UNITED WAY ANNUAL REPORT FOR THE YEAR ENDED 318T DECEMBER 2023 CHARITY NUMBER: 1153509 UNITED WAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILI￿ FOR THE YEAR ENDED 31ST DECEMBER 2023 The Trustees present their report and financial statements, for the year ended 31 $1 December 2023, for the Charitable Incorporated Organisalion (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 Accounts'ng and Reporling by Chariliés.. Statement of Rceommcndcd Pra¢ti¢e applicablo to eharitias prgparing their accounts in 2eeord8nr.p. with thp. Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 (effèctive 1. 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 Pra￿lc8 for charitses civvlyiiiy Ffts 102 lather than the version of the vtal¢ment of Recommended Practice which is referred to in the Regulats'ons but vthich has since beén withdrawn. OBJECTIVES AND ACTIVITIES Thè objects of the charity are: {1) To promote the efficiency and effectiv8n8ss of charibes by providing leadership. guidance and support to any charity in the UK wothing towards or m8eting United Way m8mbership standards. 121 To promote any charitable purposes and in particular, the advancement of education, the promotion of hèalthy lives and the support of sustainable income. Publlc Beneflt." We are a proud member of the United Way ne￿Ork - the largest privately funded charity in the world. Learning from and shanng ne￿OrkS. experknse and experience with 1.800 Uniled Ways In Over 40 counlries hélps us support corporate partners and communits'es like no other partnèr can. United Way UK is part ot an International movement that empowers local communltSe5 by GUllll¥LtiIiy them with individuals and organisalions that seek purpose and ways lo support others. We are a unique and agile platform where community need meets corporate and philanthropic goals. Ourwork 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 nètsvort(s to reduce inequalities. The trustees have given consideration to the Charity Commission's guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Introductson We are pleased to present the Trustees Annual Report for United Way UK for the year ended 31 Decernber 2023. In spite of the significant challenges faced by UK charities dunng this period of uncertainty, we can report that United Way UK has remained resilient, adaplive. and focused on our mission of creabng positiv& change in communities across the country. During 2023 we supported 22,000 people in under5erved communities across the county. working in partnership with 13 businesses, 57 charities and 300 volunteers. Notably we launched a new core United Way UK programme and. through Ihis, delivered a successful pilot project, alongside continued development and delivery of our exisbng programmes. UNITED WAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILITY FOR THE YEAR ENDED 31ST DECEMBER 2023 Stralè ic Prudence and Growth In spite of the challenging external environment. United Way UK remained steadfast in our commitment to prudent financial management. We maintained strong resèrves equivalent to eight to nine months of operating expenses, providing a solid foundation for weathering the economic sloms of 2023. Additionally, we seized opportunities for growth and innovation. exemplified by the successful launch of a new core programme developed in partnership with 3M." #DestsnationDigital. This initiative. aimed at bridging the digital divide and promotsng digital equity. leveraged donations and other resources for its inception and realisalion.. il also enabled us to extend our reach and impact. addressing a key and growing sociètal inequality. The programme direcuy supported 100 Ukrainian refugees fleeing to the UK to connect with education and employment opportunities and to develop and maintain all- important social Gonnections. This underscored our commitment to inclusivity and support for vulnerable communities. Amid61 economic ¢hg11onggs Sn 2023 for 911 s•etorg, And Rhiftino rorporate landscapes. many partners scaled back their social responsibility efforts. Unite(I Way UK embraced this as an opportunity for strategic growth and divèrsification. We developed new plans for income diversification, expanding our funding streams and cullivatsng new partnerships lo ensure the sustainability and resilience of our organisation. As a small bul yiuwiiiy vryai)isation. we inv¢sted timo in building now infrootructuro and anhancing our systems to accommodate anticipated growth in 2024 and beyond. These proactlV8 measures posib'on us for continued success and impact as we navigate evolving philanthropic and economic landscapes, including significant uncertainty at home and around the globe. Con¢luv*ion As UK charities grapplèd vAth unprecedented challenges leading up to and in 2023, United Way UK remained resilient. Many charity closures were reported, as well as significant numbers of organisations at risk of closure wth low resery8s.' businesses also suffered widespread uncertainty. Al the same time, our national infrastructure struggled lo cope while communities nèeded the support of charities more than ever. Unlted Way UK'5 uiiyuiity ¢ommitsnenl to supporting communitiea, coupled with strategic foresight and adaptability. enabled us to continue serving those in need and making a tangible difference in people's lives. Having said this. United Way UK was not immune to economic thallenges, and our income was reduced against that of 2022, reflecting Ihe pattem across United Way Worldwide. It should be noted, however, that £103,000 in grants awarded in 2022 was re￿IVed In 2023 an(J related to activity that occurred in 2023, bul recognised in 2022 debtors rather than 2023 incom8. In summary, we have emerged stronger and rn0￿ resilient wth prudent financial management and strategic innovation in place for 2024, and unwavering dedication to our mission,. we are poised for continued growth and impact in the years ahead. We extend our heartfelt thanks to our donors, partners, trustees, volunteers. and stsff for their unwavering support and commitment to building a better, more equitsble future for all. UNITED WAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILITY FOR THE YEAR ENDED 31- DECEMBER 2023 FINANCIAL REVIEW Income totalling £330.084 (2022: £691.1141 was received in the year, of which £222.094 was by way of donalion12022.' £393.1991. Expènditure for the year totalled £479,69312022. £621.0361 At 31 $1 December 2023 the charity's reseNes stood al £481.937 {2022'. £631,546) with £279,333 being r8sirlcied TunJs12022'. £377.329). In a year marked by economic volatility and heightened uncertainty. our financial pérformance reflects both the challenges and opportunities we encountered. The reduction in reserves can be attn'buted to the economic challenges experienced across all sectors in 2023, and was Primarily drivon by dgcr•#$•d Corporate resourc• availability fnr •nmmiinity Inv8Stm8nt. RISK MANAGEMENT: Tlie Charity reviewed risk during 2023, covering tho key aspccto of our work including finan¢• and reputation. Material risks werè identified, reviewed and mitigated by thè trustees and this will continue in the year ahead. Th8 main risks to the charity are.. 1 Thp. ahilily tn o*n(trate sufficient ffinancial 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. Theré is also a shared responsibility to increase profile and funds raised acro88 the 8tsff and trustees. 2. R8PUtation risk. As nèw projects and partnerships are established there is a risk that the small team becomes over8tretchodlov¢rpromiGCG ond thi¢ d)maga8 tho raputation of tha chgrily lo deliver. All new proposals and projects are costed with a consideratson of additional resourcés needed and in 2023 we will begin the process of fomiing a dedicated freelance team. 3. Concentration risk. This is a known risk ovring 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 ex151ing paflnershlps io ttfvèrsify Income streams and ¥kneiiglli#ii i¥liili01131iips. The Trustees are satisfied this issue is being addressed. RESERVES POLICY: The Iruslees aim to maintain a level of reserves to establish a sustainable entity and guard against contsngencies. The charity aims to hold resetves amounbng to approximately 9 months, average expenditure in the current year. increasing the prévious coverage ratio of 6 months, in order to ènsure our ability to deliver under current economic uncertainties. At the end of the financial year. unrestricted funds totalled £202,604 of which £3.153 is represented by tangible assets and £17,727 represented by intangible assels {see note 91. leawng surplus free reserves of £181,724 (2023.. surplus £229,155). The Organisation requires £204,403 for nine months running costs. STRUCTURE, GOVERNANCE AND MANAGEMENT United Way is a Charitable Incorporated Organisation {CIOI, registered with tt)e Charity UNITED WAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILITY FOR THE YEAR ENDED 31ST DECEMBER 2023 Commission, number 1153509 and govemed by its constitution dated 22ThY August 2013. It is also known as United Way UK. Selectlon. Recruitment and Appolntment of New Trustees." Trustees are elected by the members at the Annual General Meeting IAGMI. Casual vacancies may be filled by co-optson on conoiiion Ihat trusiees so appolnted are foTfTially I¥*1¢￿(¥ll al the following AGM. New trustees are provided with inductionlorientats'on by the Chief Executive Officer ICEOI arKI given the k8y documents ot, the constitubon. recent board minutes and strategic presentations, All trustees sign a de¢laralion to run the charity in accordan￿ with the guidelines set out in the Charity Commission publicabon CC3- Rèsponsibilities of Charity Trustees. Management and Delegatlon.. Thé affairs of the charity are managed on a day to day basis by the CEO. The trusle6s, in their power. have delegated the financial administrab'on and aC￿U￿tanCY to LCVS. Unlted Way Worldwlde.. United Way is affiliated to United Way Woddwide and acts as the national body for United Way in th8 UK. As a national United Way network pather, we adh8re to their global standards arKI have agreed, Amnngsl other criteria to adhere to the followino.. Mission.. Netr￿ork Partner subscribes to a vision and mission that is consistent with those of United Way Worldwide.. Vision.. United Way envisions a wodd where all individuals and families achieve Ihéir human potential through education, income stability and healthy liv85 Mission.. To improvè lives by mobilising the caring power of Communities around th8 world lo advance the common gO￿j Operations.. Conducts a study of the community and evaluat88 pressirwJ problems Engages members of the community as volunteers, donors and partners Mobilises resources through diverse resource devèlopment activities Applies resources where they will be used effectively to strenglhen communities and improve lives Verifies the use and the impacl of resources invested in the community System citizenship.. Provide financial and other resources to support capacity building and the ne￿ork. UNITED VVAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILITY FOR THE YEAR ENDED 31ST DECEMBER 2023 REFERENCÉ AND ADMINISTRATIVE DETAILS OF THE CiiARITY Registered Charity Number." 1153509 Prlnclp81 Office.. 151 Dale Street. Liverpool, L2 2AH Trust••s.' The trustees who Se￿ed during the year are as follows.. Chair Mr. Peter Badenhuizen Secr6tary Treasurer Mr. lan Yates Mr. Neil MafFey Ms Lailany Sierra Ms Elizabeth Mary Ellen Buss (Appointed June 20231 Mr. William O'Dowd {Resigned 61h December 20231 Mr Mijrray Orr (Appointed June 2023) Mr. Gary von Lehmden Mr. Steve Pappas {Resigned 6th December 20231 Mr. Nailesh Rambhai Mr. Francesco Vanni D'Archirafi Ms. Sue Knowles Trustees Chlef Executlve." Ms. Jane Hudson-Jon8S Professlonal Advlsers.. Auditors Mitchell Charlesworth (Audit) Limited Tempest. Suite 5.1. 12 Tithebarn Street. Liverpool L2 2DT Accountancy & Liverpool Charity and Voluntsry Serwces (LCVS) Financial Adminislrab'on 151 Dale Street. Liverpool L2 2AH UNITED WAY TRUSTEES, REPORT AND STATEMENT OF TRUSTEES RESPONSIBILITY FOR THE YEAR ENDED 31ST DECEMBER 2023 The IrLbStees ar6 responsible frjr preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounts'ng Practice). Tho law applieablp. trt r.hArilies in England and Wales requires the trustees to prepare financial slalements for each financial year which give a true and fair view of the stale of affairs of the charity and of thè incoming resources and applicabon of resources of the charity for Ihat period. In preparing these financial statements. the trustee is required to.. S8lecl suitable accounting policies and then appty them Consisten￿y', Obs8rve Ihe methods and principles in the Charities SORP Make jud9eménts and estimates that are reasonable and prudent; stale whether applicable accounting standards have been followed, subject to any material d•parti IrR* di8closed and explained in the financial slatemenls.. and Prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity wll conbnue to operate. The trustees are responsible for keeping propef accounting records that disclose with reasonable accuracy al any time the financial posibon ol thè charlty and enable th*&iTI lu eii¥ui'e Ilial the financial Statements comply with the Charities Act 2011. the Charity (Accounts and Reports} Regulations 2008 and th• provisions of the Trust Deed. 11 is also rèsponsible for safeguarding the assets of the charity and hence for taking reasonable steps for the p￿ventIOn and detection of fraud and other irregulariti88. Approved by the trustees and slgnod on thelr behalf by PAr Peter Badenhulzen Chalr of Trutslee3 Nell Maffey 23-10-2D2 Trust•9 - Tr•asuror Datod: UNITED WAY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UNITED WAY Opinion We have audited the financial statements of United Ilvay for the Period ended 31 December 2023 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 r•porting framework that hAq applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Slandard 102 The Financial Reporting Standard applicable in UK and Republic of Ireland (Unitèd Kingdom Generally Accepted Accounting Practice). In our oplnlon, the flnanclal ststements: give a true and fair view of the stale of the d)arity's affairs as at 31 December 2023 and of its incoming rèsources and applicatson of resources. for the Périod then ended., have been properly prepared in accordance wilh Unit&d Kingdom Generally Accepted Accounting Practice,. and hgvo boon prapargd in accordance with rp.oiiirAmenls of the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilits'es under those stsndards are further described in thè Auditorfs responslbllltles for the ¥u¢Jil vf Ui¢ finanGial statements section of our report. Wg ar• Indo￿ndant of United Way 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. Con¢lu8lons relatlng to golng Concern In auditing the financial statements, we have concluded that thè trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriale. Based on the work we have performed. we have not identified any material uncertainties relating lo évents or conditions tnat, IndlvlCJually or culleuiively, iiiay Gast Significant doubt on Unitcd Way's ability to continue as a going concem for a peri¢xJ of at least twelv8 months from when the financial slalements are authorised for issue. Our responsibilities and the resporbsibiliti8s of th8 trustees with respect to going concem a described in the relevant sections of this report. Other Informatlon The other information comprises the informatson included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statement5 does not cover the other information and we do not express any fom) of assuran(£ conclusion thereon. Our responsibility Is to read the other information and. in doing so, consider whether the other infomialion is materially inconsistent with the financial statement5 or our knowledge obtained in the cours8 of the audit, or olhetwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are reqUI￿d to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed. we UNITED WAY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UNITED WAY onclude that there is a material misstatement of this other infomiation. we are required to report that fact. We have nothing to report in this regard. Matters on whlGh aT¥ reqUI￿d to report by èxcoptlon We have nothing to report in respect of the followng matters in relation lo which the Charities (AG¢ounts and Reports) Regulations 2008 require us lo report to you if. in our opinion: the information given in the financial statements is inconsistent in any material r8spect with the trustogg, raport; or sufficient accounting records have not been kept. or th8 financial statements are not in agreement with the accounting records: or we have not received all the information and explanations we require for our audit. RAApnnAlblllties of trustees As explained more fully in the Statemenl of Trustees. Responsibilities, the trustees arè responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the directors determine is ne￿SSary lo enablè the preparatlon of financial statements thal are free from material misstatement, whether due lo fraud or error. In preparing th8 financial statements. the trustees are responslble for a5¥¥¥¥iiiy uli1￿￿ Way's ability to continue as a going concem. disclosing. as applicable, mattèrs related to going concern and using the going concem basis of accounting unless the trustees either intend to cease operations, or have no realisti¢ allemalive but lo do so. Au(Iltor's responslbllltles for Ihg audll of tl)e flnanGl•l tytat•mont8 We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulation8 made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether thé financial slalements as a whole are froo from material misstal•m•nt. wh•lher dLlO lo frAiid nr Arror. and to issue an auditoffs report that includès our opinion. Reasonable assurance is a high level of assurance but is not a guaranteè that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when il exists. Misstatements can arfse 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 takon on the bgqiq nf Ihg.88 financial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined abov8. to detect material misstatements in respect of irregularitses, including fraud. The extent to which our procedures are capable of detecting irregularits'es, inclLKling fraud, is detailed below. The oxtsnt to vthieh the audlt was considered capable of detecting Irregularities. including fraud UNITED WAY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UNITED WAY Our approach to identifying and asse55ing the risks of material misstsiement In respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate ompetence, capabilities and skills to identify or recognise nonvcompliance with applicable laws and regulations., we identified the laws and regulations applicable to me company Ihrough d15Wssiuii¥ WIIII directors and other management.. we focused on specific laws and regulations vthich we considered may have a direct material effect on the financial slatements or the operatsons of the company, including the Charities Act 2011, taxation legislatson and dats protection. anti-bribery, employment and health and safety legislation., we assessed the extent of compliance wth the laws and regulalions identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instan￿S of nonvcompliance throughout the audit We assessed thè susr*plibility of the ¢harity's finanaal statements to material misstatement, including obtaining an understsnding of how fraud might occur. by.. making enquiries of management as to V4here they considèred there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. and conslderlng tlig iiiltyi Iial controls in place to mitig•t¢ riGkG of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and overrido of controls. we.. performed analytical proCedu￿S to identify any unusual or unexpécted relationships., tested IOUTnE¢I ¢ntrioG to idantify unusual tr3nsaction$', assessed whether judgements and assumptions made in detemiining the accounting eslimales were indicative of potential bias., and investsgated the rationale behind significant or unusual transacllons. In response to the risk of irregularities and non 13,132) Net cash generated from financlng activitles Net SncreasellDeerease) In cash and cash equivalents (45,644) (28,696) Q.Aqh and cash equivalents at beqinnir of year 456,275 484,971 Cash and cash equlvalenls at ond of year 410,631 456,275 Repr•sentsd by: 31•t December 2023 31•t December 2022 Cash at bank 410,631 456,275 15 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 318T DECEMBER 2023 ACCOUNTING POLICIES Basis of Accountlng The accounts have been prepared under the historical cost convenb'on with items recognised at cost or transaction value unless otherwise stated in the relevanl notelsl to these accounts. The financial statements have been prepared in accordance wilh the Statement of Recommended Practice.. Accountlng ano Reporting by Clitli iliès pieparing their aGGoun18 in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS102) ISORP FRS1021 effectivé 1$1 January 2019 and Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS102. Tlie aGGounls are prepared in tcrling, which 1$ tha functional curroney of thkt e.hgArilabl8 Incorporated Organisation {CIO). Monetary amounts in these financial statements are rounded lo thè nearest £. The financial statèments 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 blatement ol Recommended Practi￿ fvi diol illes applying 102 r8ther than the version of the Statement of Recommended Practs￿ which is referred to in thè Regulations but which has since been withdrawn. Golng concern At the lime of approving the accounts, the trustees have conside￿d and have reasonable expectstion that the Charitable Incorporated Organisation has adequate resources to coniinue in operational existenc8 for the foreseeable future. Thus the trustees continue lo adopt the 90ing conGem basis of accounting in preparing the accounts. Fund Accountlng Unraslrictsd funds arè the charity'q fr8e reserv8s availabla for the trustees lo distribute in accordan￿ with the charity's charitable objectives. Reslricled funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restn'cted income and expenditure for the purposès is charged lo the fund. Income recognltlon All income is recognised once the charity has entitlemènt lo the income, there Is sufficiént certainty of receipt and $0 it is probable that the income wll be received. and the amount of income receivable can be measured reliably. Donations •nd legaci•A p.nmprise donations & sundry grants and membership subscriptions which are recognised in the accounts when there is evidence of enlillement 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. 16 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ExpenditUTe recognition Liabilits'es are recognised as expenditure as soon as Ihere is a legal or constructive obligatson committing the charity to that expendilure, it is probable that settsement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or appotyoned to Ihe appliiAibl¥ expenditure headings in the stalement of finanaal activities. Support and governancè costs arè applied to unrestricted funds unless specifically included in the restricttons. as specified by the donor. Costs of charitable activities relate to the operation of the project comprising all management and operational ovetheads. Charitable aclivitses includes grant funding to beneficiaries. These are dealt with in the Statement of Financial Activities when payment has been approved by Ine charity. Govemance costs relate to compliance with constitutional and statutory requirements and specifically inclLKle all costs in¢urred by the charity in producing the Annual Report. Thes are dealt with in the Statement of Financial Acts'vities when payment has been approved by the charity. Foreign currency expénses paid for in local currency arè 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 depre¢ial8d or amortised over lis uselul economlc lif¥ vii Uie following ba818: Computer Equipment- 33.33% on straight line Inlangiblles 20% on straight line basis C8sh and cash equivalents Cash and cash equivalents inclu¢Je cash In hall￿, Ueyu¥its held at Gall with bank#, other short tèrm liquid investments with original maturities of three months or less, and bank overdrafts, Flnanclal Instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '01her Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognisèd in the charity's balance sheel when the charity becomes party to the contractual provisions of the instrument. Financial assels and liabilits'es are offset. with the net amounts pres8nted in the financial statements. when there is a legally enforceable right to set off the recognised amounts and there Is an Intention 10 settle on a nel to realise the asset and aettlc tho liability simultaneously. Baslc flnanclal assets Basic financial assets. which include debtors and cash and bank balan￿$, are initially measured at transaction price including transaction costs and are subsequently carried at amortised Cost using Ihe effective interest meth¢)d unless the affangemenl constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interèst. Financial assets classified as receivable within one year are not amortised. 17 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 Bailc fiiianri41 liabilities Basic financial liabilities. including creditors and bank loans are initially recognised at transaction price unless the arrangement consts'tutes 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 dassified as payable within one year are not amortised. Debt instruments are subsequently carNeJ at amortised w¥1. u¥iiig tjie effeGlive intereat rate m61hod. Derecognltlon of financlal Ilablllties Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. Taxatlon The charity benefits from various èx6mptions from taxation afforded by tax legislation and is not liable to corporatson tax on income or gains falling within those exemptions. The Gharily is not able to recovervalue Added Tax. Expenditure is recorded in the accounts inclusive of VAT. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In the application of the charity's accounting policies, the trustees are required to make judgements, èstimates and assumptions about the ¢arying amount of assets and liabilitie5 that are not readily apparent from other sources. The estimates and associated assumptions are based on Iii¥lui i￿1 ¥xperience and other f8Ctora that ore concidered lo b• r•l•vant. Actual results may differ from these estimates. The e8tim81&9 and underlying a$6umplion$ are reviewed on an On￿oing basis. Revisions to accounting estimates are recognised in the period in which the 8stsmale is revised where the revision affects only that period, or in the period of the revision and future periods where th8 revision affeds both current an¢ tuture periods. No critical accounting estsmatss or judgments are made during the preparation of these financial statements. DONATIONS AND LEGACIES 2023 Unrestrlcted Restricted Funds Funds 2023 Total Donations Donations in kir Grants.. Costco 42,890 30.000 69,839 112,729 30.000 79,365 79.365 152,255 69.839 222,094 18 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 2022 Unrestrictèd Restrlcted Funds Funds 2022 Total Donations Donations in kind Grants.. Costco 45,601 197.000 65,872 111,473 197,000 84,746 84,746 327.347 65,872 393,219 INCOME FROM CHARITABLE ACTIVITIES Unrestrlcted Re3trlLIv Funds Funds £39,321 £107,990 2023 Total 2022 Total Unlted Way in the UK £68,669 £297,895 Income from charitable activities in 2022 comprised restricted funds £235,538 and unrestricted funds £62,357. Wthin £235,538 '. £103.CM)O in grants awarded in 2022 was received in 2023 and related to activity that occurred in 2023. but re￿nised in 2022 debtors rather than 2023 income. EXPENDITURE ON CHARITABLE ACTivrriES Direct Support & Charitable Governance Expendlture Costs 2023 Total 2022 Total United Way in the UK £412.005 £67,688 £479,693 £621.036 19 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 2023 2022 Analysed as follows: Direct Gharitable expenditure.. Stsff costs Promotion and markoling Reading Oasis direct costs Digital Equity direct costs Give Local Grants ' Other grants EqLiipm8nt nnn#tit)n Project delivery costs United Way dues Fundraising development Travel & subsistence Gift aid charoes Bank charg6s and interest Miscellaneou8 261,376 250.501 9.269 10,694 5.272 52.348 45,000 17,223 46,000 37,000 37,909 5.012 168 1,938 487 2,091 14.772 2,421 14 480 255 120 412,005 435.413 Support and govem8nc8 Costs.. Offic• costs Rent Recruilment Inancial admlnlsirauon Audit FX 22.074 30,000 1,088 15.448 160,000 275 6,600 3.300 4,800 531 67,688 185.623 479,693 621,036 2022 above exp8nditures.' Restricted funds £132.319, unreslricted fijnds £488,717 • $00 note sd for hrp.akd()wn During the year there were no out of pocket expenses reimbursed lo trustees {2022'. £nill 2023 2022 Analysis of staff costs.. Salaries Social security Pension 230.368 19,469 11.539 221,575 18.742 10,184 261.376 250,501 20 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 PartiGulai¥ ul ¢iiiployees- The average number of employees during the year was as follows.. 2023 2022 Charitable activities 5.83 6.25 This equated to 5 83 full bme equivalent stsff (2022: 6.25). 1 èmploye8 received emoluments of £60,000 or more dunng the year. No. Empioyegs Ernployvt 2023 2022 Emoluments £80,000- £89,999 The trustees are not remuneratsd for their seNces and are not included in the above number of employees. During the year the following grants to organisations were made.. Organl¥4tlon• Absafe EdYb¢1¥￿1l Puuivjatlon Ablaze BulliesOu¢ Covonlry Boy8 and Gld$ Club Ev•lina Childr8n's Heart Organi¥aJon Home.Start Er•wash Dodg Rocth Mustard Seed Autism Trust SPLASH ISpe¢i81 Play and L•iiur• After Sthcd H¢yJr8} T¢llcros$ YMCA Spwol Needs and Parent SuPp￿t Ythshwe {SNAPSI After18 ThA Rlv•r hAarthester The Lews Foundal Peep¥ Heath¥y Tharn￿ Valley WaNickshir$ Pride Ignite Imaginations Solent Youth Action Surplus to Supper Trust CIO DIAL South Essex South West Harts Sarnarrtans PACE Charitable Trust Chester FC Community Trust Watthamstow Toy Library and Play C8ntre Hèrts Inclusive Theatre Porchfield Communrty As$ociat￿)rt Halo Children's FoUndat￿n Sl H818ns Mind 1,500 1,500 1,500 1.SOO 1,500 1,500 1.500 1.SOO 1,500 1,500 1,500 1.500 I,buu 1,500 1,500 1.500 1.500 1,500 1.500 1.500 1,600 1,500 1,$00 1.500 1.500 1,500 1.500 Totsl grants 45,000 21 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 TANGIBLE FIXED ASSETS Computsr Equipment Total Cost B&lan¢e at 1s1 January 2023 Additions in the year Disposal in the year 7.A74 3,132 {3.680) 7.874 3,132 (3.6801 Balance at 31ts1 December 2023 7,326 7,326 Accumulated Depreclatlon Balarn￿ al 1st January 2023 Charge for the year Disposal in the year 5,214 2,074 {3.115) 5,214 2,074 (3.1151 Balance al 31 bl Decembèr 2023 4,173 4,173 Net Book Valuo al 31Bt Decembor 2023 3.153 3,153 Not Book Valu• at 31st D•eembèr 20?? 2.660 2,660 All fixed assets are used in furtherance of the organisalion's charitsble objectivès. INTANGIBLE FIXED ASSETS Webslte Development Totsl Cost Balance at 181 January 2023 Additions in the year 23,376 23,376 Balance at 31￿ December 2023 23.376 23,376 Accumulated Depreclatlon Balan￿ at 1$1 January 2023 Charge for the year 974 4.675 974 4,675 Balan￿ at 3161 December 2023 5,649 5,649 Net Book Value al 31•t December 2023 17,727 17,727 Net Book Value at 31$1 December 2022 22.402 22,402 22 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 DeBTORS 2023 2022 Prepayments Olher debtors 737 99,905 3,960 199,103 100.642 203,063 CREDITORS 2023 2022 Other creditors Accruals 31.908 18,308 35,639 17.215 50.216 52,854 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2023 Net currgnt assets Illlabllitl￿l Flxed assgts Ca¥h balanc8J Totsl 2023 Unrestricted lunds 20,880 165.895 15,829 202.804 Reslricled fund8'. Dow UK Re¥ding 08818 Local Giving Give Local (Costco) John Deeie Lenovo Month of Servlce Campaigns Cellnex Eslee Lauder RO Schools Pitney Bowe$ 14.774) 27,553 17,233 124.251 23.406 {8.332) 830 52.898 19,096 14,322 27,553 17,233 124,251 23,495 6,269 830 52.698 6,000 14,601 5,78Z 0,682 244.736 34,597 279,333 20,880 410.631 50.426 481,937 23 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 2022 NÈt current assets Illlabilitie$} Fixgd assets Cash balances Total 2022 UnreStr￿ted funds 25,062 248.618 119,463) 254,217 Restricted fund8'. Reading Oasis Local Giving Give Local (Costco) John Deere I pnnvn hAnnth of Service Campaigns Cellnex Eslee Lauder RO Schools Pitney Bowes ISOC-UW Nethtrland• Joining Forces 29.225 5,704 106.475 6,333 {5.4711 29,225 5,704 110,942 43,333 8,268 4.467 37,000 13,739 983 18.899 983 82,5S5 6,¢)00 3,762 86.557 63,656 6.000 1.810 43.oon 1,952 43.SS7 207.657 169,672 377.329 ZS,U152 456,27S 11JO,2091 OJl.S46 10. RESTRICTED FUNDS Transferg between Funds 2023 OpAnlng Balance Closing Balance Income Expendltur& Dow UK Reading 08815 Local Giving (iive Local (Co$i¢ol John Deere Lenovo Month of SeNice Cellnex Campaigns Eslee Lauder RO Schools Pitney Bowe$ Isoc-uw Netherland5 Joining Forces 19.096 (4,7741 (1,6721 14,322 27,553 17,233 124.251 23.495 6,269 52,698 830 6,000 29.225 5.704 110,942 43,333 8,268 82,555 11,529 SO,309 146,000) 119.8381 (16,6￿) 129,8571 11531 17971 14.601 6.000 797 3.762 86.557 4,828 11,908} 186,557) 6,682 377,329 109.160 {207,156) 279.333 24 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 Transfor$ between Funds 2022 Opening Balance Closlng Balance Incom8 Expendlture Reading Oasis Local Giving Give Local Icoslcol AMEX Principal Foundation John Deere Covid Response Lpnnvrt Mnnth of Sarvice 3M GOSTEM Cellnex Campaigns Eslee Lauder RO Schools Pilri¥y 8uwes 37.206 5,300 92.114 7.981 4.000 42,000 2,606 13.500 24,319 341 14.210 18.009 2.849 667 29.225 5,704 110.042 80,828 19941 13.500 9,835 6CI) 6.284 24.289 21.748 57,817 43,333 1259) 16,194 8,268 {6,2801 63,656 1.350 6,000 82,555 983 6.000 6,399 86.756 1,637 199 3.762 86,557 Isoc-uw NelherlaThJ8 Joining Forces 214.771J 301,410 132.31 (e,PJ291 377,329 AMEX funding received from Américan Express to fund Reading Oasés in a number of schools. Campaigns - Campaigns aimed to raise money in support of a United Way UK initiative- e.g. campaign lo raise funds to buy Christmas gifts for disadvantaged children. Cellnex- Funding received to support the Youth Challenge Progfamme, aimed to inspire young people to follow a Career in STEM and the Telecomms industry. Covid Response - Funding re￿iVed in support of local, grassrools chantses andcommunltles impacled by the soci04conomic crisis generated by the COVID-19 pandemic. Dow UK- Contribution towards Poverty. Disability & Mental Health Eslèe Lauder RO Schools- Funding received in support of Reading Oasis Programm8 Give Local (Costco) - Payroll giving moni8s from Costco to fund Give Local grants. ISOC-UW Netherlands Joining Force¥ Funding receivad in support of Joining Forces Programmè John Deere monies given for support centrod around 2 community impact areas.. Food Insecurity and Youth Employability. Local Giving ILeic8ster) - payroll giving monies to be used in local area. Lenovo Month of SeThice - in support of Global Month of Service Projecl in Basing5toke and Glasgow. 25 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 3M GoStem- Funds were used to advance equity in youth access to STEM education and careei upyui lui)ilie3 by providing young pcoplc with inEight arKI knovAed9e on the STFM 4p.elor and supporting them lo develop social skills and job readiness skills. inspiring them to follow an academic andlor professional career in STEM. Pitney Bowes - Funding re￿iVed in support of ChnslJnas "making something that matters" initiative and corporate volunteering opportunities Principal Foundation nding received to assist in promoting employability and financial literacy among disadvantaged youth in London. Reading Oasis - funds givén to develop and launch 'United Way Reading Oasis.. Transfers be￿een fijnds monies transferred from restn'cted funds to cover project management and staff costs specific to each lund's budget. UNRESTRICTED FUNDS Unrestricted funds are spent or applied at the discretion of the tnjstees lo further any of the eharity's purpos*$. 12. CASH GENERATED FROM OPERATIONS 2023 2022 IDeficitllSurplus for the yoar (149.609) 70.078 Adlustments for: Loss on disposal Depreciation Amortisation 2,074 4,675 2,210 974 Movements In worklng capltal: De¢reasellln¢reasel in debtors {Decreaselllncrease in creditors 102,421 (2,638) (82,4341 3,852 Cash (used In)Igenerated from operatlons {42,512) (5,320) 13. RELATED PARTIES Sue Knowles is a trustee of Unitgd Way and is also Marketing and Adminisrator Director at Costco. In the year Costco made a grant of £79,365 {2022: £84,746} to United Way. Sue supported the submission of United Way UK'S application for this grant but was not part of the d8cision making on grants. She deriv8s no benefit trom United Way in return. 26 UNITED WAY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 Wllliam O'Dowd was a trustee of United Way & resigned during the financial year. He made non-reGour3e loan of USD$20,000 equatin9 to £15,954. Intor•st is chargeable g110A intp.rpqt which is less than market rate. Rernuneration of key management personnel The remiinArAtinn of key management personnel is as follows.. 2023 2022 Aggregate compensation 156,426 150,314 14. LIMITED LIABILITY OF MEMBERS In the event of winding up. the memb&rs of the CIO have no Ilablllty to contribute to its assets and no personal responsibility for setuing its debts and liabilities. 27