Company registration number: 07663315 Charity registration number: 1143830
**RACE EQUALITY FIRST LIMITED STRATEGIC REPORT, TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026**
HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY
## **Race Equality First Limited Contents**
||**Page**|
|---|---|
|Trustees' Report|1—5|
|Independent Auditor's Report|6—8|
|Statement of Financial Activities (including Income and Expenditure Account)|9|
|Comparative Statement of Financial Activities (including Income and Expenditure Account)|10|
|Balance Sheet|11|
|Statement of Cash Flows|12|
|Notes to the Statement of Cash Flows|13|
|Notes to the Financial Statements|14—24|
|The following pages do not form part of the statutory accounts:||
|Detailed Statement of Financial Activities (including Income and Expenditure Account)|25—26|
## **Race Equality First Limited Company No. 07663315 Trustees' Report For The Year Ended 31 March 2026**
The trustees present their report and the financial statements for the year ended 31 March 2026.
## **Objectives and Activities**
## **Aims and Objectives**
Race Equality First is an independent charity working in Wales to promote equality. We offer a range of services including free, confidential advice and support to victims of discrimination/harrassment. We also offer advice, training, and information relating to equalities. We provide information about equality and a lobby voice for issues regarding diversity.
## **Significant Activities**
This has been a year of significant growth, strategic achievement, and sustained impact for Race Equality First. Despite operating with a small team of 13 staff, we have secured substantial multi-year funding and delivered a wide breadth of activity across Wales. Most notably, in March, we secured over £1.2 million from the National Lottery Community Fund for Climate Justice Cymru, a flagship project running from June 2026 to May 2029. Alongside this, we strengthened our partnership with Welsh Government through the Anti-racist Wales Action Plan, securing funding for two major initiatives: one advancing race equality at a systems level, and another supporting Black, Asian and Minority Ethnic individuals to engage in democratic processes and pursue careers in politics. Complementing this, Electoral Commission funding has enabled the delivery of non-partisan voter education and registration work.
We have maintained strong delivery across our established projects, many exceeding targets. Know Your Rights, Live By Your Rights has continued to provide critical advocacy and community-based support across all regions of Wales, addressing complex issues including housing, immigration, and access to public services. MEE in Mind has delivered targeted, personcentred interventions, supporting individuals to navigate financial hardship, housing challenges, and health inequalities. Healthy Minds concluded this year, leaving a strong legacy of impact across Wales. We extend our sincere thanks to Farah Hassan for her management of this project over the past three years.
Our commitment to supporting vulnerable communities remains central. Through the Carers Support Fund, Short Breaks Scheme, and Carers Money Matters initiative, we have provided vital financial and wellbeing support to unpaid carers facing ongoing cost-of-living pressures. Our Independent Age programme has also made a meaningful difference to over 300 older women from minority ethnic backgrounds. Our partnership with ARA concluded successfully, engaging 1,000 individuals in addressing gambling-related harm.
This year also marked an expansion in organisational capacity, with the appointment of a Training and Engagement Officer, two Community Engagement Officers and a Senior Research Officer to meet growing demand and lead our work on palliative and end-of-life care.
Our training and education offer has grown significantly, delivering anti-racism and cultural awareness training to thousands across schools, public bodies, and organisations, contributing to wider systemic change.
We remain in a strong financial position, with healthy reserves across core and project funding streams, reflecting robust financial management and continued funder confidence.
Our work demonstrates that meaningful change is possible when communities are empowered and inequalities are addressed with urgency and expertise. We thank our partners, funders, and communities for their continued support .
## **Public Benefit**
The Charity is a voluntary and charitable organisation which aims to work towards the elimination of racial discrimination, promote equality of opportunity across all protected characteristics within the Equality Act 2010 and promote good relations between persons of different racial groups.
The Organisation's aims are currently achieved through the delivery of 12 services/projects at Race Equality First: Discrimination Casework Service; Advocacy for Victims of Hate Crime; Advocacy for Ethnic Minority People; Training; Policy Development; health advocacy; wellbeing activities & support; cultural awareness programmes; research programmes; Campaigning & Lobbying; Annual Schools against Racism Poster Competition and anti-discrimination workshops in local schools.
The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.
Page 1
**Race Equality First Limited Trustees' Report (continued) For The Year Ended 31 March 2026**
## **Financial Review**
## **Reserves Policy**
Our organisational reserves serve two purposes:
Firstly, they mitigate risk, allowing us to navigate through periods of unexpected drops in income or sudden short-term increases in expenditure;
Secondly, our reserves provide a pool of resources which can be utilised when we need to cover gaps in funding, for example, if we need to hire staff ahead of project commencement.
The ongoing cost of living has required Race Equality First to continue to adapt and find alternative solutions and resources to find new ways to manage the needs of our beneficiaries.
The surplus reserves allow Race Equality First to manage change and create a more robust organisational structure. Over the next financial year, 2026-2027, the following activities and strategic developments are planned for the Organisation:-
- Maintaining the redundancy fund to £89,462 to reflect the current staffing levels Continuity of our core services, research and additional staff roles from our strategic reserves of £213,729 A review and updated CERD Shadow Report for Wales and delegation to the United Nations in Geneva at a cost of £51,866
Funds have been designated by the Trustees to reflect the needs noted above as required.
## **Funds Materially in Deficit**
There were no funds in deficit as at 31 March 2026 with any overspends being met from unrestricted reserves.
## **Principal Funding Sources**
Our principal funding sources in the year are detailed in note 4 to the financial statements.
## **Investment Policy and Objectives**
The investment policy the Trustees have adopted is designed to generate returns at low risk and is regularly reviewed by the Finance committee. Any income not used during the year is re-invested into the activities of the charity.
## **Principal Risk and Uncertainties**
## _General Risk_ Management
The trustees have identified and reviewed the major risks to which the Charity is exposed.
Both manual and automated checks are regularly evoked, particularly those relating to the operations and finance of the Charity. The trustees are satisfied that these systems and procedures mitigate any perceived risks. As part of that risk management the trustees have created a reserve to meet redundancy costs and to cover overhead costs for six months in unlikely circumstances where it no longer received funding.
The strategic report was approved by the trustees of the charity on 13 May 2026 and signed on its behalf by:
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2026.
## **Risk Management**
The trustees have identified and reviewed the major risks to which the Charity is exposed.
Both manual and automated checks are regularly evoked, particularly those relating to the operations and finance of the Charity. The trustees are satisfied that these systems and procedures mitigate any perceived risks. As part of that risk management the trustees have created a reserve to meet redundancy costs and to cover overhead costs for six months in unlikely circumstances where it no longer received funding.
Page 2
**Race Equality First Limited Trustees' Report (continued) For The Year Ended 31 March 2026**
## **Structure, Governance and Management**
## **Governing Document**
The Charity is constituted as a company limited by guarantee and as such, its governing documents are its Memorandum and Articles of Association. Its Charity Number is 1143830 and Company Registration 7663315.
## **Trustee Selection Methods**
Trustees are elected by members.
Trustees are appointed in accordance with the procedure set out in the articles of association. A copy of the articles of association are available from the Company Secretary at the registered office address.
## **Induction and Training of Trustees**
New Trustees have access to sessions to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the Charity. Trustees have regular opportunity to meet key employees and other Trustees. Trustees are able to attend appropriate external training events where these will facilitate the undertaking of the role. A Director/Trustee Handbook has been compiled to provide key information and is available to all current Trustees.
## **Key Management Remuneration**
None of the trustees have any beneficial interest in the Company.
## **Organisational Structure**
The Company is run day to day by the Chief Executive Officer.
The day to day running of the Charity and delivery of projects is under the control of the CEO and her staff. The CEO reports directly to the Board of Trustees.
Page 3
**Race Equality First Limited Trustees' Report (continued) For The Year Ended 31 March 2026**
## **Reference and Administrative Details**
## **Trustees**
Mrs S Khan Mr H Dela Cruz Mr K Osman Mr K K Manneh Mr M T Idris Professor M Upadhyaya (resigned 15/01/2026) Ms S Jamal Captain C S Burton Ms R Roberts Mrs M J Khatib (resigned 16/01/2026) Mr G S Randhawa
## **Company Secretary**
Mrs A Mohammed
## **Charity Number**
1143830
## **Company Number**
07663315
## **Registered Office**
First Floor West 113-116 Bute Street Cardiff CF10 5EQ
## **Accountants**
HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY
## **Auditors**
HSJ Audit Limited Severn House Hazell Drive Newport NP10 8FY
Page 4
## **Race Equality First Limited Trustees' Report (continued) For The Year Ended 31 March 2026**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Race Equality First Limited for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statement unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anytime the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for 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 the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Statement of Disclosure of Information to Auditors**
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
- so far as the trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware; and
they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
## **Small Company Rules**
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The trustees' report was approved by the board of trustees and signed on its behalf by:
Mr K K Manneh Trustee 18 May 2026
Page 5
## **Independent Auditor's Report to the Members of Race Equality First Limited**
## **Opinion**
We have audited the financial statements of Race Equality First Limited (the "charity") for the year ended 31 March 2026 which comprise the Statement of Financial Activities (including Income and Expenditure Account), Balance Sheet, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 March 2026 and of its incoming resources and application of resources, 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 the provisions available for small entities, in the circumstances set out in note 24 to the financial statements, 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 charitable company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on Other Matters Prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Trustees' Report, which includes the Strategic Report and Director's 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 Strategic Report and Director's Report included within the Trustees' Report have been prepared in accordance with applicable legal requirements.
Page 6
## **Independent Auditor's Report (continued) to the Members of Race Equality First Limited**
## **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 Strategic Report or the Director's Report included within the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- 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 or 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; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the Trustees' Responsibilities Statement set out on page 1—5, the trustees (who are also 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 charity 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We corroborated our enquiries of management by review of correspondence with HMRC and The Charity Commission and other regulatory bodies.
- We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.
Based on the results of our risk assessment we designed our audit procedures to identify and address material misstatements in relation to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 7
## **Independent Auditor's Report (continued) to the Members of Race Equality First Limited**
## **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 that 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.
Mr Andrew Hill FCCA ACA DChA BFP (Senior Statutory Auditor) for and on behalf of HSJ Audit Limited, Statutory Auditor
18 May 2026
HSJ Audit Limited Severn House Hazell Drive Newport NP10 8FY
Page 8
## **Race Equality First Limited Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2026**
|**Notes**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**3**
Charitable activities:
**4**
Grants
Other trading activities
**5**
Investments
**6**
Other
**EXPENDITURE ON:**
Charitable activities:
**8**
Grants
Prevention of racial discrimination
**NET (EXPENDITURE)/INCOME**
Transfers between funds
**20**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**20**|**Unrestricted**
**funds**
**£**
14,077
17,567
7,403
3,725
-|**Restricted**
**funds**
**£**
-
958,344
5,230
-
-|**2026**
**Total**
**funds**
**£**
14,077
975,911
12,633
3,725
-|**2025**
**Total**
**funds**
**£**
21,819
820,422
14,830
2,367
13,772|
|---|---|---|---|---|
||42,772|963,574|1,006,346|873,210|
||(394)
(23,835)|(132,503)
(867,016)|(132,897)
(890,851)|(158,191)
(685,690)|
||(24,229)|(999,519)|(1,023,748)|(843,881)|
||18,543
(25,866)|(35,945)
25,866|(17,402)
-|29,329
-|
||(7,323)
509,552|(10,079)
149,108|(17,402)
658,660|29,329
629,332|
||502,229|139,029|641,258|658,661|
The notes on pages 13 to 24 form part of these financial statements.
Page 9
## **Race Equality First Limited Comparative Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2026**
|**Notes**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**3**
Charitable activities:
**4**
Grants
Other trading activities
**5**
Investments
**6**
Other
**EXPENDITURE ON:**
Charitable activities:
**8**
Grants
Prevention of racial discrimination
**NET INCOME**
Transfers between funds
**20**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**20**|**Unrestricted**
**funds**
**£**
21,819
-
14,830
2,367
4,662|**Restricted**
**funds**
**£**
-
820,422
-
-
9,110|**2025**
**Total**
**funds**
**£**
21,819
820,422
14,830
2,367
13,772|
|---|---|---|---|
||43,678|829,532|873,210|
||-
19,622|(158,191)
(705,312)|(158,191)
(685,690)|
||19,622|(863,503)|(843,881)|
||63,300
14,936|(33,971)
(14,936)|29,329
-|
||78,236
431,317|(48,907)
198,015|29,329
629,332|
||509,553|149,108|658,661|
The notes on pages 13 to 24 form part of these financial statements.
Page 10
## **Race Equality First Limited Balance Sheet As At 31 March 2026**
|**Notes**
**FIXED ASSETS**
Intangible Assets
**13**
Tangible Assets
**14**
**CURRENT ASSETS**
Debtors
**15**
Cash at bank and in hand
**Creditors: Amounts Falling Due Within One Year**
**16**
**NET CURRENT ASSETS (LIABILITIES)**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS OF THE CHARITY**
Restricted Funds
Unrestricted Funds
**TOTAL FUNDS**
**20**|**Unrestricted**
**funds**
**£**
5,872
12,799|**Restricted**
**funds**
**£**
-
-|**2026**
**Total**
**funds**
**£**
5,872
12,799|**2025**
**Total**
**funds**
**£**
8,221
9,114|
|---|---|---|---|---|
||18,671
135,715
378,458|-
-
139,029|18,671
135,715
517,487|17,335
125,632
534,505|
||514,173
(30,615)|139,029
-|653,202
(30,615)|660,137
(18,811)|
||483,558|139,029|622,587|641,326|
||502,229|139,029|641,258|658,661|
||502,229|139,029|641,258|658,661|
||||139,029
502,229|149,108
509,553|
||||641,258|658,661|
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
On behalf of the board
Mr K K Manneh
Trustee 17 May 2026
The notes on pages 13 to 24 form part of these financial statements.
Page 11
**Race Equality First Limited Statement of Cash Flows For The Year Ended 31 March 2026**
|**Notes**
**Cash flows from operating activities**
Net cash (used in)/generated from operations
**1**
Interest paid
Net cash (used in)/generated from operating activities
**Cash flows from investing activities**
Purchase of intangible assets
Purchase of tangible assets
Interest received
Net cash used in investing activities
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
**2**
Cash and cash equivalents at end of year
**2**|**2026**
**£**
(13,473)
(412)
(13,885)
-
(6,857)
3,725
(3,132)
(17,017)
534,505
517,488|**2025**
**£**
9,271
(303)|
|---|---|---|
|||8,968|
|||(9,396)
(9,110)
2,367|
|||(16,139)|
||||
|||(7,171)
541,676|
|||534,505|
Page 12
## **Race Equality First Limited Notes to the Statement of Cash Flows For The Year Ended 31 March 2026**
## 1. **Reconciliation of (expenditure)/income to cash (used in)/generated from operations**
|Net (expenditure)/income
_Adjustments for:_
Interest expense
Interest income
Amortisation of intangible assets
Depreciation of tangible assets
_Movements in working capital:_
Increase in trade and other debtors
Increase/(decrease) in trade and other creditors
Net cash (used in)/generated from operations|**2026**
**£**
(17,402)
412
(3,725)
2,349
3,172
(10,083)
11,804
(13,473)|**2025**
**£**
29,329
303
(2,367)
1,175
3,650
(11,385)
(11,434)|
|---|---|---|
|||9,271|
2. **Cash and cash equivalents**
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
|**2026**
**£**
Cash at bank and in hand
517,487
3.
**Analysis of changes in net funds**
**As at 1 April**
**2025**
**Cash flows**
**£**
**£**
Cash at bank and in hand
534,505
(17,018)|**2025**
**£**
534,505|
|---|---|
||**As at 31**
**March 2026**
**£**
517,487|
Page 13
**Race Equality First Limited Notes to the Financial Statements For The Year Ended 31 March 2026**
## 1. **General Information**
Race Equality First Limited is a company limited by guarantee, incorporated in England & Wales, registered number 07663315 and registered charity number 1143830. The registered office is First Floor West, 113-116 Bute Street, Cardiff, CF10 5EQ.
## 2. **Accounting Policies**
## 2.1. **Basis of Preparation of Financial Statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
The charitable company is a Public Benefit Entity as defined by FRS 102.
## 2.2. **Going Concern Disclosure**
The trustees have not identified any material uncertainties related to events or conditions that may cast significant doubt about the charitable company's ability to continue as a going concern.
## 2.3. **Fund Accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated funds comprise unrestricted funds that have been set aside by the trustees for a specific purpose.
Restricted funds are to be used for specific purposes as laid down by the donor.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## 2.4. **Incoming Resources**
All income is recognised once the charity has entitlement to the income, it is porbable that the income will be received and the amount of the income receivable can be measured reliably.
## _**Donations and legacies**_
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 by the charity 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 these conditions will be fulfilled in the reporting period.
## _**Grants receivable**_
Grants are accounted for in the financial year to which they relate. Grants received to finance the cost of fixed assets are recognised as restricted funds and used to finance the annual depreciation charge.
## _**Deferred income**_
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
The donor specifies that the grant or donation must only be used in future accounting periods; or The donor has imposed conditions which must be met before the charity has unconditional entitlement.
## _**Investment income**_
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## _**Income from charitable activities**_
Income from charitable activities includes income recognised as earned (as the related services are provided) under contract.
Page 14
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 2.5. **Resources Expended**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Expenditure on charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Grants payable**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
## _**Governance costs**_
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed expenses.
## 2.6. **Intangible Fixed Assets and Amortisation - Other Intangible**
Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives as follows:
## Website development
## 25% straight line
## 2.7. **Tangible Fixed Assets and Depreciation**
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Fixtures & Fittings
25% straight line
## 2.8. **Cash and Cash Equivalents**
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
## 2.9. **Taxation**
The charity is exempt from tax as all its income is charitable and applied for charitable purposes.
## 2.10. **Pensions**
The charitable company operates a defined pension contribution scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
## 2.11. **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Page 15
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 2.12. **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## 3. **Income from Donations and Legacies**
|.
**Income from Donations and Legacies**|||
|---|---|---|
||**2026**|**2025**|
||**Unrestricted**|**Unrestricted**|
||**funds**|**funds**|
||**£**|**£**|
|Donations and gifts|14,077|21,819|
## 4. **Income from Charitable Activities**
|4.
**Income from Charitable Activities**||||
|---|---|---|---|
|Grants:
Grants
Grants:
Grants
Grants, included above, are as follows:
Welsh Government - MEE in Mind
CSF Amser
Know Your Rights, Live By Your Rights
Carers Support Fund
Healthy Minds
Independent Age
Awards for All
Chance for Change
Macmillan
WG ArWAP
Electoral Commission
Carers Money Matters
Continuity & Research Funds|**Unrestricted**
**funds**
**£**
17,567|**Restricted**
**funds**
**£**
958,344|**2026**
**Total**
**funds**
**£**
975,911|
||**Unrestricted**
**funds**
**£**
-|**Restricted**
**funds**
**£**
820,422|**2025**
**Total**
**funds**
**£**
820,422|
||**Unrestricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
17,567|**Restricted**
**funds**
**£**
202,142
87,360
166,772
90,739
74,987
41,235
-
125,139
37,450
110,520
10,000
12,000
-|**2026**
**Total**
**funds**
**£**
202,142
87,360
166,772
90,739
74,987
41,235
-
125,139
37,450
110,520
10,000
12,000
17,567|
||17,567|958,344|975,911|
Page 16
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
|Welsh Government - MEE in Mind
CSF Amser
Know Your Rights, Live By Your Rights
Carers Support Fund
Healthy Minds
Independent Age
Awards for All
Chance for Change
Macmillan
WG ArWAP
Electoral Commission
Carers Money Matters
Continuity & Research Funds
.
**Income from Other Trading Activities**
Income from other trading activities
Income from other trading activities
.
**Investment Income**
Bank interest receivable|**Unrestricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-|**Restricted**
**funds**
**£**
207,100
87,360
166,396
93,021
149,464
20,618
20,000
74,067
2,396
-
-
-
-|**2025**
**Total**
**funds**
**£**
207,100
87,360
166,396
93,021
149,464
20,618
20,000
74,067
2,396
-
-
-
-|
|---|---|---|---|
||-|820,422|820,422|
||**Unrestricted**
**funds**
**£**
7,403|**Restricted**
**funds**
**£**
5,230|**2026**
**Total funds**
**£**
12,633|
||**Unrestricted**
**funds**
**£**
14,830|**Restricted**
**funds**
**£**
-|**2025**
**Total funds**
**£**
14,830|
|||**2026**
**Unrestricted**
**funds**
**£**
3,725|**2025**
**Unrestricted**
**funds**
**£**
2,367|
## 5. **Income from Other Trading Activities**
## 6. **Investment Income**
Page 17
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 7. **Net Income/(Expenditure)**
The net (expenditure)/income is stated after charging/(crediting):
|he net (expenditure)/income is stated after charging/(crediting):|||
|---|---|---|
||**2026**|**2025**|
||**£**|**£**|
|Operating lease rentals|28,000|28,000|
|Depreciation of tangible fixed assets - owned|3,172|3,650|
|Amortisation of intangible fixed assets|2,349|1,175|
|Gain/Loss on disposal of tangible fixed assets|-|(9,110)|
## 8. **Analysis of Expenditure**
|Grants
Prevention of racial discrimination
Grants
Prevention of racial discrimination|**Activities**
**undertaken**
**directly**
**£**
132,897
818,260|**Support**
**costs**
(see note 9)
**£**
-
72,591|**2026**
**Total**
**£**
132,897
890,851|
|---|---|---|---|
||951,157|72,591|1,023,748|
||**Activities**
**undertaken**
**directly**
**£**
158,191
594,107|**Support**
**costs**
(see note 9)
**£**
-
91,583|**2025**
**Total**
**£**
158,191
685,690|
||752,298|91,583|843,881|
## 9. **Support Costs**
|Employee costs
Premises expenses
General administration
Governance costs|**2026**
**Prevention of**
**racial**
**discrimination**
**£**
119
34,159
34,533
3,780|
|---|---|
||72,591|
Page 18
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
|Employee costs
Premises expenses
General administration
Governance costs|**2025**
**Prevention of**
**racial**
**discrimination**
**£**
17,135
37,404
33,384
3,660|
|---|---|
||91,583|
## 10. **Auditor's Remuneration**
Remuneration received by the charitable company's auditors and their associates during the year was as follows:
|**Audit Services**
Audit of the company's financial statements
11.
**Staff Costs**
Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs|**2026**
**£**
3,780
**2026**
**£**
515,337
68,051
11,101
594,489|**2025**
**£**
3,660|
|---|---|---|
|||**2025**
**£**
402,986
42,923
9,522|
|||455,431|
The number of employees whose employee benefits (excluding employer pension costs) for the reporting period exceeded £60,000 was:
|£80,000 to £89,999
12.
**Average Number of Employees**
Average number of employees during the year was as follows:
Prevention of racial discrimination|**2026**
1
**2026**
12
12|**2025**
1|
|---|---|---|
|||**2025**
10|
|||10|
Page 19
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 13. **Intangible Assets**
|**Cost**
As at 1 April 2025
As at 31 March 2026
**Amortisation**
As at 1 April 2025
Provided during the period
As at 31 March 2026
**Net Book Value**
As at 31 March 2026
As at 1 April 2025
14.
**Tangible Assets**
**Cost**
As at 1 April 2025
Additions
As at 31 March 2026
**Depreciation**
As at 1 April 2025
Provided during the period
As at 31 March 2026
**Net Book Value**
As at 31 March 2026
As at 1 April 2025
15.
**Debtors**
**Due within one year**
Prepayments and accrued income
Other debtors|**2026**
**£**
8,207
127,508
135,715|**Other**
**£**
9,396|
|---|---|---|
|||9,396|
|||1,175
2,349|
|||3,524|
|||5,872|
|||8,221|
|||**Fixtures &**
**Fittings**
**£**
13,414
6,857|
|||20,271|
|||4,300
3,172|
|||7,472|
|||12,799|
|||9,114|
|||**2025**
**£**
8,178
117,454|
|||125,632|
Page 20
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 16. **Creditors: Amounts Falling Due Within One Year**
|6.
**Creditors: Amounts Falling Due Within One Year**|||
|---|---|---|
|Trade creditors
Accruals and deferred income|**2026**
**£**
16,320
14,295
30,615|**2025**
**£**
3,166
15,645|
|||18,811|
## 17. **Deferred Income**
Deferred income movements in the year were as follows:
|Balance at the start of the period
Amounts released in income from previous periods
Balance at the end of the period|**2026**
**£**
-
-|**2025**
**£**
12,190
(12,190)|
|---|---|---|
||-|-|
## 18. **Other Commitments**
The total of future minimum lease payments under non-cancellable operating leases are as following:
|Not later than one year|**2026**
**£**
28,000
28,000|**2025**
**£**
28,000|
|---|---|---|
|||28,000|
## 19. **Pension Commitments**
The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
During the year the charge to the statement of financial activities in respect of defined contribution schemes was £11,101 (2025: £9,522).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
Page 21
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
|20.
**Movement in Funds**
**Unrestricted funds**
General:
General unrestricted fund
Designated:
Continuity & research Funds
Redundancy Funds
Cost of Living Support Fund
**Total unrestricted funds**
**Restricted funds**
Healthy Minds
WG MEE in Mind 2020
Community Events & Activities
Interfaith
Independent Age
Carers Support Fund
CSF Amser
Know Your Rights, Live by Your Rights
Awards for All
Chance For Change
Macmillan/Marie Curie
WG Candidate Diversity
Electoral Commission
Carers Money Matters
WG ArWAP
**Total restricted funds**
**Total funds**
**Unrestricted funds**
General:
General unrestricted fund
Designated:
Continuity & research Funds|**As at 1 April**
**2025**
**£**
144,343
238,601
89,462
37,146|**Income**
**£**
25,205
17,567
-
-|**Expenditure**
**£**
55,356
(42,439)
-
(37,146)|**Transfers**
**£**
(25,866)
-
-
-|**As at 31**
**March 2026**
**£**
199,038
213,729
89,462
-
303,191
502,229
-
-
39,345
817
19,046
-
-
9,642
-
15,723
7,531
-
2,636
339
43,950
139,029
641,258
**As at 31**
**March 2025**
**£**
144,344
238,601
...CONTINUED|
|---|---|---|---|---|---|
||365,209|17,567|(79,585)|-||
||509,552|42,772|(24,229)|(25,866)||
||-
54,568
35,115
9,750
20,188
-
-
9,981
17,210
-
2,296
-
-
-
-|74,987
202,142
5,230
-
41,235
90,739
87,360
166,772
-
125,139
37,450
-
10,000
12,000
110,520|(78,804)
(268,784)
(1,000)
(8,933)
(42,377)
(92,518)
(91,347)
(167,111)
(17,213)
(109,416)
(32,215)
(4,206)
(7,364)
(11,661)
(66,570)|3,817
12,074
-
-
-
1,779
3,987
-
3
-
-
4,206
-
-
-||
||149,108|963,574|(999,519)|25,866||
|||||||
||658,660|1,006,346|(1,023,748)|-||
||**As at 1 April**
**2024**
**£**
95,120
186,735|**Income**
**£**
43,678
-|**Expenditure**
**£**
27,756
-|**Transfers**
**£**
(22,210)
51,866||
Page 22
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
|Redundancy Funds
UN Fund
Cost of Living Support Fund
**Total unrestricted funds**
**Restricted funds**
Healthy Minds
MEC Health Fair
Santander
WG MEE in Mind 2020
Community Events & Activities
Interfaith
Independent Age
Carers Support Fund
CSF Amser
Know Your Rights, Live by Your Rights
Awards for All
Chance For Change
Macmillan/Marie Curie
**Total restricted funds**
**Total funds**|89,462
60,000
-|-
-
-|-
(8,134)
-|-
(51,866)
37,146|89,462
-
37,146|
|---|---|---|---|---|---|
||336,197|-|(8,134)|37,146|365,209|
||431,317|43,678|19,622|14,936|509,553|
||10,336
6,505
89,571
46,738
35,115
9,750
-
-
-
-
-
-
-|149,464
-
-
207,100
-
-
20,618
93,020
87,360
166,397
20,000
83,177
2,396|(162,635)
(6,505)
(52,425)
(199,270)
-
-
(430)
(104,736)
(90,887)
(156,416)
(2,790)
(87,309)
(100)|2,835
-
(37,146)
-
-
-
-
11,716
3,527
-
-
4,132
-|-
-
-
54,568
35,115
9,750
20,188
-
-
9,981
17,210
-
2,296|
||198,015|829,532|(863,503)|(14,936)|149,108|
|||||||
||629,332|873,210|(843,881)|-|658,661|
## _**Restricted funds:**_
- WG MEE in Mind: A project supporting members of diverse communities to receive appropriate care when engaging with health and social care providers and supporting health service providers to better understand the cultural and religious needs of Black and Minority Ethnic people when planning healthcare provision. Independent Age: To support older Black and Minority Ethnic women facing financial hardship.
- NLCF Healthy Minds: Providing education, support, wellbeing services, activities and counselling to Black and Minority Ethnic people experiencing mental health issues. Carers Support Fund and Carers Money Matters: Providing small grants to unpaid carers in South Wales.
- Know Your Rights, Live by Your Rights: Educating Black and Ethnic Minority people across Wales about their civil and legal rights, how to combat barriers to public services; and how to challenge discrimination.
- Carers Trust Wales Short Breaks Fund: providing grants for short trips and activities to unpaid carers in South Wales. Macmillan: A research project looking at the Palliative and End of Life Care experiences of Black and Minority Ethnic people in South Wales.
- WG ArWAP: Advancing race equality at a systems level.
- WG Candidate Diversity: Supporting Black, Asian and Minority Ethnic individuals to engage in democratic processes and pursue careers in politics.
- Electoral Commission: Delivery of non-partisan voter education and registration work. Chance for Change: Addressing gambling-related harm in minority ethnic communities . Interfaith: A multi-cultural group for community faith leaders to share information and work collaboratively.
## _**Designated funds:**_
- Continuity & Research Funds: continuity of our core services, research and additional staff roles from our strategic reserves.
- Redundancy Funds: allocated by the Trustees to ensure adequate reserves are held to meet the charities obligations should it ever be wound up.
- UN Fund: a review and updated CERD Shadow Report for Wales and delegation to the United Nations in Geneva. Cost of Living Support Fund: to provide cost of living and digital grants. Page 23
## **Race Equality First Limited Notes to the Financial Statements (continued) For The Year Ended 31 March 2026**
## 21. **Transactions with Trustees**
None of the trustees received any remuneration or any other benefits from an employment with the charity or a related entity during the current or previous year.
No trustee expenses have been incurred.
## 22. **Related Party Disclosures**
There have been no related party transactions in the reporting period that require disclosure.
## 23. **Company limited by guarantee**
The company is limited by guarantee and has no share capital.
Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.
## 24. **FRC's Ethical Standard - Provision Available for Small Entities**
In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
Page 24
## **Race Equality First Limited Detailed Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2026**
|**INCOME AND ENDOWMENTS FROM:**
**Donations and legacies**
Donations and gifts
**Charitable Activities:**
**Grants**
Grants
**Other trading activities**
Income from other trading activities
**Investments**
Bank interest receivable
**Other**
Gain on disposal of tangible fixed assets held for charity's own use
Other income
**EXPENDITURE ON:**
**Charitable Activities:**
**Grants**
Grant funding of activities
**Prevention of racial discrimination**
Wages and salaries
Employers NI
Employers pensions - defined contribution schemes
Travel and subsistence expenses
Temporary staff
Consultancy fees
Direct project costs
Events & activities
Computer software, IT consumables and maintenance
Repairs, renewals and maintenance
Insurance
Marketing and advertising costs
Data and telecommunications costs
Printing, postage and stationery|**2026**
**Total**
**funds**
**£**
14,077|**2025**
**Total**
**funds**
**£**
21,819
21,819
820,422
820,422
14,830
14,830
2,367
2,367
9,110
4,662
13,772
873,210
(158,191)
(158,191)
(402,986)
(42,923)
(9,522)
(37,060)
-
(35,389)
17,842
(27,644)
(9,619)
(1,691)
(2,955)
(22,460)
(6,354)
(7,644)
...CONTINUED|
|---|---|---|
||14,077
975,911||
||975,911
12,633||
||12,633
3,725||
||3,725
-
-||
||-||
||1,006,346
(132,897)||
||(132,897)
(515,337)
(68,051)
(11,101)
(35,891)
(2,462)
(37,379)
(9,878)
(76,775)
(9,998)
(934)
(3,113)
(22,826)
(7,783)
(10,396)||
Page 25
## **Race Equality First Limited Detailed Statement of Financial Activities (including Income and Expenditure Account) (continued) For The Year Ended 31 March 2026**
|Subscriptions
Depreciation
Amortisation
Bank charges
Staff training
Rent
Rates
Light and heat
Cleaning
Legal fees
Sundry expenses
Audit fees
**NET (EXPENDITURE)/INCOME**|(403)
(3,172)
(2,349)
(412)
(119)
(28,121)
(1,449)
(2,874)
(1,715)
(287)
(34,246)
(3,780)|(574)
(3,650)
(1,175)
(303)
(17,135)
(32,667)
(827)
(1,979)
(1,931)
(3,676)
(29,708)
(3,660)|
|---|---|---|
||(890,851)|(685,690)|
||(1,023,748)|(843,881)|
||(17,402)|29,329|
Page 26