Ealing Community Transport Report and Financial Statements for year ended 31 March 2024 Company Limited by Guarantee 07211806 Charity Registration Number1135354 ////// Charity Making journe Legal and Administrative Information Trustees / Directors S. Dogra N. Epstein lappointed 5.12.2023) R. Hand (appointed 5.12.2023, resigned 22.8.2024) R. Holland C. Mccaffrey (appointed 21.3.2024) A. Ryan (resigned 16.6.2023) H. Sana C. Tilleray B. Tilley (resigned 31.8.2023) D. Tinnion (Chair) N. Watt (appointed 21.3.2024) Chief Executive John Chesters Patron S. Pound Registered Off ice Greenford Depot Greenford Road Greenford Middlesex UB6 gAN Telephone: 020 8813 3210 vrnw.ectcharity.co.uk Company registration number Charity registration number Auditor 07211806 (England and Wales) 1135354 Buzzacott LLP 130 Wood Street London EC2V 6DL Banker National Westminster Bank 440 Strand London WC2R OQS Solicitors Bates Wells 10 Queen Street Place London EC4R 1 BE Russell-cooke LLP 2 Putney Hill London SW15 6AB Contents Chair's report..................................................................................... ChiefExecutive Officer's report............................................................... Trustee's report..... Strategic report.......... IndependentAuditor's report.................................................................. 28 Charity and group financial statements Consolidated statement of financial activities........................... 34 Groupand charity balancesheet.......................................... 35 Consolidated statementofcashflows.................................... 36 Notestothefinancial Statements.......................................... 38 si Chair's report CEO'S report irf Chair's report 31 March 2024 ECT Charity is one of the UK'S leading providers of community transport, safely providing almost 401,000 passenger trips for our communities each year. We operate a wide variety of services, each based on a particular local need: from minibuses for community groups to transport for children with special educational needs and disability, from door-to-door services for older and disabled people to buses tackling rural social isolation - and many more. We've been providing people who struggle with mainstream transport with safe, accessible journeys since our foundation as Ealing Community Transport in 1979. Now, under the brand of ECT Charity, we operate community transport services in the London Borough of Ealing, Cheshire and Dorset. Much of our work is delivered on behalf of public sector commissioners and partners - including local authorities, Transport for London and the NHS. We are able to build strong relationships with those who commission our work as we share the same goals and values - inclusion and accessibility for our service users. Each year, we use the CT Social Value Toolkit - a model developed by ECT Charity specifically for our whole sector - to calculate our Social Value. The Toolkit lets us quantify the impact of increased access to Se￿ices, improved wellbeing and reduced healthcare costs - amongst a range of other measures. We use the Toolkit to assess the Social Value of our charitable services, rather than including our contract work, as this represents a clearer picture of the difference we are making. In 2024, the results of our Social Value analysis using the Toolkit reveal that our services have created an additional £794,054 of Social Value, broadly equivalent to our achievement in the last reporting period12023: £867,815). Several factors contribute to this marginal decrease including a change in service provision, changes in passenger preferences (Group bookings have dropped whereas individual bookings have risen) and the impact of the cost-of- living crisis despite the heavily subsidised model of our group and individual transport provisions. It has never been more important for community transport organisations to be able to demonstrate that they are making a difference in their communities - and that their work represents good value for money by bringing with them resource efficiencies and integrated non- contractual services. We believe passionately in the role that community transport can play in people's lives. Each passenger journey represents a positive change - an older person maintaining their independence, a disabled person improving their access, a rural community reconnected, a young person participating in sport and so on. The more we can do - in terms of routes, services and passengers - the greater impact we have. The Toolkit is an essential tool for this and over the course of the current year, we have completed a major project to update it. This has involved applying the learning from almost five years of use by community transport organisations, combining that with the very latest good practice in Social Value measurement. This important work has been supported and made possible by Motability, to whom I would like to extend our heartfelt thanks. The updated Toolkit will launch in the first half of 2024125. Trustees, the management team and staff across the organisation for their work over the last year and all that they have achieved - often in the face of challenging circumstances. The companion piece to our published accounts is our Social Impact report. Our report explores in depth the difference we have been making in our communities over calendar year 2023. A summary of its findings is presented on page 20 of these accounts, but to build the truest possible picture of ECT Charity, I would urge all readers of these accounts to also review the companion document. The support of Motability in redeveloping the CT Social Value Toolkit illustrates a feature of the year under review and our work in general as we strive to deliver on our mission, we know that we are not alone. ECT Charity works closely in partnership with all our stakeholders, be they local politicians seeking better outcomes for their electorates, third sector organisations who need transport in line with their needs and values, or commissioners of public services seeking new approaches to old challenges. I would like to thank all of our partners for their support during the year. Our focus on partnership has been recognised this year. We are proud to have won the Partnership of the Year award at this year's Community Transport Awards. The award comes for our PlusBus for Health service, delivered in a long-standing partnership with North West London Integrated Care Board. PlusBus for Health provides accessible transport for vulnerable patients in the London Borough of Ealing, taking them from their homes to GP surgeries for their appointment and returning them safely home afterwards. As we enter the new financial year, I would like to thank the Board of David Tinnion Chair of trustees CEO'S report ECT Charity exists to make a positive difference in our communities and this is underpinned by our economic performance as an organisation. Well-run services and sustainable finances enable our social impact. To that aim, ECT Charity has posted growth in 2023124, with turnover increasing from £5.8m in 2022123 to £6.4m. Growth has been organic, reflecting our efforts to bring our services to as many people as possible in our current areas of operation. This achievement is encouraging in otherwise economically challenging times. The organisation has posted a small deficit for the year of £42k (2023: surplus £175k). The deficit has been caused by a number of headwinds in our operating environment, ones that have affected many organisations. The cost of living crisis has provided upwards pressure on staff costs, global supply chain issues have negatively affected vehicle maintenance costs and the budgetary challenges of many commissioners have placed downward pressure on income. We believe that these challenges are temporary, rather than structural, and have been focussing our attention on improving the efficiency of our operations, continuing to upgrade our vehicle fleet and seeking new opportunities for income. Our investment in new vehicles has been a particular feature of the year, with just over £1.5m of capital outlay. This investment not only reflects the imperative to provide our staff and passengers with safe and reliable vehicles, but also remedies a disruption to our rolling programme of vehicle renewal caused by COVID and the global post-COVID supply chain issues. As this develops, the charity's positive reseple position provides a significant degree of comfort. Around ECT Charity The encouraging performance during the year is a testament to the efforts of our regional teams, each of which has been working hard to expand either the scale or scope of our services. Ealing: In addition to receiving recognition for our PlusBus for Health partnership at this year's Community Transport Awards, the team has been focussed on increasing vehicle occupancy on our seNices. This drive has led to the development and launch of a new service - PlusBus Direct - in January 2024. This service takes passengers from their door to our most-requested PlusBus destinations on a particular day of the week. Destinations include local supermarkets, shopping centres and community centres. The service has two positive effects. First, by bringing service users together for trips to essential destinations, users have greater social contact in addition to improved access. Second, by bringing service users together, we are aggregating demand, increasing asset utilisation. Dorset: The team in Dorset has grown its passenger numbers, driven by increased memberships for both its PlusBus and Group Transport services. There has also been a 14 % growth in our Special Educational Needs and Disabilities (SEND) services, with new and additiorkal contracts awarded during the period by both Dorset and Bournemouth, Christchurch and Poole local authorities. The team also secured an extension of the current contract for the provision of community transport service with Cheshire West and Chester Council - and are currently working with them with a view to a further extension to 2026. In addition, efforts have been ongoing to build good partnership arrangements with key providers and third sector organisations, leading to an increase in membership and embedding our position as a key seNice provider in the area. The team has also shown their adaptability. As our supported local bus service 97 came to an end, we have introduced the 'PlusBus Shuttle, in partnership with Alderholt Parish Council, meeting the specific needs of Alderholt. The strength of our partnerships in the region also ensured that local bus service 2RN, which connects Wareham with the RSPB nature reserve at Arne, returned for a successful second year- including the pilot of a winter timetable. Cheshire: The Cheshire team has grown its PlusBus membership by over 370 service users and extended their operating area to include previously unserved parts of the Borough of Cheshire West & Chester, and some areas of Wirral, that we previously did not serve. These efforts have contributed to an increase in passenger trips - a year- on-year increase of around 13 % across both PlusBus and Adult Social Care routes. A forward look As we look forward to the new financial year, we are confident in our ability to continue organic growth, to increase our operational efficiency and make a real difference as a charity in the lives of our service users. However, like many community transport organisations across the UK, we continue to face an element of regulatory uncertainty. Positively, we maintain a good working relationship with Office of the Transport Commissioner and the Community Transport Association in relation to our Section 19 permits and we completed a review in 2023 which confirmed all our seNices operate exclusively for non-commercial purposes and are fully compliant under Section 19 and 22. In partnership with our fellow community transport operators and sector bodies, and on our own account, we will continue to press for greater clarity and practicality on this issue. We are also grateful to Beverly Bell Consulting and the TAS Partnership for their support throughout the year. Hearteningly, the team has also been able to re-introduce day trips for PlusBus members after a hiatus of several years. The team operated these hIg￿SOcIal impact trips to locations across the North West, with almost 100 service users benefiting. We also believe that it is responsible to review the widest range of options to increase our long-term economic sustainability. This includes exploring traditional charity fundraising activities such as grant and trust applications - and, like many other charities - assessing the practicalities of generating trading income. Even in a challenging environment, ECT Charity continues to make a real difference in our communities and is delivering on its social mission. As a consequence - and due to the work of our teams across the organisation - we look to the forthcoming year with a high degree of confidence. John Chesters CEO Trustees, report Trustees, report Introduction Objectives, Structure and Governance The Trustees of Ealing Community Transport {"ECT") are pleased to present their annual report, together with the consolidated financial statements, for the year ended 31 March 2024. This Trustees, report and following Strategic Report, has been prepared in accordance with the Charities Act 2011 and is also the report of the directors for purposes of the Companies Act 2006. ECT has been registered at Companies House and entered on the Register of Charities as a Company Limited by Guarantee with charitable status since 1 April 2010 (prior to which, it was registered as an Industrial and Provident Society). The financial statements for the year ended 31 March 2024 have been prepared in accordance with the ECT group of companies, accounting policies (set out on pages 38-41) and comply with the organisation's Memorandum and Articles of Association, together with the applicable laws and the requirements of 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 United Kingdom and Republic of Ireland IFRS 102), effective from accounting periods commencing 1 January 2019 or later. Overview and Objectives of ECT ECT is a charity and social enterprise that creates Social Value through its charitable activities. Our objectives are to ensure we: deliver safe, accessible and affordable community transport for communities across the UK provide flexible and responsive transport solutions to communities with unmet transport needs, currently in Cheshire, Dorset and Ealing (London) provide senlices to enable all people with mobility difficulties or who lack access to ordinary public transport to live independent lives and participate in their communities provide door-tTrdoor community transport to individuals. More information is provided in our Articles of Association. Our vision is for inclusion and accessibility for all members of society, whatever their transport needs. Our mission is to: provide top-quality, safe, affordable, accessible transport services for every community we serve collaborate with partners who share our vision for inclusion and accessibility be a dedicated and energetic advocate for the positive impact that community transport can have on the health and wellbeing of individuals, communities and public services around the UK. Our values are: Trustees and their appointment ECT is governed by a Board of Trustees {'Board') who present a variety of specialist skills, knowledge and experience. The appointment of a Trustee is by reference to a skills audit which ensures that the Board exhibits a wide range of complementary skills. ECT actively welcomes opportunities to increase the diversity of opinion and membership of the organisation. Our aim is to have a Board which represents the communities and servicfrusers in the areas in which we operate. ECT'S Articles of Association were reviewed and updated during 2021122 and this included the adjustment of these Articles to ensure a suitable number of Trustees with appropriate skills could be retained. They now state that at any one time there must be a minimum of three Trustees with no Ma￿lMuM limit. We note and concur with the Charity Commission recommendation that no more than 12 Trustees should be appointed at any one time. we care passionately about making a difference we always go the extra mile we are an organisation that you can trust we are flexible, adaptable and open to change we believe in collaboration and the sharing of success and ideas. Our aims are to: have a national profile as an exemplary provider of community transport services have a reputation for exceptionally high standards of delivery, reliability, and safety, coupled with an unparalleled personal, caring service that is tailored to the needs of its passengers and service commissioners support people to participate in their communities and give them access to more opportunities to improve their lives and to live independently work in collaboration with local partners, including those from the voluntary, community and corporate sectors, as well as local authorities and other public bodies, to provide integrated solutions to unmet local transport needs be an exemplary advocate for the positive impact of accessible community transport on the health and wellbeing, loneliness and isolation of individuals and communities and in areas such as primary care collaborate and share its knowledge with the community transport sector, public seniice commissioners and policy makers to demonstrate the positive impact that community transport can have on communities and public services around the UK. Trustees shall retire from office at the third annual Board meeting following their appointment when ECT'S financial statements are adopted. Retiring Trustees have the option to be reappointed to the Board, subject to a maximum of 3 x threfryear terms in office. The Articles provide for a further one-year appointment subject to the agreement of not less than 75 % of the other trustees. Prior to appointment, a potential Trustee will declare their eligibility and suitability as well as their understanding of responsibilities and duties. They will also declare that they are not prevented from acting as a Trustee as per the - - - - - - - ◼ ◼ - ◼ ◼ ◼ ◼ ◼ ◼ ◼ - - - - The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the charity 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 charity and its subsidiaries as well as taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on ECT'S website. Legislation in the United Kingdom, governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Each of the Trustees confirms that so far as they are aware: there is no relevant audit information of which the charity's auditors are unaware they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. relevant to their experience and skills. Trustees delegate their authority to the Chief Executive, who has responsibility for all aspects of the organisation. Governance ECT is committed to maintaining high standards of governance and follows the Charity Governance Code I'Code'}. The Code is endorsed by The Charity Commission and is not a legal or regulatory requirement. Following revisions to the Code, the Trustees reviewed our compliance in 2022123 to ensure we continue to adhere to the principles. The Code is comprised of seven principles, each of which sets out a brief description and rationale as to why it is important, the key outcomes expected if principle were adopted, and recommended practice to implement the principle. As recommended by the Code, ECT'S Trustees: discuss the Code's principles and recommended practice adopt an 'apply or explain" approach {i.e. decide how to meet the principles and outcomes by either applying the recommended practice or by explaining what has been done instead (or why the principleslpractices have not applied)) regularly revisit the Code and use it to support continuous improvement. The Trustees hereby confimi that the Code's seven principles have been applied. Whilst the Trustees have overall legal responsibility for the charity and are responsible for good governance, they delegate their authority to senior management for day-to-day management. This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006. The Board of Trustees meets approximately four times a year in order to consider ECT'S financial perfomiance as well as the organisation's strategic direction, health and safety issues and general policy discussions. A number of specialist sub-groups meet in the periods between the main Board meetings to consider specific issues The Trustees are responsible for ensuring that ECT follows UK data protection legislation. Further, they have a duty to ensure that serious incidents of data breaches are reported to the Information Commissioner's Office. passengers and supporters. Where necessary, we have engaged consultants on short-term contracts to provide additional support as needed, and to allow us to develop proposals and identify future resource demands. With our senior team, along with the skills and experience to be found within our Board of Trustees, ECT feels confident and well-placed to be able to develop and continue to provide our highly regarded seNices in our local communities. Our aim is to provide more services and work in partnerships with our key supporters, delivering greater support to those most in need of accessible transport. ECT recognises the importance of attracting and retaining staff with the right skills and ethos to ensure ECT delivers its charitable objectives. Pay levels are reviewed annually by the Board, taking into account a series of factors in detemiining remuneration changes. Diversity and inclusion ECT is committed to equality and diversity and strives to be a model employer. ECT recognises that everyone has a right to equal recognition and fair and appropriate treatment and opportunities. This applies equally to employees, workers, and volunteers (including the Board). ECT is proud to be a Disability Confident employer. ECT'S participatory approach extends to the sep4ice-users, whose views and opinions are collected and responded to, through feedback forms, surveys, at transport forums and in several other ways to give an opportunity for face-to- face discussions. ECT undertakes Regulated Activities as defined by the Disclosure and Barring SeNice ('DBS') and takes the issue of safeguarding very seriously. All staff working with children, young people or vulnerable, at-risk adults are DBS- checked and receive training on safeguarding. ECT has nominated one Trustee with responsibility for safeguarding matters, but all of ECT'S Trustees are responsible for safeguarding, with aspects of the work delegated to the Chief Executive and staff. ECT has mature and well-defined procedures and policies in place in this regard and follows the National Council for Voluntary Association's Charity Ethical Principles which set out a framework for the ethical execution of charitable purpose. Staff and management team In the year to 31 March 2024 the Board of Trustees was supported by a senior management team of seven members, led by our CEO, and an average of 216 employees across depots in Ealing, Cheshire and Dorset. During the course of the previous year, we experienced several changes in our Ealing team, but believe we are now in a uniquely strong position for the challenges and opportunities the future will bring. We have also taken the opportunity to review staff structures and improve processes to increase efficiency and the way we provide services to our Selection criteria and procedures are reviewed regularly to ensure that individuals are recruited, promoted and treated on the basis of their relevant merits and abilities. All employees, workers, Trustees and volunteers are inducted and, where appropriate, are provided with specialist training to enable them to progress both within and outside the organisation. ECT also supports volunteers from local community groups and schools through the provision of training schemes. In the past year, ECT has delivered training to 115 external individuals. We believe that the community transport sector is a place where everyone can make a contribution and everyone should feel welcome. ECT Charity Company Structure at 31 March 2024 Ealing Community Transport Company Limited by Guarantee 07211806 Registered as a Charity 1135354 ECT Group CIC Community Interest Co. 04162304 Wholly owned subsidiary ECT subsidiaries ECT is the parent company of a group of companies referred to collectively as "ECT Charity. ECT Charity is the name representing ECT'S operations across the UK. PLUSBUS Limited Private Ltd Company 04262367 Domant The adjacent diagram illustrates the structure of the ECT group of companies during the year ended 31 March 2024. ECT Group CIC is a Company Limited by Shares, a Community Interest Company and a wholly owned subsidiary of ECT. PLUSBUS Limited is a Company Limited by Shares and a wholly owned subsidiary of ECT Group CIC. The company is non trading. ststement on Section 19/22 compliance Since 1985, Section 19 and 22 of the Transport Act 1985 have provided for a system of permits. This system provides a regulatory f ramework for not-for-profit organisations and charities, such as ECT, to operate minibuses in pursuit of their non-commercial purpose objectives, provide social benefit, and make full-cost recovery charges to recover costs without a view to generating any profit. All of ECT'S community transport services are designed with passenger inclusion and accessibility in mind and are, without exception, for non- commercial purposes, taking into account: our not-for-profit status (Art. 2 of our Articles of Association) ECT'S constitutional objectives (see htt s.llre ister-of- charities.charit commission. ov.uklchari details140473581 overnin -document our reinvestment of surpluses the fact that our services meet the 'public benefit, requirement under charity law our identification and measurement of the social or added value that we create, particularly where we undertake work under contract for public authorities (as outlined in pages 18-19 of this report). Signed on behalf of the Board of Trustees: D Tinnion, Chair Approved by the Board on: 26 September 2024. Strategic report Strategic report Statement of Public Benefit Activities The Trustees have paid due regard to the Charity Commission's guidance on public benefit and are confident that ECT'S aims and activities are delivered in accordance with that guidance. ECT will undertake community transport contracted services only where they are delivered to meet the charity's objectives, provide public benefit, comply with the need to retain our non- commercial purposes status, and sustain its charitable activities. ECT provides a wide variety of services in the communities where we work- each based on an unmet local need with the aim of making a difference to people's lives. Transport for Groups: Our Group Transport service is a low-cost alternative to minibus hire for voluntary and community organisations including charities, social groups and schools, helping their members to travel together for their shared purpose. Community transport provides flexible and responsive solutions to unmet local transport needs, and: Community transport for individuals: ECT provides door-to-door journeys for people unable to use mainstream public transport due to mobility or other difficulties, or because ordinary public transport or other services have been withdrawn from their area. often represents the only way users can leave their home and access essential or specialist accessible services offers innovative solutions to communities where commercial services are not viable provides transport to isolated or excluded groups of people helps to develop sustainable communities, contribute to social inclusion, improve individuals, wellbeing and reduce social welfare costs. Commissioned services: ECT also provides services commissioned by local authority partners under contract. Each service we operate under contract provides a public benefit in its own right and falls within the scope of ECT 's charitable objectives. Training services.. ECT provides a variety of training services, including Minibus Driver Awareness Scheme {MiDAS) training - the nationally- recognised standard for people who need to drive a minibus, and Passenger Assistant Training Scheme (PATS) - the nationally-recognised standard for those who provide care and assistance to passengers. ECT'S services are embedded within the communities in which it operates, are well placed to focus on localised needs and to provide onfrttrone assistance and solutions. Our activities ECT provides a wide variety of services across its three regions. Each service is designed to address a specific transport need in the community. Passenger figures are for financial year 2023124. hire PlusBus 34,515 passenger trips Door-to-door journeys for people unable to use mainstream public transport due to mobility or other diff iculties, or because ordinary public transport is nol available. CHESHIRE DORSEf EAU Group Transport Day Trips 40,756 passenger trips A low.cosl alternative to minibus hire for voluntary and community organisations including charities, soci groups and schools, helping their members to travel together for their shared purposes. 228 passenger trips Offered as social outings for PlusBus members, the journeys aim to taC￿e social isolation and bring people together. CHESHIRe DORSEf EAU PlusBus for Health Local bus services 7,142 passenger trips A service that helps patients travel between their homes and GP surgeries. Commissioned by North West London ICB, it aims to reduce the number of GP house calls and missed appointments. 14,500 passenger trips Commissioned seryices that othewise would not run, helping to tackle rural social isolation. IDORSEI EAUNa Adult Day Centre Dial-a-Ride 35,235 passenger trips Commissioned services taking adults with a variety of needs to day centres, each of which provides a vitai service to their users. 43,723 passenger trips Delivered on behalf of Transport for London, these seNices provide door-to-door transport for people who find it difficult to use public transport. IEAUM Home-to-school Training services 925,434 passenger trips Commissioned services that transport hundreds of pupils to mainstream and special educational needs and disabilities schools. 115 people trained Minibus Driver Awareness Scheme IMIDASI and Passenger Assistant Training Scheme IPATSI - the nationally recognised standards for minibus driving and passenger assistant work respectively. EAUNG Our impact Social Value Our community transport services in Dorset, Cheshire and Ealing (London) enable our passengers to remain independent, be healthier and happier, whilst keeping our communities cohesive and connected. Without our services, many individuals would have their freedom of movement restricted - they would become isolated and struggle to access key services and facilities. At worst, they would be trapped at home without any human contact. This has a negative impact on individuals, health and wellbeing and increases costs to the public purse. The Toolkit uses official and nationally recognised data sources to ascribe a financial value to the impact of our work. The Toolkit also applies a discount to the gross figures to ensure that a reduced realistic value is given. This is to ensure that we do not claim for outcomes that would have still occurred if our services were not in operation. As the Toolkit was designed specifically for the community transport sector, it has been widely shared with, and adopted by, community transport operators across the UK. It has been independently reviewed by the Charities and Social Enterprise team at Buzzacott LLP to ensure it correctly applies the methodology to value social outcomes. Using the CT Social Value Toolkit, we Our services benefit: individuals by improving their quality of life and wellbeing, enabling independent li living, and tackling isolation the NHS and local authorities by enabling them to make savings on medical and social care interventions that might be more extensive and/or expensive if the individual had not been able to access the transport service the community at large, such as the creation of volunteering opportunities and training. To convey this message impactfully, stay accountable to our stakeholders - and communicate the contribution of community transport more generally, we have developed The CT Social Value Toolkit. The Toolkit enables us to measure, in a quantifiable way, the Social Value created by our core community transport services - PlusBus, Group Transport, and the work of our training team. calculated that during the 12-month period ending March 2024, ECT'S charitable community transport activities across its depots have created an additional Social Value of £794,054. The data reveals that the largest part of ECT'S Social Value (600/0) is delivered by increasing passengers, social interaction and therefore wellbeing. The Toolkit's results for the year- broken down by our core outcomes - show the type and extent of the Social Value created. The data shows the continued levels of our impact in financial year 2023124. There is a small reduction in our impact compared to 2022123, reflecting changes in demand for some sen4ices and also the ongoing impact of the cost of living crisis. We have modified some of the services at the end of period and are confident we will see an increase in numbers in 2024125. CT Social Value Toolkit results 2023/24 Outcome Area How we have provided this Annual Annual Value | Value 2023/24 2022/23 £90,405 £92,212 Increased independent living Shopping trips- we provide journeys for our users to supermarkets and retail outlets. This enables them to undertake their own shopping and continue to live inde endentl Trips to healthcare locations - we provide journeys for our users to hospitals, GPS and other medical appointments, including treatment & therapy. This ensures that appointments are not missed, and GP home visits are reduced. Social trips - we provide journeys which have the main purpose of enabling people to get together and meet one another for outings and activities. This includes the journeys we provide for the purpose of leisure, sport, education, shopping, health, and other trips where seconda social interaction will also take lace. We provide access to cost-effective, affordable, and accessible group transport services for community groups and organisations to enable them to pursue a wide range of activities. Reduced direct health care costs £5,627 £9,583 Increased level of social interaction £478,418 £509,839 Improved affordability of access to group activities Increased volunteering £117,605 £138,406 We involve volunteer Trustees in the governance of the charity, which includes specialist knowledge. This provides capacity and skills that we value and benefits the volunteers themselves and the wider communit Our staff and volunteers receive a range of training including MIDAS for drivers, PATS for passenger assistants and First Aid. This enhances our levels of customer care and wellbeing and benefits other road users and the communit as a whole. The general health of many of our regular older and disabled passengers, benefits from their using the service. The ability to get out and about brings both physical and mental health benefits, reduces loneliness and leads to reduced lon er term health care costs. £2,465 £3,160 Improved skills £14,930 £10,585 Improved wellbeing £84,604 £104,030 Total Social Value of our services £794.054 £867.815 The next steps: As set out in the Chair's report on p2, work to update the CT Social Value Toolkit is well underway, with the latest version due for launch in 2024125. The project to update the Toolkit has been made possible by support from Motability and will apply both practical learning from using the Toolkit with the latest good practice in Social Value measurement. ECT are also grateful to the team from KPMG for their considerable support in developing and updating this new version of the Social Value Toolkit. Social impact If our CT Social Value Toolkit provides information on the amount of the Social Value we create, our first formal Impact Report (for calendar year 2023, published in 2024), explores the quantitative dimension of our work. It publishes the findings of beneficiary surveys, seeking to understand how people's lives have changed or improved as a result of the services that we provide. The report covers three dimensions of our seplices: Building access to services: Many of our service users face significant barriers to access and our seNices are designed to take those down. The report explores the views of our service users on whether their access to services, their independence and their confidence has improved as a result of what we do. Connecting our community through partnerships: The report explores the role of our partnership work - at the local level with our Group Transport service, and at larger scale with our commissioners. Tackling loneliness and social isolation.. The report explores the views of our service users - whether using our services has made them feel connected to others, more satisfied with life, more sociable and less lonely. Loneliness and social isolation Survey results from our Social Impact report show how our ser4ices are helping to tackle loneliness and social isolation. Using ECT Charity's services has Improved my ability to... 11qb feel connected to others, less lonely satisfied with my life feel healthy sociable Agree Neutral 254b Disaqr¢'i' WIA 20 Building access to services Survey results from our Social Impact report show how our services are helping to break down the barriers to accessing services in our communities. Uslng ECT Charity's services has Improved my ablllty to: Neut .be independent Sironoly disaqret, 21r16 . access local facilities confident to get out and travel independently Making a difference Our survey also explored the difference our services make in people's lives, asking what would happen if they were not available. If ECT Charlty was no longer able to provlde this service. how would that affect you? I'd find it diff icult to go out as often 570/0 I'd find it difficult to go out at all 350/0 I'd need to use public transport 21010 I'd need to take a taxi 40010 I'd need to rely on friends or family 45010 I'd need to use my own car 20010 21 Environment ECT has historic connections to environmental initiatives and shares the commitment of many charities to ensuring we reduce our own impact on the environment through our activities. We recognise that as a transport organisation our vehicles will be by far the greatest contributor of emissions. However, the current situation with the lack of options to replace internal combustion engines with alternative fuelled vehicles and the total lack of infrastructure for these options, prevents the transition to electric, hydrogen or 'green' diesel. monitoring vehicle and driving performance to minimise excess wear and fuel use promoting recycling and alternative transport options when commuting or travelling on ECT'S business to all staff through example by senior management and continuous promotion of the general ethos of the organisation {reduce, rtruse, recycle) sourcing a product range to minimise the environmental impact of both production and distribution when procuring off ice supplies, energy, accommodation, venues, food etc. where available or appropriate. Financial review Despite this, ECT has made progress in addressing our commitment to reducing the environmental effects that its operations have on both the local and global environment. During the current financial year, we received delivery of 26 vehicles which has enabled the disposal of 20 of the oldest and most polluting vehicles in the fleet. We have engaged the environmental consultants, Groundwork East, to develop a carbon reduction plan in accordance with national and international guidance on phased reduction. Our ambition will be to set staged targets as we transition to carbon neutrality by 2050. ECT will remain committed to: achievements and performance The charity's achievements and performance for the year are set out in the Chair's report and the Chief Executive's report. Income Total income for the year was £6.38m {2022: 5.76m) which was an increase of 11 % on the previous year (2023: increase of 130/0). This reflected additional school routes and increased patronage on other seNices. Expenditure Total expenditure for the year was £6.42m (2023: £5.58), an increase of 15 % on the previous year (2023: increase of 12 % ). Support costs increased faster than income, with inflationary pressures on staff costs and maintenance costs driving the change as well as the increased volume of routes. Taken together, this has led to a marginal deficit position for the year of £0.04m (2023: surplus of £0.18m. minimising the environmental impact of the fleet through methods of vehicle and fuel selection ensuring that Trustees and management are fully engaged in the management of environmental issues training staff on the environmental issues associated with its operations and how they can help to reduce its impact 22 Bank and Cash balances The Trustees have provided, that other than short-temi deposit accounts, there are currently no other suitable investment options that would provide adequate returns whilst enabling timely access to cash funds. At 31 March 2024, cash balances stood at £2.39m (2023: £2.74m). The decrease reflects the investment in vehicles over the last year. Policy ensures the availability and access to suff icient funds to continue to facilitate its charitable objectives. Following a review, the Trustees have determined that ECT should retain the ambition to build a total reserve of £3.5m working capital reserves which represents approximately 6 months of budgeted operational costs less depreciation. Reserves policy ECT'S Reserves represent the charity's unspent income. Reserves are held to ensure ECT'S charitable activities can continue as well as to support the management of financial risk. The Trustees recognise their obligation to protect the assets of the charity and to ensure that the organisation remains solvent for current and future beneficiaries. As of 31 March 2024, total unrestricted funds stood at £3.8m (2023: £4.Om) and includes fixed assets. Total free reseples are £2.4m {2023: £2.5m) which is approximately £1 m below the free reseNes target as stated in the bullet point above. This is the result of the decision by the Trustees to purchase a number of new vehicles with company cash reserves to reduce the interest rate charge at a time of historically high interest rates. The free reseples will increase over the lifetime of the vehicles as it they generate income. The vehicle replacement programme will continue over the next few years and will temporarily further reduce the free reseples. The ReseNes Policy and its targets are regularly reviewed by the Trustees to ensure they are suff icient to manage the organisation in the light of changing circumstances and risks. Fundraising ECT does not engage in public fundraising activities at present and therefore is not required to subscribe to the Fundraising Regulator or its Code of Practice. ECT benefits from council and other statutory body funded contracts to provide community transport. These are fixed-term in nature and usually subject to a rfrtendering process at the end of the contract period. Gaining new contracts is particularly diffiajlt as councils seek to minimise their costs, often at the expense of the quality-of- service provision. Hence the Trustees have agreed to hold appropriate reserves to mitigate the risk to the charity in the event of a loss of funding associated with a contract. ECT'S Reserves Policy provides the framework and guidance that enables the Trustees and management to adopt a dynamic approach in pursuance of its activities, whilst building its lon*term sustainability in the face of these identified risks. Further, the Reserves 23 ECT recognises the potential value that can be gained from grants for specific projects and to develop partnership opportunities as well as the benefit our passengers may gain from sponsorship and support for our work. We received grant funding from Motability to further develop Social Value analysis and reporting across the community transport industry. We also received grant funding from Dorset Country Council and the Worshipful Company of Dyers to support provision of community transport. We have also engaged Counter Culture to assist us in reviewing the potential value to be gained from fundraising in 2023124 and are reflecting on whether we should continue to invest resources in this activity. ECT remains committed to further investment within financially sustainable limits and it is intended to invest a further £0.9m in vehicle replacement in the current financial year. Looking forward The overall environment for ECT remains challenging. We face continuing supply chain and recruitment challenges with appropriately qualified drivers becoming harder to find. There are also increasing cost pressures from an inflation rate that is higher than recent years - particularly in relation to vehicle purchase and maintenance costs and we face funding challenges, with local authorities facing further cuts and bus services under further threat. However, we believe that we are in a strong position to meet each of these challenges - and may find opportunities emerge from our solutions to them. Donations ECT Charity received no material donations during the reporting period 2023124. Our work over the past 12 months has shown how we can deliver organic growth and increased Social Value in this environment. Over the next 12 months, we not only want to improve the eff iciency of our services and increase our passenger numbers, but we also intend to develop new ways to offer accessible transport to more people. In all our depots, we will be focussing with our partners on how we can improve services, adapting in response to their requirements and ensuring our mission to provide top-quality, safe, affordable, accessible transport services for every community will be achieved. Vehicle Investment ECT has a rolling vehicle replacement programme to ensure we can continue to provide community transport services. We consider accessibility, full life cost, drivability and full life environmental impact when purchasing vehicles. There was a temporary hiatus in procurement of vehicles during the COVID pandemic and there have been supply chain issues ever since, however 26 vehicles were delivered in last financial year, which enabled the disposal of 20 of the oldest and most polluting vehicles in the fleet. 24 As a part of our drive for efficiency, we will be continuing our focus on the safety and maintenance standards throughout our fleet and our operation. ECT views this as the starting point for any transport operation and we believe this should be the common approach from everyone involved - be they a community transport or a commercial operator. our mission - and because it also creates opportunities to reach out to new stakeholders and partners. The new Toolkit, to be launched in 2024125 {see p.19) is an example of this - and we will work to ensure it is used by as many community transport operators as possible. We feel it is imperative on the sector to demonstrate in as clear a way as possible that we are not just about buses or car clubs: our impact on local communities and economies is considerably greater than any direct cost. With all the other pressures facing society, we must all ensure that the value of community transport is clear to everyone. Over the coming period, we will aim to go beyond our current model of organic growth. We are exploring our strategic options to ensure that we can thrive sustainably over the long term, which may mean establishing a new part of the organisation which will focus on other types of contracted services. This is as a direct result of increasing requests from our existing clients and from potential new clients - and can act as a means of providing resources for our core work. There has never been a more important time to make the case for community transport. The regulatory headwinds faced by all community transport operators have not lessened in any way. ECT will, with our partners, aim to be at the forefront of the discussion to improve the clarity over permit regulations and to ease the arbitrary age-restrictions on D1 licence exemptions, resolving these issues in favour of the communities we serve and to ensure transport remains accessible to all. Expanding our offer will not move our focus from delivering our charitable objectives and providing our core top quality services for our existing passengers and service users - or from continuing the pattern of grovrth we have seen across our three regions. Instead, we know there is increasing interest in identifying new, cost-saving, less polluting ways to provide transport and we are keen to review how ECT will be a part of the solutions to such ambitions. ECT has always been a sector leader, championing the cause of community transport and supporting other community transport organisations. We will continue to pursue this over the coming period and beyond, because it is both the right thing to do - in line with 25 Risk management ECT operates a formal risk management process where Trustees and senior managers together identify top-level risks, their probability, impact and the consequent actions necessary to mitigate those risks. ECT maintains a dynamic risk register which is reviewed at least annually. ECT takes very seriously its duties in regard to safeguarding all its passengers and those who may be involved or connected with the services we provide. Our Designated Safeguarding Lead will review all safeguarding incidents and ensure any issue raised is thoroughly investigated with a report shared in our safeguarding log with the Lead Safeguarding Trustee and at our Governance, Safeguarding & HR Committee meetings. In common with many similarly sized organisations, ECT is materially exposed to the loss of key senior personnel {including the chief executive) from the charity. In the short term, the effect is mitigated by a capable and experienced workforce who can run the organisation on a day-to-day level and in the longer term, it is addressed by improving the depth and breadth of the senior management team. The Trustees also consider the following to be of moderate risk: loss of major contracts, in-service fatality or serious injury, and TUPE transfers with hidden liabilities. The Trustees consider the main organisational risks to be those listed below. Remaining uncertainty amongst community transport operators and local authorities following the Government's consultation on the use of Section 19 and Section 22 permits for road passenger transport in the UK. ECT relies upon its Trustees and senior leadership team to bring their commitment, skills and experience to ensure full compliance, financial viability and the ability to deliver its charitable purposes. The risk of ineffective governance is mitigated through regular skills audits and reviews of compliance with all appropriate guidance and legislation. ECT relies on its IT systems to enable the review of bookings and driver scheduling. The risk of failure of these systems and their cyber security is mitigated by the provision of off-site back-up systems, regular IT testing and monitoring, and professional IT support. The nature of the services provided by ECT makes it necessary to hold personal information. There is a risk that this could lead to a breach of information governance. To mitigate this, the Data Protection Policy is consistently applied, and complies with the UK data protection legislation. Whilst these risks cannot be eliminated, the Trustees are satisfied that they are being managed and maintained at acceptable levels. Signed on behalf of the Board of Trustees: D Tinnion, Chair Approved by the Board on: 26 September 2024 26 ilrl In"dependent auditor's report Independent auditor's report to the members of Ealing Community Transport Opinion We have audited the financial statements of Ealing Community Transport (the 'charitable parent company,) and its subsidiary (the 'group'} for the year ended 31 March 2024 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets and statement of cash flows, the principal accounting policies and the notes to the finarcial statements. 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: give a true and fair view of the state of the group's and of the charitable parent company's affairs as at 31 March 2024 and of the group's income and expenditure for the year then ended have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUK) (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 Trustees, 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 and charitable parent 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. 28 Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other information Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: The Trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, 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. the information given in the Trustees, report, which is also the directors, report for the purposes of company law and includes the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements the Trustees, report, which is also the directors, report for the purposes of company law and includes the strategic report, has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, report including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us. or the charitable parent company financial statements are not in agreement with the accounting records and returns; or In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 29 certain disclosures of Trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. 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. Responsibilities of Trustees As explained more fully in the Trustees, responsibilities statement, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: How the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: In preparing the financial statements, the Trustees are responsible for assessing the group's and the charitable parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the group or the charitable parent company or to cease operations, or have no realistic alternative but to do so. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations we identified the laws and regulations applicable to the Group through discussions with management and Trustees, and from our knowledge and experience of the sector we focused on specific laws and regulations which we considered may have a direct material effect on the 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 30 accounts or the activities of the Group. These included but were not limited to the Companies Act 2006, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); Transport and Safeguarding Regulations as they affect the direct charitable activities of the Group we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and those charged with governance and reviewed minutes of Trustees, meetings. We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management and Trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud considering the internal controls in place to mitigate risks of fraud and noTr compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation reading the minutes of meetings of Trustees enquiring of management and Trustees as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. performed analytical procedures to identify any unusual or unexpected relationships tested and reviewed journal entries to identify unusual transactions tested the authorisation of expenditure A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at wbvw.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. 31 Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. MZZO •LJ Hugh Swainson Isenior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Date: 03 October 2024 32 Consolidated statement of financial activities Group and Charity Balance Sheet Consolidated statement of cash flows Notes to the Financial Statements Ealing Community Transport Consolidated statement of f inancial activities for the year ended 31 March 2024 Restricted Unrestricted Total funds funds (£) funds 1£) (£) 2024 2024 2024 Restricted Unrestricted funds (£) lunds (£) 2023 2023 Total funds Note 2023 Income and expenditure Income from Grants and donations Charitable activities Investments Other income 144,927 14,500 6,156,439 38,981 20,974 159,427 6,156,439 38,981 20,974 40 5,737,048 7 1,660 72,182 40 5, 737,048 7 1,660 72,182 Totsl income 144,927 6,230,894 6,375,821 5,760,930 5,760,930 Expenditure on Charitable activities 6,417,986 6,417,986 5,584,989 5,584,989 Total expenditure 6,417,986 6,417,986 5,584,989 5,584,989 Net (expenditure)/income and net movement in funds 144,927 (187,092) (42,165) 775,941 175,941 Fund balances at 1 April 2023 3,988,078 3,988,078 3,812,137 3,812, 137 Fund balances at 31 March 2024 144,927 3,800,986 3,945,913 3,988,078 3,988,078 All of the charity's and the group's activities during the above financial period derived from continuing operations. 34 Ealing Community Transport Group and Charity Balance Sheet at 31 March 2024 Group 2024 Charity 2024 Note 2023 2023 Fixed Assets Tangible assets Intangible assets Investments in subsidiaries 1,961.832 137,000 925, 108 1,961,832 137.000 925, 7 08 2.098.832 925, 108 2,098,836 925, 7 12 Current Assets Debtors Cash at bank and in hand 10 1,068.262 2.389.041 3.457.303 1,353, 149 2,740, 140 4,093,289 1,068,262 1,169,887 2,238,149 7,353, 149 1,534,249 2,887,398 Creditors: amounts falling due within one year 11 (734,445) (498,583) (730.495) (494,640) Net current assets 2,722.858 3,594,706 1,507,654 2,392, 758 Total assets less current liabilities 4.821.690 4,579,874 3,606,490 3,317,870 Creditors: amounts falling due after one year Provision for liabilities and charges 12 (484,098) (140,057) (484.098) (140,057) 13 (391,679) (391,679) Net assets 3.945.913 3,988,078 3,122,392 3,177,813 Represented by: Restricted Funds 144.927 144.927 Unrestricted Funds General funds Designated funds 3,687.601 113.385 3,472, 193 515,885 2,864,080 113.385 2,661,928 515,885 Total charity funds 3.945.913 3,988,078 3,122,392 3, 777,813 Siqned on behalf of the Board of Trustees: D Tinnion, Chair Approved by the Board on: 26 September 2024 Company No. 07211806 The accompanying notes form part of these financial statements. 35 Ealing Community Transport Consolidated statement of cash flows for the year ended 31 March 2024 2024 2023 Note Net cash provided by operating activities Net cash (used in) provided by investing activities Net cash provided by financing activities 789.761 (1,616.817) 475.956 87,774 (345,588) 787,931 (Decrease) increase in cash and cash equivalents Cash and cash equivalents at 1 April (351.100) (69,883) 2,740.141 2,810,023 Cash and cash equivalents at 31 March Notes to the consolidated ststement of cash flows for the year ended 31 March 2024 A Net cash provided by operating activities 2,389.041 2,740,141 2024 2023 Net income for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charge Surplus on disposal of fixed assets Interest received Decrease/{increase) in debtors Increase in creditors (42,165) 775,947 493,106 (11,032) (38,981) 284,887 103,946 367,055 (17,660) (54 7,235) 703,673 Net cash provided by operating activities 789,761 87,774 B Investing 2024 2023 Interest received Investment Income received Payments to acquire tangible fixed assets Payments to acquire intangible fixed assets Cash received on disposal of fixed asset 38,981 6,427 5,233 (357,248) (1.529.830) (137.000) 11,032 Net cash (used in) investing activities (1,616.817) (345,588) C Financing 2024 2023 Increase in finance lease obligations 475.956 787,931 36 Consolidated statement of cash flows for the year ended 31 March 2024 (Cont.) Notes to the consolidated ststement of cash flows for the year ended 31 March 2024 (Cont) Analysis of net debt Cash flows Finance leases 2023 2024 Short term borrowings Lease liabilities 498,584 140,057 103,945 (82,406) 131,915 426,447 734.444 484.098 Total liabilities 638,641 21.539 558,362 1,218,542 Cash & cash equivalents (2,740,140) 351.099 (2,389,041) Total net debt (2,101,499) 372.638 558,362 (1,170.499) The accompanying notes form part of these financial statements. 37 Ealing Community Transport Notes to the Financial Statements - 31 March 2024 Accounting Policies 1.1 General information Ealing Community Transport is a charitable company limited by guarantee and registered in England and Wales. The registered office is Greenford Depot, Greenford Road, Greenford, Middlesex, UB6 9AP. 1.2 Basis of preparation The financial statements have been prepared for the year to 31 March 2024 under the historical cost convention, as modified by the inclusion of certain financial assets and liabilities at fair value, as set out in the policies below and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) Icharities SORP FRS 102), the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. Community Transport Ltd and ECT Group CIC. In each case Ealing Community Transport either owns the entire share capital of the subsidiary or assumes control of the entity as sole member. The activities of Dorset Community Transport were absorbed into Ealing Community Transport with effect from 1 October 2022, Dorset Community Transport is no longer trading. 1.4 Critical accounting estimates and areas of judgement Preparation of the financial statements requires management to make significant judgements and estimates. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. Revisions to accounting estimates are made in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects current and future periods. The items in the financial statements where these judgements and estimates have been made include: The charity constitutes a public benefit entity as defined by FRS102. The financial statements are presented in sterling which is also the functional currency of the charitable company. 1.3 Basis of consolidation These consolidated statements contain summary details of the financial activities of Ealing Community Transport and its subsidiaries; Dorset estimating the useful economic life of tangible fixed assets estimating the useful economic life of the intangible fixed asset estimating the liability with respect to leasing arrangements estimating the provision relating to pension liabilities set out in note 13. 38 Notes to the Financial Statements - 31 March 2024 (Cont.) Accounting Policies (Cont) 1.5 Assessment of going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements and have made this assessment in respect of a period of one year from the date of approval of these financial statements. The group has a number of services to deliver which are subject to regular review and renewal and therefore the charity works closely with commissioners to ensure current services are provided to a high standard and the charity has a strong platForm for renewal of the services. or receivable, net of discounts and value added taxes. Donations, are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. After reviewing the group's forecasts and projections and taking into account economic conditions and possible changes to its operational environment, the Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern and are satisfied that there are sufficient resources available and contingent plans in place that allow ECT to operate in to the foreseeable future and to meet its liabilities as they fall due. 1.6 Income Income is recognised when the Group has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably. It is measured at the fair value of the consideration received Income from charitable activities is recognised to the extent that the relevant goods or services have been provided. Income received in advance of work performed or goods supplied is deferred. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank Rent receivable and related seNice income are recognised as the services are delivered. 39 Notes to the Financial Statements - 31 March 2024 (Cont.) Accounting Policies (Cont) 1.7 Expenditure and the basis of apportioning costs Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is included within the statement of financial activities on an accruals basis and includes any attributable VAT which cannot be recovered. Expenditure comprises the following: The cost of raising funds relates to the cost of managing the investment propety held by a subsidiary company. The cost of charitable activities comprises expenditure on the group's primary charitable purposes as described in the Trustees, report. The majority of costs are directly attributable to specific activities. Administrative costs which cannot be attributed directly to a particular activity are treated as support costs and are all attributed to charitable activities and any other indirect costs, including governance, as any apportionment would be immaterial. Depreciation is provided at rates equivalent to the anticipated life of the asset. The rates of depreciation are based upon the straight line method and are as follows: Office Equipment- between 200/0 and 330k) Vehicles- between 100/0 and 200/0 Leasehold Improvements - 20 % 1.9 Leased Assets Assets obtained under finance lease contracts are capitalised as tangible assets and are depreciated over the expected useful life. Finance leases are those where all the benefits or risks of ownership are assumed by the charity or company using the asset. These obligations are included within creditors, net of future finance charges. The finance element of the payment is charged to the statement of financial activities at the time of payment and is a monthly charge, based on the outstanding capital for the period of the lease. All other leases are regarded as operating leases and the payments made against them are charged to the statement of financial activity on a straight line basis over the lease term. 1.8 Tangible Fixed Assets All assets with an expected useful life of more than one year and a value greater than £1,000 are capitalised. The assets are stated at cost less depreciation. 40 Notes to the Financial Statements - 31 March 2024 (Cont.) Accounting Policies (Cont) 1.10 Intangible Assets All assets with an expected useful life of more than one year and a value greater than £1,000 are capitalised. The assets are stated at cost less amortisation. Creditors and provisions are recognised at the amount the charity anticipated it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. Amortisation is provided at rates equivalent to the anticipated life of the asset. The rates of depreciation are based upon the straight line method and are as follows: 1.15 Restricted funds The restricted funds are monies set for specific purposes to comply with grant agreements. 1.16 Designated funds The designated funds are monies set aside out of general funds and designated for specific purposes by the Trustees. Software- 20 % 1.11 Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. 1.12 Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months. 1.17 Investment in subsidiaries Investment in subsidiaries is accounted for at cost less impairment. 1.18 Employee benefits Short term employee benefits {including holiday entitlement and other non-monetary benefits) are recognised as an expense in the period in which they are incurred. The charity operates an occupational sick pay scheme over and above the statutory requirement. 1.13 Pensions During the year the charity contributed to two defined contribution schemes, with contributions recognised as an expense in the period in which they were incurred. 1.14 Creditors and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event and it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 41 Notes to the Financial Statements - 31 March 2024 (Cont.) 2 Grants and donations Total funds (£) 2024 Total funds (£) 2023 Grants Donations 159,427 40 159,427 40 3 Income from charitsble activities Totsl funds (£) 2024 Total lunds (£) 2023 Community Transport Training Other 6,134,661 10,745 11,033 5, 727,065 9,983 6,156,439 5, 737,048 4 Expenditure Direct stsff costs (£) Other direct costs (£) Support costs (£) Totsl (£) 2024 Charitable activities Community Transport Training and other 3,243,748 24,160 2,315,730 389 833,959 6,393,437 24,549 3,267,908 2,316,119 833,959 6,417,986 Direct stam costs (£) Other direct costs (£) Support costs Total (£) 2023 Charitable activities Community Transport Training and other 2,868,77 1 32,057 1,993,540 690, 68 7 5,552,932 32,057 2,900,768 1,993,540 690, 68 7 5,584,989 42 Notes to the Financial Statements - 31 March 2024 (Cont.) 4 Expenditure (ConL) Staff costs 1£) Other costs Totsl support costs (£) 2024 392.164 65,456 151.401 114.722 89,246 20,970 Analysis of support costs (£) Management and administration staff Governance Costs Premises costs Office costs Professional and legal fees Other costs 392,164 38,732 26,724 151,401 114,722 89,246 20,970 430,896 403,063 833.959 Staff costs Other costs Total support costs (£) 2023 274,685 64,228 133,368 132,781 54,554 31,065 Management and administration staff Governance Costs Premises costs Oflice costs Professional and legal fees Other costs 274,685 38,043 26,785 133,368 132,787 54,554 31,065 372,728 377,953 690, 68 1 The basis of apportionment of support costs is set out in the accounting policies. 5 Stsff costs 2024 2023 Wages and salaries Social security Pension costs 3.358.971 229,004 110,824 2,924,981 189,941 98,500 3.698.799 3,213,422 Restructuring costs 3.698.799 3,213,422 The number of employees who earned £60,000 per annum or more (including taxable benefits, but excluding employer pension contributions), during the year was as follows: 2024 2023 Number Number £70,001 -£80,000 £80,001 -£90,000 43 Notes to the Financial Statements - 31 March 2024 (Cont.) 5 Staff costs (Cont) The employer's pension contribution in respect of this employee was £10,920 (2023 £9,211). The key management personnel of the charity comprises of the Trustees and the Senior Management Team including the Chief Executive, who are responsible for the direction, controlling, running and operating the charity on a day to day basis. The total remuneration (including taxable benefits, employers, national insurance and pension contributions) for the year was £389,935 {2022 £356,052). The Trustees received no remuneration for their services during the year (2023 £nil). During the year no expenses were reimbursed to the trustees (2023 £nil). Charity and Charity Trustees indemnity insurance has been purchased to protect the charity from the neglect or defaults of its Trustees, employees and agents and to indemnify the Trustees or other off icers against the consequences of any neglect or default on their part. The insurance premium paid by the charity totalled £2,565 (2023 £4,865) and provides cover up to a maximum of £5m. The average number of employees during the year was as follows: 2024 2023 Operations Management and finance 205 203 216 214 The estimated average number of full time equivalent employees was 144 (2023 - 141). The number of Community Transport volunteers was 12 (2023 - 12). 6 Net movement in funds 2024 2023 This is stated after charging (crediting) Depreciation of owned assets Depreciation of leased assets Other operating lease costs (Profit) loss on disposal of assets Interest on finance leases Auditor's remuneration - statutory audit Auditor's remuneration - other Bank interest received 374,604 118,502 282,431 111,033) 30,053 19,600 3,499 (38,981) 330,417 36,638 109,468 5,256 18,000 8,185 (6,427) 44 Notes to the Financial Statements - 31 March 2024 (Cont.) 7 Fixed assets Group Leasehold improvements (£) Off ice equipment (£) Vehicles (£) Other (£) Totsl (£) Cost At 1 April 2023 Additions Disposals 29,066 86,707 1,558 5,421,355 1,528,272 1702,646) 6,785 5,543,913 1,529,830 (704,070) (1,424} At 31 March 2024 29,066 88,265 6,246,981 5,361 6,369,673 Accumulated depreciation At 1 April 2023 Disposals Charged during the year 29,066 62,295 4,520,659 1702,646) 478,777 6,785 (1,424} 4,618,805 <704,070) 493,106 14,329 At 31 March 2024 29,066 76,624 4,296,790 5,361 4,407,841 Net book value At 31 March 2024 11,641 1,950,191 1,961,832 At 31 March 2023 24,412 900,696 925, 108 Included in the net book value of £1,961,832 (2023 £925,1081 are amounts of £668,173 (2023 £189,453) held under hire purchase or finance lease agreements. Depreciation charged on these assets amounted to £116,409 (2023 £36,638). 45 Notes to the Financial Statements - 31 March 2024 (Cont.) 7 Fixed assets Charity Leasehold improvements (£) Off ice equipment (£) Vehicles (£) Other (£) Total (£) Cost At 1 April 2023 Additions Disposals 29,066 86,707 1,558 5,421,355 1,528,272 (702,646) 6,785 5,543,913 1,529,830 (704,070) (1,4241 At 31 March 2024 29,066 88,265 6,246,981 5,361 6,369,673 Accumulated depreciation At 1 April 2023 Disposals Charged during the year 29,066 62,295 4,520,659 (702,646) 478,777 6,785 (1,4241 4,618,805 (704,070) 493,106 14,329 At 31 March 2024 29,066 76,624 4,296,790 5,361 4,407,841 Net book value At 31 March 2024 11,641 1,950,191 1,961,832 At 31 March 2023 24,412 900,696 925, 108 Included in the net book value of £ 1,961,832 (2023 £925,108) are amounts of £638,173 (2023 £189,453) held under hire purchase or finance lease agreements. Depreciation charged on these assets amounted to £116,409 (2023 £36,638). 46 Notes to the Financial Ststements - 31 March 2024 (Cont.) 8 Intangible assets Group software (£) Charity software (£) Cost At 1 April 2023 Additions 137,000 137,000 At 31 March 2024 137.000 137.000 Accumulated amortisation At 1 April 2023 Charged during the year At 31 March 2024 Net book value At 31 March 2024 137.000 137.000 At 31 March 2023 Included in the net book value of £ 137,000 (2023 nil) are amounts of £137,000 (2023 nil) acquired as a result of a grant. No Amortisation was charged as the asset had not been brought into use at 31 March 2024. 9 Investments in subsidiaries Group 2024 Charity 2024 2023 2023 ECT Group CIC Totsl The charity also controlled Dorset Community Transport Ltd (a company without share capital) by virtue of its direction of the financial operating policies of that company and Ealing Community Transport being the sole member of the company. Dorset Community Transport Ltd Dorset Community Transport Ltd ECT Group cic ECT Group cic 2024 2023 2024 2023 Income Expenditure 863,092 (905,683) 18,535 (5.279) 7, 759 (7,972) (Loss)Iprofit for the year (42,591) 13,256 (153) Total assets Total liabilities Total provisions 1,219,154 (3.950) {391,679) 1,205,905 (3,957) (391,679) Total funds 823,525 810,269 47 Notes to the Financial Statements - 31 March 2024 (Cont.) 10 Debtors Group 2024 Charity 2024 2023 2023 Trade debtors Prepayments Accrued income Social security and other taxes 703,433 125,247 127,958 111,624 687,405 437, 169 98,470 130, 105 703.433 125.247 127.958 111.624 687,405 437, 769 98,470 730, 705 1.068.262 1,353, 149 11 Creditors: Amounts falling due within one year Group 2024 1,068,262 1,353, 149 Charity 2024 2023 2023 Trade creditors Social security and other taxes Pension creditor Accruals and other creditors Obligations under finance leases and hire purchase contracts 130,587 61.426 12.748 349,895 179,789 106,560 52,076 14,747 277,326 47,874 130.587 61,426 12,748 345.945 179,789 106,560 52,076 74,747 273,383 47,874 734,445 12 Creditors: Amounts falling due after one year Group 498,583 730.495 494,640 Charity 2024 2024 2023 2023 Obligations under finance leases and hire purchase contracts 484.098 140,057 484.098 140,057 484,098 13 Provision for liabilities and charges 140,057 484.098 140,057 Group 2024 Charity 2024 2023 2023 Other liabilities 391,679 391,679 391,679 391,679 This liability relates to an indemnity provided in respect of a pension liability transfer 48 Notes to the Financial Statements - 31 March 2024 (Cont.) 14 Restricted funds At 1 April 2023 At 31 March 2024 Income expenditure Motability grant for social value tool kit 144,927 144.927 144,927 144.927 Restricted funds are held for projects being undertaken to fulfil the charitable objectives of the charity as stipulated by funders 15 Designated funds New designations (releases) At 1 April 2023 Utilised in the year At31 March 2024 Community transport for isolated communities in Dorset EASIE (Elderly Accessible Service in Ealing) Day trip fund for Ealing Day trip fund for Cheshire Social value toolkit Business development Vehicle replacement project 70,557 (11,500) 59,057 17,471 (3,000) 14,471 18,308 20,000 12,549 60,000 317,000 (4,000) (5,000) (2,000) {48,300) {124,000) 14,308 15,000 10,549 {11,700) {193,000) 515,885 {197,800) {204,700) Funds designated at the year end which, although annual designations, are intended to be utilised over more than one year. They are described as follows: The Community transport fund relates to the provision of transport to isolated communities in Dorset. The EASIE project represents monies set aside to address isolation of elderly people in Ealing by the provision of accessible transport. The day trip programmes (both Ealing and Cheshire) provide opportunities for isolated individuals to visit local areas of interest. The Social Value Toolkit fund represents monies set aside to support the extension of the second phase of the Methodology developed by ECT. IT software relates to amounts set aside to upgrade operations software including the use of cloud software and advanced route planning software. The Business Development fund relates funding set aside to explore the possibilities of developing fundraising avenues to support our charitable aims, the project is still in progress but it is not intended to commit further funds at this point. The vehicle replacement project represents monies put aside to cover depreciation costs on new vehicles for one year, this has been removed as the vehicles are now in service. 113.385 49 Notes to the Financial Statements - 31 March 2024 (Cont.) 16 Finance leases The charity and the group have the following total commitments under finance leases, grouped by the remaining terms of the leases: Group 2024 Charity 2024 2023 2023 Motor Vehicles In one year or less Between two and five years 179.789 484,098 47,874 140,057 179.789 484.098 47,874 140,057 Totsl finance lease commitments 663,887 187,937 663.887 787,937 Finance lease obligations are secured on the assets to which they relate. 17 Capitsl Commitments The Charity and the group are committed to the purchase of 10 minibuses amounting to £866,191 . These vehicles will be delivered by the end of the current financial year. 18 Operating Leases 2024 2023 2024 2023 Land and Buildings In one year or less Between two and five years 103,428 167,022 124,865 270,450 103.428 167.022 124,865 270,450 270.450 395,315 270.450 395,315 Plant and Equipment In one year or less In two to five years 26.640 7.961 21,363 575 26,640 7,961 21,363 575 34.601 2 1,938 34,601 21,938 Totsl operating lease commitments 305,051 417,253 305.051 417,253 19 Related party transactions Transactions between the Charity and its wholly controlled subsidiaries are not disclosed, as permitted by the exemptions set out in s33 of FRS 102. Mobility Matters is a community transport sector initiative bringing together a number of leading community transport organisations. Ealing Community Transport provides the secretariat function and its CEO chairs the initiative. For accounts purposes, Mobility Matters has been treated as a project of Ealing Community Transport but its funds are held separately, reflecting the direction provided by the Mobility Matters committee. 50 Notes to the Financial Statements - 31 March 2024 (Cont.) 19 Related party transactions IConL) Christian Tilleray (Trustee) is an associate of Counterculture Partnership LLP. During the year, the charity incurred expenditure of £48,300 in relation to fund raising none of which was outstanding at the year end. Christian Tilleray took no part in the decision making through which this expenditure was incurred. A close family member of Christian Tilleray (frustee) is a senior employee of the London Borough of Ealing (LBE). The charity contracts with the LBE for supply of seNices, during the year the charity invoiced LBE £1,462,759 (2023 £1,424,782) in relation to different seNices, of which £165,324, (2023 £162,413) was outstanding at the year end. All services are contracted through the standard Dynamic Purchasing System operated by LBE. 20 Financial instruments The carrying amount of the group and charity's financial instruments are as follows: Group Charity 2024 2024 2023 2023 Financial Assets Cash balances Financial assets measured at fair value through net income Financial assets measured at amortised cost 2.389,041 2,740,140 1,169,887 1,534,249 831,391 785,875 831,391 785,875 Financial Liabilities Financial liabilities measured at amortised cost 1,144,370 571,818 1,140,419 567,874 51 About ECT Charity ECT Charity is one of the UK'S leading providers of Community Transport, safely providing almost 401 ,000 passenger trips for our communities each year. We operate a wide variety of services, each based on a particular local need: from minibuses for community groups to transport for children with Special Educational Needs or Disabilities, from door-to-door services for older and disabled people to buses tackling rural social isolation - and many more. As a charity, our transport is designed to make a positive difference in the communities we serve - currently Cheshire, Dorset and Ealing, West London. www.ectcharity.co.uk ECT Charity ECT Charity, Greenford Depot, Greenford Road, Greenford, Middlesex UB6 9AN e-mail: info@ectcharity.co.uk T: 020 8813 3210 Photography.. C Paul Upward ECT Charity is the r)ame representing Ealing Community Transport's operations across the UK. Ealing Community Transport Is a company limited by guarantee {company no. 072118061, registered In England and Wales, and wrth the Chanty Commission (charity no. 11353541, and whose registered address is at Greenford Depot, Greenford Road, Greenford, Middx, UB6 gAN. VAT number.. 441923360. ICO Data Controller Registration no. Z7787500. ,e Ealing Community Transport 2024, all rights reserved.