## Trustees' Report and Financial Statements For Cheshire Community Foundation Limited
(A company limited by guarantee)
For the year ended 31 December 2022
Registered number: 07731278 |
Charity number: 1143711
## **CONTENTS**
||**Page Number**|
|---|---|
|**Legal and Administrative Information**|**3**|
|**Trustees’ Report**|**4**|
|**Auditors’ Report**|**15**|
|**Statement of Financial Activities**|**19**|
|**Balance Sheet**|**20**|
|**Cash Flow Statement**|**21**|
|**Notes Forming Part of the Financial Statements**|**23**|
**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Registered Charity No:** 1143711 **Registered Company No:** 07731278 **Registered Office:** C/o The Challenge Academy Bridgewater High School Broomfields Road Warrington WA4 3AE **Trustees:** Howard Platt D.L. Chair Andrew Butters Treasurer Diane Brown Chair of Grants Panel Sarah Callander Beckett D.L. Jeannie France-Hayhurst Sean Humphreys Terry Inns Nicky Owen (from 8th September 2022) Jake Ankers (from 8th September 2022) David Wootton CBE (from 27 January 2023) **President:** Lady Alexis Redmond MBE (H M Lord Lieutenant of Cheshire)
The directors of the charitable company, Cheshire Community Foundation Limited (the Foundation), are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.
**Executives:** Zoe Sheppard D.L. Chief Executive Margaret Cheshire Chief Operations Officer **Solicitors:** Gorvins Solicitors, Dale House, Tiviot Dale, Stockport SK1 1TA **Bankers:** Santander, Bootle, Merseyside L30 4GB **Auditors:** Beever and Struthers Chartered Accountants, One Express, 1 George Leigh St, Manchester, M4 5DL **Investment Managers:** CCLA, One Angel Lane London EC4 3AB **Company Secretary:** Charles Agar, 26 Eaton Road Handbridge Chester CH4 7EN
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**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The Trustees of Cheshire Community Foundation, who are also Directors of the Foundation for the purposes of the Companies Act, are pleased to present their Annual Report for the year ended 31 December 2022.
## **Introduction**
Our vision is to make a tangible difference to the most disadvantaged in Cheshire and Warrington by providing high quality grants to support the most effective charities and community organisations. We are hugely grateful to all those who support CCF for their generosity and hope that they are proud of the difference they have made. Our positive relationships with donors, funding partners, statutory organisations, infrastructure organisations and local charities enabled us to respond to local need with a range of grants programmes.
In 2022, we saw local charities respond to the impact of adjusting to life post-covid, welcoming Ukrainian refugees, a “costof-living” crisis alongside a Jubilee celebration. During the year we continued to develop our place-based approaches to reflect the diversity of the local area and the team worked to grow donations and provide donors with up-to-date information on the areas of need locally. Although the economic context was challenging the team continue to be focussed on achieving sustainability as an organisation capable of making longer-term impact.
We are pleased to have successfully managed change within our Trustee Board, our staff team and office location. We strengthened our Trustee Board, via open recruitment, with Jake Ankers and Nicky Owen joining in September 2022, and the further appointment of David Wootton CBE since the year end .
The Trustees acknowledged the valued contribution made by our Business Co-ordinator, Carole Royle and our Grants Director, Angela Richardson and wish them well in their respective retirement and new ventures. This provided an opportunity to recruit new team members focussed on grants and finance and we are pleased that they have settled in well. We continue to appreciate the contribution made by our hard-working and enthusiastic team led by Zoe Sheppard, our C.E.O.
## **Highlights**
We are delighted to have raised £1,663,025 in new donations and been able to award 244 grants, to a value of £1,556,775, a figure inclusive of some £40,000 of re-allocated grants in the year. In 2022, as the charitable sector services and delivery adapted post-covid, the Grants team worked closely with grant recipients to enable CCF to re-allocate under-used grants funding and our grants headline reflects this work including the re-allocated funding.
Our loyal donors have continued their commitment to supporting local charities; it is a joy to work with them and share the impact made as result of their generosity. The significant donation in memory of Nick Hopkinson, one of our valued supporters, leaves a unique legacy for charitable activities in this area. Our “Cheshire 100” members, a growing network of individuals and corporates investing in the work CCF does locally are much appreciated for the fantastic support they provide both financially and in kind.
CCF were pleased to manage, on behalf of Bentley Motors, a much needed and targeted grants programme distributing £188,768 to charities operating in the Crewe area. Our valued partnership with Assura plc delivered its third year of grantmaking both locally and nationally. We continue to work pro-actively with a range of donors to help them achieve their philanthropic aims and to provide excellent support to effective local charities.
We managed two larger open grants programmes in 2022 to address local priority needs. The initial programme, our “Community Grants” programme distributed £282,800 aimed to respond to a range of local needs. The second grants programme, “Improving Outcomes in Deprived Neighbourhoods” was targeted on the geographical areas identified as significantly impacted by poverty and disadvantage in the Index of Multiple Deprivation. This second programme distributed just over £200,000 of grant funding and was well supported by our place-based funds alongside individual and corporate donors.
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
We were pleased to be chosen to distribute Arts Council England funding, via the United Kingdom Community Foundations (UKCF) network. This provided £66,000 of grant funding to local charities working with their communities to celebrate together the Jubilee and it was heart-warming to see the variety of community activities supported. The UKCF network also enabled CCF to access match funding for a youth social action grants programme, “#iwill” which provided almost £64,000 of funding to youth-led activities.
In 2022, one of the most significant changes in our activity was a sharp increase in applications for our “Small Grants” programme, which offers grants of up to £2,500 to respond a broad range of needs. The rapid assessment and decisionmaking process enables charities to be agile in response to both existing and emerging issues including the cost of living crisis, and we were encouraged by the willingness of donors to support these smaller grants to the value of £139,000.
Our focus on a place-based approach has contributed to the growth of funds focused on specific geographies informed by our understanding of the needs in these places. We are grateful to all the stakeholders who support CCF in maintaining our knowledge of local areas, particularly our grant partners, the infrastructure organisations for the voluntary and community sector in Cheshire and Warrington and those who give up their time to contribute to our grants panels and impact groups.
## **What CCF does**
We connect people who want to give with Cheshire and Warrington’s most effective, grass-roots charities and not-forprofit organisations to help those most in need.
Our agreed long-term aims are:
- To improve mental health and wellbeing.
- To tackle poverty and disadvantage.
- To help to develop education, skills, and employment.
- To build stronger communities across Cheshire.
## **How we do it:**
We aim to make giving to charity an enjoyable, uplifting experience, where our donors - individuals, families, corporates, charitable trusts and foundations - can see how vulnerable lives are changed as a direct result of the donations they make. Investing wisely in charities is not as easy as it sounds, and we are conscious that our donors do not have the time to manage incoming requests for support, pore over charity accounts and business plans, review budgets and project plans, check governance and make sure that the money awarded is spent as it was intended. We provide the opportunity to outsource the process of due diligence, payment, and project monitoring, whilst sharing the project impact, successes and stories of the people helped through the donations made.
We advise donors who want to focus their funds on priority areas of need in the local community. Equally, if donors are clear on the issues they want to help tackle, we can connect them with effective projects.
As a community foundation, we recognise the need to support the voluntary sector respond to the “cost-of-living” challenges alongside longer-term strategic funding to enable charities to thrive and achieve measurable and sustainable outcomes.
- To tackle poverty and disadvantage.
- To help to develop education, skills, and employment.
- To build stronger communities across Cheshire.
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**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## Fundraising
In line with our vision, we look to raise funds that enable donors to make a difference to the most disadvantaged in Cheshire and Warrington. This means both increasing donations to existing funds and engaging new donors, whether through donor-advised funds, place-based funds or Trustee-managed funds. We align this with robust grant making processes and appropriate due diligence, to make sure every penny is well spent in making a difference. We recognise the importance of taking a longer-term approach with strategic grant-making activity and to support our longer-term strategies, we aim to further grow our endowment funds for local grant-making in perpetuity.
In 2022 there was an increase in the value of repeat donations from donors; an encouraging sign of their engagement with the work we do and understanding of the impact of their donation. Our Cheshire 100 supporters network played a vital part in our work in 2022 to ensure we have sufficient unrestricted funds to meet our operational costs and to maintain our strong and sustainable financial position. We recognise that growing our endowment funds will be a priority area for our strategy moving forward.
We share full details of our grant making via the public search portal 360Giving/GrantNav. and maintain strong relationships with other local foundations and funders to avoid duplication or overlap and to maximise the impact of local funds and matching initiatives. We also encourage charitable partners to collaborate where appropriate.
We are pleased to have continued to develop our relationship with the three local authorities in Cheshire East, Cheshire West and Chester and Warrington. This has enabled us to understand the support available from the local authorities and governmental resources and ensure that funds from donors are used most effectively to address need, optimising the limited resources available overall.
## Giving options
We are always grateful for all donations, of any value, which may be made to:
- existing endowment funds
- new endowment funds (for larger funds focussed on a specific theme, or where donors are looking to provide longer-term support for the local community)
- donor-advised funds, which donors may establish from £10,000 upwards - enabling them to decide what they would like to support and over what duration. We provide monthly reporting and liaise with our donors during our rounds of grant-making, to agree which projects they would like to support.
- a wide and diverse range of projects tackling multiple disadvantages across Cheshire and Warrington (for donations up to £10,000), such as our Small Grants Programme. Donors receive an annual report to advise how the money in that fund has been spent.
- a place-based fund, which provides a way for both individuals and companies to pool resources to make a bigger impact in places where they live or work. Funds are already established for Crewe, Cheshire West, Knutsford and Neston, with further planned for 2023
- a fund managed by our Trustees, who make the decisions about how the money should be used to create the greatest impact.
- donations to core costs are always welcome as they help to support our dedicated team so we can provide more effective giving.
- regular donations to the Cheshire 100 Club, which contribute towards core costs.
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## Working towards sustainability
We continue to benefit from many generous supporters who make significant contributions to the running of CCF:
- Our CEO is working on a pro bono basis.
- Our Trustees have provided pro bono financial advice and consultancy.
- EMR has donated computers and IT services.
- We have received sponsorship to cover the full cost of all the events that have taken place during the year.
- Our Company Secretary has provided pro bono legal advice and consultancy.
In the long term, as donation levels increase, we are working towards full financial sustainability but the support above and the generosity of our Cheshire 100 club ensures that we can minimise our costs for grant-making services, including due diligence and assessment (with a minimum of 88% of donations going directly to local charities and groups).
## **GRANT-MAKING**
In 2022 we made grant awards of £1,556,775 to a huge range of projects and organisations – from those supporting people experiencing the complex and inter-related impacts of poverty and financial disadvantage, exacerbated by the rising cost of living, to those helping to reduce isolation and provide ways to improve mental health; support people back into learning, training and employment; and to offer a safety net for people dealing with the pressures of caring responsibilities, disability and crime.
We want Cheshire to be a place where, regardless of where they live:
- People can feel fulfilled and reach their full potential.
- People can achieve economic, social, mental, and physical wellbeing.
- Inequalities in life expectancy, health and employment opportunity are reduced.
- People share a strong sense of community.
- Voluntary and community-based activity can thrive and flourish.
To achieve this, we ensure that we strive to:
- Understand the needs and aspirations of people in Cheshire, recognising that ‘disadvantage’ can take many forms.
- Develop community investment programmes that are responsive and flexible, to take account of changing and emerging needs.
- Be responsive to the wishes of fund holders and donors.
- Ensure that our investment makes a significant difference to people’s lives.
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**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## Overview of grants distribution
We awarded 244 grants totalling £1,556,775 supporting more than 126,500 beneficiaries (2021: 196,272).
|**Grants Awarded by Key Programmes – Values**|**Amount**
**Awarded**|**Percentage of**
**Total**|
|---|---|---|
|Community Grants Programme|£282,791|18|
|Proactive Donor Charity Matching|£236,861|15|
|Improving Outcomes in Deprived Areas|£202,387|13|
|Bentley Motors, Advancing Life Chances programme|£188,829|12|
|Small Grants programme|£138,936|9|
|Donor-directed programmes|£121,072|8|
|Assura Community Fund, Grants for Wales|£89,630|6|
|UKCF programmes (Arts Council, Let’s Create Jubilee Programme and DCMS #iwill)|£129,906|8|
|Grants for Warrington and Knutsford placed-based funds|£106,288|7|
|Other|£60,075|4|
|**TOTAL**|**£1,556,775**|**100%**|
In 2022, our grant making team continued to work strategically on a Cheshire and Warrington-wide basis, making links across sectors and working proactively to bring about change. This has included developing and strengthening on-going relationships with the voluntary and community organisations that we work with and making multi-year grant commitments to address significant challenge. We have been pleased to work in partnership with Warrington Borough Council and Warrington Voluntary Action to ensure a joined-up approach to emergency and affordable food provision.
Our thanks go to Warrington Voluntary Action, Cheshire West Voluntary Action, Cheshire East CVS who have helped raise awareness of our grant making and participated on our Grants Panels.
To ensure that we continued to fulfil our objectives and maximise public benefit, all applicant groups are required to show that they have charitable objects (though they need not be registered charities but are not-for-profit organisations). Each grant application is rigorously assessed against standard criteria including evidence of need, community use and involvement, governance, finances, and organisational ability to manage, together with the ability to achieve powerful and measurable outcomes. Each applicant group provided a detailed application, its constitution, accounts, child protection and vulnerable adults policies as applicable.
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**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
Work on behalf of our corporate donors continued to flourish in 2022. Our Advancing Life Chances programme delivered for Bentley Motors, targeting specific needs in the Crewe area, distributed almost £190,000 in the autumn and has proved to be a model for an expansion of this approach by Bentley UK-wide.
Our partnership with Warrington-based Assura plc delivered its third year of grant-making both locally and nationally, accounting for the majority of grants awarded outside Cheshire and Warrington Local Authorities. Assura’s focus was on grant-making in geographies which had not previously been strongly engaged with Assura’s funds in previous years (notably Wales and Blackpool), and on growth funding for some of its first grant projects which were agreed to be delivering particularly strong impact, including Visyon in Cheshire.
Corporate donors and partnerships continued to play a vital part in more strategic grant making by our place-based group funds, supporting programmes, including Improving Outcomes in Deprived Areas.
Grant making in 2022 was focused on advancing people’s health, wellbeing and safety; the reduction of isolation and disadvantage; and access to local services – a similar split as we saw in 2021, reflecting the continuing work of the voluntary and community sector to support people as we moved into the next phase of recovery from the pandemic. Projects supporting children and young people received the biggest proportion of funds last year,
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FINANCIAL REVIEW**
Whereas we received new donations of £1,663,025 in the year (2021: £1,729,057) of which £1,585,365 was donated for grant making, income accounted for includes some £15,000 of claimed gift aid largely derived from 2021 donations. We received investment income from endowments of £233,037 (2021: £190,127) and furthermore encashed from endowments, with Donors’ agreement for grant making, £21,300 (2021: £111,043) of valuation gains above inflation. During the year we paid out grant funding of £1,499,976 (2021: £1,850,198), which is reported firstly net of a relatively small value of grants returned to us after monitoring; and secondly net of some grants re-awarded in 2022, as referenced under Highlights.
We held endowment funds of £5.938 million on 31st December 2022.
We held restricted funds of £2.925 million on 31st December 2022.
The Charity’s core fund decreased during the year and stands at a sum of £320,034, representing 1 years of core costs. The Trustees believe this is essential to maintain grant making activity in times of uncertainty.
## **INVESTMENT POLICY**
The Board has a Finance, Risk, Operations and Grants Committee consisting of five Trustees, external advisers and is attended by the Chief Executive and Chief Operations Officer. This committee oversees the management of funds to ensure an appropriate investment policy with regard to risk and the need to balance capital and income return.
Our endowment monies were invested by CCLA in their Ethical Investment Fund. In 2022 the COIF Charities Ethical Investment Fund delivered a total return of -9.7%. This closely matched the benchmark comparator (-10.1%), in a year of fluctuating but ultimately disappointing investment returns. The relative performance against benchmark was supported by both asset allocation and stock selection. This total return comprised an income yield of around 3.1% but offset by portfolio value reduction of 12.8%. The first months of 2023 have seen continuing fluctuations in valuations owing to the same factors affecting last year. These investments are held for the long term and whilst the position will be kept under review, we do not currently foresee any policy change in this regard.
The Foundation seeks to support its work with the returns generated from an investment portfolio. Inevitably the portfolio is exposed to a number of potential risks, these include:
- **Risk of permanent loss:** The portfolio may be invested in assets which fail, leading to a permanent and substantial loss of the sum invested.
- **Market fluctuations** : The value of investments may fall or rise over time. Sales at depressed valuations could result in a loss of sums invested. Fluctuations can occur in the broad investment market, in sectors or in individual securities.
- **Income risk:** Income from the portfolio might decline. This could be the result of a general or broadly-based decline in income payments or as a result of lower payments from an individual asset or group of assets.
- **Interest rate risk:** Changes in prevailing interest rates or in expectations for future interest rates could affect the value of assets held. Fixed interest investments may be particularly exposed to this risk. If interest rates are expected to rise faster or further than previously, then fixed interest investments may fall in value. Conversely, if interest rates reduce more than expected, fixed interest investments may rise.
- **Currency or foreign exchange risk:** Investment in overseas investment markets may result in exposure to foreign currencies. Changes in exchange rates may have an effect on the value of the assets as reported in sterling.
- **Liquidity risk:** The portfolio may invest in assets where liquidity, the ability to buy and sell, deteriorates making it difficult to liquidate the position should that be desired.
-
- **Inflation risk:** The real value of the assets will be affected by the rate of inflation.
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
- **Costs and charges:** Costs and charges can erode value when not matched by commensurate investment returns over time, or if in excess of benchmarked comparators.
In order to mitigate these risks, we regularly review investments and have an agreed investment policy. Some of our endowment funds are required to be held with CCLA, based on the match-funding previously provided by the government. For other endowments, a review of investment management is completed at least every 3 years. Holdings are diversified by asset type, geographic location, sector, and individual security. In light of the investment uncertainty in 2022 we have worked with CCLA and are maintaining portfolios in line with their recommendations.
The Trustees will keep our investment policy under review as further endowment monies are raised.
Funds derived from revenue donations for grant-making and core costs are retained in bank accounts, term deposits, and the COIF Charities Deposit Fund unless otherwise agreed by donors.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Cheshire Community Foundation Limited is a company limited by guarantee, company number 07731278 and a registered charity, registration number 1143711. The Trustees of the charity and its principal advisers are listed on page 3.
The Foundation is governed by its Memorandum and Articles of Association. The Articles of Association set out the powers of the Board of Trustees; there are currently ten Trustees.
The objects of the Charity, as set out in the Memorandum and Articles of Association, are:
- The promotion of any charitable purposes for benefit of the community in the County of Cheshire.
- Other exclusive charitable purposes in the United Kingdom and elsewhere which are, in the opinion of directors, beneficial to the community with a preference of those in the area of benefit.
The Board of Trustees of Cheshire Community Foundation Limited is responsible and accountable for strategic direction and collectively setting and monitoring the Foundation's impact against its vision, mission, and objectives. As guardians of the Foundation, all Trustees are equally responsible in law for the Board's actions and decisions.
As Directors of the company, all Trustees take legal and fiscal responsibility for the funds entrusted to them. The Trustees are responsible for ensuring that the Foundation is performing well and is delivering on the charitable objectives for which it was set up, in accordance with its Memorandum and Articles, as well as ensuring that goals outlined in its Business Plans are achieved. The full Board of Trustees meets quarterly. Between Board meetings business is conducted by sub-committees with delegated responsibility for operational oversight. The two sub-committees during the year ended 31st December 2022 were:
- Finance, Risk, Operations and Grants Committee
- Remuneration Committee
The above committees have a Terms of Reference document which sets out the powers and authority delegated to them. These can be found in both the Trustee and Staff Handbook.
The Finance, Risk, Operations and Grants Committee has been delegated responsibility for the Foundation's grant making function and currently consists of the Chief Executive, Zoe Sheppard, the Chief Operating Officer, Margaret Cheshire, our Chair, Howard Platt, Andrew Butters (finance), Diane Brown (grant-making), Terry Inns and Jake Ankers (from September 2022). The Finance, Risk, Operations and Grants Committee is jointly chaired by Andrew Butters and Diane Brown. The Committee approves recommendations made to it by the Foundation's Grant Panels and takes responsibility for the appropriate allocation of grant awards from the restricted funds under its management (both discretionary and donor advised). The Committee also has delegated powers to veto decisions made by the Grant Panels but only:
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
- Where it feels that the Panel's recommendations are in breach of some duty for which they, as Trustees of the Foundation, are responsible; or
- Where the Grants Committee is in possession of significant information relating to the application, to which the Grant Panel was not privy.
All grant applications are assessed at Grant Panel for evidence of need, community benefit and value for money.
The Committee has also been delegated responsibility for overseeing all audit, financial, investment, and risk management aspects of Cheshire Community Foundation Limited.
A Remuneration Committee meets once a year (at year end) to discuss staff remuneration and reward. This committee makes recommendations to the full Board of Trustees.
## The Board
The Board continues to review its skills, diversity, and expertise to ensure continued good governance and delivery of the Foundation's objectives and Business Plans. This skills audit and diversity overview provided a context for Trustee recruitment in 2022 with the Board making two new Trustee appointments during 2022 and a further Trustee appointed in 2023.
Trustees also have individual review meetings with the Chair of the Board. Trustees remain committed to their ongoing training and development. This includes as appropriate visiting other Community Foundations, liaising with other Community Foundation Trustees, working with UK Community Foundations (UKCF), attending UKCF meetings and events, participating in internal training and development sessions and attending appropriate external training. The Chair of the Foundation, Howard Platt, has attended several meetings of UKCF Chairs.
The Trustees confirm that they have again complied with the duty in the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities of Cheshire Community Foundation Limited.
Cheshire Community Foundation Limited is a Quality Accredited member of UKCF having successfully demonstrated how it met the standard in 2022.
## **RESERVES POLICY**
The Board continues to maintain a level of unrestricted reserves appropriate to its commitments over the coming years. Although the Charity Commission guidance is to ensure a minimum of six months’ running costs are held at any time, the Board’s objective is to hold one years’ running cost in unrestricted reserves. At £320,034, the unrestricted reserves as of 31st December 2022 represented just over 1 year’s core costs, a satisfactory position in light of the existing economic uncertainty. The reserves policy will be kept under review.
## **RISK MANAGEMENT**
The Board of Trustees recognises that it is responsible for risk management and for maintaining a sound system of internal control that supports the achievement of aims and objectives, whilst safeguarding the funds and assets for which it is responsible. The Board also accepts responsibility for ensuring that risks to which the Foundation is exposed are regularly reviewed and that appropriate steps are taken to mitigate any potential damage. A regular review of all risks takes place at Finance, Risk, Operations and Grants Committee meetings and a review of red-rated risks takes place at quarterly Board Meetings.
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**CHESHIRE COMMUNITY FOUNDATION LIMITED TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The Trustees (who are also the directors of Cheshire Community Foundation Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations and in accordance with United Kingdom Generally Accepted Accounting Practice.
Company law requires the Trustees, as directors, to prepare financial statements that give a true and fair view of the state of affairs of the Charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Make sound judgements and estimates that are reasonable and prudent; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each Trustee who was a Trustee of the charitable company at the date this report was approved, has taken all steps that he/she ought to have taken as a Trustee in order to make themselves aware of any relevant audit information (as defined by the Companies Act 2006) and ensure that the auditors are aware of all relevant information (as defined).
As far as each Trustee is aware, there is no relevant audit information of which the Charity’s auditors are unaware. This confirmation is given and should be interpreted in accordance with the provisions of 418 of the Companies Act 2006.
This report has been prepared in accordance with provisions within Part 15 of the Companies Act 2006 as they relate to small companies.
Signed on behalf of the Board of Trustees:
**----- Start of picture text -----**
Andrew Butters
(Treasurer)
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Howard Platt
(Chair)
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Date: 11 May 2023
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED AUDITORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Independent Auditor’s Report to the members of Cheshire Community Foundation**
## **Opinion**
We have audited the financial statements of Cheshire Community Foundation “the charitable company” for the year ended 31 December 2022 which comprise the Statement of Financial Activities (incorporating an Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of its net income and net movement in funds for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report to you in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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.
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## **CHESHIRE COMMUNITY FOUNDATION LIMITED AUDITORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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 information given in the trustees’ report which includes the directors’ report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- 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.
## **Responsibilities of the Trustees**
As explained more fully in the Trustees’ Responsibilities Statement set out on page 13 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
15
## **CHESHIRE COMMUNITY FOUNDATION LIMITED AUDITORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
**The extent to which 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:_
- 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 charitable company through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector.
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, the Charities Act 2011, data protection, employment, and health and safety legislation.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
_We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:_
- making enquiries of management 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 non-compliance with laws and regulations.
_To address the risk of fraud through management bias and override of controls, we:_
- performed analytical procedures on income and salaries to identify any unusual or unexpected relationships.
- tested journal entries to identify unusual transactions.
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1 were indicative of potential bias.
- investigated the rationale behind significant or unusual transactions.
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 directors 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s web-site at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
16
**CHESHIRE COMMUNITY FOUNDATION LIMITED AUDITORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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.
Mark Bradley BA FCA (Senior Statutory Auditor) For and on behalf of BEEVER AND STRUTHERS Statutory Auditor The Beehive Lions Drive Shadsworth Business Park Blackburn BB1 2QS
Date: 4 July 2023
17
## **CHESHIRE COMMUNITY FOUNDATION LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPEDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022**
|Notes
**INCOME AND ENDOWMENTS**
**FROM**
Donations and legacies
3
**Charitable activities**
5
Charitable activities
Investment income
4
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Charitable activities
Other
**Total**
Net (Losses)/ gains on
investments
**NET (EXPENDITURE)/INCOME**
**Transfers between funds**
17
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED**
**FORWARD**
|Unrestricted
funds
£
71,812
8,879
13,577
94,268
105,401
195,969
3,603
304,973
-
(210,705)
171,401
(39,304)
359,338
320,034
|Restricted
fund
£
97,862
1,492,157
1,963
1,591,982
-
1,499,976
-
1,499,976
(167,376)
(75,370)
82,936
7,566
2,917,625
2,925,191
|Endowment
fund
£
10,000
-
233,037
243,037
-
-
-
-
(843,125)
(600,088)
(254,337)
(854,425)
6,792,566
5,938,141
|2022
Total funds
£
179,674
1,501,036
248,577
1,929,287
105,401
1,695,945
3,603
1,804,949
(1,010,501)
(886,163)
-
(886,163)
10,069,529
9,183,366|202 1
Total funds
£
439,278
1,361,289
197,167
1,997,734
110,420
2,022,050
2,653
2,135,123
848,520
711,131
-
711,131
9,358,398
10,069,529|
|---|---|---|---|---|---|
## **CONTINUING OPERATIONS**
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
18
## **CHESHIRE COMMUNITY FOUNDATION LIMITED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investments
14
**CURRENT ASSETS**
Debtors
15
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one
year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
Restricted funds
Endowment funds
**TOTAL FUNDS**|Unrestricted
funds
£
-
-
-
9,785
328,968
338,753
(18,719)
320,034
320,034
320,034|Restricted
fund
£
-
1,186,933
1,186,933
-
1,871,074
1,871,074
(132,816)
1,738,258
2,925,191
2,925,191|Endowment
fund
£
-
5,938,141
5,938,141
-
-
-
-
-
5,938,141
5,938,141|2022
Total funds
£
-
7,125,074
7,125,074
9,785
2,200,042
2,209,827
(151,535)
2,058,292
9,183,366
9,183,366
320,034
2,925,191
5,938,141
9,183,366|2021
Total funds
£
-
8,128,772
8,128,772
10,424
2,038,971
2,049,395
(108,638)
1,940,757
10,069,529
10,069,529
359,338
2,917,625
6,792,566
10,069,529|
|---|---|---|---|---|---|
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies.
The financial statements were approved by the Board of Trustees on and were signed on its behalf by:
Andrew Butters Trustee
Date: 11 May 2023
The notes form part of these financial statements
19
## **CHESHIRE COMMUNITY FOUNDATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022**
|Notes
**Cash flows from operating activities:**
Cash generated from operations
1
**Net cash (used in) by operating activities**
**Cash flows from investing activities:**
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
**Net cash provided by/ (used in) investing activities**
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning of the**
**reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|2022
£
(80,703)
(80,703)
(28,103)
21,300
15,540
233,037
241,774
161,071
2,038,971
2,200,042|2021
£
(453,032)
(453,032)
(1,516,013)
111,043
7,040
190,127
(1,207,803)
(1,660,835)
3,699,806
2,038,971|
|---|---|---|
The notes form part of these financial statements
20
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|2022
£
**Net (expenditure)/income for the reporting period (as per the statement**
**of financial activities)**
(886,163)
**Adjustments for:**
Depreciation charges
-
Interest received
(15,540)
Dividends received
(233,037)
Loss/(gain) on investments
1,010,501
Decrease/(increase) in debtors
639
Increase/(decrease)in creditors
42,897
**Net cash (used in) operating activities**
(80,703)|2021
£
711,131
32
(7,040)
(190,127)
(848,520)
(4,151)
(114,357)
(453,032)|
|---|---|
## **ANALYSIS OF CHANGES IN NET DEBT**
|Cash and cash equivalents
Borrowings|At 1 January 2022
£
2,038,971
-
2,038,971|Financing cash flows
£
161,071
-
161,071|At 31 December 2022
£
2,200,042
-|
|---|---|---|---|
||||2,200,042|
21
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. CHARITY STATUS**
The charity is a company limited by guarantee incorporated in England and Wales. The members of the company are the Trustees named on page 3. In the event of the charity being wound up, the liability, in respect of the guarantee is limited to £1 per member of the charity. The charity number is 1143711.
The address of its registered office is: C/o The Challenge Academy Trust at Bridgewater High School Broomfields Road Warrington Cheshire WA4 3AE
## **2. ACCOUNTING POLICIES**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Cheshire Community Foundation meets the definition of a public entity under FRS 102.
## **Basis of preparation**
The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Income**
All income is recognised in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Incoming resources are received in cash by way of grants and donations.
Grants receivable are accounted for in the period in which they are awarded and are allocated to the fund to which they relate.
Costs of raising funds includes the costs of brochures, advertising, fundraising and other promotional events designed to increase public awareness of the foundation, together with other costs directly attributable to fundraising activities.
Cash donations in support of the foundation's activities are included in full in the statement of financial activities on a receivable basis.
Investment returns are drawn in accordance with a total return policy and transferred to restricted funds for distribution, with an agreed proportion transferred to cover management and administration costs.
22
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **2. ACCOUNTING POLICIES - continued**
## **Expenditure**
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of the resources.
Costs of raising funds are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognized as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
Governance costs include those costs incurred in the governance of the Charity's assets and are associated with constitutional and statutory requirements.
Support costs include the central functions and have been allocated to activity cost categories on the basis of a direct charge wherever possible and in other cases, an estimate of time spent by category.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 33% on cost Fixtures and fittings - 33% on cost Computer equipment - 50% on cost
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds is an agreed donation which is taken to the unrestricted funds through a transfer. All costs are charged against unrestricted funds.
The endowment fund is a restricted fund under the terms of the Trust deed and in the case of Community First endowments the funds must be held permanently. There are also expendable endowment funds, created by transfers from the endowment funds from excess gains over RPI. The endowment fund purpose is to ensure a suitable income stream to finance the ongoing activities of the charity. It is represented by a portfolio of investments, which is managed by investment managers who have been given discretionary powers to acquire and dispose of investments within the policy set by the Trustees.
Investment income, gains and losses are allocated to the appropriate fund.
23
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **2. ACCOUNTING POLICIES - continued**
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.
## **Investments**
All investments are carried at their fair value. Holdings in common investment funds are stated at their midmarket price. The statement of financial activities included the net gains and losses arising on revaluations and disposals throughout the year. Asset sales and purchases are recognised at the date of trade at cost. Investments are managed using the total investment return methodology.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of twelve months or less from the date of acquisition or opening of the deposit or similar account.
## **Financial instruments**
The charity has financial assets of a kind that qualify as basic financial instrument. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
24
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
|**3.**|**DONATIONS AND LEGACIES**|||
|---|---|---|---|
|||2022|2021|
|||£|£|
||Donations|179,674|439,278|
|||179,674|439,278|
|**4.**|**INVESTMENT INCOME**|||
|||2022|2021|
|||£|£|
||Other fixed asset invest|233,037|190,127|
||Deposit account interest|15,540|7,040|
|||248,577|197,167|
|**5.**|**INCOME FROM CHARITABLE ACTIVITIES**|||
|||2022|2021|
|||£|£|
||Charitable activities|1,501,036|1,361,289|
|**6.**|**RAISING FUNDS**|||
||**Raising donations and legacies**|||
|||2022|2021|
|||£|£|
||Staff costs|71,654|61,568|
||Postage and stationery|83|106|
||Consultancy|26,075|35,700|
||Marketing and publicity|5,723|12,414|
||Travelling & meeting expenses|690|-|
||Website and database developed IT|1,176|632|
|||105,401|110,420|
25
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **7. CHARITABLE ACTIVITIES COSTS**
|Direct costs
Awards to
Charities
Grant funding
of activities
(See note 8)
£
£
£
Charitable activities
195,969
1,500
1,498,476
**Basis of**
**2022**
**2021**
**Allocation**
**£**
**£**
Grants distributed
Direct
1,498,476
1,850,198
Awards to charities
Direct
1,500
750
Staff costs
Staff time
140,911
123,555
Travel and meeting expenses
Staff time
3,923
895
Subscriptions
Direct
4,161
3,533
Consultancy
Direct
21,497
16,576
Insurance
Staff time
1,023
1,130
Office costs
Direct
2,155
950
Telephones
Staff time
2,018
2,163
IT Maintenance
Staff time
424
696
Website and database
Direct
7,030
4,232
Stationery and postage
Usage
165
214
Research
Direct
-
5,539
Sundries
Direct
286
445
Audit and accountancy
Direct
8,000
7,402
Bank charges
Direct
4,376
3,740
Depreciation
Direct
-
32
1,695,945
2,022,050
**8.**
**GRANTS PAYABLE**
2022
£
Charitable activities
1,498,476
The total grants paid to institutions during the year was as follows:
202 2
£
Grants
1,498,476|Totals
£
1,695,945
2021
£
1,850,198
2021
£
1,850,198|
|---|---|
26
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **9. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging:
|
Depreciation - owned assets
Auditors’ remuneration – audit fee
Auditors’ remuneration – accounts preparation|2022
£
-
6000
2100|2021
£
32
4,412
1,834|
|---|---|---|
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
## **11. STAFF COSTS**
|Wages and salaries
Social security costs
Pension contributions|2022
£
194,713
9,935
7,917
212,565|2021
£
167,334
9,031
8,758|
|---|---|---|
|||185,123|
Wages and salaries include a holiday pay accrual of £nil (2021: £nil).
Key management personnel of the charity are the Chief Executive in post during the year, the total remuneration cost for 2022 amounted to £nil (2021: £nil). Since March 2016 the Chief Executive has worked on a pro bono basis.
The average monthly number of employees during the year was as follows:
|Fundraising and grant giving
Charitable and grant giving
Management|2022
3
3
2
8|2021
3
3
1|
|---|---|---|
|||7|
These figures necessarily incorporate rounding relating to part time staff members No employees received emoluments in excess of £60,000.
27
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
funds
£
**INCOME AND ENDOWMENTS**
**FROM**
Donations and legacies
43,596
**Charitable activities**
Charitable activities
6,800
Investment income
4,577
**Total**
54,973
**EXPENDITURE ON**
Raising funds
99,121
**Charitable activities**
Charitable activities
163,520
Other
2,774
**Total**
265,414
**Net gains/(losses) on investments**
-
**NET (EXPENDITURE)/INCOME**
(210,441)
**Transfers between funds**
288,665
**Net movement in funds**
78,224
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
252,434
**TOTAL FUNDS CARRIED FORWARD**
330,658|Restricted
fund
Endowment
fund
£
£
821,424
12,500
4,105,936
-
1,350
176,509
4,928,710
189,009
-
-
2,866,235
-
-
-
2,866,235
-
-
352,501
2,062,475
541,510
(112,156)
(176,509)
1,950,319
365,001
1,202,139
5,510,281
3,152,458
5,875,282|Total funds
£
877,520
4,112,736
182,436|
|---|---|---|
|||5,172,692
99,121
3,029,755
2,774|
|||3,131,649
352,501|
|||2,393,544
-|
|||2,393,544
6,964,854|
|||9,358,398|
28
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
|**13.**|**TANGIBLE FIXED ASSETS**||||||||
|---|---|---|---|---|---|---|---|---|
|||Short||Fixtures and||Computer|||
|||leasehold||fittings||equipment||Totals|
|||£||£||£||£|
||**COST**||||||||
||At 1 January 2022|2,116||3,066||3,338||8,520|
||At 31 December 2022|2,116||3,066||3,338||8,520|
||**DEPRECIATION**||||||||
||At 1 January 2022|2,116||3,066||3,338||8,520|
||Charge for year||-||-||-|-|
||At 31 December 2022|2,116||3,066||3,338||8,520|
||**NET BOOK VALUE**||||||||
||At 31 December 2022||-||-||-|-|
||At 31 December 2021||-||-||-|-|
|**14.**|**FIXED ASSET INVESTMENTS**||||||||
|||||||||Total funds|
|||||||||£|
||**MARKET VALUE**||||||||
||At 1 January 2022|||||||8,128,772|
||Additions|||||||28,103|
||Disposals|||||||(21,300)|
||Revaluations|||||||(1,010,501)|
||At 31 December 2022|||||||7,125,074|
||**NET BOOK VALUE**||||||||
||At 31 December 2022|||||||7,125,074|
||At 31 December 2021|||||||8,128,772|
There were no investment assets outside the UK.
The investments are held to provide an investment return to the charity. All investments are held in common investment funds and are valued at the mid-market price.
Total return is applied to all expendable endowment fund investments.
29
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14. FIXED ASSET INVESTMENTS continued**
|**Endowment**
**Unapplied**
**total return**
**released to**
**income**
**Total**
**Endowment**
**At 1 January 2022**
Gift Component of Endowment:
4,410,848
-
4,410,848
Assura CIF
Unapplied total return
-
2,381,718
2,381,718
**Total**
**4,410,848**
**2,381,718**
**6,792,566**
**Movements in the reporting**
**period:**
Funds invested
-
-
-
Gift of expendable endowment
10,000
-
10,000
Dividends and Interest
-
233,037
233,037
Realised and Unrealised Gains
-
(843,125)
(843,125)
**Total**
**10,000**
**(610,088)**
**(600,088)**
Unapplied total return released to
income
-
(254,337)
-
**Net movements in reporting**
**period**
**10,000**
**(864,425)**
**(854,425)**
**At 31 December 2022**
Gift Component of Endowment
4,420,848
-
4,420,848
Unapplied total return
-
1,517,293
1,517,293
Assura CIF
**-**
**-**
**-**
**Total**
**4,420,848**
**1,517,293**
**5,938,141**
**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
Prepayments
**16.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Social security and other taxes
Grants payable
Accruals and deferred income
Other creditors|**Endowment**
**Unapplied**
**total return**
**released to**
**income**
**Total**
**Endowment**
4,410,848
-
4,410,848
-
2,381,718
2,381,718||**Assura CIF**
-
1,336,206
-||**Total funds**
4,410,848
1,336,206
2,381,718|
|---|---|---|---|---|---|
||**4,410,848**
**2,381,718**
**6,792,566**
-
-
-
10,000
-
10,000
-
233,037
233,037
-
(843,125)
(843,125)||**1,336,206**
18,103
-
-
(167,376)||**8,128,772**
18,103
10,000
233,037
(1,010,501)|
||**10,000**
**(610,088)**
**(600,088)**
-
(254,337)
-||**(149,273)**
-||**(749,361)**
(254.337)|
||**10,000**
**(864,425)**
**(854,425)**
4,420,848
-
4,420,848
-
1,517,293
1,517,293
**-**
**-**
**-**||**(149,273)**
-
-
1,186,933||**(1,003,698)**
4,420,848
1,517,293
1,186,933|
||**4,420,848**
**1,517,293**
**5,938,141**||**1,186,933**||**7,125,074**|
|||2022
£
5,416
4,369
9,785
2022
£
2,871
132,816
-
15,848
151,535||||
30
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. MOVEMENT IN FUNDS**
|At 01/01/22
Net
movement in
funds
£
£
**Unrestricted funds**
General fund
359,338
(210,705)
**Restricted funds**
Flow Through Funds
2,917,625
(75,370)
**Endowment funds**
Endowment - Permanent
5,949,870
(519,289)
Endowment - Expendable
842,696
(80,800)
**TOTAL FUNDS**
10,069,529
(886,163)
Net movement in funds, included in the above are as follows:
Incoming
resources
Resources
expended
£
£
**Unrestricted funds**
General fund
94,268
(304,973)
**Restricted funds**
Flow Through Funds
1,591,982
(1,499,976)
**Endowment funds**
Endowment
243,037
-
**TOTAL FUNDS**
1,929,287
(1,804,843)|Transfers
between
funds
At 31/12/22
£
£
171,401
320,034
82,936
2,925,191
(304,196)
5,126,386
49,859
811,755
-
9,183,366
Gains and
losses
Movement in
funds
£
£
-
(210,705)
(167,376)
(75,370)
(843,125)
(600,088)
(1,010,502)
(886,163)|
|---|---|
31
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. MOVEMENT IN FUNDS - continued**
|**Comparatives for movement in funds**
At 01/01/21
Net
movement in
funds
£
£
**Unrestricted Funds**
General fund
330,658
(207,248)
**Restricted Funds**
Flow Through Funds
3,152,458
(300,076)
**Endowment funds**
Endowment - Permanent
5,514,335
1,111,585
Endowment - Expendable
360,947
106,870
**TOTAL FUNDS**
9,358,398
711,131
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
Resources
expended
£
£
**Unrestricted funds**
General fund
76,927
(284,175)
**Restricted funds**
Flow Through Funds
1,514,666
(1,850,948)
**Endowment funds**
Endowment
406,141
-
**TOTAL FUNDS**
1,997,734
(2,135,123)|Transfers
between
funds
At 31/12/21
£
£
235,928
359,338
65,243
2,917,625
(676,050)
5,949,870
374,879
842,696
-
10,069,529
Gains and
losses
Movement in
funds
£
**£**
-
(207,248)
36,206
(300,076)
812,314
1,218,455
848,520
711,131|
|---|---|
32
**CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. MOVEMENT IN FUNDS - continued**
## **RESTRICTED FUND MOVEMENT**
**Movement in Resources**
|**As at 1**
**January 2022**
**£**
**Donor advised funds**
Warrington Community fund
222,797
Warrington Young Peoples
48,550
Anonymous funds
75,013
Assura
1,597,747
Cheshire & Warrington Covid
69,861
End Food Poverty
20,387
Other funds
806,079
Bentley
77,191
Cheshire Food coordinator
Cost of Living Appeal
Total Restricted Funds
**2,917,625**|**Incoming**
**Outgoing**
**Gains and Losses**
**and Transfers**
**As at 31**
**December 2022**
**£**
**£**
**£**
**£**
240
(72,877)
29,936
180,096
-
(25,918)
7,223
29,855
-
(28,918)
42,705
88,800
282,668
(227,987)
(156,968)
1,495,460
775
(62,465)
(8,171)
-
416
(7,500)
(14,026)
(723)
908,279
(885,805)
(6,644)
821,909
281,000
(186,006)
(24,500)
147,685
80,000
-
10,386
90,386
38,605
(2,500)
35,619
71,724
**1,591,983**
**(1,499,976)**
**(84,440)**
**2,925,191**|
|---|---|
## **Fund**
Warrington Community
Warrington Young Peoples
Anonymous fund
Assura Fund
End Food Poverty, UKCF Covid & Cheshire & Warrington Covid Funds
Bentley
## **Purpose**
Supporting projects which meet the needs of older people in Warrington
For under 25 years old young people in Warrington experiencing difficulties Donor directed fund
Supporting health-improving work by charities and local groups in the communities
Relieving hardship to charities and communities in Cheshire & Warrington arising from the Covid emergency
Addressing disadvantage in Crewe under its Advancing Life Chances initiative
33
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **UNRESTRICTED FUND MOVEMENT**
|General funds
Total Unrestricted Funds|**As at 1**
**January 2022**
**£**
359,338|**Movement in Resources**
**Incoming**
**Outgoing**
**Transfers**
**£**
**£**
**£**
94,268
(304,973)
171,401
94,268
(304,973)
171,401|
**As at 31**
**December 2022**
**£**
320,034
320,034|
|---|---|---|---|
||359,338|
94,268||
## **17. MOVEMENT IN FUNDS – continued**
## **ENDOWMENT FUND MOVEMENT**
## **Movement in Resources**
|**Permanent Endowments**
Community First Funds
Warrington Young Peoples
Other funds
**Expendable Endowments**
Warrington Community
Anonymous fund
Total Endowment Funds|**As at 1**
**January 2022**
**£**
5,166,124
414,853
368,893
265,070
577,626|
**Incoming**
**£**
146,802
11,902
58,948
8,432
16,953|**Outgoing**
**£**
-
-
-
-|**Gains and Losses**
**and Transfers**
**As at 31**
**December 2022**
**£**
**£**
(883,268) 4,429,658
(63,440)
363,315
(94,427)
333,414
9,446
282,948
(65,773)
528,806
(1,097,462)
5,938,141|
|---|---|---|---|---|
||6,792,566|
243,037|-||
## **Fund**
## **Purpose**
Community First Funds Various donor funds under a 50% government match scheme promoted by UK Community Foundations to support charitable and community causes generally in Cheshire & Warrington
Warrington Young Peoples For under 25 years old young people in Warrington experiencing difficulties Warrington Community Supporting projects which meet the needs of older people in Warrington Anonymous fund Donor directed fund
34
## **CHESHIRE COMMUNITY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Transfers between funds**
During the financial year, there were transfers from Endowment funds to Restricted funds of £254,337 net. (2021: £301,171). Of this:
- Investment income of £233,037 was transferred to restricted funds in the same category
- Capital gains on disposal of fixed asset investments of £21,300 was transferred to restricted funds in the same category
- There were no transfers otherwise as the only other movements to endowment funds were their unrealised gains in the year (see note 14)
Transfers from Restricted funds to Unrestricted funds totalling £171,401 (2021: £235,928) were made in respect of management fees agreed with donors.
## **18. CONTINGENT LIABILITIES**
At the 31 December there were grants awarded of £nil (2021: £nil), where the conditions had not yet been met.
## **19. RELATED PARTY DISCLOSURES**
Aggregated trustee donations to the foundation during the year totalled £18,572 (2021: £14,500).
Zoe Sheppard, Chief Executive, sacrificed salary for the financial year (2021: sacrificed salary for the financial year).
No trustee expenses were claimed in the period (2021: £nil).
.
35