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2021-12-31-accounts

UNITED WAY ANNUAL REPORT FOR THE YEAR ENDED 31[ST ] DECEMBER 2021 CHARITY NUMBER: 1153509

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

The Trustees present their report and financial statements, for the year ended 31[st] December 2021, for the Charitable Incorporated Organisation (CIO). The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s constitution, the Charities Act 2011 and 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 (FRS102) (effective 1[st] January 2019).

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

OBJECTIVES AND ACTIVITIES

The objects of the charity are:

Public Benefit:

We are a proud member of the United Way network – the largest privately funded charity in the world. Learning from and sharing networks, expertise and experience with 1,800 United Ways in over 40 countries helps us support corporate partners and communities like no other partner can.

United Way UK is part of an international movement that empowers local communities by connecting them with individuals and organisations that seek purpose and ways to support others. We are a unique and agile platform where community need meets corporate and philanthropic goals. Our work is led by the community, so that all stakeholders can work together, amplifying impact.

We believe United Way UK has a uniquely strategic focus on local community groups within the UK voluntary sector, leveraging global expertise, results and networks to reduce inequalities.

The trustees have given consideration to the Charity Commission’s guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE

2021 was a year of significant growth for United Way UK. In 2020 we received emergency grants to deliver covid-19 support, increasing our revenue by 54%, and this new income level was maintained in 2021 even though these covid grants were not repeated, delivering a compound growth rate in 2021 of 15% against 9% in 2020.

This growth in income is reflected in a 9% growth in impact with almost 17,000 individuals supported in 2021 against 15,600 in 2020, and an overall total of more than 108,000 people supported by the end of 2021 since our 2014 launch.

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Additionally a trend towards more strategic programmes continued in 2021. We developed increasing numbers of intermediate and specialist interventions, with the individuals we support being engaged over longer periods of time at a more in-depth level. By contrast more of our interventions in earlier years have been one-off, brief interventions.

Our prudent approach to finance has continued. We have made consistent efforts to keep our running costs down and applied a full cost recovery methodology to all project proposals. In this way we have been able to maintain our reserves policy of 9 months’ coverage ratio at all times.

We continued working to diversify our revenue base. COVID prevented us holding a Reading Oasis fundraising event in 2021 which reduced income for the programme significantly. As mentioned, COVID grants received in 2020 were also absent in 2021. However youth programmes increased significantly; volunteering increased also – we are very proud of this progress given most of 2021’s operations were conducted under COVID restrictions.

A major advance during the year was securing donations from 100% of our Board of Trustees during the Live United campaign in the summer. This is unprecedented for the charity and we are very proud of the achievement and grateful to our trustees for their commitment and support. Approx £90,000 was raised by Board trustees. We secured matched funding from trustee Bill O’Dowd, and from major donors Laura Khouri and Mike Hayde. Importantly, these donations were allocated to unrestricted funds for organisation development including project staffing.

Income split across programmes 2021 and 2020:

Revenue Source Percentage 2021 Percentage 2020
Costco 36% 35%
ReadingOasis 7% 18%
Volunteering 9% 7%
Youth Programmes 21% 3%
COVID 1% 35%
Unrestricted income 22% 18%
Kickstart Government Intern
Programme
4% N/A

The following summary outlines the performance and achievements of our four main programmes in 2021: Give Local , Reading Oasis , Volunteerism and Youth .

Our partnership with Costco achieved further growth through the Give Local programme :

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UNITED WAY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Activity around developing the programme has yielded results with 1 new payroll giving partnership (ITW) launching during 2021 and another 2 (Hudl and NSF) planned to launch early in 2022. This is a significant achievement because it indicates a wider and growing appetite for our award winning Give Local programme based on a payroll giving model.

United Way UK’s Volunteerism programmes also achieved growth in 2021.

In-person services resumed to a degree in 2021, but given the unpredictable nature of covid restrictions during the year, we continued to develop new and existing remote projects around volunteering.

We launched our online Let’s Read initiative and increased online youth workshops as a way to reach more young people across the UK.

Volunteering

A total of 354 volunteers took place in volunteering programmes at UWUK during the year.

Volunteering Projects 2020 % 2021 %
in person volunteers 223 173
remote volunteers 131 58
Reading Oasis
in person volunteers 17 0
remote volunteers 0 34

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Youth Opportunities
in person volunteers 0 4
remote volunteers 0 85
Volunteers across programmes
Total in person volunteers 240 65% 177 50%
Total remote volunteers 131 35% 177 50%
Total 371 354

In 2021, the number of corporate partners donating staff time and skills in support of UWUK programmes increased to 12 (from 8 in 2020).

Total volunteering hours donated in 2021 was 1,437 (1,213 in 2020) at an estimated value to the community of £60,000 - 70,000.

Reading Oasis

Reading Oasis reached Scotland and Wales in 2021 in a significant development, and 11 libraries were installed in total during the year, an achievement of which we are very proud given COVID restrictions and hesitancy to return to normal activities remained in place for a large part of the year.

More than 12,000 books were distributed to the 11 schools with more than 3,200 children benefiting. Additionally, to support education for children we developed a new initiative, Let’s Read with Estee Lauder and Amex, where volunteers recorded videos of themselves reading aloud from books distributed throughout the Reading Oasis network.

UWUK has now supported almost 16,000 children with libraries installed in 47 schools by the end of the year.

Youth

Our Youth offering has grown considerably, from 3% of income in 2020 to 21% in 2021. Of the 614 young people supported by a wide range of programmes, 151 managed to secure employment, an achievement of which we are extremely proud.

Internally the charity supported 4 interns from the government’s Kickstart programme, one of whom we were able to take on as a full time staff member once the placement had concluded.

COVID-19 Safety

United Way UK prioritises the safety and wellbeing of staff as they were required to work from home until further notice as of 16[th] March 2020. Staff worked from home throughout 2021 in line with

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UNITED WAY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

government guidance where appropriate and to support safety while we waited for everyone to become vaccinated.

All business was successfully conducted via Zoom and Slack, our virtual office platforms, to ensure professionalism and efficiency. The CEO monitored the situation and advised staff regularly, through weekly video team meetings.

Close observation was kept on individual employees’ working conditions to ensure all employees were supported and had all the equipment they needed. The team remained effective and sustained the growth from 2020 without the high proportion of COVID grants received that year, while continuing to work from home offices.

In terms of communication, United Way UK continued to consult with stakeholders and keep them updated including:

In terms of continuity, United Way UK:

FINANCIAL REVIEW

Income totalling £519,087 (2020: £518,384) was received in the year, of which £270,204 was by way of donation (2020: £253,904). Expenditure for the year totalled £353,678 (2020: £424,714) all of which was spent on charitable activities. At 31[st] December 2021 the charity’s reserves stood at £561,468 (2020: £396,059) with £214,776 being restricted funds (2020: £187,522).

Risk Management:

The charity reviewed risk during 2021, covering the key aspects of our work including finance and reputation. Material risks were identified, reviewed and mitigated by the trustees and this will continue in the year ahead.

The main risks to the charity are:

  1. The ability to generate sufficient financial support to maintain operations and achieve charitable aims. This is mitigated by fundraising plans being under constant scrutiny by the board of trustees, many of whom have an experienced commercial background. There is also a shared responsibility to increase profile and funds raised across the staff and trustees.

  2. Reputation risk. As new projects and partnerships are established there is a risk that the small team becomes overstretched/overpromises and this damages the reputation of the charity to

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

deliver. All new proposals and projects are costed with a consideration of additional resources needed and in 2022 we will begin the process of forming a dedicated freelance team.

  1. Concentration risk. This is a known risk owing to our partnership with Costco being so significant in terms of income spread. We are working to our action plan on this, developing new and existing partnerships to diversify income streams and strengthen relationships. The Trustees are satisfied this issue is being addressed.

Reserves Policy:

The trustees aim to maintain a level of reserves to establish a sustainable entity and guard against contingencies. The charity aims to hold reserves amounting to approximately 9 months’ average expenditure in the current year, increasing the previous coverage ratio of 6 months, in order to ensure our ability to deliver under current economic uncertainties.

At the year end the organisation held unrestricted reserves of £346,692 (2020: £208,537) this is approximately 22 months’ (2020: 13.5 months’) average expenditure. The current 9 months’ average desired level is approximately £141,695 (2020: £139,775 the remaining £204,997 (2020: £68,762) is being held to finance future projects.

Plans for the Future:

We are proud of the growth we have sustained in 2021, but are looking to the future and how to build on this.

In 2021 we developed a strategic plan supported by a strategic workforce plan for 2022-24.

Our strategic plan was developed in partnership with the Q5 pop-up pro bono consultancy through workshops held with a range of stakeholders in August and September and highlights 6 strategic priorities for 2022-24 agreed by the Board in September 2021. The first 3 priorities are the ‘how’ and priorities 4-6 are the ‘what’:

1. Leverage global corporate partner relationships to extend these partnerships to the UK

2. Raise our profile

3. Improve evaluation and monitoring systems

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

4. Grow Reading Oasis We know that reading for pleasure is a key indicator for life success, but that disadvantaged children are the most likely to be excluded from this opportunity. Also that many children have missed vital educational stages as a result of lockdowns, and this is worse for disadvantaged children. So Reading Oasis is a key intervention for this particular community issue. We have built experience, expertise and key networks and relationships with the programme, and according to our research and knowledge through our relationships with Book Trust, National Literacy Trust, and Scholastic we are the only UK charity providing this intervention on an ongoing basis on a national scale. So far we have installed 47 libraries in UK schools.

5. Grow Give Local This is a tried and tested, successful flagship programme which can be replicated easily given the expertise, resources and experience we have developed.

6. Grow Corporate Volunteering This is a significant growth area and key entry point to new strategic relationships. Since launching the initiative in 2017 our partner base has grown from 2 to 12 and we are receiving new requests regularly. Lenovo is an excellent case in point. We began the relationship in 2017 with annual volunteering experiences for employees. We have delivered successful programmes each year and listened to the partner to understand their goals. A more strategic partnership resulted in 2019 through the Glasgow office with a $20,000 youth programme. Currently we have the opportunity to work with Lenovo on a £1M partnership blending in-kind community support with grant-making

We worked with a marketing agency, Still Curious, to develop a comprehensive marketing strategy including brand strategy and communications plan, in order that we can capitalise on the growth of the last 2 years, and increase support for our work thereby boosting our strategic plan.

STRUCTURE, GOVERNANCE AND MANAGEMENT

United Way is a Charitable Incorporated Organisation (CIO), registered with the Charity Commission, number 1153509 and governed by its constitution dated 22[nd] August 2013. It is also known as United Way UK.

Selection, Recruitment and Appointment of New Trustees:

Trustees are elected by the members at the Annual General Meeting (AGM). Casual vacancies may be filled by co-option on condition that trustees so appointed are formally re-elected at the following AGM. New trustees are provided with induction/orientation by the Chief Executive Officer (CEO) and given the key documents of; the constitution, recent board minutes and strategic presentations.

All trustees sign a declaration to run the charity in accordance with the guidelines set out in the Charity Commission publication CC3 – Responsibilities of Charity Trustees.

Management and Delegation:

The affairs of the charity are managed on a day to day basis by the CEO.

The trustees, in their power, have delegated the financial administration and accountancy to LCVS.

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

United Way Worldwide:

United Way is affiliated to United Way Worldwide and acts as the national body for United Way in the UK.

As a national United Way network partner, we adhere to their global standards and have agreed, amongst other criteria to adhere to the following:

Mission: Network Partner subscribes to a vision and mission that is consistent with those of United Way Worldwide:

Operations:

Verifies the use and the impact of resources invested in the community system citizenship: Provide financial and other resources to support capacity building and the network

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UNITED WAY TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY

Registered Charity Number: 1153509

Principal Office:

151 Dale Street, Liverpool, L2 2AH

Trustees:

The trustees who served during the year are as follows:

Chair Mr. Gary von Lehmden Secretary Mr. Ian Yates Treasurer Mr. Peter Badenhuizen Trustees Ms Lailany Sierra Mr. William O’Dowd Mr. Steve Pappas Ms Kathryn Pretzel-Shiels (Resigned in June 2021) Mr. Neil Maffey Mr. Nailesh Rambhal Mr. Francesco Vanni D’Archirafi (appointed September 2021) Ms. Sue Knowles (appointed April 2021) Chief Executive: Ms. Jane Hudson-Jones

Professional Advisers:

Auditors BWM Tempest, Suite 5.1, 12 Tithebarn Street, Liverpool L2 2DT

Accountancy & Liverpool Charity and Voluntary Services (LCVS) Financial Administration 151 Dale Street, Liverpool L2 2AH

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UNITED WAY STATEMENT OF TRUSTEES’ RESPONSIBILITY

The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustee is required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. It is 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.

Approved by the trustees and signed on their behalf by

Gary von Lehmden Chair of Trustees

Peter Badenhuizen Trustee - Treasurer

Dated: 12 September 2022

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UNITED WAY INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF UNITED WAY

Opinion

We have audited the financial statements of United Way (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The 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 we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such

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UNITED WAY INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF UNITED WAY

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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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:

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UNITED WAY

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF UNITED WAY

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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UNITED WAY INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF UNITED WAY

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

BWM

......23.10.2023...................

Chartered Accountants Statutory Auditor

Tempest Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

BWM is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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UNITED WAY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Year to 31st December Year to 31st December 2021
Year to
Unrestricted Restricted 31st December
Notes Funds Funds Total 2020
£ £ £ £
Income from:
Donations and legacies 3 180,025 90,179 270,204 253,904
Charitable activities 4 127,076 121,807 248,883 264,480
------------- -------------- -------------- ------------
Total 307,101 211,986 519,087 518,384
------------- -------------- -------------- ------------
Expenditure on:
Charitable activities 5 188,926 164,752 353,678 424,714
-------------- -------------- -------------- ------------
Total 188,926 164,752 353,678 424,714
-------------- -------------- -------------- ------------
Net (expenditure)/income / Net
movement in funds before 118,175 47,234 165,409 93,670
transfers between funds
Transfer between funds 10,11 19,980 (19,980) - -
-------------- -------------- -------------- ------------
Net income / Net movement in
funds after transfers between 138,155 27,254 165,409 93,670
funds
Reconciliation of funds:
Total funds brought forward 10,11 208,537 187,522 396,059 302,389
-------------- -------------- -------------- ------------
Total funds carried forward 9-11 346,692 214,776 561,468 396,059
======== ======== ======== =======

The notes on pages 20 to 30 form part of these accounts.

The net movement in funds in the year was derived from the continuing activity of the charity.

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UNITED WAY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Year to 31st December Year to 31st December 2020
Unrestricted Restricted
Notes Funds Funds Total
£ £ £
Income from:
Donations and legacies 3 117,216 136,688 253,904
Charitable activities 4 68,850 195,630 264,480
------------ ------------ ------------
Total 186,066 332,318 518,384
------------ ------------ ------------
Expenditure on:
Charitable activities 5 186,367 238,347 424,714
------------ ------------ ------------
Total 186,367 238,347 424,714
------------ ------------ ------------
Net (expenditure)/income / Net
movement in funds before (301) 93,971 93,670
transfers between funds
Transfer between funds 10,11
64,736
(64,736) -
------------ ------------ ------------
Net income / Net movement in
funds after transfers between 64,435 29,235 93,670
funds
Reconciliation of funds:
Total funds brought forward 10,11
144,102
158,287 302,389
------------ ------------ ------------
Total funds carried forward 9-11 208,537 187,522 396,059
======= ======= =======

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UNITED WAY BALANCE SHEET AS AT 31[ST] DECEMBER 2021

Note 31st December 2021 31st December 2021 31st December 2020 31st December 2020
£ £ £ £
Fixed assets:
Tangible assets 6 4,870 2,738
Current assets:
Debtors 7 120,629 19,571
Cash at bank 484,971 428,920
------------ ------------
Total current assets 605,600 448,491
Liabilities:
Creditors: amounts falling due within 8 (49,002) (55,170)
one year
------------ ------------
Net current assets 556,598 393,321
------------ ------------
Net Assets 561,468 396,059
======= =======
£ £
The funds of the charity:
Unrestricted funds 9,11 346,692 208,537
Restricted funds 9,10 214,776 187,522
------------ ------------
Total charity funds 561,468 396,059
======= =======

Approved and authorised for issue by the trustees and signed on their behalf by

Gary von Lehmden Chair of Trustees

Peter Badenhuizen

Dated: .12 September 2022

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UNITED WAY STATEMENT OF CASH FLOW FOR THE YEAR 31[ST] DECEMBER 2021

Note 31st December 2021 31st December 2021 31st December 2020 31st December 2020
Cash flows from operating activities £ £ £ £
Cash (used)/generated from operations
12 59,772 64,710
Investing activities
Purchase of intangible fixed assets - -
Purchase of tangible fixed assets (3,721) (2,909)
Interest received
---------- ----------
Net cash generated from/ (used) in
investing activities
(3,721) (2,909)
Net cash generated from financing
activities - -
---------- ----------
Net increase/(Decrease) in cash and
cash equivalents
56,051 61,801
Cash and cash equivalents at beginning
of year
428,920 367,119
------------ ------------
Cash and cash equivalents at end of
year
484,971 428,920
======= =======
Represented by:
31st December 2021 31st December 2020
£ £ £
£
Cash at bank 484,971 428,920
======= =======

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UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of Accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (SORP FRS102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) (effective 1[st] January 2019 and Charities Act 2011.

The trust constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in sterling, which is the functional currency of the Charitable Incorporated Organisation (CIO). Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the accounts, the trustees have considered and have reasonable expectation that the Charitable Incorporated Organisation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

Fund Accounting

Unrestricted funds are the charity’s free reserves available for the trustees to distribute in accordance with the charity’s charitable objectives.

Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure for the purposes is charged to the fund.

Income recognition

All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations and legacies comprise donations & sundry grants and membership subscriptions which are recognised in the accounts when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably, with the exception of known legacies which are accounted for when their receipt is certain.

Income from charitable activities is recognised on an accruals basis. Grants receivable are recognised on the date on which their unconditional payment is confirmed by the donor.

Income from other trading activities relates to fundraising income and is recognised when the amount is certain.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

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UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor.

Costs of charitable activities relate to the operation of the project comprising all management and operational overheads. Charitable activities includes grant funding to beneficiaries. These are dealt with in the Statement of Financial Activities when payment has been approved by the charity. Governance costs relate to compliance with constitutional and statutory requirements and specifically include all costs incurred by the charity in producing the Annual Report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charity.

Foreign currency expenses paid for in local currency are included in the accounts at the conversion rate on the date that the reimbursement is made.

Fixed Assets

Capital expenditure over £500 is treated as a fixed asset and is written off over its useful economic life on the following basis:

Computer Equipment – at the rate of 3 years straight line

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3. DONATIONS AND LEGACIES
2021 Unrestricted Restricted 2021
Funds Funds Total
£ £ £
Donations 107,032 90,179 197,211
Grants:
Costco 72,993 - 72,993
------------ ------------ ------------
180,025 90,179 270,204
======= ======= =======
2020
Unrestricted Restricted 2020
Funds Funds Total
£ £ £
Donations 38,476 136,688 175,164
Grants:
Costco 78,740 - 78,740
------------ ----------- ------------
117,216 136,688 253,904
======= ====== =======

22

UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

  1. INCOME FROM CHARITABLE ACTIVITIES
Unrestricted Restricted 2021 2020
Funds
Funds
Total Total
United Way in the UK £127,076
£121,807
£248,883 £264,480
======
=======
======= ========
2020: Restricted funds £195,630, unrestricted funds £68,850.

5. EXPENDITURE ON CHARITABLE ACTIVITIES

Direct Support &
Charitable Governance 2021 2020
Expenditure Costs Total Total
United Way in the UK £337,625 £16,053 £353,678 £424,714
======== ======== ======== ========
2021 2020
a. Analysed as follows:
£ £
Direct charitable expenditure:
Staff costs 191,448 164,577
Promotion and marketing 14,650 847
Reading Oasis direct costs 57,875 50,948
Give Local Grants * 45,000 45,000
Other grants * 9,045 128,490
Project delivery costs 17,441 10,821
United Way dues (9) 3,994
Fundraising development 168 6,271
Travel & subsistence 534 513
Gift aid charges 1,122 1,995
Bank charges and interest 202 561
Miscellaneous 149 168
------------ ------------
337,625 414,185
------------ ------------

23

UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Support and governance costs:
Office costs 7,528 3,818
Recruitment 225 225
Volunteer expenses - 40
Financial administration 5,000 5,000
Independent examination - 1,446
Audit 3,300 -
------------ ------------
16,053 10,529
------------ ------------
353,678 424,714
======= =======

2020: Restricted funds £238,347, unrestricted funds £186,367

During the year there were no out of pocket expenses reimbursed to trustees (2020: £nil)

2021 2020
b. Analysis of staff costs: £ £
Salaries 171,690 145,740
Social security 12,309 11,469
Pension 7,449 7,368
------------ ------------
191,448 164,577
======= =======

The average number of employees during the year was as follows:

2021 2020
Charitable activities 5 4.3
==== ====
This equated to 4 full time equivalent staff (2020: 3.6).

1 employee received emoluments of £60,000 or more during the year.

No. No.
Emoluments Employees Employees
2021 2020
£70,000 - £79,999 1 1

The trustees are not remunerated for their services and are not included in the above number of employees.

24

UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Organisations £
Ablaze Bristol 1500
Absafe SCIO 1500
DIAL South Essex 1500
Dive In Education 1500
Douglas Drive Senior Citizens association 1500
Give a dog a bone...and an animal a home 1500
Grow 1500
Headway Thames Valley 1500
Herts Young Homeless 95
Home- Start Watford and Three Rivers 1500
Impact Arts DF Prog. Grant 1100
Indian Senior Citizens Centre Manchester 1500
Ka Kits Academy CIC 1500
Leeds Baby Bank 1500
Leicestershire Leicester and Rutland Headway 1500
Making Music 1500
Minerva Arts 1500
New Beginnings 200
New Hope Global 1500
New Leaf (Derbyshire CIC) 1500
PACE Charitable Trust 1500
Riana Development Network 1500
Simpsons Special Care Babies 1500
South Chingford Community Library 1500
Southampton Children's Play Association 1500
Sports4Health CIC 1500
Stepping Stones DS 1500
Surplus to Supper 1500
Teardrops supporting your community 1500
The KAYAKS 1500
The Lewis Foundation 1500
Think Forward 7650
Tiny Tims Childrens Centre 1500
West Everton Community council 1500
------------
Total grants 54,045
=======

25

UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

6. TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Computer
Equipment Total
£ £
Cost
Balance at 1stJanuary 2021 4,152 4,152
Additions in the year 3,722 3,722
--------- ---------
Balance at 31stDecember 2021 7,874 7,874
--------- ---------
Accumulated Depreciation
Balance at 1stJanuary 2021 1,414 1,414
Charge for the year 1,590 1,590
--------- ---------
Balance at 31stDecember 2021 3,004 3,004
--------- ---------
Net Book Value at 31st December 2021 4,870 4,870
===== =====
Net Book Value at 31stDecember 2020 2,738 2,738
====== ====

All fixed assets are used in furtherance of the organisation’s charitable objectives.

7. DEBTORS
2021 2020
£
£
Prepayments 360 360
Other debtors 120,269 19,211
----------- ---------
120,629 19,571
====== =====
8. CREDITORS
2021 2020
£
£
Other creditors 33,859 36,708
Accruals 15,143 18,462
----------- -----------
49,002 55,170
====== ======

26

UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2021 Net current
Fixed Cash assets Total
assets balances /(liabilities) 2021
£ £ £ £
Unrestricted funds 4,870 305,443 36,379 346,692
------------ ------------ ------------ --------------
Restricted funds:
Reading Oasis - 37,206 - 37,206
Local Giving - 5,300 - 5,300
Give Local (Costco) - 92,114 - 92,114
AMEX - 3,600
- 3,600
Principal Foundation - - 13,500 13,500
John Deere - 9,836 - 9,836
3M GoSTEM - 24,289 - 24,289
Covid Response - 600 - 600
Lenovo Month of Service - 6,283 - 6,283
Campaigns - 300 - 300
Cellnex - - 21,748 21,748
------------ ------------ ------------ --------------
- 179,528 35,248 214,776
------------ ------------ ------------ --------------
4,870 484,971 71,627 561,468
======= ======= ======= ========
2020
Net current
Fixed Cash assets Total
assets balances /(liabilities) 2020
£ £ £ £
Unrestricted funds 2,738 237,712 (31,913) 208,537
----------- ------------ ------------ --------------
-
Restricted funds:
Reading Oasis - 66,961 922 67,883
Local Giving (Leicester) - 2,764 - 2,764
Give Local (Costco) - 83,787 (3,000) 80,787
AMEX - 17,162 - 17,162
Principal Foundation - 4,740 (4,740) -
John Deere - 6,851 - 6,851
Lenovo - Digital Future - 3,478 - 3,478
Covid Response - 8,266 - 8,266
Lenovo Month of Service - (3,253) 3,584 331
Campaigns - 452 (452) -
------------ ------------ ------------ --------------
- 191,208 (3,686) 187,522
------------ ------------ ------------ --------------
2,738 428,920 (35,599) 396,059
======= ======= ======= ========

27

UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

10. RESTRICTED FUNDS
2021 Transfers
Opening between Closing
Balance Income Expenditure Funds Balance
£ £ £ £ £
Reading Oasis 67,883 8,720 (25,198) (14,199) 37,206
Local Giving 2,764 5,300 - ( 2,764) 5,300
Give Local (Costco) 80,787 56,395 (45,068) - 92,114
AMEX 17,162 28,084 (41,646) - 3,600
Principal Foundation - 13,500 - - 13,500
John Deere 6,851 20,252 (17,268) - 9,835
Lenovo - Digital Future 3,478 11,900 (15,100) (278) -
Covid Response 8,266 - (4,927) (2,739) 600
Lenovo Month of Service 331 14,318 (8,365) - 6,284
3M GoSTEM - 24,304 (15) - 24,289
Cellnex - 21,748 - - 21,748
Campaigns - 7,465 (7,165) - 300
------------ ------------ ------------ ------------ ------------
187,522 211,986 164,752 (19,980) 214,776
======= ======= ======= ======= =======
2020
Transfer
Opening between Closing
Balance Income Expenditure Funds Balance
£ £ £ £ £
Reading Oasis 58,622 74,436 (49,360) (15,815) 67,883
Local Giving 2,656 108 - - 2,764
(Leicester)
Give Local (Costco) 62,303 63,484 (45,000) - 80,787
AMEX 29,767 - (8,605) (4,000) 17,162
Principal Foundation 4,939 17,948 (19,140) (3,747) -
John Deere - 13,922 (2,853) (4,218) 6,851
Lenovo - Digital - 14,978 (10,000) (1,500) 3,478
Future
Covid Response - 139,723 (98,083) (33,374) 8,266
Lenovo Month of Service - 7,374 (4,826) (2,217) 331
Campaigns - 345 (480) 135 -
------------ ------------ ------------ ------------ ------------
158,287 332,318 (238,347) (64,736) 187,522
======= ======= ======= ======= =======

AMEX – funding received from American Express to fund Reading Oases in a number of schools.

Campaigns - Campaigns aimed to raise money in support of a United Way UK initiative – e.g. campaign to raise funds to buy Christmas gifts for disadvantaged children.

Cellnex - Funding received to support the Youth Challenge Programme, aimed to inspire young people to follow a career in STEM and the Telecomms industry.

28

UNITED WAY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Covid Response – Funding received in support of local, grassroots charities andcommunities impacted by the socio-economic crisis generated by the COVID-19 pandemic.

Give Local (Costco) – Payroll giving monies from Costco to fund Give Local grants.

John Deere – monies given for support centred around 2 community impact areas: Food Insecurity and Youth Employability.

Local Giving (Leicester) - payroll giving monies to be used in the local area.

Lenovo - Digital Future – Programme centred on supporting disadvantaged youth from the Glasgow area to gain digital and job readiness skills.

Lenovo Month of Service – in support of Global Month of Service Project in Basingstoke and Glasgow.

Principal Foundation – funding received to assist in promoting employability and financial literacy among disadvantaged youth in London.

Reading Oasis - funds given to develop and launch ‘United Way Reading Oasis’.

Transfers between funds – monies transferred from restricted funds to cover project management and staff costs specific to each fund’s budget.

11. UNRESTRICTED FUNDS

Unrestricted funds are spent or applied at the discretion of the trustees to further any of the charity’s purposes.

12. CASH GENERATED FROM OPERATIONS

2021 2020
£ £
Surplus for the year 165,409
93,670
Adjustments for:
Depreciation 1,589
171
Movements in working capital:
Increase in debtors -101,058 -9,852
Increase/(Decrease) in creditors -6,168 -19,279
------------- -------------
Cash (used in)/generated from operations 59,772 64,710
======== ========

29

UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

13. RELATED PARTIES

Sue Knowles is a trustee of United Way and is also Marketing and Adminisrator Director at Costco. In the year Costco made a grant of £72,993 (2020: £78,740) to United Way. Sue supported the submission of United Way UK’s application for this grant but was not part of the decision making on grants. She derives no benefit from United Way in return.

William O’Dowd is a trustee of United Way and has made a non-recourse loan of USD$20,000 equating to £15,671. Interest is chargeable at 1% interest which is less than market rate.

Remuneration of key management personnel

The remuneration of key management personnel is as follows:

2021 2020
£ £
Aggregate compensation 124,921 88,904
====== ======

14. LIMITED LIABILITY OF MEMBERS

In the event of winding up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

30