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2022-03-31-accounts

Groundwork West Midlands Annual Report and Financial Statements 2021/22

Charity registration number 1128858

Company registration number 06823225

Registered office: First Floor Owen House 17 Unity Walk Tipton DY4 8QL

Contents

Page

1 About Groundwork West Midlands

2 Message from the Chair

42 Advisors

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

About Groundwork West Midlands

Groundwork West Midlands (GWWM) is an incorporated charity working to transform lives in the UK’s most disadvantaged communities. We are passionate about creating a future where every neighbourhood is thriving, every community is strong and able to shape its own destiny and no-one is held back by their background or circumstances.

We help people gain confidence and skills, get into training and work, lead more active lives and overcome significant challenges such as poverty, isolation, low skills and poor health. We work with businesses and communities to protect the environment and improve green spaces.

We are part of a federation of independent charities in England, Wales and Northern Ireland called Groundwork Trusts, supported by a national office called Groundwork UK.

Our teams are based in offices across the West Midlands delivering services where they are needed the most.

We are passionate about;

We believe that working with local communities to build their resilience is vital in facing up to the challenges of a post-Covid-19 West Midlands. We know that the negative effects of climate change and environmental breakdown impact first and worst on those who have the least power in society, and who contribute least to the cause of the crisis. A ‘just transition’ to an inclusive, net-zero economy must tackle, rather than entrench, this inequality and provide a springboard for better work and healthier, happier lives in the places that need it most.

This means creating green jobs that build wealth in local communities, changing behavior to reduce wasted food, energy and water, providing biodiverse, accessible green spaces, supporting businesses to be more responsible and empowering communities to lead activities that improve their quality of life and promote health and wellbeing.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Message from the Chair

Like most other organisations, communities and individuals, we have realized that life hasn’t gone back to the “old norms” post-Covid. The emergence in 2021 and 2022 from the restricted world of Covid has created many challenges to communities, business and society and therefore additional demands and new opportunities for Groundwork West Midlands. As we made a return to face-to-face delivery of projects, the real, potentially long term, impacts of the pandemic were manifest, with increased isolation impacting mental and physical well-being of many of the people that we work with. In this environment, our focus for the year has been to increase our effectiveness and efficiency of delivery for our customers.

Helping to address climate change remains central to our mission, and we strive to do this through operational efficiencies and in our path to net zero, together with programmes such as Green Doctor, that have helped reduce household energy bills, increase energy management skills and trained an expanded network of advisors to help local communities. I would hope that this programme can be expanded into a more commercial offer for business next year, also helping self-sustainability for Groundwork West Midlands and others in our network.

Our Restart Programme has proved to be an immense success, and the initial programme awarded has been expanded, largely due to the successful delivery of original targets by our Restart Teams, working to unlock employment opportunity for communities and individuals in need.

As this report is published, we see the UK In a very difficult economic climate, we anticipate that the demands on our services will sharply increase and, working efficiently, effectively, in areas of greatest need will become even more critical. We are now working more closely with other Midlands-based Groundwork Trusts to share knowledge, expertise and resources to support this. We are an organization rooted in relationships and with stronger collaboration, this also been a key focus this year, working on extended partnerships and relationships with delivery partners, funders and commissioners.

Our Trust comprises a fabulous family of committed and skilled teams and volunteers, they are, and will always be, the greatest asset in our arsenal. The SMT, lead ably by Andrew Thompson our CEO, have driven improvement and delivery and continue to strive for excellence. Sadly, this year we lost a much loved and respected member of our SMT, Simon Johnson, an experience that brought sharply into focus both the power of individual impact, and our frailty and interdependence. We are all at times providing support or are in need, these human traits make us stronger together, motivate us and are central to the Groundwork mission.

I am delighted to present this 2021/22 Annual Report and with it say a very big thank you to our teams, volunteers and partners for their untiring commitment, professionalism, and hard work. As we continue to consolidate our financial stability, our ambition as a Board of Trustees is to ensure that we work in the areas of greatest need, where we can have greatest impact, and that we maintain focus on our strategic objectives. By focusing on creating better places for people, enabling people to improve their prospects and helping people and organisations to make greener choices, we maximise the impact of our mission. We will continue to have these objectives at the heart of our 2022/23 year going forwards.

Anne-Marie Simpson, Chair

27[th] October 2022

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Governance

Structure

Groundwork West Midlands, the charity and the group, is a charitable company limited by guarantee, registered with the Charity Commission (number 1128858) and Companies House (number 06823225). The organisation is governed by its Memorandum and Articles of Association dated 9 June 2009; Trustees are elected or coopted in accordance with these.

Board of trustees

The Groundwork West Midlands board comprises Trustees appointed in accordance with the Charities Act 2011, who are also the directors of the company in accordance with the Companies Act 2006. We take our governance responsibilities very seriously, recognising the need to ensure as much of our resource as possible is expended on delivering our charitable mission while ensuring our organisation is strong, well-managed and financially viable in the long term.

The Trustees are responsible for ensuring sound organisational systems, processes and policies are maintained and embedded in the way Groundwork West Midlands is managed. This includes policies governing our fundraising standards, our investments and our responsibilities to our staff, volunteers and beneficiaries. We pay particular attention to issues of health and safety, data protection and information security and we maintain comprehensive business continuity arrangements.

We take safeguarding very seriously and have a nominated, trained champion on our board. Our Trustees ensure we have access to the expertise needed to run our organisation efficiently, effectively and safely; new Trustees are provided with an induction to the organisation, with a focus on roles and responsibilities.

The Groundwork West Midlands board’s work is supported by our Finance and Audit Committee, a subcommittee which oversees the audit process and reviews our Annual Report and Financial Statements independently of the main board.

Management Team

In 2020, we undertook a review of the SMT and installed new members with strong experience of managing and delivering our projects and services. The SMT is now fully representative of all functions of the organisation, and reporting lines are much clearer. The new look SMT has continued to perform well, resulting in greater efficiencies, communication throughout the organisation and delivery of our projects and services.

The SMT priority areas for the year were:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

The Senior Management Team includes staff members responsible for financial and business management, business development and programme management. The SMT is fully accountable to the Board and the Finance and Audit Committee and operates through delegated powers outlined in our financial regulations.

The team provides regular reports to the board on financial and operational performance and risk management. SMT meets monthly to discuss strategy and operation management of the organisation.

Sadly, during the year, our Resources Manager passed away, and as well as the human and emotional impact upon the organization and our team, this left a skills and experience gap in GWWM. We reviewed the functions of this role, and created a new role of ‘Office Manager’ that has been recruited to and works well.

Relationships within Groundwork

Groundwork West Midlands is one Trust within the Groundwork federation of independent charities. Each Groundwork Trust works under a common brand to a common strategy. This strategy sets the direction, milestones and targets which influence operational decision-making across all parts of Groundwork and against which the senior executives hold each other to account.

Within this strategic framework Groundwork Trusts make their own decisions about the project work they develop and deliver. The federation strategy supports this local decision-making by focusing on those areas of development and delivery where there is a need or an opportunity for Groundwork to act collectively in order to achieve maximum benefit for the communities it serves. Individual Trusts benefit from sharing intelligence and the potential to replicate business models that are being delivered in other parts of the federation.

The national office, Groundwork UK, delivers services and activities to support Groundwork Trusts by building brand and profile, generating income for local delivery and supporting quality and impact. Groundwork UK is held to account for its performance by its members. Each Groundwork Trust signs a membership agreement which sets down the obligations of Trusts to Groundwork UK and to each other and the services and standards Groundwork UK will deliver on behalf of the federation.

The value and benefit of being a member of the Federation was underlined during the ongoing Covid-19 crisis, as the Federation has come together to share best practice and agree common crisis response, areas for joint development and future positioning. The crisis response has also encouraged neighbouring trusts to develop closer working relationships and explore collaborative opportunities.

During the year, GWWM has been working with other trusts across the central region, to develop a ‘Midlands Hub’ of trusts across Central England. We have agreed common areas for greater collaboration and partnership working including:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Related party relationships

The charity operates one trading subsidiary, Groundwork West Midlands Enterprises Limited. All of the issued share capital of this company is held by the charity. This company was formed to operate contracts falling outside the scope Groundwork West Midlands core areas. For 2021–22 no significant transactions were undertaken in Groundwork West Midlands Enterprise Limited that were profit/loss affecting other than unavoidable transactions such as Bank Charges.

Our commitments

We will be environmentally aware and focused on communities in need. Our decisions, actions and operations will be guided by our sustainable development policy, which sets out how we aim to contribute to creating a strong and just society living within environmental limits. Everything we do is underpinned by our values, which inform the way we work and behave. These are:

Safeguarding

As a charity dedicated to supporting vulnerable people we make sure our operations are delivered safely and to the highest ethical standards. Groundwork UK have recently undertaken a federation-wide review of Trusts’ arrangements for safeguarding and whistleblowing. This work ensures Groundwork Trusts can identify and embed best practice in terms of local management, governance oversight and transparent reporting. Groundwork West Midlands continues to exceed the minimum recommended requirements.

Fundraising activities

The charity had no fundraising activities that require disclosure under S162A of the Charities Act 2011.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Objects and public benefit

Groundwork West Midlands charitable objects are set down in its Memorandum of Association dated 9 June 2009. They commit us to delivering and promoting regeneration and sustainable development.

The 13 objects cover environmental conservation, social welfare, public education, urban and rural regeneration for public benefit, training and employment opportunities, housing, public amenities, historic buildings, recreational facilities, derelict land reclamation, public health, public safety and other means as may be determined by the Charity Commissioners.

Groundwork West Midlands exists primarily to provide public benefit. Specific benefits delivered in 2021 - 2022 are detailed in the Strategic Report section and provide evidence that the criteria for public benefit have been met. Groundwork West Midlands Trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the organisation's objectives and planning future activities.

Our work is designed to address the needs of all sections of the community and we provide equal access to our services regardless of race, gender, disability or sexual orientation. For further details about our work visit www.groundwork.org.uk/hubs/westmidlands/

Strategic report for the year ended 31 March 2022

Strategic Overview

Groundwork West Midlands is the community charity with a green heart. Our mission is for thriving, sustainable communities and our vision is of vibrant West Midlands communities where people and enterprise prosper.

We have been working for over 20 years to create stronger communities with better local environments, to tackle climate change and combat fuel poverty, to improve skills and get people back into work and inspire the next generation of community champions and green leaders.

We continue to deliver a rich tapestry of local projects, programmes and services that are transforming lives in local communities and helping more people get involved in taking action to improve their personal circumstances and the quality of life in their area.

Our Impact

We spent time during the year considering our impact and how we can effect change. Our work supports people facing multiple challenges – living in isolation or with significant health issues, in communities with few facilities, and with limited employment prospects.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

We have nearly four decades’ experience of building partnerships to address these challenges in three ways:

We will focus our work in the areas of greatest need across the whole West Midlands Regional footprint.

Sustainable Development Goals.

We prioritise our work and measure our achievements based on the difference we make to the lives of people, our impact on the environment and our contribution to UN Sustainable Development Goals. We have identified six goals, which align most closely with our work:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Context & Impact of Covid – ‘21/22’.

This has once again been a very challenging year, and the immediate priority for GWWM has been to manage the continuing Covid-19 crisis, whilst ensuring business continuity as much as possible, and to plan for, and assess the longer-term impact that the pandemic will have on our future. There was still significant impact of Covid-19 on the year, however, towards the end of 2021 we started to see an increasing number of stakeholders returning to normality, with a marked increase in the number of face-to-face activities.

We are pleased to report that GWWM continued to deliver throughout the ongoing Covid-19 crisis, win new contracts and funding for future work, and commenced a range of development and business planning activities to ensure that we are fit for the future and prepared to take advantage of a range of opportunities for growth.

Strategic positioning

However, Groundwork West Midlands has worked hard during the year to position itself effectively alongside the wider federation, to be strategically positioned to meet the challenges and needs of a post-Covid West Midlands, and form an integral part of the ‘building back better’ response to the pandemic.

This has resulted in a strategic focus for the future on:

Summary of our charitable work.

The following is a sample of the work undertaken to satisfy these objectives during a very challenging year:

Healthy Lifestyles

2021/22 saw the Healthy Lifestyles projects return to full face-to-face delivery and to physically return to the communities and partners that we work with. It quickly became clear to the team that the impacts of Covid were going to be vast and long lasting. Impacts included:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Where possible delivery of projects have been adapted and capacity increased to help address some of the issues mentioned.

Green Doctor

2021/22 has seen a growth in our Green doctor service across the West Midlands. We now have coverage in the key urban areas of Coventry, Birmingham, Stoke on Trent & North Staffordshire and Sandwell. The team have supported over 1500 families to access energy advice, grant support, fuel vouchers, winter warm packs and behaviour change support.

The team have established a wide network of referral partners and have trained approx. 300 front line staff in how to give basic energy advice. During the last 12 months, we have also launched a monthly newsletter, delivered bi-monthly webinars in partnership with Groundwork in the North and started undertaking paid-for retro-fit assessments.

We have become a key partner to many Councils and Housing Associations and are becoming a key player in the energy advice sector.

Breakthrough

Breakthrough is a BBO funded project that supports people with financial advice, managing debt and general budgeting skills. During 21/22, the team has grown to four full time staff members due to the level of demand. The team have supported clients to access over £100,000 worth of grants, helped get £1000’s of pound worth of debt written off devised realistic repayment plans, which have stopped many people being evicted from their homes.

The success of the team has led to Groundwork West Midlands leading on the development of an online and in-person training programme that has been rolled out to Groundwork staff across the UK, so that staff across the federation have basic knowledge on giving financial advice to clients they come into contact with.

Progress

Progress is a BBO funded project that supports young people who are NEET or at risk of becoming NEET. The team work across schools and pupil referral units in Warwickshire. During the last 12 months, the team has grown to four staff members due to the success of our delivery to date and the increased demand. The team work on a one-to-one basis with students who often have a range of challenging behaviours and mental health issues. The personalised support has seen over 60 young people progress into further education, employment or return to mainstream school.

The impacts of Covid have been very clear to see within this group as many young people have not returned to school, have developed or seen a decline in their mental health problems and in many cases lost all motivation and ambition.

Land Management

Within or Land Management portfolio we manage five country parks and a number of land-based projects. The country parks are continuing to thrive and community engagement is at an all-time high. Our events such as bat walks, nature walks, pond dipping and forest schools are well attended and receive great user feedback. Volunteer numbers are also high with multiple groups active on each site.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

We have delivered a Natural Neighbourhoods project on Silverdale Country Park, which involved recruiting and training young people into paid six-month positions or 3-month voluntary placements. Six young people were recruited as paid assistant Rangers and received training in practical skills, employability skills and carbon literacy. All six have gone onto further employment. Over 50 volunteers were recruited and trained and undertook valuable tasks on the parks such as dry stone walling, hedge laying, scything and path repair and maintenance.

The sites have continued to win awards during 21/22:

Restart – Tipton, Dudley, Birmingham & Coventry

Restart is a DWP funded project and is payment by results. Initially this project was set up to support the “Covid cohort” – anyone who was a victim of employment issues during the lockdown periods. This has since adapted and is now catering for many claimants that access benefits and Job Centres.

Supporting all age ranges to break down barriers to employment and move them into work. Debt, Housing, substance dependency – through to the interview prep, motivation and confidence etc. This project comes with many strict customer service standards that all partners must achieve as well as the employment target each month.

We mobilized this project and recruited over 20 staff members and organising 4 new delivery centres. Since the outset of the project Groundwork WM have secure top position in performance across the whole supply chain. Because of this, we have been awarded further referral allocation and budget in the Dudley area, and secured a new allocation in Oldbury – we are currently recruiting for this and will source premises in Oldbury to deliver this service.

BBO Progress – Coventry and Warwickshire

BBO Progress is a project delivered across Coventry and Warwickshire supporting NEET (not in education, employment or employment) young people to move them into employment or education. We support through individual IAG (information advice and guidance) and break down barriers to achieving these outcomes.

Following on from lifted Covid restrictions, the team have worked well to get back to face-to-face delivery. This has rescued the performance that was lost during the lockdown.

We were successful in securing extra funding for phase three of the project and we are confident that we will achieve the required outputs for the Prime and the funder.

It is quite evident that no further funding will be available and we are preparing to engage with new customers up until Dec 2022 – we will then concentrate on working with the existing participants through to March 2023 when the funding ends.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

BBO Connecting Choices – Stoke on Trent

Following on from the Covid Lockdown, this project struggled to maintain a good performance level.

The budget did not allow us to continue past Dec 2022. Therefore, a decision was made to reduce staff by one to ensure we had sufficient project time to deal with any performance deficit. Unfortunately, due to remaining staff long term sick and the performance levels dropping further, a decision was made by Head of Employment and Groundwork CEO to hand the project back. This would ensure that the prime had adequate time to reallocate the funds and work on any lost performance for their project as a whole.

BBO Evolve – Burton

Supporting participants 16+ to move into employment, education or competent job search, and working with individuals furthest away from the labour market supporting with various barriers.

The programme provides help with confidence, Mentoring, CV and application support coupled with effective IAG, we design a plan for participants to reach their goal in a specific time. We deliver either within our centre or out in the community, and we work with many stakeholders and organisations to support our participants to an employment/education or effective job search outcome.

We received further funding to continue delivery of phase 3 of BBO and we will engage with new participants up until Dec 2022. We will then continue to work with existing participants until March end 2023 when the project comes to its end. There will be no further funding for this project past this time.

BBO Family Matters – Sandwell

This project supports people that are in a family environment, single parents or caring responsibilities. We support breaking down barriers to employment, education or competent job search.

Our links with local colleges are proving very successful and our education route for customers is exceeding the required standard set by the Prime (Black Country Together)

Following the Covid restriction being lifted, we have worked well to deliver face-to-face appointments with participants. Performance was maintained during lockdown due to the low numbers required on programme.

We are awaiting the final round of funding to take us through to March 2023, which will be the end of the project.

Sustainable Business Services

Groundwork West Midlands Sustainable Business Services supports mainly SMEs (small and medium sized enterprises) from across the West Midlands supporting them with their environmental and health and safety legal obligations. We deliver a suite of services that range from managing legal registers, annual environmental and health and safety compliance audits, through to providing ad-hoc bespoke training or quarterly reports on generic legal updates.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

The Future

Following extended periods of lockdown and uncertainty, where the organisation has discovered new and innovative ways of delivering our work, GWWM now has clarity around its purpose and is fit for the future.

The CEO and senior team are now working hard to plan an organisation that delivers relevant and meaningful work in a post-Covid crisis world, to build on the excellent work already undertaken in our turnaround plan, shaping and embedding a culture in an organisation that is excited by future opportunities.

The CEO’s primary task is to now ensure that GWWM is a visible, active and recognisable positive presence in the region, building relationships with partners and exploring the development of new activities and initiatives in order to grow and play an active and vital role in making the West Midlands a better place to live and work.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Financial performance

The result for 2021/22 shows a consolidated profit before investments gains of £35,353 (2021: deficit £246,209) on a consolidated turnover of £2,702,203 (2021: £1,543,980).

The Trustees in 2015 agreed to invest the free reserves to create an income to be used to fund future operating costs of the Trust. Circa £2.5 million was invested and during 2021 - 2012 this resulted in net gain of £28,001 (2021: net gain £202,229) bringing a result of a profit of £63,354 (2021: deficit £43,980).

We review all operating areas of Trust on a regular basis to ensure that we continue to trade on a sustainable basis and consider all opportunities presenting themselves in order that the Trust remains financially stable whilst delivering our strategic aims.

Reserves

In line with our three-year financial strategy our trustees have agreed to set a minimum level of free reserves at 15% of annual turnover or a minimum of £300k.

As at 31 March 2022 Groundwork West Midlands has total unrestricted reserves of £1,190,068 within which are free reserves of £1,160,152 after taking into account fixed assets, and £949,456 after taking into account our committed use of our overdraft facility.

The free reserves will enable Groundwork West Midlands to:

Any income or donations that are received and deemed to be restricted funds are accounted for separately with our Financial Statements. Any monies held longer the statutory minimum retention period after the end of the project, that was deemed restricted, will be reclassified and transferred to unrestricted reserves at the end of that period.

This transfer policy is based on the Statutory Record retention principals. Any funds still restricted beyond the statutory minimum retention period will be reclassified as Unrestricted. This is based on our own Records and Archiving Policy; we believe the funding organisations will have destroyed previous records, as have we, so they will no longer hold information to base future audit requests on, which may have resulted in requests for clawback or return of unspent funds.

The Board will keep its reserves policy under review to ensure that an appropriate balance is maintained between developing reserves to provide:

Pension arrangements

The Trust currently offers two types of pension arrangement:

  1. A group pension plan through Friends Provident or AEGON (as recommended by Groundwork UK) where employees pay a minimum of 4.5% of salary to Groundwork and a minimum 12% of salary is

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

remitted to Friends Provident or AEGON.

  1. A group pension plan through AEGON where employees pay a minimum of 4.5% of salary to Groundwork and a minimum 9% of salary is remitted to AEGON. This AEGON stakeholder scheme is also offered to employees after completion of 3 month’s service where employees pay a minimum of 4.5% of salary to Groundwork and a minimum of 9% of salary is remitted to AEGON.

Principal funding sources

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

This includes funds provided by businesses, charitable trusts and foundations. This includes Serco Restart Scheme funded by Department for Work & Pensions. It also includes sales income from Sustainable Business Services.

This includes funding secured to deliver programmes and services on behalf of government departments, public bodies and lottery distributors. Major funders during 2021/22 included the National Lottery Community Fund, the European Social Fund and The Land Trust.

Expenditure on charitable objectives

In line with the objectives set in our Groundwork 2021 strategy, our expenditure in the year was directed towards the following activities.

Creating opportunities and delivering projects to improve people’s lives and neighbourhoods

Removing barriers to employment to help people get back into work

Principal risks and uncertainties

Groundwork West Midlands holds a high level risk register that Trustees review quarterly. Risks are categorised as Strategic, Governance, Regulatory, Financial, Operational and a score is attributed to the potential impact of named risks, multiplied by the score attributed to the likelihood of the event occurring. Mitigating actions are identified and a status report provided so that Trustees can take assurance that routine or exceptional issues are identified in good time and how they will be addressed.

A key risk was our inability to see through the three-year financial strategy, some of which was dependent on achieving business growth in a very uncertain financial economic landscape. Significant progress was made, and all of our key critical success factors were achieved ahead of schedule such as capitalising property, reducing overheads, recruitment of the permanent chief executive and investment in development activities.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Powers of investment

The Trustees are authorised by the Memorandum of Association to invest monies not immediately required for the charity's own purposes in such investments, securities or property as they deem fit subject to any conditions required by law.

This subject is discussed at Board level. The current thinking is that, where possible, monies should be held in easily accessible cash accounts primarily in order to facilitate the rapid set up of beneficial projects. Investments are made in line with our Investment Policy, reviewed annually at a Board Meeting with our Wealth Management Company.

We have secured the use of a Lombard Loan Facility to the value of £1 million against our Investment Portfolio which enables us to draw on cash to fund project expenditure. This will support our cash flow in the short term to deliver the nature of contracts like Payment by Results and those implementing defrayal.

Post balance sheet event

At 30 September 2022 our market securities portfolio had fallen in value by £159,957 (13%) to £1,073,780 following the current political events. Our investment managers believe there will be a short-term period of high volatility but the medium to long term strategy is unchanged.

Statement of Trustees responsibilities

The Trustees (who are also directors of Groundwork West Midlands for the purposes of company law) are responsible for preparing the Trustees' report (including the Group Strategic report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

This report was approved by the Trustees, on and signed on their behalf by:

A Simpson, Chair

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

INDEPENDENT AUDITORS REPORT

Opinion

We have audited the financial statements of Groundwork West Midlands (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet and Statement of Cash Flows and notes to the financial statements, including 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 Auditor’s 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 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 group’s or of the parent 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual 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.

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

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

INDEPENDENT AUDITORS REPORT

appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8 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 group’s and of 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’s or the parent charitable company’s or to cease operations, or have no realistic alternative but to do so.

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.

Page | 18

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

INDEPENDENT AUDITORS REPORT

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the group’s and of the parent charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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 might be fundamental to the group’s and of the parent charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group’s and of the parent charitable company’s for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Employment legislation and Taxation legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing 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, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, 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 non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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.

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

Page | 19

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

INDEPENDENT AUDITORS REPORT

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.

Helen Drew , Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP, Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Date: 27 October 2022

Page | 20

GROUNDWORK WEST MIDLANDS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
2022
2022
2022
2021
£
£
£
£
8,547
-
8,547
6,650
1,260,672
1,407,054
2,667,726
1,428,888
1,374
-
1,374
75,585
24,556
-
24,556
32,857
1,295,149
1,407,054
2,702,203
1,543,980
2,281
-
2,281
32,599
1,277,913
1,386,656
2,664,569
1,757,590
Note
INCOME FROM:
Donations and legacies
3
Charitable activities
4
Other Trading activities
5
Investments
6
TOTAL INCOME
EXPENDITURE ON:
Raising funds
7
Charitable activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE
INVESTMENT GAINS
Net (losses)/gains on investments
NET EXPENDITURE BEFORE TRANSFERS
Transfer between Funds
16
NET INCOME / (EXPENDITURE)
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
1,280,194
1,386,656
2,666,850
1,790,189
14,955
20,398
35,353
(246,209)
28,001
-
28,001
202,229
42,956
20,398
63,354
(43,980)
40,860
(40,860)
-
-
83,816
(20,462)
63,354
(43,980)
1,106,252
91,585
1,197,837
1,241,817
1,190,068
71,123
1,261,191
1,197,837

The notes on pages 25 to 43 form part of these financial statements

Page | 21

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2022

2022 2021 2021
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 29,916 29,916 15,866
Investments 13 1,233,737 1,206,736
1,263,653 1,222,602
CURRENT ASSETS:
Debtors 14 507,194 230,731 230,731
Cash at bank and in hand 390,752 136,900 900
897,946 367,631 367,631
CREDITORS:amounts falling due within one
year 15 (900,408) (392,396)
NET CURRENT LIABILITIES (2,462) (24,765)
NET ASSETS 1,261,191 1,197,837
CHARITY FUNDS
Restricted funds 16 71,123 91,585
Unrestricted funds 16 1,190,068 1,106,252
TOTAL FUNDS 1,261,191 1,197,837

The Trustees acknowledge their responsibilities for complying with the requirement of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Trustees on 27th October 2022 and signed on their behalf, by:

A Simpson, Chair

The notes on pages 25 to 43 form part of these financial statements.

Page | 22

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

CHARITY BALANCE SHEET AS AT 31 MARCH 2022

2022 2021 2021
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 29,916 15,866
Investments 13 1,233,738 1,206,737
1,263,654 1,222,603
CURRENT ASSETS:
Debtors 14 507,194 230,731 230,731
Cash at bank and in hand 390,752 110,985 985
897,946 341,716 341,716
CREDITORS:amounts falling due within one
year 15 (900,407) (391,888)
NET CURRENT LIABILITIES (2,461) (50,172)
NET ASSETS 1,261,193 1,172,431
CHARITY FUNDS
Restricted funds 16 71,123 91,585
Unrestricted funds 16 1,190,070 1,080,846
TOTAL FUNDS 1,261,193 1,172,431

The surplus for the year dealt with in the accounts of the Charity was £88,762 (2021 – (£43,553)).

The Trustees acknowledge their responsibilities for complying with the requirement of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Trustees on 27th October 2022 and signed on their behalf, by:

Phi pur

A Simpson, Chair

The notes on pages 25 to 43 form part of these financial statements

Page | 23

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

Note 2022 2021
£ £
Cash flows from operating activities
Net cash used in operatingactivities 18 (255,606) (172,662)
Cash flows from investing activities:
Dividends,interest and rents from investments 24,556 32,857
Proceeds from the sale of tangible fixed assets - 5,718
Purchase of tangible fixed assets (27,310) -
Proceeds from sale of investments 135,000 135,000
Purchase of investments (134,000) (135,000)
Net cashprovided by investing activities (1,754) 38,575
Change in cash and cash equivalents in theyear 253,852 (134,087)
Cash and cash equivalents brought forward 136,900 270,987
Cash and cash equivalents carried forward 390,752 136,900

The notes on pages 25 to 43 form part of these financial statements.

Page | 24

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

1. COMPANY INFORMATION

Groundwork West Midlands (the charity) is a Company Limited by Guarantee, registered in England. The registered office is First Floor Owen House, 17 Unity Walk, Tipton, DY4 8QL.

Groundwork West Midlands help to strengthen communities by delivering health, wellbeing, youth, employment and green projects across the West Midlands.

2. ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Groundwork West Midlands 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.

The Consolidated Statement of financial activities (SOFA) and Consolidated Balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The Trustees consider they have sufficient reserves and cash to continue operating on a going concern basis for the foreseeable future.

As stated in the Trustee’s Report, Trustees believe there are no material uncertainties that call into doubt the Charities ability to continue as a going concern and the accounts have therefore been prepared on the basis that the Charity is a going concern. In light of the current climate in relation to the COVID-19 pandemic the Trustees have reviewed the Charities finances. In the short term cash holdings are sufficient to ensure adequate cash flow for the foreseeable future. In the medium to long term plans for, and the structure of, Groundwork West Midlands remain extant and will continue to be reviewed regularly.

2.3 Company status

The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 43. 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.

2.4 Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.5 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.

Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their

Page | 25

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.6 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.

Governance costs are those incurred in connection with management of the charity's assets, organisational administration and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

All costs are allocated between expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of resources. Costs relating to a particular activity are allocated directly. Remaining shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group’s objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant and machinery - 20% straight line Furniture, fixtures and vehicles - 20% straight line Computer equipment - 25% straight line Motor vehicles - 25% straight line

2.8 Investments

Fixed asset investments are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/ (losses) on investments’ in the Statement of financial activities.

Subsidiary undertakings:

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 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 at the balance sheet date.

Debtors

Trade and other debtors are recognised at the settlement amount.

Creditors

Short term creditors are measured at the transaction price.

Page | 26

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

2.10 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.11 Significant judgements and estimates

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Significant judgements

There are no significant judgements having a material effect on the financial statements.

Significant estimates

There are no significant estimates having a material effect on the financial statements.

Page | 27

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

3. INCOME FROM DONATIONS AND LEGACIES

Donations
Total 2021		 Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
Total
Funds
2021
£
8,547
-
8,547
6,650
8,547
-
8,547
6,650
6,650
-
6,650

4. INCOME FROM CHARITABLE ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
IT Funding
Total 2021		 Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
Total
Funds
2021
£
471,495
937,917
1,409,412
914,247
727,510
469,137
1,196,647
465,164
61,667
-
61,667
39,477
-
-
10,000
1,260,672
1,407,054
2,667,726
1,428,888
390,796
1,038,092
1,428,888

Page | 28

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

Income from projects provided by:

Central Government
Local Authorities
Public Agencies
European Union
National Lottery
Private Sector		 Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
Total
Funds
2021
£
-
40,107
40,107
-
8,371
163,635
172,006
153,469
342,095
-
342,095
196,848
-
108,480
108,480
34,998
-
835,065
835,065
713,059
910,206
259,767
1,169,973
330,514
1,260,672
1,407,054
2,667,726
1,428,888

LOTTERY FUNDING

BIG Lottery
IT Project
Every Step of the Way
Cook Together Eat Together
Communities Prepared Sparkhill
Fancy a Brew
Green Recovery Fund
Youth Accelerator Fund
Building Better Opportunities
Heritage Lottery
Future Proof Parks
Total		 2022
£
2021
£
-
10,000
36,836
36,289
73,075
74,196
910
847
12,776
18,065
120,373
1,378
7,200
-
564,383
545,282
815,553
686,057
19,512
27,002
835,065
713,059

Page | 29

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

5. OTHER TRADING ACTIVITIES

Other Income
Furlough Income
Total 2021
NVESTMENT INCOME
Dividend Income
Total 2021		 Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
Total
Funds
2021
£
916
-
916
4,316
458
458
71,269
1,374
-
1,374
75,585
75,585
-
75,585
Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
Total
Funds
2021
£
24,556
-
24,556
32,857
24,556
-
24,556
32,857
32,857
-
32,857

6. INVESTMENT INCOME

Page | 30

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

7. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE

Expenditure on raising funds
Costs of raising funds
Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Charitable Activities
Total 2021		 Staff Costs
2022
£
Depreciation
£
Other Costs
£
Total
2022
£
Total
2021
£
-
-
2,281
2,281
32,599
-
-
2,281
2,281
32,599
749,224
694,240
1,443,464
1,061,812
884,757
239,946
1,124,703
573,945
19,889
41,659
61,548
45,866
4,676
13,260
16,918
34,854
75,967
1,658,546
13,260
992,763
2,664,569
1,757,590
1,658,546
13,260
995,044
2,666,850
1,790,189
1,237,325
16,669
536,195
1,790,189

8. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2021
Summary by Fund Type:		 Activities
undertaken
directly
2022
£
Support Costs
2022
£
Total
2022
£
Total
2021
£
1,195,886
247,578
1,443,464
1,061,812
913,214
211,489
1,124,703
573,945
53,803
7,745
61,548
45,866
-
34,854
34,854
75,967
2,162,903
501,666
2,664,569
1,757,590
1,191,148
566,442
1,757,590
Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2021		 Unrestricted
Funds
2022
£
Restricted
Funds
2022
£
Total
Funds
2022
£
Total
2021
£
527,443
916,021
1,443,464
1,061,812
654,068
470,635
1,124,703
573,945
61,548
-
61,548
45,866
34,854
-
34,854
75,967
1,277,913
1,386,656
2,664,569
1,757,590
731,990
1,025,600
1,757,590

Page | 31

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

9. SUPPORT COSTS

General Office
IT, Office equipment and maintenance
Human Resources
Finance and Legal
Governance
Investment Management Fees		 2022
£
2021
£
58,525
172,772
245,710
207,504
22,456
14,279
84,154
115,564
73,902
33,969
16,919
12,354
501,666
556,442

10. NET INCOME/(EXPENDITURE)

This is stated after charging:
2022 2021
£ £
Depreciation of tangible fixed assets: 13,260 16,669
Auditors Remuneration 13,325 12,600
Operating Leases 109,893 85,030

During the year, no Trustees received any remuneration or other Benefits (2021 - £NIL).

During the year, Trustees received reimbursement of expenses totalling £NIL (2021 - £80) for travel and accommodation.

In accordance with normal commercial practice the charity have purchased Trustee indemnity insurance. The insurance provider covers up to £5 million on any one claim and the cost of the policy for the year is £18,170.

Page | 32

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

11. STAFF COSTS

Staff costs were as follows:

Wages and Salaries
Social Security costs
Pension Costs		 2022
£
2021
£
1,478,246
1,089,486
119,078
87,549
61,222
60,290
1,658,546
1,237,325

The average number of persons employed by the Charity during the year was as follows:

Direct Charitable
Fundraising and Publicity
Administration
he number of higher paid employees was:
In the band £70,001-£80,000
In the band £80,001-£90,000		 2022
No
2021
No.
64
56
2
2
2
2
68
60
2022
No
2021
No.
-
1
1
-
1
1

The number of higher paid employees was:

Total contributions under defined contribution schemes on behalf of this higher paid employee were £5,250 (2021: £5,683).

At the year-end retirement benefits accruing to 1 (2021: 1) higher paid employee under defined contribution schemes.

Key management personnel received total remuneration of £279,205 (2021: £312,479).

Page | 33

GROUNDWORK WEST MIDLANDS (A company limited by guarantee) FINANCIAL STATEMENT NOTES

12. TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Group and Charity
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
On disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
-		 Furniture,
Fixtures,
Equipment
& vehicles
£
Total
£
673,003
673,003
27,310
27,310
-
-
700,313
700,313
657,137
657,137
13,260
13,260
-
-
670,397
670,397
29,916
29,916
15,866
15,866

Page | 34

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

13. FIXED ASSET INVESTMENTS

Charity
Market Value
At 1 April 2021
Additions
Disposals
Revaluations
At 31 March 2022
At 31 March 2021
Group investments at market value comprise:
UK
£
Overseas
£
Listed Investments
433,352
800,385		 Listed Securities
£
1,206,736
134,000
(135,000)
28,001
1,233,737
1,206,736
2022
£
2021
£
1,233,737
1,206,736

Group material investments

The following investments represent more than 5% of the portfolio:

UBS ETF SICAV BLB BARCLAYS MSCI UK
UBS ETF SICAV MSCI Pacific SOC RES
UBS AG Jersey BRCH AUTI REDM NTS 9.7.20 GBP
UBS ETF PLC MSCI UK SOC RES UCITS ETF
UBS ETF SICAV MSCI USA Socially Resp UCIT
UBS ETF SICAV MSCI EMU SOC RESP CL A GBP
ISHARES II PLC Core UK Gilts UCITS
ISHARES II PLC GBP Index-lnkd Gilts UCITS
BLACKROCK FXD INC ISHARES GREEN BD IDX
UBS ETF SICAV MSCI EMRGNG MRKTS SOC RES
GS 5Y HNIX CALL SPX UKX
BNP ISSUE CALL PHOENIX		 2022
£
2021
£
75,799
81,215
66,499
66,952
-
144,415
144,036
387,445
329,265
158,649
159,893
46,688
49,598
73,703
70,458
92,747
99,769
64,726
67,499
123,066
-
-
138,051
1,233,737
1,206,736
At 1 April 2021
Additions
Disposals
Revaluations
At 31 March 2022		 Shares in Group
Listed Securities
£
Undertakings
£
Total
£
1,206,736
1
1,206,737
134,000
-
134,000
(135,000)
-
(135,000)
28,001
-
28,001
1,233,737
1
1,233,738

Page | 35

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

Charity Investments at cost comprise:

y Investments at cost comprise:
Listed Investments
Group
Total		 UK
£
Overseas
£
2022
£
2021
£
433,352
800,385
1,233,737
1,206,736
1
-
1
1
433,353
800,385
1,233,738
1,206,737

14. DEBTORS

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Total		 Group
Charity
2022
£
2021
£
2022
£
2021
£
365,038
94,576
365,038
94,576
-
-
-
-
-
-
-
-
142,156
136,155
142,156
136,155
507,194
230,731
507,194
230,731

15. CREDITORS: Amounts falling due within one year

Overdraft facility
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Total		 Group
Charity
2022
£
2021
£
2022
£
2021
£
210,696
36,026
210,696
36,026
187,873
39,839
187,873
39,831
-
-
1
-
74,991
44,567
74,991
44,667
163
-
163
-
426,685
271,964
426,683
271,364
900,408
392,396
900,407
391,888

The overdraft facility is repayable on demand and is secured against investments held with UBS.

Deferred income Charity

Movements in deferred income during the year were as follows:

Community Projects
Employment Projects
Business Projects
Central Funding
Total		 Balance at 1
April 2021
£
Amount
released to
incoming
resources
£
Amount
deferred in
the year
£
Balance at 31
March 2022
£
153,313
(153,313)
252,853
252,853
40,650
(40,650)
98,875
98,875
7,338
(7,338)
7,150
7,150
664
(664)
-
-
201,965
(201,965)
358,878
358,878

Deferred Income comprises commission income received in advance.

Page | 36

GROUNDWORK WEST MIDLANDS (A company limited by guarantee) FINANCIAL STATEMENT NOTES

16. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Unrestricted funds
General Funds
Restricted Funds
Community
BBO Employment
Total of Funds		 Balance at
1 April 2021
£
Income
£
1,106,252
1,295,149		 Expenditure
£
(1,280,194)		 Transfers
in/out
£
40,860		 Gains/(losses)
£
Balance at
31 March
2022
£
28,001
1,190,068
91,585
937,917
-
469,137		 (916,021)
(470,635)		 (42,358)
1,498		 -
71,123
-
-
91,585
1,407,054		 (1,386,656) (40,860) -
71,123
1,197,837
2,702,203		 (2,666,850) - 28,001
1,261,191

SUMMARY OF FUNDS - CURRENT YEAR

General Funds
Restricted Funds
Total of Funds		 Balance at
1 April 2021
£
Income
£
1,106,252
1,295,149
91,585
1,407,054		 Expenditure
£
(1,280,194)
(1,386,656)		 Transfers
in/out
£
40,860
(40,860)		 Gains/(losses)
£
Balance at
31 March
2022
£
28,001
1,190,068
-
71,123
1,197,837
2,702,203		 (2,666,850) - 28,001
1,261,191

The unrestricted funds of the charity are those that are not designated for a particular purpose.

The restricted funds of the charity are those that are received for a particular purpose and these encompass the following activities:

Community and general - building stronger neighbourhoods through the provision of community consultations and training and support for community and resident groups.

Employment – working with unemployed individuals, supporting them into employment, education or training.

The transfers during the year represent amounts to either top up restricted projects using unrestricted funds available, and/or transfer any remaining completed project surplus to unrestricted funds in line with the agreement.

Page | 37

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

STATEMENT OF FUNDS - PRIOR YEAR

Unrestricted funds
General Funds
Restricted Funds
General
Community
BBO Employment
Total of Funds		 Balance at
1 April 2020
£
Income
£
1,150,232
505,888		 Expenditure
£
(764,589)		 Transfers
in/out
£
12,492		 Gains/(losses)
£
Balance at
31 March
2021
£
202,229
1,106,252
-
10,000
91,585
562,928
-
465,164		 (10,000)
(550,928)
(464,672)		 -
(12,000)
(492)		 -
-
-
91,585
-
-
91,585
1,038,092		 (1,025,600) (12,492) -
91,585
1,241,817
1,543,980		 (1,790,189) - 202,229
1,197,837

SUMMARY OF FUNDS - PRIOR YEAR

General Funds
Total of Funds		 Balance at
1 April 2020
£
Income
£
1,150,232
505,888
91,585
1,038,092		 Expenditure
£
(764,589)
(1,025,600)		 Transfers
in/out
£
12,492
(12,492)		 Gains/(losses)
£
Balance at
31 March
2021
£
202,229
1,106,252
-
91,585
1,241,817
1,543,980		 (1,790,189) - 202,229
1,197,837

Page | 38

(A company limited by guarantee)

GROUNDWORK WEST MIDLANDS

FINANCIAL STATEMENT NOTES

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Tangible fixed assets
Fixed Asset investments
Current assets
Creditors due within one year
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Tangible fixed assets
Fixed Asset investments
Current assets
Creditors due within one year		 Unrestricted
Funds
2022
£
Restricted
funds
2022
£
Total
Funds
2022
£
29,916
-
29,916
1,233,737
-
1,233,737
826,823
71,123
897,946
(900,408)
-
(900,408)
1,190,068
71,123
1,261,191
Unrestricted
Funds
2021
£
Restricted
funds
2021
£
Total
Funds
2021
£
15,866
-
15,866
1,206,736
-
1,206,736
276,046
91,585
367,631
(392,396)
-
(392,396)
1,106,252
91,585
1,197,837

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustment for:
Depreciation and amortization charges
(Gains)/losses on investments
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors		 Group
2022
£
2021
£
63,354
(43,980)
13,260
16,669
(28,001)
(202,229)
(24,556)
(32,857)
(276,463)
66,695
508,012
23,040
255,606
(172,662)

Page | 39

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

19. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Total
20.
ANALYSIS OF NET DEBT		 Group
2022
£
2021
£
390,752
136,900
390,752
136,900
Cash at bank and in hand
Debt due within 1 year		 At 1 April
2021
£
Cash Flows
£
At 31 March
2022
£
136,900
253,852
390,752
(36,026)
(174,670)
(210,696)
100,874
79,182
180,056

21. PENSION COMMITMENTS

The Trust currently offers two types of pension arrangement:

  1. A group pension plan through Friends Provident or AEGON (as recommended by Groundwork UK) where employees pay a minimum of 4.5% of salary to Groundwork and a minimum 12% of salary is remitted to Friends Provident or AEGON.

  2. A group pension plan through AEGON where employees pay a minimum of 4.5% of salary to Groundwork and a minimum 9% of salary is remitted to AEGON. This AEGON stakeholder scheme is also offered to employees after completion of 3 months’ service where employees pay a minimum of 4.5% of salary to Groundwork and a minimum of 9% of salary is remitted to AEGON.

Contributions totalling £11,114 (2021: £8,464) were payable at the year end and are included in creditors.

22. OPERATING LEASE COMMITMENTS

At 31 March 2022 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group and Charity
Amounts payable:
Not later than 1 year
Later than 1 year and not later than 5 years
Total		 Group
2022
£
2021
£
25,407
25,430
86,420
54,075
111,827
79,505

Page | 40

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

23. RELATED PARTY TRANSACTIONS

There have been no other related party transactions that require disclosure other than transactions with the subsidiary company, Groundwork West Midlands Enterprise Limited, as set out below:

Group and Charity
Sundry
Total		 2022
£
2021
£
28
427
28
427

The balance outstanding at the year-end owed from Groundwork West Midlands Enterprise Limited at the year-end was £Nil (2021: £Nil).

24. PRINCIPAL SUBSIDIARIES

Groundwork West Midlands Enterprises Ltd
Subsidiary name Groundwork West Midlands Enterprises Ltd
Company registration number 07110713
Basis of control 100%
Total assets as at 31 March 2022 £1
Total liabilities as at 31 March 2022 £ 0
Total equity as at 31 March 2022 £ 0
Turnover for the year ended 31 March 2022 £0
Expenditure for the year ended 31 March 2022 £ 28
Loss for the year ended 31 March 2022 (£ 28)

25. FINANCIAL INSTRUMENTS

Financial assets
Financial assets measured at fair value
through income and expenditure
Financial liabilities
Financial liabilities measured at amortised
cost		 Group
Charity
2022
£
2021
£
2022
£
2021
£
459,679
1,206,736
390,752
1,206,737
(609,411)
(145,869)
(609,411)
(145,262)

Financial assets measured at fair value through income and expenditure comprises investments in listed securities.

Financial assets measured at amortised cost comprise trade debtors and accrued income.

Financial liabilities measured at amortised cost comprise trade creditors and accruals.

Page | 41

ADVISORS

Auditors

Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Bankers

The Co-operative Bank PO Box 250 Skelmersdale WN8 8WT

Investment Managers

UBS AG Wealth Management 10 Colmore Row Birmingham B3 2QD

Solicitors

George Green LLP 19 Waterloo Road Wolverhampton West Midlands WV1 4DY

Knights Plc The Brampton Newcastle-under-Lyme Staffordshire ST5 0QW

Clowes & Co 112 Baddeley Green Lane Baddeley Green Stoke-on-Trent Staffordshire ST2 7HA

Page | 42

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

Appointed trustees

A Simpson, Chair J Patel I Priest R Tappia B Bickerton G Hooper J Wilkins Resigned 28[th] October 2021

Company Secretary

Deborah Williams

Committees of the Board

Finance and Audit Committee Chair – Jay Patel

Chief Executive

Andrew Thompson

Page | 43

Contact us Groundwork West Midlands First Floor Owen House, 17 Unity Walk, Tipton, DY4 8QL

www.groundwork.org.uk/hubs/westmidlands

Tel: 0121 530 5500 E-mail: westmids@groundwork.org.uk

Twitter: @GWWM Facebook: /groundworkwestmids Instagram: @GroundworkWestMids LinkedIn: Groundwork West Midlands

Charity Registration Number: 1128858

Company Registration Number: 06823225