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2024-03-31-accounts

Groundwork West Midlands Annual Report and Financial Statements 2023/24

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

2-21 Trustees Report

28 Cash Flow Statement

29-45 Notes forming part of the financial statements

46 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

As we present our 2023/24 annual report, I am delighted to report positively again, on end of year finances. We close the year in £19,150 trading surplus before investments providing a strong platform for 2024/25.

The 2023/24 year has again been one of success and challenges. Increased demands on services due to the cost of living crisis and in particular high energy prices have meant that all services to aid home energy efficiency have been in great demand. Programmes to aid efficient shopping and cooking to make healthy choices go further and to aid health and well-being also continue to be needed for the communities that we work within.

The continued success of Restart and the excellent performance by our teams has led to additional areas being transferred under our delivery and a new bid in 2024 has been successful in expanding the programme, making it the bedrock of our financial and delivery programmes for the past year and into 2024/25. Prudent management and efficient effective delivery has meant that the programme has delivered headroom back to us to generate more opportunities to help those in need.

Alongside this we continue to consider bidding opportunities that we can deliver within budgets and to look at self-financing income generation to continue to draw in more income to use in new operational services that can address need and demand. We have worked hard to develop delivery partnerships and raise the existing profile that GWWM has across the patch that we operate within.

Whilst recruitment remains a challenge – both for non-executive trustees and staff, staff turnover rates have slowed dramatically reflecting the enhanced stability and satisfaction that our teams have under strong management from Andrew our CEO and his SMT whom the Board of Trustees and I extend great thanks to.

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.

I would like to thank the governance provided by our Board of Trustees, whose expertise, time and shepherding is given freely without which the Charity could not exist. We have reviewed all policies and reinforced practices for safeguarding and Equality, Diversity and Inclusion to ensure that operations are undertaken to current best practice as a minimum.

Please take the time to read our annual report for 2023/24 and reach out to us where we can help and collaborate.

Anne-Marie Simpson, Chair

24[th] October 2024

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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.

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 outside the scope of Groundwork West Midlands’ core areas. For 2023–24 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:

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

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, 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 2023 - 2024 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/

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Strategic Report for the year ended 31 March 2024

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:

Our impacts can be demonstrated below…

727 Community Organisations Supported

£732,000 Invested In Communities

13,910 Hours of volunteering mobilised

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

----- Start of picture text -----
7
----- End of picture text -----

Formal qualifications gained

150

Young people supported to learn and achieve

----- Start of picture text -----
503
----- End of picture text -----

People supported into education, training or work

1,777 £450k £624k People sign posted to additional Distributed in emergency energy Domestic utility bill savings support top-ups

103,870 m2 Of land improved

----- Start of picture text -----
2,496 2,458
Households support by our Trees Planted
Green Doctor home energy
efficiency experts
----- End of picture text -----

Our work is needed because …

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GROUNDWORK WEST MIDLANDS

(A company limited by guarantee)

TRUSTEES REPORT

We 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:

Our approach

We deliver our impact through a range of projects, programmes and services that respond to local need and opportunity but that are developed and informed by the following core commitments.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Summary of our Charitable Work

Land Management

During the last year (23/24) we have seen new projects and opportunities become available to support our work improving biodiversity, reducing climate change effects and providing safe, welcoming green spaces for our communities. We were delighted to secure a further 10 year tender for the management of Silverdale country Park and Hassall Green Nature reserve in early 2024.

Biodiversity and Nature Recovery

Our Biodiversity and nature improvements continue with targeted species management. In response to our breeding bird survey results we have been targeting our management in the Void area of Silverdale to support species of conservation concern like wading Lapwings onsite. In the last decade at best we have seen 2 or 3

Lapwing chicks each year and they are often lost to predation. Targeted management has culminated in a bumper year in both 2023 and 2024. Visitors were able to witness at least 5 Lapwing sitting on separate nest sites in 2023 and 10 in 2024. Wonderful to see Conservation working in front of our very eyes.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Trees and Tree planting

Tree safety and boundary vegetation have been a dominant issue over this year across many of the sites following the 5 yearly tree safety inspection report. Winter 2023-24 saw the continued development of these project areas with further thinning and reseeding with a woodland seed mix which will establish over the next 2-3 years.

We have planted many tree’s this year on our own sites and in collaboration with local authorities to offer tree planting days, aiding our biodiversity improvements and building relationships with local business’s.

Staff at a food product development company in Somercotes swapped sauces and spices for spades to support the project.

Eight staff from Griffith Foods, on Cotes Park Industrial Estate, turned out to plant trees at Brook Park – a 37-hectare site with specially recreated limestone grassland on the site of the former Shirebrook Colliery.

As well as donating £2,500 towards the cost of the trees, the team helped to plant 600 saplings at Brook Park with the support of local charity Groundwork which helps to manage the site on behalf of landowners The Land Trust.

UKSE

Young people from a special school are being helped into employment by gaining practical work experience thanks to support from business lender UKSE.

Students aged between 16 and 18 from Abbey Hill School and College in Stoke on Trent are learning skills which they will be able to take into a working environment through the project run by environmental charity Groundwork West Midlands and funded by UKSE.

The business loans specialist, which works with companies across the West Midlands from its regional base in Cannock, is supporting Groundwork to enable the school group to help maintain an area at a country park to develop skills from practical experiences. Sessions are being run by Groundwork community project officers and park rangers with the aim of providing students with an increased knowledge of the environment and practical skills to manage outdoor spaces which they can use in the workplace.

UKSE regional executive Mike Lowe and area manager Steve Grice visited the group as they worked during one of the sessions, joining in with some of the tasks to see how their support was being used.

Mike Lowe commented: “UKSE’s mission is to help businesses to grow and prosper for the benefit of the community throughout the West Midlands and the partnership with Groundwork supports this ethos. We are looking forward to seeing the benefits of the project, not only from an environmental perspective but also to support the career paths of the young people involved.”

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Darren Greensmith, vocational pathways manager at Abbey Hill School and College, said: “Without funding from partners like UKSE it would not be possible for groups like ours to take up the opportunity to be part of projects like this so it is great to see our young people engaged in tasks and projects where they can make a positive difference.

“Partnering with Groundwork creates a realistic working environment for our students to apply their learning from college, building experience which will grow their confidence and develop their skills for the workplace.”

As part of our progression, this year has seen two further sites put forward to the Green Flag award scheme, Telford Millennium Village and The Old Brickworks Nature reserve.

The scheme recognises and rewards well managed parks and green spaces, setting the benchmark standard for the management of recreational outdoor spaces across the United Kingdom and around the world. We eagerly await our results which should be delivered in early July 2024.

Engagement and Education

Many public and private sessions have taken place to engage and educate local people across all of our sites, including work with schools, colleges and university groups.

Sessions are very well attended, and our Engagement Ranger was presented with a community spirit award at the Annual Ketley Parish Assembly this year, in recognition of their work at the reserves.

The activities offered bring multiple wildlife, health and social benefits and include a host of traditional activities such as willow weaving, hedge laying, dry stone walling, scything and identification of Flora and Fauna.

St Luke’s Primary ‘Big Bird Count’

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Healthy Lifestyles

Cook & Eat Well Projects

We run a number of grant funded and commissioned projects across Coventry, Sandwell and Birmingham. These aim to improve knowledge and skills about healthy eating and cooking with the aim of improving both physical and mental wellbeing.

June was referred to a course by a social prescriber after a period of illness, which had caused her to put on weight and get into bad eating habits. June went from home cooking 1 or 2 nights a week to batch cooking a few days a week but eating home cooked food every night. She made small but significant changes to her lifestyles such as, stopping going to the chip shop and eating 5 A Day. The course gave her the opportunity to try new fruits and vegetables that she realised she enjoyed and incorporated into her cooking. June reported big improvement in her mental well-being from attending the course as she made some new friends who continued to meet up weekly after the course, starting their own ‘Cooking club’ where they take it in turns to cook for each other, share recipes and support each other.

Green Doctor

Green Doctors are trained Energy Advisors who provide advice on energy advice, energy bills and heating systems. We have a number of grants and commissions across the West Midlands with organisations such as Cadent Gas, British Gas and Energy Redress.

Gary and his family were referred to Green Doctor by the council after falling victim to fraud. The Green Doctor Team were able to speak to his landlord and insist on repairs be made to his property, help him secure a Big Difference water grant to cover his water bills, get his energy debt written off, help him apply for a grant for new carpets and fit energy saving measures throughout his home. The team also went over and above making referrals to other organisations and helping him come up with an income & expenditure plan to keep them on track going forward.

“Green Doctor literally saved my life last winter through the fuel vouchers, emergency heater and energy saving devices they fitted for me.”

“We refer all of our clients to Groundworks Green Doctor project. They are fast, reliable and actually go to peoples homes, not just talk to them on the phone. They make such a difference to people’s lives, helping them to get back on track and save money on energy going forward.” Sharon – Council Income Support Team. Stoke on Trent City Council.

Wider Energy Projects

The Green Doctor team has grown and diversified and now has team members who are qualified Domestic Energy Assessors and retro fit assessors. This has allowed us to grow our ‘paid for offer’ working with a number of partners such as local authorities and architected firms and landlords.

Groundworks energy assessment of our building, helped us evidence the cost savings (£14k pa) of replacing our old flood lighting with LED lights. Based on this evidence our board agreed to invest in the replacement and

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Groundwork helped us gain a grant of £2,500 towards the cost. The cost savings are vital for our charity as we are drowning under our increased energy costs and we are also reducing our Carbon emissions.

Money Mentors

Our money mentor project in Wolverhampton supports local people to manage their money more efficiently, maximise their income and advocate for them with services such as energy providers, landlords and debt organisations.

“Hamza has helped me get my finances organised and sort out better payment plans with everyone I owed money to. I wasn’t sleeping or eating as I was so worried with all the letters I was getting that I didn’t understand. I feel so much better now and I have more money as he helped me get Pension credit which I didn’t realise I could claim.”

New to Nature

New to Nature provided life-changing employment opportunities for people who might not normally have access to a career in the environmental sector, with young people who are from an ethnic minority, who are disabled or who are from low-income homes being encouraged to apply for roles in all areas of the nature sector. Hear more from a trainee below:

https://www.youtube.com/watch?v=egsjSdKYvBk&t=79s

Employment Support

Restart – Tipton, Dudley, Birmingham & Oldbury

Restart is a DWP funded project and is payment by results.

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

Groundwork West Midlands continue to achieve and have become a preferred supply chain partner for Serco. As a result, towards the early part of 2024 negotiations took place for Serco to reduce supply chain partners and allocated GWWM extra volumes and locations. We also negotiated the agreed 2 year extension of the project which has been approved by DWP.

One Groundwork staff member was chosen as a champion by Serco for his quality of action plans and CSS standards. They quoted “Jamie, your dedication to creating outstanding action plans and upholding top-tier CSS standards has truly elevated our projects. Your expertise and hard work are invaluable, and we're incredibly grateful for your contributions. Thank you for setting the bar so high!"

Another Groundwork staff member has been praised for effective caseload management and again used as a champion to share best practice. Such best practice includes going the extra mile to support clients, and to ensure that they receive real and demonstrable benefits from our support.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

This can be demonstrated with the following case study…

Success story – ‘Client A’

“Client A was referred to Restart in January 2023, from completing his Initial meeting it was clear that Client A had little to no confidence in himself and his abilities, Client A was very quiet to begin with, when attending meetings, he would walk around with his head down, would not speak to or look at anyone in the office and because of this gave off quite an abrasive persona. It also later became apparent that Client A was battling Anxiety and Depression.

As Client A slowly started to complete the short terms goals set his confidence clearly began to improve, it was at this point we decided to support Client A with further interview techniques and gave him training on how to speculatively approach employers, Client A took to this very well and was sent to a Security Company in Dudley, he registered and waited several weeks but was not given any shifts, even after Employer Engagement chased this, Client A was still not given any shifts, this again dampened Client A confidence.

At this point we were coming close to Client A 12 Months on Restart, at the meeting before our Annual Review, Client A was supported in making 11 applications to local security companies, Client A contacted me a few weeks later to say he had been offered the role and wanted support completing the induction paperwork. Client A was given an appointment to come in and we completed all of his paperwork and sent his back to the employer.

At this time Client A had been going back and forth with his mortgage provider who wanted to see proof of Client A starting work so he could evidence that he would be able to make continuous payments to his Mortgage arrears, If Client A was unable to do this he was told he would be evicted from the property on Thursday 25th January 2024 at 12:00pm, Client A advised me of this on Wednesday 24th January 2024, Client A had been trying to do this himself but was struggling with the online portal and obtaining the information needed, this was several months bank statements, income and expenditure, proof of Tax paid over the last 10 years of employment, proof of his pending employment statements from Client A DMP with Stepchange.

As this was clearly time sensitive, I asked Client A to attend the centre straight away, we managed to obtain all of the information required, contacted the employer to gather the details and evidence of his Job Start, I then contacted the mortgage company to ensure all the information sent was correct, I was advised by the mortgage provider that the team who would quality check this would not be in until 9am the following morning. Client A was told to come back to the centre at 9am the following day and we contacted them and waited on the phone as they checked all of the documentation.

At roughly 11:00am the documentation was fully compliant and we were informed the eviction would no longer be taking place.

Needless to say, Client A was over the moon with this, I contacted Client A a few days later and he informed me that he had successfully started his job and was very much enjoying it.

Client A was very grateful for the help and support from Restart is still in the role and has stayed on top of all of his repayments.”

Community and Environment

Tesco Community Grants

Groundwork West Midlands has continued to work with Groundwork UK and Tesco on the Stronger Starts Grant funding programme.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

From April 2023 – March 2024, in the West Midlands, Tesco awarded £576,290 worth of grants to 502 notfor-profit organisations

Delivery included:

Feedback from groups included:

“The head teacher at Shrubland Street got back to me today and I have now pressed the submit button on the application! Exciting times, thanks so much for giving up your time to help and support the school…”

“…thank you for taking the time to bring us up to date… Your reply demonstrates the depth of support and interest that we get from your company…”

Feedback from Tesco store staff included:

“…thank you so much for today, I genuinely found the meeting very helpful and insightful especially regarding what us as managers can help vote towards what is happening in our communities. It was definitely an eye opener for me…”

Also over the course of the year, £60,000 was awarded to twelve organisations as part of the Golden Grants strand of the programme.

Corporate Volunteering Programmes (HS2 and General Projects)

Groundwork West Midlands continued to work with businesses across the region to deliver corporate volunteer events that positively transform local communities and spaces.

Summary

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Feedback from volunteers included:

“Amazing day out doing something different - thank you to the organisers” “Loved all the activities, a great day”

“Very impressed with the whole experience” “Well organised and a good variety of activities. Useful information on other services feted by groundwork” “A genuinely wonderful day, thank you!!”

“I felt joyful and blissful, with a greater sense of wellbeing and connection with nature”

“Lovely atmosphere. Very inclusive and enjoyed learning a new activity.” “Absolutely loved my day and enjoyed listening to the staff there who were very knowledgeable on so many different aspects”

In April 2023, corporate volunteers from NHS Property Services helped to revamp the outdoor space at partner site Brasshouse Lane Community Centre, Smethwick.

Feedback from the partner sites included:

“I wanted to say a huge thank you for the hard work and dedication to clearing our outdoor areas to allow us to plan how to purposefully use these space. These are jobs, as a staffing team, we have not gotten round to doing for many many months and are really grateful to have had your support. From here, we will ensure we have a much more productive plan of action to keep these spaces viably open for pupils. Thank you again for the hard work that you do to help others.” (Headteacher)

“We are always thrilled when Groundworks come to help us out for a day, are always professional, friendly and organised and the groups you bring are keen to get stuck in and get their hands dirty. As a tiny charity with over 40 acres of natural space to look after, the impact of your group visits cannot be understated.” (Castle Bromwich Hall Gardens)

“Thank you so much for yesterday's session. We couldn't be happier with the result. Thank you to the hard work of the corporate volunteers we are a step closer to achieve what we have envisioned for the area. Our regular volunteers were on site today and couldn't believe how much the site has changed!!” (Community Environmental Trust)

“Can you please send my regards to you and your team from HS2. I have come in this morning and the transformation in the gardens is simply amazing. They have worked so hard and all the residents that have spoken to this morning are just delighted. I cannot speak highly enough of both you and the team. Thank you again !!!!” (Neighbourhood Support Officer at Birmingham City Council)

“I just wanted to say a big thank you to you and the HS2 team for the work carried out at Brookvale park, cutting, pruning trees and hedges and clearing the pathways. It has made a visible difference which I am sure is appreciated by the park users. The team certainly worked hard and has achieved more than I anticipated.” (Neighbourhood Action Coordinator at Birmingham City Council).

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Go Play Sandwell

From April to September 2023, Go Play delivery funded by Sandwell Council continued across Tipton and Smethwick. From January 2024, delivery has focused on Tipton.

During this time in excess of 1,000 6-12 year olds across both towns have engaged in activities. Partnerships have continued to flourish, including new ones such as, Tipton Muslim Centre who are very keen to bring our provision in at every opportunity, as well as Bearwood Family Hub, who have been able to gain new ways of understanding the importance of play to develop their own outputs.

The programme has also provided much needed support to families. One parent commented that sessions have “really bought her son out of his shell. He’s normally apprehensive about playing with other children, but here (Victoria Park, Smethwick) he just gets stuck in!” One parent also commented that “knowing that her son was going to go to a session and have fun gave her a reason to get over her anxiety to leave the house” (Laybourne Park, Tipton)

We have also had families who have made positive lifestyle choices based on their interactions with Go Play. One family commented that they’d changed their eating habits and had started exercising more because they wanted to get the most out of the sessions, rather than feeling tired straight after arriving.

Finally, families have also commented that they feel Go Play brings a security to some green spaces that have been victims of anti-social behaviour. One child’s parent told us that her son was approached by a young person with a knife, meaning he was scared to come to our sessions at Jubilee Park. “He feels safer coming to the park when he knows Go Play are here, because he knows that the staff are trained to deal with anything that might happen.”

Welcome Hong Kongers

Over the year, the Welcome Hong Kongers project (funded by the Department for Levelling Up, Housing and Communities) has gone from strength to strength, far exceeding targets and aspirations for supporting West Midlands BNOs with their transition to life in the UK.

Summary

Employment support courses held in Birmingham and Solihull, supported 34 people towards building confidence, understanding the UK work environment and systems, searching for jobs, writing a successful CV/cover letter and improving their interview skills.

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

GWWM was successful in securing further funding from the West Midlands Strategic Migration Partnership to continue the project later in the financial year.

Example case studies

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GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

Financial Performance

The result for 2023/24 shows a consolidated profit before investments gains of £19,150 (2023: gain £347,058) on a consolidated turnover of £3,185,788 (2023: £3,241,445).

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 £1.15 million was invested and during 2023/24 this resulted in net gain of £123,271 (2023: net loss £77,995) bringing a result of a profit of £142,421 (2023: gain £269,063).

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 2024 Groundwork West Midlands has total unrestricted reserves of £1,592,918 within which are free reserves of £1,584,382 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

Page | 19

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.

Principal funding sources

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

• Private sector grants and contracts - £2.281m (£1.888m in 2022/23)

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.

• Public sector grants and contracts - £873.6k (£1.317m in 2022/23)

This includes funding secured to deliver programmes and services on behalf of government departments, public bodies and lottery distributors. Major funders during 2023/24 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.

• Community projects - £1.8m (2022/23: £1.3m)

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

Page | 20

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

TRUSTEES REPORT

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.

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

24 October 2024

Page | 21

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 2024 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 | 22

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.

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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, 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 | 24

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 Blundell LLB FCA FCIE DChA

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

Date: 11 November 2024

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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
2024
2024
2024
2023
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		 £
£
£
£
100
-
100
1,015
2,178,498
976,894
3,155,392
3,205,172
3,093
-
3,093
10,000
25,634
1,570
-
-
25,634
1,570
25,057
201
2,208,895
976,894
3,185,789
3,241,445
95,438
-
95,438
32,676
2,112,907
958,293
3,071,200
2,861,711
2,208,345
958,293
3,166,638
2,894,387
549
18,601
19,150
347,058
123,271
-
123,271
(77,995)
123,820
18,601
142,421
269,063
22,937
(22,937)
-
-
146,757
(4,336)
142,421
269,063
1,446,160
84,094
1,530,254
1,261,191
1,592,918
79,758
1,672,676
1,530,254

The notes on pages 29 to 45 form part of these financial statements.

Page | 26

GROUNDWORK WEST MIDLANDS

(A company limited by guarantee)

CHARITY BALANCE SHEET

AS AT 31 MARCH 2024

2024 2023 2023
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 8,536 18,326
Investments 13 1,279,013 1,155,743
1,287,549 1,174,069
CURRENT ASSETS
Debtors 14 600,053 544,986 544,986
Cash at bank and in hand 337,333 322,059 322,059
937,386 867,045 867,045
CREDITORS:amounts falling due within one
year 15 (552,259) (510,859)
NET CURRENT ASSETS / LIABILITIES 385,127 356,186
NET ASSETS 1,672,676 1,530,255
CHARITY FUNDS
Restricted funds 16 79,758 84,094
Unrestricted funds 16 1,592,918 1,446,160
TOTAL FUNDS 1,672,676 1,530,254

The surplus for the year dealt with in the accounts of the Charity was £142,422 (2023 – £269,063).

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 24th October 2024 and signed on their behalf, by:

A Simpson, Chair

The notes on pages 29 to 45 form part of these financial statements

Page | 27

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		 2024
2023
£
£
(10,360)
(93,750)
25,634
25,057
-
-
-
-
-
-
-
-
25,634
25,057
15,274
(68,693)
322,059
390,752
337,333
322,059

The notes on pages 29 to 45 form part of these financial statements.

Page | 28

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.

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.

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.

Page | 29

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

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

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.

Page | 30

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

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 | 31

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

3. INCOME FROM DONATIONS AND LEGACIES

Donations
Total 2023		 Unrestricted
Funds
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
Total
Funds
2023
£
100
-
100
1,015
100
-
100
1,015
1,015
-
1,015

4. INCOME FROM CHARITABLE ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
Total 2023		 Unrestricted
Funds
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
Total
Funds
2023
£
866,503
970,687
1,857,190
1,459,840
1,258,034
6,207
1,264,241
1,688,399
33,961
-
33,961
56,933
2,178,498
976,894
3,155,392
3,205,172
1,875,780
1,329,392
3,205,172

Page | 32

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
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
Total
Funds
2023
£
-
34,742
34,742
18,099
4,000
514,019
518,019
340,231
269,719
29,552
299,271
369,023
-
-
-
27,130
-
21,578
21,578
562,373
1,904,779
377,003
2,281,782
1,888,316
2,178,498
976,894
3,155,392
3,205,172

LOTTERY FUNDING

BIG Lottery
New to Nature
Building Better Opportunities
Picnic in the Park
Every Step of the Way
Cook Together Eat Together
Communities Prepared Sparkhill
Green Recovery Fund
Silverdale Country Fair
Total		 2024
£
2023
£
14,445
1,625
6,206
497,880
927
-
-
2,562
-
30,994
-
2,883
-
23,109
-
3,320
21,578
562,373

Page | 33

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

5. OTHER TRADING ACTIVITIES

Other Income
Total 2023		 Unrestricted
Funds
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
Total
Funds
2023
£
3,093
-
3,093
10,000
3,093
-
3,093
10,000
10,000
-
10,000

6. INVESTMENT INCOME

Dividend Income
Total 2023		 Unrestricted
Funds
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
Total
Funds
2023
£
25,634
-
25,634
25,057
25,634
-
25,634
25,057
25,057
-
25,057

Page | 34

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 2023		 Staff Costs
2024
£
Depreciation
2024
£
Other Costs
2024
£
Total
2024
£
Total
2023
£
76,885
-
18,553
95,438
32,676
76,885
-
18,553
95,438
36,676
784,300
996,265
1,780,565
1,343,149
863,509
364,277
1,227,786 1,445,096
13,949
26,125
40,074
53,197
1,968
9,791
11,016
22,775
20,269
1,663,726
9,791
1,397,683
3,071,200
2,861,711
1,740,611
9,791
1,416,236
3,166,638
2,894,387
1,866,957
11,590
1,015,840
2,894,387

8. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2023		 Activities
undertaken
directly
2024
£
Support Costs
2024
£
Total
2024
£
Total
2023
£
1,565,953
214,612
1,780,565
1,343,149
951,384
276,402
1,227,786
1,445,096
37,645
2,429
40,074
53,197
-
22,775
22,775
20,269
2,554,982
516,218
3,071,200
2,861,711
2,381,445
480,266
2,861,711

Summary by Fund Type:

Community Projects
Employment Projects
Business Projects SBS
Running Groundwork WM
Total 2023		 Unrestricted
Funds
2024
£
Restricted
Funds
2024
£
Total
Funds
2024
£
Total
2023
£
822,338
958,227
1,780,565
1,343,149
1,227,720
66
1,227,786
1,445,096
40,074
-
40,074
53,197
22,775
-
22,775
20,269
2,112,907
958,293
3,071,200
2,861,711
1,559,540
1,302,171
2,861,711

Page | 35

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		 2024
£
2023
£
100,061
73,396
275,022
258,868
22,402
13,273
55,924
79,117
51,792
48,463
11,016
7,149
516,218
480,266

10. NET INCOME/(EXPENDITURE)

This is stated after charging:
2024 2023
£ £
Depreciation of tangible fixed assets: 9,791 11,590
Auditors Remuneration 13,340 14,525
Operating Leases 120,831 160,916

During the year, no Trustees received any remuneration or other Benefits (2023 - £NIL).

During the year, Trustees received reimbursement of expenses totalling £NIL (2023 - £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 £18,581.

Page | 36

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		 2024
£
2023
£
1,537,732
1,654,062
134,522
141,215
68,357
71,680
1,740,611
1,866,957

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

Direct Charitable
Fundraising and Publicity
Administration		 2024
No
2023
No.
54
60
2
2
2
2
58
64

The number of higher paid employees was:

In the band £80,001-£90,000 2024
No
2023
No.
1
1
1
1

Total contributions under defined contribution schemes on behalf of this higher paid employee were £6,375 (2023: £5,250).

At the year-end retirement benefits were accruing to 1 (2023: 1) higher paid employee under defined contribution schemes.

Key management personnel received total remuneration of £300,896 (2023: £251,560).

Page | 37

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

12. TANGIBLE FIXED ASSETS

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
On disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
-		 Furniture,
Fixtures,
Equipment
& vehicles
£
Total
£
151,448
151,448
-
-
-
-
151,448
151,448
133,121
133,121
9,791
9,791
-
-
142,912
142,912
8,536
8,536
18,326
18,326

Page | 38

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

13. FIXED ASSET INVESTMENTS

Charity
Market Value
At 1 April 2023
Additions
Disposals
Revaluations
At 31 March 2024
At 31 March 2023
Investments at market value comprise:
UK
£
Overseas
£
Listed Investments
229,825
1,049,188		 Listed Securities
£
1,155,742
-
-
123,271
1,279,013
1,155,742
Total
2024
£
Total
2023
£
1,279,013
1,155,742

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		 2024
£
2023
£
67,552
67,462
67,118
63,248
142,048
138,055
462,884
366,053
174,971
166,840
37,668
38,662
50,108
53,431
88,582
83,865
57,861
58,021
130,221
120,105
1,279,013
1,155,742
At 1 April 2023
Additions
Disposals
Revaluations
At 31 March 2024		 Listed Securities
£
Undertakings
£
Total
£
1,155,742
1
1,155,743
-
-
-
-
-
-
123,271
-
123,271
1,279,013
1
1,279,014

Page | 39

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

FINANCIAL STATEMENT NOTES

Investments at cost comprise:

ments at cost comprise:
Listed Investments
Subsidiary Undertaking
Total		 UK
£
Overseas
£
Total
2024
£
Total
2023
£
229,825
1,049,188
1,279,013
1,155,742
1
1
1
229,826
1,049,188
1,279,014
1,155,743

14. DEBTORS

Trade debtors
Other debtors
Prepayments and accrued income
Total		 2024
£
2023
£
350,531
318,924
916
-
248,606
226,062
600,053
544,986

15. CREDITORS: Amounts falling due within one year

Trade creditors
Other taxation and social security
Clawback creditors
Amounts owed to Subsidiary Undertaking
Accruals and deferred income
Total		 2024
£
2023
£
148,722
69,965
60,003
90,817
-
33,731
1
1
343,533
316,704
552,259
510,858

Deferred income

Movements in deferred income during the year were as follows:

Community Projects
Employment Projects
Business Projects
Total		 Balance at 1
April 2023
£
Amount
released to
incoming
resources
£
Amount
deferred in
the year
£
Balance at 31
March 2024
£
123,187
(123,187)
271,007
271,007
137,664
(137,664)
15,348
15,348
-
-
6.125
6,125
260,851
(260,851)
292,480
292,480

Deferred Income comprises commission income received in advance.

Page | 40

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
Employment
Total of Funds		 Balance at
1 April 2023
£
Income
£
1,446,160
2,208,895		 Expenditure
£
(2,208,345)		 Transfers
in/out
£
22,937		 Gains/(losses)
£
Balance at
31 March
2024
£
123,271
1,592,918
84,094
970,687
-
6,207		 (958,227)
(66)		 (16,796)
(6,141)		 -
79,758
-
-
84,094
976,894		 (958,293) (22,937) -
79,758
1,530,254
3,185,789		 (3,166,638) - 123,271
1,672,676

SUMMARY OF FUNDS - CURRENT YEAR

General Funds
Restricted Funds
Total of Funds		 Balance at
1 April 2023
£
Income
£
1,446,160
2,208,895
84,094
976,894		 Expenditure
£
(2,208,345)
(958,293)		 Transfers
in/out
£
22,937
(22,937)		 Gains/(losses)
£
Balance at
31 March
2024
£

123,271
1,592,918
-
79,758
1,530,254
3,185,789		 (3,166,638) - 123,271
1,672,676

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 | 41

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 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 - PRIOR 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

Page | 42

GROUNDWORK WEST MIDLANDS (A company limited by guarantee)

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
2024
£
Restricted
funds
2024
£
Total
Funds
2024
£
8,536
-
8,536
1,279,013
-
1,279,013
857,628
79,758
937,386
(552,259)
-
(552,259)
1,592,918
79,758
1,672,676
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

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		 2024
£
2023
£
142,421
269,057
9,791
11,590
(123,271)
77,995
(25,634)
(25,057)
(55,067)
(37,786)
41,400
(389,549)
(10,360)
(93,750)

Page | 43

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
Cash at bank and in hand
Debt due within 1 year		 2024
£
2023
£
337,333
322,059
337,333
322,059
At 1 April
2023
£
Cash Flows
£
At 31 March
2024
£
322,059
15,274
337,333
-
-
-		 2024
£
2023
£
337,333
322,059
337,333
322,059
322,059
15,274
337,333

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 £11,348 (2023: £11,360) 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:

Charity
Amounts payable:
Not later than 1 year
Later than 1 year and not later than 5 years
Total		 2024
£
2023
£
17,927
30,475
87,757
77,152
105,684
107,627

Page | 44

GROUNDWORK WEST MIDLANDS

(A company limited by guarantee)

FINANCIAL STATEMENT NOTES

23. 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		 2024
£
2023
£
1,279,013
1,155,742
350,531
318,917
197,730
171,954
548,261
490,871
148,722
50,876
69,965
55,492
199,598
125,457

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 | 45

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 | 46

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 Resigned 30/11/2023 I Priest R Tappia B Bickerton G Hooper Resigned 30/11/2023 P Farrell L Campbell Appointed 27/04/2023

Company Secretary

Deborah Williams

Committees of the Board

Finance and Audit Committee Chair – Ian Priest

Chief Executive

Andrew Thompson

Page | 47

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