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2023-03-31-accounts

Groundwork West Midlands Annual Report and Financial Statements 2022/23

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

2-16 Trustees Report

25-41 Notes forming part of the financial statements

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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Message from the Chair

As we present our 2022/23 annual report, I am delighted to report positively again, on end of year finances. We close the year in £347,000 trading surplus before investments providing a strong platform for 2023/24.

Whilst some legacy programmes have now ended, having successfully delivered their objectives, we have looked carefully at their origins, the skills and expertise we have garnered in their delivery, and re-deployed and reshaped resources accordingly to fit the current and foreseeable future picture of need. Climate change continues to be central to our mission, whether that be delivery of support to help drive energy savings and carbon reduction for our clients, or looking closely at internal practices to ensure we work towards our own net zero position. We continue to look at opportunities to support self-financing which allows expansion of our charity work, supporting those in greatest need and helping communities to grow and flourish. The current challenges in rising costs and energy prices make initiatives like Green Doctor critical to help those in fuel and food poverty and indeed are ideal programme candidates for expansion and enhanced delivery to business and communities. I am extremely proud of the delivery track record of our employment teams under the Re-Start Programme which have continued to deliver some of the best new employment outcomes in our supply chain, for those accessing the initiative via local Job Centres.

Our prudent consideration of our reserves policy is beginning to reveal opportunities for investment in developing services around landscape management and energy efficiency and help us to take part in bidding opportunities for new work sometimes in partnership with external organisations, again facilitating greater reach and increased impact.

Our Teams and volunteers deserve a huge thank you from all of us on the GWWM Board. On behalf of the Board, I would like to celebrate and appreciate the continued commitment, passion, drive and innovation of our people, those who support delivery to those in need, in areas where support is best placed.

We welcomed Lyndon Campbell to our Board in 2023 and will greatly benefit from his expertise in equality, diversity and inclusion in the future.

We continue to work on driving administrative savings whilst enhancing efficiency, particularly the 2022/23 in the areas of IT and communications both of which will carry forwards into 2023/24, with communications in particular featuring next year as we strive to share stories and experiences of our work to show clearly how and where we can help.

Please take the time to read our annual report for 2022/23 and reach out to us where we can help and collaborate.

Anne-Marie Simpson, Chair

30[th] November 2023

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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

The SMT is fully representative of all functions of the organisation, with clear reporting lines. The SMT has continued to perform well, resulting in greater efficiencies, and enhanced communication throughout the organisation and excellent delivery of our projects and services.

The Senior Management Team includes staff members responsible for financial and business management, business development and programme management and delivery. 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.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

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.

Groundwork West Midlands is an active member of the Groundwork Federation, a national organisation with 14 member trusts. Our CEO, Andrew Thompson represents GWWM on the Federation Executive Team, and our Chair, Anne-Marie Simpson, represents GWWM on the Federation Board.

The Trust and Federation work together to ensure that all the member trusts work together, share best practice and drive up quality standards for the betterment of all. Between them, the Federation Executive Team and the Federation Board consider and discuss all aspects of Groundwork activity, ensuring that policies and strategic and business developments reflect the needs that Groundwork seeks to fulfil.

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:

Related party relationships

The charity operates one trading subsidiary, Groundwork West Midlands Enterprise Limited. All of the issued share capital of this company is held by the charity. This company was formed to operate contracts falling

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

outside the scope of Groundwork West Midlands’ core areas. For 2022–23 Groundwork West Midlands Enterprise Limited was dormant.

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 the 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.

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,

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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 2022 - 2023 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 2023

Strategic Overview

Groundwork West Midlands is a charity working to transform lives in the UK’s most disadvantaged communities.

We are passionate about creating a future where every neighbourhood is vibrant and green, 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, protect and improve green spaces, lead more active lives and overcome significant challenges such as poverty, isolation, low skills and poor health.

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.

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

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

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

Our Social Objectives

Following a review of our social objectives, we refreshed and developed a new set of objectives that better describe the changes we seek to make.

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 behaviours 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.

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 – ‘22/23’.

This has once again been a very challenging year, and the return to normality following the pandemic has not yet occurred, although the situation is improving. The funding environment has not returned to pre-pandemic normality and working patterns have continued to evolve and reflect the changing needs of our workforce and new ways of delivering.

The impacts and legacy of the pandemic are now starting to become evident, and appear on the policy horizon, namely a mental health crisis, obesity crisis and the ongoing costs of living crisis created by the pandemic is creating even greater health inequalities than before. We are committed to tackling these issues and responding to the emerging needs of the West Midlands population post-pandemic.

Strategic Positioning

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:

Employment

Restart – Tipton, Dudley, Birmingham & Oldbury

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 been 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, such as debt, housing, substance dependency – through to the interview prep, motivation and confidence etc. This project

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TRUSTEES REPORT

comes with many strict customer service standards that all partners must achieve as well as specified employment targets each month.

We mobilised this project and recruited over 20 staff members and implemented 4 new delivery centres. Since the outset of the project Groundwork West Midlands have remained in the top 5 league tables 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.

Building Better Opportunities

We successfully completed delivery of 5 strands of this funding across Coventry & Warwickshire, Stoke on Trent, Burton and Sandwell. This included delivery to supporting NEET’S (Not in education, employment or Training), participants 16+ and supporting people that are in a family environment, single parents or caring responsibilities to move them into employment or education, or competent job search, and working with individuals furthest away from the labour market. Funding ceased at the end of 2022/2023.

Sustainable Business Services

Groundwork West Midlands Sustainable Business Services continues to support businesses (mainly SMEs) across the West Midlands with environmental and sustainability services. Demand is still highest for legal services, such as compliance audits and legal register development. Most industries are under growing pressure to operate in a more environmentally friendly way – interest in energy use and carbon footprints has increased and we’re working within West Midlands SBS and as part of the greater Federation SBS group to develop services to make these projects more accessible to SMEs.

Healthy Lifestyles

2022/23 was a challenging year for the Healthy lifestyles team as a number of long term funded projects came to an end. These included our flagship Cook and Eat project in Coventry and our BBO funded projects Breakthrough and Progress (Neets). This affected a large number of staff, but we supported everyone to either secure alternative employment or where possible, redeploy internally.

Frustratingly, although projects were finishing, the cost of living crisis and increase in energy bills led to an increase in demand for our services, highlighting that the need was greater than ever within communities. Key needs include:

A significant amount of development work was undertaken in late 2022 to try and ensure we had projects to meet these needs and we have successfully secured 3 new projects to date to be delivered in 23/24. These include:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Green Doctor

Green Doctor has continued to grow in 2022/23 and the winter saw unprecedented demand on our services due to the increase in energy costs. The team have been fantastic and made a significant difference to so many people’s lives.

Growth areas this year have included:

Green Doctor has become well established across the West Midlands, as a high-quality service with a unique selling point of personal home visits.

Land Management

During the last year we have seen a new Country Park added to our portfolio of sites that we manage on behalf of the Land Trust. Working in partnership with Groundwork 5 Counties, we will undertake the site management of Brook Park and they will assist with the delivery of local engagement activities. This has allowed us to employ another full-time member of the land team to manage Brook Park and provide us with much needed additional capacity to provide support to other sites during busy periods.

Key developments and recognitions include:

Breakthrough

Breakthrough is a BBO funded project that supports people with financial advice, managing debt and general budgeting skills. During 21/22, the team grew 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 and devised realistic repayment plans which have stopped many people being evicted from their homes.

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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.

Community & Environment

Tesco Community Grants

This programme is overseen nationally by Groundwork UK.

Over the last year, in the West Midlands, Tesco awarded £589,501 worth of grants to 525 not-for-profit organisations including: food banks, schools, scout/guide groups, resident associations, and sports clubs etc. We supported groups to apply for the funding, as well as helping any grantees who encountered problems delivering their projects.

We worked closely with Tesco store staff supporting them with celebration and promotional events in their stores. We also arranged and chaired panel meetings for store staff to enable them to select which groups will feature in their store vote. This year an additional 3 regions were added to our area meaning we now oversee 45 West Midlands regions.

To celebrate £100m donated to local community projects, in October Tesco launched a new strand to their grant-giving entitled “Golden Grants”. Golden Grants saw customers at selected stores given the opportunity to pull out a golden token from a tombola prize draw. The winning customer could then choose one of the three community projects in that store’s voting booth to receive a £10k golden grant. We had 8 regions in the West Midlands that took part in this Golden Grant give-away. We supported the local store staff to manage and publicise these grants.

Starting in the Autumn, we were part of a pilot scheme that saw the Tesco Distribution Centres brought into the Tesco Grants voting system. We had one clothing distribution centre in Daventry join the Rugby voting system. To support their inclusion in the project we ran panel meetings at the centre as well as celebration and promotional events. The pilot (which was also run at another distribution centre in the South East) has been deemed a success and Tesco are planning to role this out to other distribution centres across the country in the coming year.

Wellies in the Woods

Between October 2021 and March 2023, Groundwork West Midlands have delivered nine Wellies in the Woods courses across Sandwell, Dudley, Wolverhampton, Cannock and Coventry. The project was funded by the Sylvia Adams Charitable Trust and Groundwork UK’s “Building a Better Groundwork” fund. Originating from Groundwork East, Wellies in the Woods is an outdoor learning and play programme for families with children aged five and under. In the last year, we have supported 43 families to learn, play and bond in nature. 93% of parents said that after participating in the programme, they had experienced a positive change in themselves or their child such as improved confidence, enhanced wellbeing and/or better communication skills.

We also delivered three training courses for family centre staff across the West Midlands, so that centres can continue to deliver and develop the programme to their local communities. 100% of the staff who

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TRUSTEES REPORT

participated in these training sessions said that they benefitted from the training and that they would recommend working with Groundwork West Midlands.

Following the closure of the Sylvia Adams Charitable Trust, we are looking for new avenues of funding to continue delivering this project.

Corporate Volunteering

Groundwork West Midlands is working with businesses to deliver corporate volunteer events that positively transform local communities and spaces. This project is funded directly by our corporate partners. In the past year, 11 national/multinational companies have booked corporate volunteer events with Groundwork West Midlands, including PWC, KPMG and Avison Young. Our biggest corporate client is HS2, who hold a national contract with Groundwork UK. HS2 booked 84% of their 2022 events with Groundwork West Midlands, the highest of any of the Groundwork Trusts.

This year we have delivered 35 corporate volunteer events at community spaces including Castle Bromwich Gardens, Castle Vale Allotments and Baggeridge Country Park. Roger Herrington of the Wolverhampton & District Model Engineering Society said, “Groundwork’s contribution has made a big difference to our progress. These jobs were causing us delays, but now thanks to the volunteers, we are about 95% done. It was a tremendous achievement and we would love to get involved again.”

Our biggest event of the year was Avison Young’s ‘Day of Giving’, where we delivered seven events on one day with 118 volunteers attending. We received very positive feedback from the volunteers, including that the events gave them a “feeling of giving something back and achievement through teamwork” and that they “would recommend Groundwork... Everyone leading the groups has been enthusiastic, warm and explained requirements in detail”.

After appointing our new Corporate Volunteer Coordinator in January 2023, we are developing the project so we can take more volunteers to more community sites and make an even bigger impact. Our existing corporate partnerships are going strong, in particular HS2, with whom we have agreed to deliver a further 25 events in 2023.

Go Play Sandwell

Go Play was in the final year of its funding cycle, and the project has continued to offer free play opportunities across Tipton, Wednesbury and Smethwick. During the year, we have worked with 2,530 children (1,444 of which were aged between 6-12) across three towns, not including the significant number of families we worked with at various partner events across the year, such as SHAPE festival and the National Day of Play. We also successfully collaborated with Sandwell Council and our Go Play delivery partners to deliver Winter Wonderland and Summer Roadshows across the borough. Go Play also supported events for the Platinum Jubilee, as well as the ‘Shine A Light’ festival in the build up to the Commonwealth Games.

When asked, one parent at Thimblemill Library said they now “have a shelf dedicated to all the art projects they’ve done on Go Play sessions,” whilst a child at West Smethwick Park stated that they “needed Go Play sessions whilst their local play area was closed.” As of April 2023, we have been successful in securing delivery in Tipton and Smethwick for a further six month period, and will be bidding to continue work in these towns from October 2023 until 2026.

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Business Development

Developing new business relies on strong relationships with potential and current partners, connections to funders and communication with a variety of other organisations including other Groundwork trusts.

This year, the newly appointed Business Development Manager has set about building a network of contacts, working with local authorities and VCOs to identify new projects and assessing the viability of opportunities along with our heads of delivery.

With funding increasingly targeted to support local grassroots organisations, partnership working and collaboration are more important than ever when developing new delivery projects. 2023 sees the closure of ESF-funded work, and a shift to Shared Prosperity Fund delivery. Alongside potential to work with HMPPS and their prime providers; the trust has also sought to renew relationships with strategic bodies such as local government and regional housing associations. Groundwork West Midlands will have a particularly strong focus on business development in the coming year, as we look to shift our funding model to reduce our reliance on grants, and increase our self-generated revenue streams.

The Future

Following an extended period of uncertainty, the charity now has a stable level of income, and is having a positive impact across the region. Following the Covid crisis, the organisation has discovered new and innovative ways of delivering our work, and whilst using this time to review and refresh our vision, mission and social objectives, GWWM has clarity around its purpose and is fit for the future. The CEO and Senior Management 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.

Our 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 to enable us to grow and play an active and vital role in making the West Midlands a better place to live, work and thrive.

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Financial Performance

The result for 2022/23 shows a consolidated profit before investments gains of £347,058 (2022: gain £35,353) on a consolidated turnover of £3,241,445 (2022: £2,702,203).

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 £1.2 million was invested and during 2022/23 this resulted in net loss of £77,995 (2022: net gain £28,001) bringing a result of a profit of £269,063 (2022: gain £63,354).

We review all operating areas of the 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 2023 Groundwork West Midlands has total unrestricted reserves of £1,446,160 within which are free reserves of £1,427,833 after taking into account fixed assets.

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 than 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 remitted to Friends Provident or AEGON.

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(A company limited by guarantee)

TRUSTEES REPORT

  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.

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 the 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 2022/23 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.

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.

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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.

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.

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 30th November 2023

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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 2023 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

Page | 17

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 3 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 the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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 and 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 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 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, designing audit procedures over income, 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.

Kerry Brown 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: 13 December 2023

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 2023

Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
2023
2023
2023
2022
Note
INCOME FROM:
Donations and legacies
3
Charitable activities
4
Other Trading activities
5
Investments
Other Income
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		 £
£
£
£
1,015
-
1,015
8,547
1,875,780
1,329,392
3,205,172
2,667,726
10,000
-
10,000
1,374
25,057
201
-
-
25,057
201
24,556
-
1,912,053
1,329,392
3,241,445
2,702,203
32,676
-
32,676
2,281
1,559,540
1,302,171
2,861,711
2,664,569
1,592,216
1,302,171
2,894,387
2,666,850
319,837
27,221
347,058
35,353
(77,995)
-
(77,995)
28,001
241,842
27,221
269,063
63,354
14,250
(14,250)
-
-
256,092
12,971
269,063
63,354
1,190,068
71,123
1,261,191
1,197,837
1,446,160
84,094
1,530,254
1,261,191

The notes on pages 25 to 41 form part of these financial statements.

Page | 21

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

2023 2022 2022
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 18,326 18,326 29,916
Investments 13 1,155,742 1,233,737
1,174,068 1,263,653
CURRENT ASSETS
Debtors 14 544,986 507,194 507,194
Cash at bank and in hand 322,059 390,752 752
867,045 897,946 897,946
CREDITORS:amounts falling due within one
year 15 (510,859) (900,408)
NET CURRENT LIABILITIES 356,186 (2,462)
NET ASSETS 1,530,254 1,261,191
CHARITY FUNDS
Restricted funds 16 84,094 71,123
Unrestricted funds 16 1,446,160 1,190,068
TOTAL FUNDS 1,530,254 1,261,191

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 30th November 2023 and signed on their behalf, by:

A Simpson, Chair

The notes on pages 25 to 41 form part of these financial statements.

Page | 22

GROUNDWORK WEST MIDLANDS

(A company limited by guarantee)

CHARITY BALANCE SHEET

AS AT 31 MARCH 2023

2023 2022 2022
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 18,326 29,916
Investments 13 1,155,743 1,233,738
1,174,069 1,263,654
CURRENT ASSETS
Debtors 14 544,986 507,194 507,194
Cash at bank and in hand 322,059 390,752 752
867,045 897,946 897,946
CREDITORS:amounts falling due within one
year 15 (510,859) (900,407)
NET CURRENT ASSETS / LIABILITIES 356,186 (2,461)
NET ASSETS 1,530,255 1,261,193
CHARITY FUNDS
Restricted funds 16 84,094 71,123
Unrestricted funds 16 1,446,161 1,190,070
TOTAL FUNDS 1,530,255 1,261,193

The surplus for the year dealt with in the accounts of the Charity was £269,063 (2022 – £88,761).

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 30th November 2023 and signed on their behalf, by:

A Simpson, Chair

The notes on pages 25 to 41 form part of these financial statements

Page | 23

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

CASH FLOW STATEMENT
Note
Cash flows from operating activities
Net cash used in operating activities
18
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2023
2022
£
£
(93,750)
255,606
25,057
24,556
-
-
-
(27,310)
-
135,000
-
(134,000)
25,057
(1,754)
(68,693)
253,852
390,752
136,900
322,059
390,752

The notes on pages 25 to 41 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 helps 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 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 44. 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 is not recognised and refer to the Trustees' report for more information about their contribution.

Page | 25

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

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.

2.10 Pensions

Page | 26

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

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 2022		 Unrestricted
Funds
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
Total
Funds
2022
£
1,015
-
1,015
8,547
1,015
-
1,015
8,547
8,547
-
8,547

4. INCOME FROM CHARITABLE ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
Total 2022		 Unrestricted
Funds
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
Total
Funds
2022
£
544,153
915,687
1,459,840
1,409,412
1,274,694
413,705
1,688,399
1,196,647
56,933
-
56,933
61,667
1,875,780
1,329,392
3,205,172
2,667,726
1,260,672
1,407,054
2,667,726

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
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
Total
Funds
2022
£
-
18,099
18,099
40,107
27,841
312,390
340,231
172,006
369,023
-
369,023
342,095
-
27,130
27,130
108,480
-
562,373
562,373
835,065
1,478,916
409,400
1,888,316
1,169,973
1,875,780
1,329,392
3,205,172
2,667,726

LOTTERY FUNDING

BIG Lottery
Every Step of the Way
Cook Together Eat Together
Communities Prepared Sparkhill
Fancy a Brew
Green Recovery Fund
Youth Accelerator Fund
Silverdale Country Fair
New to Nature
Building Better Opportunities
Heritage Lottery
Future Proof Parks
Total		 2023
£
2022
£
2,562
36,836
30,994
73,075
2,883
910
-
12,776
23,109
120,373
-
7,200
3,320
-
1,625
-
497,880
564,383
562,373
815,553
-
19,512
562,373
835,065

Page | 29

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

5. OTHER TRADING ACTIVITIES

Other Income
Furlough Income
Total 2022
NVESTMENT INCOME
Dividend Income
Total 2022		 Unrestricted
Funds
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
Total
Funds
2022
£
10,000
-
10,000
916
-
-
-
458
10,000
-
10,000
1,374
1,374
-
1,374
Unrestricted
Funds
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
Total
Funds
2022
£
25,057
-
25,057
24,556
25,057
-
25,057
24,556
24,556
-
24,556

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 2022		 Staff Costs
2023
£
Depreciation
2023
£
Other Costs
2023
£
Total
2023
£
Total
2022
£
24,348
-
8,328
32,676
2,281
24,348
-
8,328
32,676
2,281
709,209
633,940
1,343,149
1,443,464
1,112,872
332,224
1,445,096 1,124,703
18,999
34,198
53,197
61,548
1,529
11,590
7,150
20,269
34,854
1,842,609
11,590
1,007,512
2,861,711
2,664,569
1,866,957
11,590
1,015,840
2,894,387
2,666,850
1,658,546
13,260
995,044
2,666,850

8. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2022		 Activities
undertaken
directly
2023
£
Support Costs
2023
£
Total
2023
£
Total
2022
£
1,143,385
199,764
1,343,149
1,443,464
1,189,855
255,241
1,445,096
1,124,703
48,205
4,992
53,197
61,548
-
20,269
20,269
34,854
2,381,445
480,266
2,861,711
2,664,569
2,162,903
501,666
2,664,569

Summary by Fund Type:

Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2022		 Unrestricted
Funds
2023
£
Restricted
Funds
2023
£
Total
Funds
2023
£
Total
2022
£
460,864
882,285
1,343,149
1,443,464
1,025,210
419,886
1,445,096
1,124,703
53,197
-
53,197
61,548
20,269
-
20,269
34,854
1,559,540
1,302,171
2,861,711
2,664,569
1,277,913
1,386,656
2,664,569

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		 2023
£
2022
£
73,396
58,525
258,868
245,710
13,273
22,456
79,117
84,154
48,463
73,902
7,149
16,919
480,266
501,666

10. NET INCOME/(EXPENDITURE)

This is stated after charging:
2023 2022
£ £
Depreciation of tangible fixed assets: 11,590 13,260
Auditors Remuneration 14,525 13,325
Operating Leases 160,916 109,893

During the year, no Trustees received any remuneration or other Benefits (2022 - £NIL).

During the year, Trustees received reimbursement of expenses totalling £NIL (2022 - £NIL) 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 £18,618.

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		 2023
£
2022
£
1,654,062
1,478,246
141,215
119,078
71,680
61,222
1,866,957
1,658,546

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

Direct Charitable
Fundraising and Publicity
Administration		 2023
No
2022
No.
60
64
2
2
2
2
64
68

The number of higher paid employees was:

In the band £80,001-£90,000 2023
No
2022
No.
1
1
1
1

Total contributions under defined contribution schemes on behalf of this higher paid employee were £5,250 (2022: £5,250).

At the year-end retirement benefits were accruing to 1 (2022: 1) higher paid employee under defined contribution schemes.

Key management personnel received total remuneration of £251,560 (2022: £279,205).

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 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
-		 Furniture,
Fixtures,
Equipment
& vehicles
£
Total
£
700,313
700,313
-
-
(548,866)
(548,866)
151,448
151,448
670,397
670,397
11,590
11,590
(548,866)
(548,866)
133,121
133,121
18,326
18,326
29,916
29,916

Page | 34

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

13. FIXED ASSET INVESTMENTS

Charity
Market Value
At 1 April 2022
Additions
Disposals
Revaluations
At 31 March 2023
At 31 March 2022
Group investments at market value comprise:
UK
£
Overseas
£
Listed Investments
230,148
925,593		 Listed Securities
£
1,233,737
-
-
(77,995)
1,155,742
1,233,737
Total
2023
£
Total
2022
£
1,155,741
1,233,737

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 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		 2023
£
2022
£
67,462
75,799
63,248
66,499
138,055
144,415
366,053
387,445
166,840
158,649
38,662
46,688
53,431
73,703
83,865
92,747
58,021
64,726
120,105
123,066
1,155,742
1,233,737
At 1 April 2022
Additions
Disposals
Revaluations
At 31 March 2023		 Shares in Group
Listed Securities
£
Undertakings
£
Total
£
1,233,737
1
1,233,738
-
-
-
-
-
-
(77,995)
-
(77,995)
1,155,742
1
1,155,743

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
£
Total
2023
£
Total
2022
£
230,148
925,593
1,155,741
1,233,737
1
-
1
1
230,149
925,593
1,155,742
1,233,738

14. DEBTORS

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Total		 Group
Charity
2023
£
2022
£
2023
£
2022
£
318,917
365,038
318,917
365,038
-
-
-
-
-
-
-
-
226,062
142,156
226,062
142,156
544,979
507,194
544,979
507,194

15. CREDITORS: Amounts falling due within one year

Overdraft facility
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Clawback creditors
Other Creditors
Accruals and deferred income
Total		 Group
Charity
2023
£
2022
£
2023
£
2022
£
-
210,696
-
210,696
69,965
187,873
69,965
187,873
-
-
1
1
90,817
74,991
90,817
74,991
33,731
-
33,371
-
163
163
316,346
426,685
316,704
426,683
510,859
900,408
510,858
900,407

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 2022
£
Amount
released to
incoming
resources
£
Amount
deferred in
the year
£
Balance at 31
March 2023
£
252,853
(252,853)
123,187
123,187
98,875
(98,875)
137,664
137,664
7,150
(7,150)
-
-
-
-
-
-
358,878
(358,878)
260,851
260,851

Page | 36

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

Deferred Income comprises commission income received in advance.

16. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Unrestricted funds
General Funds
Restricted Funds
Community
Building Better Opportunities
Total of Funds		 Balance at
1 April 2022
£
Income
£
1,190,068
1,912,053		 Expenditure
£
(1,592,216)		 Transfers
in/out
£
14,250		 Gains/(losses)
£
Balance at
31 March
2023
£
(77,995)
1,446,160
71,123
831,328
-
498,064		 (797,741)
(504,430)		 (20,616)
6,366		 -
84,094
-
-
71,123
1,329,392		 (1,302,171) (14,250) -
84,094
1,261,191
3,241,445		 (2,894,387) - (77,995)
1,530,254

SUMMARY OF FUNDS - CURRENT YEAR

General Funds
Restricted Funds
Total of Funds		 Balance at
1 April 2022
£
Income
£
1,190,068
1,912,053
71,123
1,329,392		 Expenditure
£
(1,592,216)
(1,302,171)		 Transfers
in/out
£
14,250
(14,250)		 Gains/(losses)
£
Balance at
31 March
2023
£

(77,995)
1,446,160
-
84,094
1,261,191
3,241,445		 (2,894,387) - (77,995)
1,530,254

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
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 - PRIOR 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

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
2023
£
Restricted
funds
2023
£
Total
Funds
2023
£
18,327
-
18,327
1,155,742
-
1,155,742
768,694
98,344
867,038
(510,859)
-
(510,859)
1,431,904
98,344
1,530,248
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

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
2023
£
2022
£
269,057
63,354
11,590
13,260
77,995
(28,001)
(25,057)
(24,556)
(37,786)
(276,463)
(389,549)
508,012
(93,750)
255,606

Page | 39

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

19. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Total		 Group
2023
£
2022
£
322,059
390,752
322,059
390,752

20. ANALYSIS OF NET DEBT

Cash at bank and in hand
Debt due within 1 year		 At 1 April
2022
£
Cash Flows
£
At 31 March
2023
£
390,752
(68,693)
322,059
(210,696)
210,696
-
180,056
142,003
322,059

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 offered to employees after completion of 3 months’ service

Contributions totalling £11,360 (2022: £11,114) were payable at the year end and are included in creditors.

22. OPERATING LEASE COMMITMENTS

At 31 March 2023 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
2023
£
2022
£
30,475
25,407
77,152
86,420
107,627
111,827

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, for sundry expenses of £Nil (2022: £28). There were no outstanding balances at year end (2022: £Nil)

24. PRINCIPAL SUBSIDIARIES

Groundwork West Midlands Enterprise Ltd

Subsidiary name Groundwork West Midlands Enterprise Ltd

Company registration number 07110713 Basis of control 100% Total assets as at 31 March 2023 £ 1

25. FINANCIAL INSTRUMENTS

Financial assets
Investment in Listed Securities
Trade Debtors
Accrued Income
Financial Assets measured at amortised
cost
Financial liabilities
Trade Creditors
Accruals
Financial Liabilities measured at
amortised cost		 Group
Charity
2023
£
2022
£
2023
£
2022
£
1,155,742
1,233,737
1,155,742
1,233,737
318,917
365,038
318,917
365,038
171,954
94,641
171,954
94,641
490,871
459,679
490,871
459,679
69,965
55,492
187,873
67,809
69,965
55,492
187,873
67,809
125,457
255,682
125,457
255,682

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

Oculus Wealth Management Game Keepers Cottage Woodhouse Lane Nanpantan Loughborough Leicestershire LE11 3YG

Solicitors

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

Veale Wasbrough Vizards 3 Brindley Place Birmingham B1 2JB

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 P Farrell

Company Secretary

Deborah Williams

Committees of the Board

Finance and Audit Committee Chair – Ian Priest

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