provided that the useful results of such study are disseminated to the public at large

In accordance with SI7(5) of the Charities Act 2011, the Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the charitable objects set out above.

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2023/24 STRATEGIC REPORT

Context and Priorities

We adopted our strategy for 2023-6 on 1 April 2023 and have spent the subsequent 12 months following through on the ambitions and plans we set out.

During the year we have operated within an on-going period of economic, environmental and political stress and uncertainty, and against this backdrop our services have never been needed more. The people we support are facing an unprecedented cost of living and mental health crisis, linked to climate anxiety, social isolation and financial stress. The communities we serve want to harness local power and pride, whilst facing exclusion, prejudice and inequity in their daily lives. Alongside this our natural environment is under threat from climate change and human impact.

However, we are fortunate to operate in a City Region that is facing these challenges head on – seeking to localise power, working in partnership to develop greener economies and build greener places, and finding innovative solutions to tackle social and economic inequalities. The team at Groundwork Greater Manchester are proud to be part of this collective effort and to bring our expertise and knowledge where it’s needed most. To that end, over the past 12 months, we have focused on four thematic growth areas:

We have also continued to act in our capacity as residential landlord for 17 properties in Rochdale, working in partnership with Rochdale Council on their Empty Homes programme.

In order to deliver our goals, we have continued to work in effective and generous partnerships with public, private and community, voluntary and faith sector organisations.

More about the difference we are making can be found in the impact section below.

Internally following a period of significant change and growth we have focused on sustained growth, assuring the quality of every aspect of our charity, and ensuring that we are both a great place to work and a stable and resilient organisation. We continue to embrace and adapt to change, and during 20234 have begun a substantial piece of organisational development work designed to:

This has led to a new structure for the trust headed up by a new Executive Team comprising our Executive Director, Director of Finance & Resources and two new, internally appointed, Service Directors – one for Community Neighbourhoods and one for Employment & Enterprise. As 2023/4 came to an end we were moving into phase 2 of our re-organisation which will lead to the establishment of our new Senior Management Team later in 2024.

As we move forward with our organisational plans we have also prioritised:

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We are proud of the way our staff have responded to change. Re-organisations are never easy but the team have responded with integrity, honesty and care, whilst always putting the needs of beneficiaries and the trust first.

Our Impact

Our 2023-6 strategy focuses around three key themes:

Some impact highlights of the year are:

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Our full current Impact report is available at

https://www.groundwork.org.uk/wp-content/uploads/2024/05/Groundwork-GM-Impact-Report-23-24.pdf

Be a Great Place to Work

During 2023/4 we maintained our focus on ensuring we are a great place to work. In February 2024 we attained full membership of the GM Employment Charter. In practical terms we have:

Being a Responsible Business

During 2023/24 we continued to seek to ‘walk the walk’ in relation to our contribution to some of the key challenges facing society today. Key highlights include:

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OUR PLANS FOR THE FUTURE

In March 2024 we completed the first year of 2023-6 Strategy which sets out how we will contribute to our vision of a greener, fairer and stronger for all of GM’s people, places and communities. We have made good progress as outlined previously within this report.

Moving forward we know that our delivery will take place within a similar external context - a challenging economic environment and global emergency. However, as we write this report, we know that there is greater political stability with the new Labour administration nationally and the re-election of Andy Burnham as Mayor of Greater Manchester. Within the context of the on-going drive for devolution we know that our partnerships in GM will remain strong and that we will all continue to pull together to do the best we can for our City Region, and beyond.

In that context, we will continue to stay focused on our four Strategic Growth Areas (SGAs) in order to increase our impact, generate income and extend our reach. These are:

Alongside our Strategic Growth Areas, we will continue our ‘Business as Usual’ activity. In reality this is where much of our day-to-day business development activity is focused in order to ensure we are able to sustain and grow our core products and services.

We will also remain focused on place-based working, in order to ensure we maximise impact by layering services and funding in target communities.

We recently wrote to the Mayor of Greater Manchester setting our asks in some key areas. These are summarised below:

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Our strategy also sets out our internal plans. We aim to ensure we are resilient and thriving and that, by 2026, we are assured that our business model enables us to absorb and adapt to a changing environment and to prosper in the long term. We will maintain our focus on:

We will also continue to build on the strong profile we have in Greater Manchester by developing a new and more ambitious approach to stakeholder engagement and influencing . Our letter to the Mayor was one of the first outcomes of this approach that is designed to: prioritise and set out planned outcomes from influencing and engagement and the principles of our approach (including any red lines); set out our tactics and understand where responsibility for theses lies; and set out our measures of success.

In the delivery of our plans, we will:

We hope that collectively these plans will allow us to continue to support those people, places and communities throughout Greater Manchester who need our help the most.

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TRUSTEES REPORT, INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

a) FINANCIAL PERFORMANCE

Groundwork Greater Manchester’s total incoming resources for 2023-24 totalled £6.55 million, with an unrestricted trading surplus of £10,324.

Reserves

Groundwork Greater Manchester Trustees and senior management team have reviewed the Reserves Policy and the Board has agreed that a reasonable level of unrestricted reserves is required for the following reasons:

Financial Impact of Risk:

Working Capital:

Commitments and long terms plans:

The above needs for reserves have to be balanced against the following factors:

Balancing the above, and taking account of guidance published by the Charity Commission, we have calculated the minimum level of reserves as £600k:

However, given the current rate of inflation and financial climate we consider that an additional 25% should be added to create a Reserves Level of around £750k for the Business Plan Period. The current level is calculated as:

Total Unrestricted Funds; £1,689,192
(less)tangible fixed assets for charityuse; £927,256
Total free reserves; £761,936

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Investments

The majority of the programme funds obtained by the Trust are provided against specified projects for particular needs and are initially financed from reserves. Therefore, any funds that are built up in advance of expenditure need to be kept as liquid as possible, whilst making every effort to maximise any available investment return.

To minimise risk such funds are kept on deposits with reputable banks where immediate access has to be balanced against available interest rates. Rates available from the whole banking sector are kept under regular review and every effort is made to maximise any potential return, whilst minimising risk in the investment portfolio, in an effort to obtain all possible funding for all projects.

Principal funding sources

The major sources of funding during the year are set out below.

Total income for the year was £6.55m;

The major sources of funding during the year were:

Private Sector contracts - £1.63m; Housing providers - £1.81m; Government Agencies & EU - £0.74m; Local Authorities - £1.1m; Big Lottery - £0.4m; Other Income - £0.88m;

There were brought forward Landfill Tax revenues of £4,477 from Veolia. This was spent during 23/24 and no balance was carried forward at year end

Funds held in trust

The trust holds a balance on behalf of the Brinnington Big Local Partnership (Big Lottery). This partnership aims to:

The cash balance at year end was £92,666 (2023 - £67,947) and is shown in other creditors.

Also, the trust holds a balance of £90,751 (2023 - £90,751) on behalf of the Irwell Rivers Trust, to be spent by the Irwell Catchment Partnership (ICP), of which Groundwork Greater Manchester are members.

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b) PRINCIPAL RISKS AND UNCERTAINTIES

Risk Assessment & Management

The Board of Groundwork Greater Manchester fully accepts its responsibilities under the Charity Commission's Statement of Recommended Practice (SORP) for ensuring that the major risks to which the charity is exposed are identified and reviewed, and that there are systems in place to mitigate them.

Major risks are those that have a high probability of occurring, and would if they occurred, have a severe impact on either operational performance or achievement of purposes, or could damage Groundwork's reputation.

The risk management process, which operates as both a top-down and bottom-up mechanism, is designed to enable the Board to conclude whether the major risks to which the charity is exposed have been identified and reviewed, and that systems have been established to mitigate these risks.

The system involves the Executive & Senior Management Team:

The major areas of risk identified to date, potential impact and mitigations are:

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TRUSTEES REPORT, INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trust recognises that risk management and mitigation is an essential part of good business practice and an effective mechanism of good governance.

The Board is committed to ensuring that risk management processes are embedded through the Trust, and that these processes are used to help identify at an early-stage issues that affect performance or achievement of purpose.

The Board does recognise that a risk management system can only seek to manage rather than eliminate risk of failure, and that it should therefore be only one of the tools that the Board and Executive uses to provide effective control and management of the administration of the Trust.

Financial instruments

The Trust's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks. Our policy is to finance working capital through retained reserves. The Trust does not use hedge accounting. Its policy is to finance fixed assets through borrowings for a term broadly expected to match the useful economic lives of the assets.

The Trust's exposure to the price risk of financial instruments is therefore minimal. As the counterparty to all financial instruments is its bankers, it is also exposed to minimal credit and liquidity risks in respect of these instruments.

The Trustees do not consider any other risks attaching to the use of financial instruments to be material.

Auditor

Beever and Struthers are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

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c) STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of Groundwork Greater Manchester) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)

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

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

In so far as the trustees are aware:

Signed on behalf of the Board of Trustees

Katrina Cunliffe Chair Date: 31[st] October 2024

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Independent Auditor’s Report to the members of Groundwork Greater Manchester

Opinion

We have audited the financial statements of Groundwork Greater Manchester “the charitable company” for the year ended 31 March 2023 which comprise Statement of Financial Activities including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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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 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.

Opinions 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 the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which 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 on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Auditor’s 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the 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 addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 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.

For and on behalf of BEEVER AND STRUTHERS Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

Date: 22 November 2024

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Groundwork Greater Manchester

Statement of financial activities including the Income and Expenditure account for the year ended 31 March 2024

Income:
Note
Donations and legacies
3
Investment income
4
Income from charitable activities:
Land, Design and Build
Community Development & Youth
Training and Coaching for Employment
Sustainable Business/Energyworks
Total income
Expenditure:
Costs of raising funds:
Commercial trading operations
5
Expenditure on charitable activities:
Land, Design and Build
6
Community Development & Youth
Training and Coaching for Employment
Sustainable Business/Energyworks
Total expenditure
Net incoming resources
10
Net movement in funds
Fund balances brought forward at 1 April
2023
17
Fund balances carried forward at 31
March 2024
17		 2024
Unrestricted
funds
£
57,163
13,748
992,216
1,303,412
2,768,850
1,411,252
6,546,641
27,873
1,034,367
1,271,076
3,114,216
1,088,817
6,536,317
10,324
10,324
1,678,868
1,689,192		 2024
Restricted
Funds
2024
Total
£
-
57,163
-
13,748
-
992,216
-
1,303,412
-
2,768,850
-
1,411,252
-
6,546,641
-
27,873
-
1,034,367
-
1,271,076
-
3,114,216
-
1,088,817
-
6,536,317
-
10,324
-
10,324
65,257
1,744,125
65,257
1,754,449		 2023
Unrestricted
and Total
£
36,842
5,643
872,201
1,053,693
3,315,734
850,476
6,134,589
33,874
887,529
1,037,651
3,489,270
658,960
6,107,284
27,305
27,305
1,716,820
1,744,125

Incoming resources and resources expended derive from continuing operations.

The company has no other recognised gains or losses other than those passing through the statement of financial activities.

The notes on pages 28 to 37 form part of these financial statements.

26 | P a g e

Groundwork Greater Manchester

Charity balance sheet at 31 March 2024

Note 2024 2024 2023 2023
£ £ £ £
Fixed assets
Tangible assets 11 927,256 933,634
927,256 933,634
Current assets
Debtors 12 1,729,223 1,474,269
Cash at bank 996,554 1,088,527
Creditors: amounts falling due
within one year 13 1,898,584 1,752,305
Net current assets 827,193 810,491
Total assets less current
liabilities 1,754,449 1,744,125
Net assets 16 1,754,449 1,744,125
Reserves
Restricted funds: 65,257 65,257
General funds 17 1,689,192 1,678,868
1,754,449 1,744,125

These financial statements were approved by the Board of Trustees and authorised for issue on 31 October 2024 and were signed on its behalf by:

Katrina Cunliffe Chair

Date: 31 October 2024

Company registration no. 06543150

The notes on pages 28 to 37 form part of these financial statements.

27 | P a g e

Groundwork Greater Manchester

Cash flow statement for the year ended 31 March 2024

Reconciliation of net incoming resources before
transfers to net cash outflow from operating
activities
Net incoming resources before transfers
Interest receivable
Rental income
Depreciation
(Increase) in debtors
Increase in creditors
Net cash outflow from operating activities
Cash flow from financing activities
Repayment of loans & borrowings
Net cash inflow from financing activities
Cash flows for investing activities
Interest received
Rental income
Payments to acquire tangible fixed assets
Net cash outflow from capital expenditure
(Decrease) in cash
(Decrease) in cash in the period
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024		 2024
£
£
2023
£
£
10,324
27,305
(13,748)
-
52,738
(5,643)
-
62,717
(254,954)
(317,690)
146,279
78,224
(59,362)
(155,087)
(-)
(-)
(-)
(-)
13,748
5,643
-
(46,359)
-
(12,849)
(32,611)
(7,206)
(91,973)
(162,291)
=================
================
2024
£
(91,973)
2023
£
(162,291)
1,088,527
1,250,818
996,554
=================
1,088,527
=================

The notes on pages 28 to 37 form part of these financial statements.

28 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024

1 Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) 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 Greater Manchester meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Going Concern

There are no other material uncertainties about the charity's ability to continue, therefore, the accounts have been prepared on a going concern basis.

c) Grants and other income

Donations and legacies including grants that provide core funding or are of a general nature is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:

Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.

Investment and rental income is recognised on a receivable basis.

Income from commercial trading activities is recognised on a recoverable basis.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided). Grant income included in this category includes income received specifically for project activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income is deferred when project funding is received in advance of expenditure being incurred on the various projects where delivery of the project gives the Trust entitlement to the income.

d) Funds

Unrestricted funds are those which are available for use at the discretion of the Board of Trustees in furtherance of the general objectives of the charity.

Restricted Funds - Roch Valley Primrose Hill Farm Heywood Roch Valley is a site of biological importance and is part of the wider green corridor following the River Roch through the heart of Rochdale. It is nestled between Queens Park and Springfield Park and is a remote haven for wildlife. Roch Valley consists of a lowland hay meadow adjacent to the river with scattered trees and hedgerows across the site.

29 | P a g e

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

Groundwork Greater Manchester

Groundwork bought the site on 30th May 2014 using funds provided by Rochdale Council (RMBC) via a local S106 agreement and the purchase included an £100,000 endowment for Groundwork to maintain and develop the land in the future and we have since developed the space into a valuable community amenity. Endowment funds remaining are £65,257.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of raising funds are the costs associated with attracting voluntary income.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

f) Allocation of support costs

Support costs include central functions such as back-office costs, finance, personnel, payroll and governance costs. These have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

g) Tangible fixed assets

Individual fixed assets costing £1,000 or more are initially recorded at cost.

The trustees have a policy of periodically reviewing fixed assets for impairment over and above their carrying value. Any reductions in the net book value of impaired fixed assets are treated as additional depreciation charges, which are reported within the appropriate resources expended section of the Statement of Financial Activities. Assets under construction are not depreciated until completed.

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Land and Buildings 2% per annum using the straight-line method Ecology Park Main Building 10% per annum using the straight-line method Fixtures, Fitting and Equipment 25% per annum using the straight-line method Motor Vehicles 25% per annum using the straight-line method

h) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

i) Cash at hand and in bank

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.

j) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past

30 | P a g e

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

Groundwork Greater Manchester

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 due.

k) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

l) Pensions

The charity is a member of a multi-employer scheme (Greater Manchester Pension Fund) for employees in service on 1 June 2008. The assets of the scheme are held separately from those of the Trust but these assets and liabilities are not separately identifiable hence no value in the accounts. The regular cost of providing pension and related benefits is charged to the statement of financial activities over the employees’ service lives on the basis of a constant percentage of earnings.

The charity also operates two other defined contribution pension schemes for employees joining after 1 June 2008. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

m) Judgement and keys sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. In the trustees’ opinion, there are no significant accounting estimates and judgements.

2 Legal status of the Trust

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The charity is incorporated in the United Kingdom and its registered address is: Trafford Ecology Park, Lake Rd, Manchester, M17 1TU.

3 Income from donations and legacies

2024 2024 2023
Unrestricted Total Unrestricted
and Total
£ £ £
Miscellaneous Income 7,124 7,124 16,552
Support Income 50,039 50,039 20,290
Furlough Income - - -
57,163 57,163 36,842

31 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

4 Investment income

Bank interest
2024
Unrestricted
£
13,748
2024
Total
£
13,748
Rental income
-
-
13,748
13,748
5
Cost of generating funds
2024
2024
Unrestricted
Total
£
£
Marketing Costs
27,873
27,873
27,873
27,873
6
Charitable activities
Direct Employment
Governance
Support
&
Costs
Costs
Costs
Other Costs
(note 7)
£
£
£
£
Analysis of
expenditure
on charitable
activities
Land Design
and Build.
409,101
562,564
4,443
58,259
Community
Engagement
& Youth.
490,504
700,236
5,692
74,644
Training and
Coaching for
Employment.
1,115,789
1,790,729
14,716
192,982
Sustainable
Business/
Energyworks
569,965
469,193
3,887
45,740
2,585,359
3,522,722
28,738
371,625		 2023
Unrestricted
and Total
£
5,643
-
5,643
2023
Unrestricted
and Total
£
33,874
33,874
Total
Total
2024
2023
£
£
1,034,367
887,529
1,271,076
1,037,651
3,114,216
3,489,270
1,088,785
658,960
6,508,444
6,073,410

Note: Support and other costs are allocated on a % head count based on the members of staff in that area. These include administration, accommodation, transport, depreciation and communication costs.

32 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

7 Governance costs

2024 2024 2023
Unrestricted Total Unrestricted
and Total
£ £ £
Legal and professional 18,738 18,738 2,049
Audit and accountancy fees 10,000 10,000 9,700
28,738 28,738 11,749
Governance costs are apportioned into Note 6 based on staff numbers per area

8 Employees The number of employees during the year, analysed by category, was as follows.

Direct charitable
Management and administration
Fundraising and publicity
The aggregated cost of these persons was as follows:
Wages and salaries
Social security costs
Pension costs (see note 14)
The emoluments of employees (excluding NI/pension
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000		 2024
Headcount
2023
Headcount
2024
FTE
2023
FTE
108
99
110
97
9
7
9
8
3
2
3
2
120
108
122
107

2024
2023
£
£
3,093,020
2,754,993
284,051
257,275
145,651
133,727
3,522,722
3,145,995
contributions) over £60,000 per annu
2024
£
-
m are as follows:
2023
£
1
1
-
-
-

Total contributions under defined contribution schemes on behalf of these were £5,709 (2023 - £5,173).

Payments made to Key Management Personnel amounted to £159,433 (2023: £149,385). These payments were to the executive officers only. No amounts were paid to Trustees

33 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

9 Transactions with Trustees

No Trustees received any remuneration or expenses for services performed on behalf of the trust.

10
Net incoming resources
Net incoming resources for the year is stated after charging:
Audit of the charity’s annual accounts
Depreciation
11
Tangible assets
Cost
Freehold
Ecology
Ecology
Interest in
Park
Park
Land and
Main
Timber
Buildings
Building
Building
£
£
£
At 1 April 2023
607,018
141,950
379,052
Additions
-
12,000
-
Disposals
-
-
-
At 31 March 2024
607,018
153,950
379,052
Depreciation
At 1 April 2023
90,411
116,291
15,162
Eliminated on
disposals
-
-
-
Charged for the year
12,141
9,595
7,581
At 31 March 2024
102,552
125,886
22,743
Net Book Value
At 31 March 2024
504,466
28,064
356,309
Net Book Value
At 31 March 2023
516,607
25,659
363,890		 2024
£
10,000
52,738
Office and
Motor
Computer
Vehicles
Equipment
£
£
83,525
198,114
20,900
13,459
-
-
104,425
211,573
56,047
198,114
-
-
20,056
3,365
76,103
201,479
28,322
10,094
27,478
-		 2024
£
10,000
52,738
Office and
Motor
Computer
Vehicles
Equipment
£
£
83,525
198,114
20,900
13,459
-
-
104,425
211,573
56,047
198,114
-
-
20,056
3,365
76,103
201,479
28,322
10,094
27,478
-		 2023
£
10,000
62,717
Total
£
1,409,659
46,359
-
1,456,018
476,025
-
52,738
528,763
927,255
933,634













211,573
198,114
-
3,365
201,479
10,094
-

34 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2023 (continued)

12
Debtors
Trade debtors
Prepayments and accrued income
13
Creditors
Trade creditors
Other creditors
Accruals and deferred income
Taxation and social security		 2024
2023
£
£
858,035
894,003
871,188
580,266
1,729,223
1,474,269
2024
2023
£
£
274,522
191,633
443,387
458,518
973,537
874,487
207,138
227,667
1,898,584
1,752,305

14 Greater Manchester Pension Scheme

The scheme available to staff in service on 1 June 2008 was the Greater Manchester Pension Fund (GMPF). The GMPF is a final salary defined benefit scheme, the assets of Groundwork Greater Manchester are pooled with similar institutions for actuarial valuation purposes. The pension contributions made by Groundwork GM to the scheme for the year ended 31 March 2024 were £55,261 (2023 - £55,715). The agreed employer contribution rate was 25.4% for the period April 2023 to March 2024 and will remain the same up to March 26.

In the event of any deficit, the trust would be liable for its proportionate share of any shortfall. As stated below, at the last actuarial valuation funding stood at 104%, up from 102% at the previous actuarial valuation. For the purposes of the accounts this is being treated as a defined contribution scheme.

The pension cost is assessed every three years in accordance with the advice of an independent qualified actuary. The latest actuarial valuation of the scheme was at 31 March 2022. The assumptions and other data, used in the 2022 valuation, that have the most significant effect on the determination of the contribution levels are as follows:

Actuarial method Projected unit method
Rate of increase in pensions 2.3% pa
Discount Rate 3.6% pa
Market value of the assets at the date of last valuation £29.3 m
Value of Liabilities £28.3m
Proportion of members' accrued benefits
covered by the actuarial valuation 104%
Funding level change since last valuation 2% increase

Employees joining after 1 June 2008 have been entitled to join defined contribution pension schemes administered by AEGON and Peoples Pension.

35 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

15 Related parties

As per Note 8 no other related party transactions have occurred in the period

16 Analysis of net assets at 31 March 2024

Unrestricted
Funds
£
Tangible fixed assets
861,999
Current assets
2,725,777
Creditors: amounts falling due within one year
(1,898,584)
1,689,192
Analysis of funds
Unrestricted
Funds
2024
£
At 1 April 2023
1,678,868
Incoming resources
6,546,641
Resources expended
(6,536,317)
Transfer between funds
-
At 31 March 2024
1,689,192		 Restricted
Total Funds
2024
£
£
65,257
927,256
-
2,725,777
-
(1,898,584)
65,257
1,754,449
Restricted
Unrestricted
Funds
2024
Funds
2023
£
£
65,257
1,651,563
-
6,134,589
-
(6,107,284)
-
-
65,257
1,678,869		 Total Fund
2023
£
933,634
2,562,796
(1,752,305)
1,744,125
Restricted
Funds
2023
£
65,257
-
-
-
65,257

17 Analysis of funds

18 Capital Commitments

The Trust had no Capital Commitments at the end of March 2024 (2023 - £ None)

19 Net Debt

Cash/Cash equivalents
Cash
Overdrafts
Cash Equivalent
Total
Borrowings
Debt Due		 At 1 Apr 23
£
Cash Flows
£
Other non-cash
Changes
£
At 31 Mar 24
£
1,088,527
(91,973)
-
996,554
-
-
-
-
-
-
-
-
1,088,527
(91,973)
-
996,554
-
-
-
-

36 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued) ~~Total 1,088,257 (91,973) - 996,554~~

37 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

Advisors

Auditors

Beever and Struthers One Express 1 George Leigh Street Manchester M4 5DL

Bankers

Santander Corporate Banking 298 Deansgate Manchester M3 4HH

38 | P a g e

Groundwork Greater Manchester

Notes forming part of the financial statements for the year ended 31 March 2024 (continued)

The Board of Trustees

The Trustees (who are the directors of the company in accordance with the Companies Act 2006) on the date of approval of this report, or who served as Trustees at any time during the year reported on, are as follows:

Co-opted Trustees Member First appointed Last appointed Resigned
Katrina Cunliffe (Chair) Co-opted May 2019 June 2022
Thomas Besford (Vice
Chair)		 Co-opted August 2020 August 2023
Tessa Wiley Co-opted September 2021
Joanne Yates Co-opted November 2021
Stewart McCombe Co-opted November 2022
Steph Everett Co-opted November 2022
Jack Collier Co-opted November 2023
Erica Rosanne East Co-opted November 2023
Janet Thomas Co-opted November 2023
Joy Woods Co-opted July 2024

Company Secretary

Gary Cunningham

Audit and Risk Committee

Stewart McCombe (Chair) Steph Everett (Vice-chair) Tom Besford Tessa Wiley Joy Woods

Executive Director

Deborah Murray

Key Management Personnel

Deborah Murray Gary Cunningham Venetia Knight (from 1 April 24) Michaela Howell (from 1 April 24)

39 | P a g e