## **Ongo Communities Limited**
Report and Financial Statements Year Ended 31 March 2023
Company Number 08619739 (England and Wales) Charity Number 1156007
**Ongo Communities Limited**
**Report and financial statements for the year ended 31 March 2023**
## **Contents**
## **Page:**
- 3 Directors, Trustees and Advisors 4 Chair’s Statement 5 Report of the Trustees 17 Trustees’ Responsibilities in Relation to the Financial Statements 18 Independent Auditor's Report 21 Statement of Financial Activities 23 Statement of Financial Position 24 Statement of Cash Flows 25 Index of notes 26 Notes forming part of the financial statements
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**Ongo Communities Limited**
**Directors, Trustees and Advisors for the year ended 31 March 2023**
## **Directors and trustees**
The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees serving during the year and since the year end were as follows:
H Lennon J Williams N Cresswell (resigned 1 November 2022) K Merta (appointed 14 October 2022) D Clegg (appointed 14 October 2022) K Locking (appointed 14 October 2022) H Phillips (appointed 14 October 2022)
**Executive leadership team:** Chief Executive S Hepworth Property Director P Stones Director of Resource and Commercial A Harrison Director of Corporate & Compliance Services J Sugden Director of Customer Services K Hornsby **Secretary** J Sugden **Registered number:** Company number 08619739 Charity registration number 1156007 **Registered office:** Ongo House, High Street, Scunthorpe, North Lincolnshire DN15 6AT **Auditor:** Crowe U.K. LLP 3[rd] Floor The Lexicon Mount Street Manchester M2 5NT **Bankers:** Barclays Bank plc One Snowhill Snowhill Queensway Birmingham B4 6GB **Solicitors:** Devonshires Solicitors Forbes Solicitors Knights Professional Services Park House Rutherford House The Lexicon Park Square 4 Wellington Street (St Johns) Munt Street Leeds Blackburn Manchester LS1 2PW BB1 8DD M2 5FA Bermans Trowers and Hamlins Wilkin Chapman LLP Exchange Station 55 Princess Street Cartergate House Titheburn Street Manchester 26 Chantry Lane Liverpool M2 4EW Grimsby L2 2QP DN31 2LJ Manchester M2 5FA
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**Chair’s Statement for the year ended 31 March 2023**
## **Ongo Communities Limited**
Ongo Communities Limited has been providing opportunities for local people and communities for close to nine years. Part of the Ongo group, the Communities arm has done a substantial amount of positive work over the past year and the teams have achieved targets in areas including employment, training, work with young people, ex-offenders, lone parents and other groups maximising their opportunities and prospects.
The organisation receives funds from Ongo Homes Limited (OH) and external grants which enable it to continue the excellent work delivered in the community. The statement of financial activities shows a total of £532k of funding in the year from a number of funders in addition to the funding from OH. These enable an increasing range of projects and services to be delivered; including self-employment support and mental health support.
With a four year strategy in place, and focus on the theme “Create Opportunities” which is part of the group’s corporate plan, we have set challenging aims and objectives for the coming years. This includes a focus on those communities and neighbourhoods which are the most challenging and require our support to increase their skills, access new opportunities and improve the overall quality of life for those areas.
**H Lennon Director Date: 7 September 2023**
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## **Ongo Communities Limited**
## **Report of the Trustees for the year ended 31 March 2023**
The trustees are pleased to present their annual trustees’ report (incorporating the directors’ report under the Companies Act) together with the financial statements of the charity for the year ending 31 March 2023, which are also prepared to meet the requirements for a trustees’ report and accounts for Companies Act 2006 purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the memorandum and Articles of Association, 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 (FRS 102) (effective 1 January 2019).
## **Our objectives and activities**
The corporate structure of the Ongo group is clearly defined and the relationship between this Company, the parent and its other subsidiaries is set out in Intra-Group agreements which were considered and approved by each of their Boards.
The role of the charity, which is partly funded by Ongo Homes Limited (OH), is to deliver that company’s wider social objectives by co-ordinating community development activity and developing social enterprises. To assist with this objective Ongo Communities has two wholly owned subsidiaries: Ongo Recruitment Limited, which is a social enterprise employment agency supplying temporary and permanent staff, particularly for local people within disadvantaged communities in order that they may develop their skills and re-engage with the labour market and Crosby Brokerage Limited, a company that provides managed services for clients in receipt of a personal allowance.
## **Governing documents**
Ongo Communities is a registered charity (Charity Number 1156007) governed by its Articles of Association dated 22[nd] July 2013. It is registered with the Charity Commission and is also a Company Limited by Guarantee (Company Number 08619739). At the year end the Charity was a subsidiary of Ongo Partnership Limited, the ultimate parent undertaking. From 1 April 2023 the ultimate parent company became Ongo Homes Limited.
## **Key achievements and performance**
During the current year Ongo Communities generated a surplus of £120k for the year (£7k surplus in the year ended 31 March 2022 _)_ . The Trustees consider this to be an acceptable standard of performance.
Key achievements during the year were:
- ➢ We were successful in gaining a grant of £138k to deliver the Reconnect project, a short-term post pandemic programme to re-engage 250 members of the community with their pre-Covid energy, plans and ambitions. It was successful in achieving its aims to improve resilience, reduce fear of Covid, tackle digital and social isolation, mental and physical health and get people talking, accessing services and developing themselves again.
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**Report of the Trustees for the year ended 31 March 2023**
## **Ongo Communities Limited**
- ➢ Since 2019 we have focused our community regeneration development on one of our most disadvantaged estates through delivering the "Westcliff Plan". The long-term aim of the plan was to reduce the stigma associated with the area as well as empower the local community. The plan ran for four years and involved all Ongo departments, plus external partners who worked together to achieve specific targets based on six key themes which were:
- Customer experience and tenancy services
- Environment
- Education, employment and entrepreneurship
- Wellbeing
- Families
- Communications, partnerships and culture
- ➢ Our community building The Arc was built as part of the physical regeneration of the estate and has become the heart of the community, delivering service to meet the needs of the community including a post office, café, training and social activities for all ages.
- ➢ Our in-house social enterprise agency and wholly owned subsidiary, Ongo Recruitment, was successful in donating circa £100k of surplus funds that will be used to fund some of the skills and personal development team staff. The team support customers with coaching and counselling, volunteering, training and employment support.
- ➢ Using the HACT (Housing Associations’ Charitable Trust) model, we calculate that for every £1 we invested in community projects, we achieved £15.54 worth of value in return. This is slightly higher than the previous year (£14.44), which was due to the outcomes achieved from supporting over 600 people furthest from the labour market with mental health counselling and employability skills and working with young people from our disadvantaged estates delivering mentoring and youth activities, and supporting them into apprenticeships.
## **Structure, governance and management**
Ongo Communities is managed and governed by the Trustees who hold regular board meetings and agenda items include finance, health and safety and other operational reports.
The Trustees delegate the day-to-day management of the charity to the Executive Leadership Team, details of which can be found on page 3.
## **Recruitment and appointment of Trustees**
Recruitment for charity trustees is overseen by the ultimate parent company who review and agree the recruitment procedures to be followed. Any new trustees will only be appointed if they have demonstrated they meet the skills and competencies required for the company following a recruitment exercise. New trustees can be appointed by the ultimate parent company.
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**Ongo Communities Limited**
## **Report of the Trustees**
## **for the year ended 31 March 2023 (continued)**
## **Training and induction**
All new trustees undertake an induction programme within the first six months of their appointment. As part of this they meet with the Chair of the Board, the Chief Executive and other members of the Executive Management Team to provide them with an overview of the charity and the context in which it operates. A number of documents are shared with the Trustees for them to read including the charity’s Articles of Association and the Charities Commission Essential Role of the Charity Trustee. Additionally, there are some core training courses which all new trustees are expected to complete.
## **Public benefit statement**
The charity trustees have complied with their duty to have due regard to the guidance on public benefit published by the Commission in exercising their powers or duties.
## **Fundraising statement**
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes.” All fundraising activities relate to applications for grant funding from relevant public and non-public sector bodies. We do not undertake widespread fundraising from the general public.
In relation to the above all solicitations are managed internally, without involvement of commercial participants or professional fund-raisers, or third parties. The day-to-day management of all income generation is delegated to the executive team, who are accountable to the trustees.
The charity is not bound by any undertaking to be bound by any regulatory scheme.
We have not received any complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times. As we do not approach individuals for funds we do not have to particularise this to fundraising activities nor do we consider it necessary to design specific procedures to monitor such activities.
## **Financial review**
Incoming resources for the year totalled £1,909k (2022: £2,102k) of which £532k (2022: £876k) related to funding activities upon which restrictions were placed and £1,053k (2022: £1,085k) was received from Ongo Homes. Expenditure totalled £1,789k (2022: £2,095k) resulting in a surplus of £120k (2022 £7k surplus).
Reserves are needed to bridge the gap between the spending and receiving of income and to cover any unplanned expenditure. The Board has resolved to maintain sufficient reserves to cover short-term operational costs. The operating cash and reserves positions should not fall below a minimum level of £100,000, which is sufficient to cover three months fixed operating costs, other than in relation to fluctuations due to the short term operating cash cycle. Any such fall below the prescribed level will be identified as such by the cash control and forecasting process.
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**Ongo Communities Limited**
## **Report of the Trustees for the year ended 31 March 2023 (continued)**
We will ensure that sufficient reserves are held to be able to fund all forthcoming projects to which we are committed and any further opportunities that may present themselves. These include match funding opportunities that will maximise income through achieving external grant funding to deliver projects that meet the outcomes of our corporate plan, and proposing projects to be approved by the board as an appropriate use of reserves that respond to emerging issues that affect our tenants, their families, and the wider estates and communities. We will enter into no commitments which cannot be funded by available reserves plus budgeted surpluses to be generated up to the point or points at which the commitment crystalises.
At 31 March 2023 the charity’s free reserves, excluding designated funds, stood at £452k (2022: £258k) with restricted funds carried forward of £nil (2022: £34k) and designated funds of £136k (2022: £175k). The business plan dictates that the free reserves will be retained for investment in the future development of the company. The designated funds relate to match funding for an approved project to support people into employment who have mental health issues, including older people, younger people and members of groups who may be disadvantaged.
## **Future plans**
During the coming years it is expected that the activities of the Ongo Communities will expand:
1. Ongo Homes has approved a grant of £1,000,000 per year from 2019 to 2023 to deliver activities that meet the objects of the organisation.
2. Applications to grant giving organisations and EU funds have been awarded and a funding strategy is in place to continue to seek further opportunities to bid for funds and match fund projects that meet the needs of our customers and the wider communities within our area of benefit. However due to the ending of EU funding and the delay in UKSPF we anticipate that fewer opportunities will be available.
3. We continue to change the way we engage with our customers by offering a mix of face to face and telephone support and a digital only programme for customers in rural areas and who cannot easily access our premises. We also provide IT skills and re-designed the customer facing areas in our buildings to best meet the individual needs of our customers.
4. We want to support customers as much as possible with the cost of living crisis and are planning ways in which to re-use furniture and carpets to help our tenants in their homes, as well as delivering money management and budgeting support.
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**Ongo Communities Limited**
**Report of the Trustees for the year ended 31 March 2023 (continued)**
## **Financial Instruments**
## _Credit Risk_
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. The following financial institution was used and its credit rating was acceptable to the board:
|Institution
Rating at
31/03/2023|Balance at
31/03/2023
Rating at
31/03/2022
Balance at
31/03/2022
£
£|
|---|---|
|Barclays Bank PLC
A1
(Moody’s long term rating)|526,522
A1
497,739|
## _Liquidity risk_
Liquidity risk arises from the charity’s management of working capital. Rolling cash flow projections are prepared regularly, together with the value of the company’s cash investments. At the end of the financial year, these projections indicated that the company expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances.
## _Cash flow interest rate risk_
The charity is not currently exposed to cash flow interest rate risk.
## **Assessment of the effectiveness of Ongo Communities’ system of internal control.**
The Board is ultimately responsible for the charity’s system of internal control and for reviewing its effectiveness.
The Board recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of CBS assets and interests.
The Board has adopted a risk-based approach to internal controls, which are embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the CBS is exposed and is consistent with good practice and regulatory requirements.
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**Ongo Communities Limited**
**Report of the Trustees for the year ended 31 March 2023 (continued)**
The main area in which this is evidenced is as follows:
## **Risk Management**
## **Our approach**
Risk is the possibility of an event and the consequences it has on the achievement of objectives, at a strategic, operational and project level. Risk creates uncertainty which we must understand, control, and monitor to reduce the uncertainty to an acceptable level.
Risk is part of everyday life and linked directly the decisions we make. The management of risk is therefore essential in ensuring the CBS meets its strategic objectives and remains legally and regulatory compliant.
Our risk management framework provides a clear and robust approach to managing risk. It provides a structure to integrate risk management into all aspects of Ongo activity, with the aim of protecting our assets, complying with all relevant laws and regulation, successfully achieving our corporate plan and creating a truly vibrant and resilient organisation.
## **Our principles of risk management**
The overarching principle of risk management is to add value, and to support the successful delivery of objectives.
At Ongo, we use **GUARDED** principles to set our approach to risk management:
- **Governed –** Risk management is integral to governance and leadership at Ongo, it is fundamental to how Ongo is directed and managed.
- **Understood –** Risks are comprehensive, well-articulated and understood by all.
- **Aligned –** Risk management is aligned with other business activities and is not a separate activity.
- **Relevant –** Risks are relevant to objectives and the management of risk is proportionate to the level of risk.
- **Discussed –** Risk is communicated and discussed with all interested parties.
- **Embedded –** Risk management is part of everyday life, activities and decision making at Ongo,
- **Dynamic –** The management and reporting of risk is responsive to change and can adapt and identify emerging risks quickly.
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**Ongo Communities Limited**
**Report of the Trustees for the year ended 31 March 2023 (continued)**
## **Our risk appetite**
Our risk appetite is reviewed and set by Board, as high-level statements which sets the tone for risk taking. Detailed statements are then provided as guide for decision making to ensure we do not take risks outside of our agreed boundaries. Our risk appetite was last reviewed by Board in March 2023.
- **Financial (medium risk appetite):** We ensure that we remain financially strong and not take risks outside of our golden rules. We will seek to take risk only where the benefits outweigh potential costs.
- **Compliance (low risk appetite)** : We understand our compliance obligations and have a very low appetite for any action or decision that would result in a breach of our statutory or regulatory obligations.
- **People (high risk appetite):** We empower and trust our colleagues to make the right decisions and look to take risks where benefits can be justified and any potential risks are managed.
- **Reputation (medium risk appetite):** Being a great landlord, employer, partner, company is at the heart of our corporate plan. Although we recognise that we cannot control how others view us, we will work together to understand and manage the expectations of all stakeholders.
- **Infrastructure (low risk appetite)** : We rely on our technological infrastructure and will look for innovative ways of working. However we have a low appetite for any risks resulting in security vulnerabilities, critical system downtime, data inaccuracies and loss of personal data.
- **Governance (low risk appetite)** : We will ensure that our governance structures are strong and all decisions are risk based, we will not enter into any activity that puts our social assets at risk.
- **Growth (high risk appetite):** We are open to growth opportunities that align with our corporate objectives, and will look at innovative ways of working and new technologies. Where the benefits can be demonstrated and outweigh the potential costs we will manage the risk.
## **Operating environment and risk management**
To help identify emerging risks, we assess the external and internal environments using a variety of tools and techniques. Our performance management framework runs in line with our risk management framework to help identify areas of concern or emerging risks. We have a suite of key risk indicators (KRIs) which provide intelligence on the key areas of risk facing our business and act as early warning indicators. Our key financial ratios and stress testing indictors are monitored monthly in our management accounts. We also map the annual sector risk profile with our existing risk registers as a comparison aid.
## **Assurance framework**
To ensure that risk management is effective and that we have a sound and effective system of internal control we have a control framework in place. As Boards have ultimate responsibility for Risk Management, it is essential that Board members understand the risks facing Ongo and receive assurance on the effectiveness of controls. Strategic and emerging risks are discussed at each Board meeting as a separate agenda item (alternate meetings), but also embedded within each report. The Group Common Board have delegated assurance reviews to the Group Audit and Risk Committee. This enables the committee to focus on key areas of risk and assurance.
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**Ongo Communities Limited**
**Report of the Trustees for the year ended 31 March 2023 (continued)**
Assurance can come from many sources within an organisation. Developed from the three lines of defence, we have adopted four lines of assurance (FLA), which helps identify and understand where these different contributions arise:
- **First line of assurance**
- This comes directly from our business operational areas. Various controls are in place, designed or directing processes and behaviours to ensure that operational objectives are achieved. The responsibility is to ensure procedures are followed, identify risks and improvement actions, implement controls and report on progress.
- **Second line of assurance**
- This comes from corporate oversight. It is separate from those responsible for delivery, but not independent to the organisation. There are various teams that provide this assurance, including health and safety, finance, compliance, legal and audit and risk. The responsibility is to ensure that compliance obligations and commitments are understood and met.
- **Third line of assurance**
This comes from independent, objective and expert sources. It provides independent challenge. It places reliance upon assurance mechanisms in the first and second lines of defence, and request evidence to confirm assurance is in place. Assurance is gained from internal and external audit, regulators, and accreditations.
- **Fourth line of assurance**
Our customers provide a fourth assurance level. As they directly receive certain services, they are in the ideal position to assess and review service delivery. We have strong customer engagement arrangements, including a Resident Scrutiny Panel, Property Services Panel, and Complaints Monitoring Panel.
All assurance activities are co-ordinated centrally to provide assurances maps. The assurance map of the strategic risk register is used to inform the internal audit programme and assurance work for the next financial year.
## **Internal Audit**
Our internal auditors are appointed by the Group Audit and Risk Committee to provide an objective evaluation and opinion on the overall adequacy and effectiveness of our risk management and internal control environment.
The annual internal audit plan is set using a risk-based approach and is approved by the Group Audit and Risk Committee. The plan includes a range of internal audits and assurance appraisals, which cover two types of corporate assurance risks – directed and delivery. Underpinning these two types of assurance risk are six root cause indicators (RCI):
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**Ongo Communities Limited**
## **Report of the Trustees**
## **for the year ended 31 March 2023 (continued)**
||**Directed Risk: Failure**
**organisation.**|**to properly direct the service to ensure compliance with the requirements of the**|
|---|---|---|
|**Root**
**Cause**
**Indicator**|**Governance**
**Framework**|There is a documented process instruction which accords with the relevant regulatory
guidance, financial instructions and scheme of delegation.|
||**Risk Mitigation**|The documented process aligns with the mitigating arrangements set out in the strategic
risk register.|
||**Compliance**|Compliance with statutory, regulatory and policy requirements is demonstrated, with
action taken in cases of identified non-compliance.|
||||
||**Delivery Risk: Failure**
**organisation.**|**to deliver the service in an effective manner which meets the requirements of the**|
|**Root**
**Cause**
**Indicator**|**Performance**
**Monitoring**|There are agreed KPIs for the process which align with the business plan requirements
and are independentlymonitored, with corrective action taken in a timelymanner.|
||**Financial Constraint**|Theprocess operates within the agreed financial budget for theyear.|
||**Resilience**|Good practice to respond to business interruption events and to enhance economic,
effective and efficient deliveryis adopted.|
The findings against these corporate assurance risks informs both an individual assurance assessment and also the annual assurance opinion statement, provided by the Head of Internal Audit.
The annual plan is subject to ongoing review and could change as the risks change throughout the year. Any changes are formally reviewed with the Executive Leadership Team and the Group Audit and Risk Committee should a significant issue arise.
Internal audit reports carried out are signed off at each Group Audit and Risk Committee, where members have the opportunity to discuss and challenge the findings. Progress on any recommendations made are monitored by the committee and once implemented are verified by internal audit for final sign off. The internal auditors have an opportunity at every committee meeting to discuss matters without the presence of executives.
Our internal auditors provide an annual report on the internal control environment at Ongo. The annual report summaries the outcomes of the reviews that have been carried out on the Ongo group’s framework of governance, risk management and control. The Head of Internal Audit’s annual opinion states that they are satisfied that, for the areas reviewed during the year, Ongo has reasonable and effective risk management, control and governance processes in place.
This opinion is based solely on the matters that came to the attention of internal audit during the course of the internal audit reviews carried out during the year and is not an opinion on all elements of the risk management, control and governance processes or the ongoing financial viability or your ability to meet financial obligations which must be obtained by Ongo from its various sources of assurance.
.
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**Ongo Communities Limited**
## **Report of the Trustees for the year ended 31 March 2023 (continued)**
Our internal auditors carried out nine reviews, which were designed to ascertain the extent to which the internal controls in the system are adequate to ensure that activities and procedures are operating to achieve Ongo’s objectives. For each assurance review an assessment of the combined effectiveness of the controls in mitigating the key control risks was provided.
The table below provides an overview of the assurance findings in 2022-23
|**Assurance Assessments**|**Number of Reviews**|**Previous Year**|
|---|---|---|
|**Substantial Assurance**|**4**|**8**|
|**Reasonable Assurance**|**5**|**5**|
|**Limited Assurance**|||
|**No Assurance**|||
The areas on which the assurance assessments have been provided can only provide reasonable and not absolute assurance against misstatement or loss and their effectiveness is reduced if the internal audit recommendations made during the year have not been fully implemented. Progress with internal audit recommendations are monitored by the Group Audit and Risk Committee and implementation is verified by internal audit twice a year. All audit recommendations have been accepted and implemented.
## **Fraud**
The fraud register is reviewed at each Group Audit and Risk Committee. To assess our internal control framework, assurance tests are built in to the internal audit plan each year.
The fraud register is updated as necessary for all actual and potential frauds committed or attempted to be committed against the CBS.
## **Reporting, review and corrective action**
A process of regular management reporting on control issues provides assurance to the Executive Leadership Team and to the Board. This includes a rigorous procedure for ensuring that corrective action is taken in relation to any significant control issues, particularly those that may have a material impact on the financial statements and the delivery and fulfilment of our services.
The Group Audit and Risk Committee conducts an annual review of the effectiveness of the system of internal control and has taken account of any changes needed to maintain the effectiveness of risk management and control process. This Committee makes an annual report on this matter to the Board. The Board has received this report and has included it within the Financial Statements.
The Board confirms that there is an ongoing process for identifying, and managing significant risks faced by the CBS. This process has been in place throughout the year under review, up to and including the date of the annual report and accounts, and is regularly reviewed by the Board.
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**Ongo Communities Limited**
## **Report of the Trustees for the year ended 31 March 2023 (continued)**
## **Going concern**
The Board have reviewed financial assumptions during the budget process to ensure the company remains a going concern. The budget is subject to sensitivity testing to assess the possible financial impacts of various scenarios and the resilience of the budget. In all scenarios the company remains financially viable.
Given the strength of the balance sheet and liquidity the Board believes that while some uncertainty remains in respect of COVID-19 and the effects of inflationary pressures these do not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. The charity’s financial performance in 2022/23 proved resilient and on this basis, the Board has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements.
## **Employment and equal opportunities**
Employee information is set out in the notes to the Financial Statements.
The charity is committed to the principles of equal opportunities.
## **External Audit**
In so far as the Board is aware, all of the current board members have taken all the steps that they ought to have taken to make themselves aware of any information needed by the auditors for the purposes of their audit and to establish that the auditors are aware of that information. The directors are not aware of any relevant audit information of which the auditors are unaware.
The External Auditors have an annual meeting with the Committee without the presence of executives.
Following a tender process during 2021/22 Crowe UK LLP were appointed as auditors for three years. They are in the second year of their appointment to serve as auditors for the Company and the Group.
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**Ongo Communities Limited**
**Report of the Trustees for the year ended 31 March 2023 (continued)**
Signed on behalf of the Trustees.
**H Lennon Trustee 7 September 2023**
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## **Ongo Communities Limited**
## **Trustees’ responsibilities in relation to the financial statements for the year ended 31 March 2023**
The Trustees are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **Ongo Communities Limited**
## **Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2023**
## **Opinion**
We have audited the financial statements of Ongo Communities Limited for the period ended 31 March 2023 which comprise the balance sheet as at 31 March 2023; the statement of financial activities, the statement of cash flows and noted to the financial statements, including 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).
In our opinion, the financial statements:
- give a true and fair view of the state of the company’s affairs as at 31 March 2023 and of its income resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Directors’ 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 Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Directors are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matter prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the Directors' report has been prepared in accordance with applicable legal requirements.
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**Ongo Communities Limited**
## **Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2023**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Directors report and from the requirement to prepare a strategic report.
## **Responsibilities of Directors**
As explained more fully in the Directors’ responsibilities statement set out on page 17, the Directors 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 Directors 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 Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined the most significant are the appropriate accounting standards in conformity with the requirements of the Companies Act 2006 and the Financial Services legislation;
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience, through discussion with the Directors, and from inspection of the Company’s board minutes and legal and regulatory correspondence. We discussed the policies and procedures regarding compliance with laws and regulations with the Chief Financial Officer;
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management from relevant parts of the business to understand where management considered there was a susceptibility to fraud. We also considered the potential for management to manage earnings and influence the perceptions of the financial statements.
19
**Ongo Communities Limited**
## **Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2023**
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the timing of recognition of income.
Audit procedures performed by the engagement team included:
- Evaluation of the design of controls established to address the risks related to material irregularities in the financial statements; Testing manual journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to nonroutine transactions.
- Evaluation of income recognition policies and any judgements made around income recognition; reviewing the income system for significant deficiencies or susceptibility to fraud;
- Challenging assumptions and judgements made by management in their significant accounting estimates;
- Agreement of the financial statement disclosures to underlying supporting documentation;
- Making enquiries of management;
- Review of minutes of board meetings throughout the period;
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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.
Vicky Szulist Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor **Manchester**
13th September 2023
20
Ongo Communities Limited
ststsmeni of flnanclal actlvftles
Ineorporaiing an Income and expendlture account
for ihe yearended 31 March 2022
Unresirfcted
Funds
2023
Restrlcted
Funds
2023
Total Funds
Total Funds
Note
2023
2022
Income
Income liom charlt8ble actlviiies
1,052.896
1,052,896
1.084,%2
Income liom donabons
109.732
109,722
380
215.227
215,227
140,897
Grants receivaNe
531,524
531,524
875,805
Total Incorne
1,277.855
521,524
1,9,279
2.101,
Exlture
I2,856}
1814.9801
I1.518.6}
I1.8.30)
Expenditure Dn trading acbvities
1270,4841
1270.4841
1288.8141
Total expendiitsre
11,174,$401
1814.9801
11.789.320)
NBt Incom8 118xp8ndltur81 f4Jrth8y8x
203,515
{63N561
120.059
527
TralrS b&tonfUdS
149,3701
49,370
NBtrnov8rn8nton funds
154,145
134,OB61
12059
527
R•condllallon of funds
Total funds broughl forward
434.023
24,086
468,109
461,582
Total funds carrled fotwavd
588,168
SW168
46&109
The st8ment Dllinancial actlvltles includes all gains and IDsses recrynised in the year. income and expenditure derlves IrDm
conbnulng activilies.
The notes on pages 25 to 32 loyrn pari ol these linanclal statemenis.
Ongo Communities Limited
ststsmeni of flnanclal actlvftles
Ineorporaiing an Income and expendlture account
for ihe yearended 31 March 2022
Unresirfcted
Funds
2022
Restrlcted
Funds
2022
Total Funds
Total Funds
2022
2021
Income
Income liom charlt8ble actlviiies
1,084.962
1,084,962
1.120,MO
Income liom donabons
280
380
41,844
140.697
140,697
124,593
Grants receivaNe
875,605
875,605
531,805
Total Incorne
1,226.039
875,605
2,101,644
1.818,242
Exlture
1899,3271
11.128.976)
I1.8.30}
11.415.846)
Expenditure Dn trading acbvities
1266,8141
1286.8141
Total expendiitsre
1%6,1411
I1.1.976}
11.608.SSSI
NBt Incom8 118xp8ndltur81 f4Jrth8y8x and
n81 rnov8Thnl onfunds
259,898
1253,3711
527
TralarS b8hY88nknds
I7,457)
7,457
NBtrnov8rn8nton funds
{275591
34lJ06
6.527
209,E89
ROnlIalln of funds
Total funds broughl forward
461.582
461,582
251,893
Total funds carrled fotward
434,023
34lJ06
46&109
461.$82
The notes on pages 25 to 32 loyrn pari ol these linanclal statemenis.
Ongo Communities Limited
ststement of Ilnanclal posltlon
8131 March 2023
Company number 08619739
Note
2023
2023
2022
2022
Current assets
Debiors
.888
72,015
497,729
Cash ai bank and In hand
526.522
820.410
569,754
year
122,2421
1101.8451
Total assets less current Ilabllll9
588.188
468,109
Total net assets
S88.188
468,109
The funds of the eharliy
Unresiricted lunds
452.018
2S8.949
17S.074
34.088
Desiqnated unresiiicied ltsnds
Restricted lunds
138.152
Total fund5
S88.188
468,109
The linanclal staiemeniswere aKproved by the BDard Df DlrectDrs and atsthoiised for issue on 7 September 2022
H Lennon
Trustee
S Hepworth
Chw Execute
The notes on pages 25 to 32 loyrn pari ol these linanclal statemenis.
23
Ongo Communities Limlted
Statement C*f cash flows
for ihe yearended 31 March 2023
2023
2022
Nei cash inllDwiioulllowl Irorn Dperatlng actriiiies
Increase Ildecreasel In cash
28 783
3801
28,783
3,801
Noies
Change In cash and cash equivalents
Cash and cash equivdenis at 1 April 2022
Cash and cash equlvalents at 31 March 2023
28,783
497 739
,801
467 938
526,522
497,n9
Reconclllatlon of operatlng surpluses to nei $h InllDw I loutllDw}
Irom Operang actlvltles
Nei Incomellexpendiluiel lor the perlod
Decieas&lincreasel In debtors
Increaselldecreasel in credilois
120,059
121.8ni
189.4031
,527
18,943
4,331
Net cash Inflow I loutflow} Irom 0ran9 al¥ll1eS
28,783
3,801
Analysls of cash and cash equlvalents
Cash in hand
525 $58
49£ 80
Cash and cash equlvalents at 31 March 2023
S26,522
497,729
Analysls of changes In net debt (cash ai bank only)
28,783
497 739
29,801
467 9S8
Nei debi at 1 April 2022
Net dÈblAt 31 March 2023
S26,522
497,n9
The notes on pages 25 to 32 loyrn pari ol these linanclal statemenis.
24
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
INDEX OF NOTES
General notes
Accounting pollcles
Income and Èxpenditure related notès
Grants received
Nei expenditure
Analysis ol expenditure
Support costs
Employees
Direcls. iemuneyabon
ststement of flnanclal posltlon related notes
10 Fixed asset investments
14 Share capital
15 Analysis ol movernent In lunds
16 Analysis ol net assets beiween funds
17 Related party disclosures
18 (Wrating leases
19 Volunteers
25
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
Significant aetountlng pollcles
Ongo Communibes Limited Is a charit8ble cowy limrted by gu2r2ntee and IncorpDraied In England & Wales under the CDmpanies Aci 2006. The
address ol Ihe iegisieied Dllice is given on ihe page 3 and the naiure ol Ihe company's opeiabons and Ils princi aciivibes are set Dut in the Repori
ol the Trustees. The Iinancial statements have been prepared under the historical cost convention and In attord2nce With siaiemeni ol
Recommended Practice 2pplic8ble to ch2rities preparing their accDunts In accordance the Fin2ncial RepDriing Standard 2pplicable In the UK and
Republic DI Irel2nd IFRS 1021 lellective 1 January 20151- Ichaiilies SORP IFRS 10211, FRS 102, Ihe Financial Rewrting Standard wable In the
United Kingdorn and the Republ ol Ireland. the Ch2rities Atl 2011 2nd the CDmpanies Aci 2006.
The preparation ol Ilnancial statements In tompliance with FRS 102 iequlres the use ol certaln Crital accounbng estlrnates. It alsD requires company
management to exerclsejudgemeni In 8pplying the cornpany's atcouniing pDliCies.
The presentatiDn turiency ol the financial statements Is the Pound Sterling 1£), iotsnded to the nearest £1.
The following princlpal attounting pollcles have been applied..
Fln8nci&l Rewing St8ndard t02- reduced dlsclosure exemptions
The company has taken advantage ol the IDllowlng discIDsure exemptlons in prep2rlng Ihese financld 5tementS. as permitted by Ihe FRS 102"The
the requirements ol Seciion 3 Fin2ncial Statement Presentation p2ragraph 3.17ldl'.
the requirements ol Seciion 11 Financial Insiruments paiagiaphs 11.39 to 11.48A'.
the requirernents ol Seciion 33 Related Party DistlDsures paragraph 33.7.
This inloirnatlon i% Included In the cDnsDlidaied financlal statements ol Ongo Paytnershlp Llmlted as ai 31 March 2022 and these Ilnancial statemenis
may be obtained IrDm Ongo House. High streei. Scunthorpe. NDrih Lintolnshire, DN15 8AT
B2&s olprepaiaiion-golng eoneem
The chaiily's linanclal plans have been revlewed and the Board 2re sabslled Ihat the pl2ns are allord2ble and Ihai Ihe financ1 si3ments shDuld be
prepared Dn a golng cDncern basls.
The board revised the chariiys Ilnancial loyecasts. lor the years ended 31 March 2025, 10 reflect rhe risks and Ilnancial Impacis as relevant and
Covid-19 had an ellect on Our ability 10 achieve the level ol outcomes we had set lor the previous Iin2ncial year although we were able 10 ch2nge our
ways ol worThg to provide Suppori by telephone and Social media apps. We used the learning Irom this to determine the way Iotward lor the Curieni
and luture years.. Dllering a mix ol lace 10 lace and telephDne Supwrt. AlthDugh Brexit and a reduction In EU lunding means avalabilily ol some granis
has been reduced exieinal grant lunding continues be available. The charily Will cDntlnue to receive Ihe agreed long ieirn SUKlJOrt Irom wlthln the
Ongo Group.
The chariiy has ellectlve coniyols and prrtesses In place tD manage and monltDr cash flows. On thls basls. the board consider li apprcprlate loy the
Ilnancial SLqiernents to be prep2red on a going concern b2sis.
Judgemenis 8pplying sceouniingpolxes8ndeys0rces olestimstion uncertainty
anagement do noicDnslder Ihere io be any signlllcantjudgernents or estlmatlon uncertalnty the siraighllDMard naitsre ol the chariiys
Income
Incoming resDurtes are attounted lor when receiv2ble. L2cleS ale atcounied lor when cDnsidered receivable. Investment incDme. donations and
gllis In kind are atcounied lor when ieceivabk. Grants are recognlsed In the SLqternent ol Financial Actlvilies Dnce the ch2rity h2s enbiiemeni to the
funds, li Is prob2ble thai Ihe income Will be recelved and the arnounican be meastsied relieNy.
Expendituie
Charitable expenditure Includes direct costs and SuKWrt Costs. Supwri tosts tompiise those necessary costs whlch do noi themselves produce the
ouipul ol the charity. Including centrd ollice lunctions and govern2nce costs as shown In note 6. Such adminlsiiaiion 2nd attommodaiiDn SuppDn
costs have generally been allDcaied on the b2sis DlturnDvei.
Ongo CDmmunltles Limiied Is a charlty Within the meanlng ol Para 1 schedule 6 Finance Act 2010. Accordingly the cDmpany is Potentlalty exempi
IrDm taxaiiDn in respeci ol Income oi capital gains Within CatOrieS covered by Chapiei 3 DI Part 11 01 the Coipoiabon Tax Act 2010 or Seciion 25
ol Ihe Taxation ol Charge8ble Gains Act 1992. 10 the exnithal such IncDme or gains ale applied exclusively tD chaiiiable purposes.
26
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
Gisnisp2y2the
Pension eosts
ConiiibutiDns tD the cDmpany's defined contrlbuiion penslon scheme are tharged tD the pyollt 2nd IDSS accouni in the year In whlch they becorne
pay8ble. The assets ol Ihe scheme ale he separately IrDm ihose ol the tompany in an independently admlnistered fund.
Trade and other debiors are Yecognlsed ai the seniernent amount due after any trade dlscount ollered Piepaymenis aye valued at Ihe amDunt piepald
nei ol any diSCOunisdue
Finaneislinsiruments
The cornpany only has lin2nclal asseis 2nd Ilnantial li8blllties ol a klnd that qualtiy as bas Ilnancial insiruments. Baslc linanclal InsiYumenL8 2
C2sh2tb8nk2ndin
Cash ai b2nk and in hand Includes deposits which can be withdrawn Within 24 hDurs Wilhoui penalty and shDri term deposits whlch have a maiuyity
perlod DI 3 mDnths oi less and are not subject slgnificani rlsk ol changes in vdue.
Ll2knlities (including termlnatlon payments) aye recognlsed once there Is a legal oi construcirie obligaiion tD make a paymeni io a Ihird party. It Is
prob8ble that settlement Will be required and the 2rnOuni Df the DbligaiiDn tan be rneasured reliably
Fundsccounting
Restricted funds are Subject io specilic restliciions imposed by the donDr. They include 'ReStrled Incorne funds, whh are spent Dr 2pplied Within a
Yeasonable period liom Ihelr ieceipi Dr'Endowment funds. Oliginaiing liom thnations Dr bequests and invested enable future expenditure in line
Wllh the resirictions ol the thnoy
Designated lunds ale set 2side by ihe Tmstees lor spec11 purposes. but Would Otherwise form part ol the generd ltsnds. General funds aye available
spend at the discretlon ol the Tmstees in lurtherance Dlthe chaiiiable objectives ol the cornp2ny.
Intome from tharllable actlvl11È9
IMI Income IrDm tharitable activitles was generaied wlthln ihe UK. £I.OSm Df this Income 12022. £1.12ml relaies 10 coniribtsiiDns from a grDUP
company. Ongo Homes Lirniied.
Tradlng Income
2023
Vnrestrlcted
2022
Vnrestrlcted
42,460
92,342
17,429
0,996
31,804
89,SS6
17,350
2,207
Rental incDme
Income liom PDSI 0[fe
Other Income
215,227
140,897
Renial income Includes gllls in knnd in respeci DI prDpertles leased at belDw rnaet rent. The lacilltles have been valued In extess ol reni pa at
27
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
Grants retelwdble
2023
Restrlcted
2022
KkStart
North nColnshIre CDuncil
Deparimeniioi Work and PensiDn
Humber Learning Consortlum
Urban Challenge
Police Crime Commissioner Fund
Others
102,423
136,955
127,556
98,165
342,814
194,472
152,082
88,78
35,15
32,884
,411
30,320
531,524
875,805
IMI grants are classed an income IrDm chariiable actlvltles. Those Identilled wlth an. are deemed io be gr2nts receivable IrDm goveynmeni agentses
Net Incomel{expendlturel'.
2023
2022
This Is stated aiiercharglng..
(l)erating lease ch2rges land and bU11n9S
(l)erating lease ch2rges- others
9,062
IMI lees loi the audlt olthe company's annual accounL8 are pald by the uibmaie p2rentcompany ol Ihe group.
Analysls of eXlture
pport
costs
(note 71
Dlreci stAff
osts
OthÈrdlrect
costs
Total 2023
Total 2022
Charltable detIeS
Community benefiVlmprDvemeni yojects
887.410
271.480
379.988
1,516,836
1.828.303
Total eharttableexpendiiure
B67N10
271,46
379,966
1,51B,836
1.828.303
Tradlng actlvltles
The Arc
anagement expendlture
119.861
42.381
162,222
108,262
171.S87
95.247
108.282
Total tradlng exndttUre
119061
42,361
10B,W2
270,4B4
268.814
Total resourtes expended
9B7,271
313,821
48B,22B
1,789,320
2.095.117
The Art Is a well-being hub based In the Wesiclille estaie in Scunthorpe. 11 houses a calé. posi Dllice. has roorns lor hlre as well as providing
opwrtunltles 10 ollerother aciivitles. Ongo Communities use this bu11n9 as a hub lor prving tralning and SUPPDri tD users ol IL8 services. All costs
have been allocated 10 trading actlvltles. as has any intome generated IrDm the use Dlthe building
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
Support costs
Flnance &
Corporate
Human
Resources
Prowy &
Olllces
Total 2023
Total 2022
Charltable detIeS
Community benefiVlmprDvemeni wjects
anagement lee Irorn parent cornpany
149,387
74,442
18.445
167,832
212,134
188.981
251.994
28.255
Total charttableexpendiiure
223
26855
111,437
1B,445
379,966
438.955
Tradlng actlvltles
The Arc
anagement expendlture
68.844
9S.247
19,057
89.205
10B,262
Total tradlng exndttUre
19.057
89,205
10B,262
164.091
Total resourtes expended
242,B86
26255
111,437
107,6SO
48B,22B
603.048
The cDmpany is charged a rn2nagemeni lee liom its uibmaie parent COWY 10 CDvei dl central Finante. CDrwrate. tt. HR. PR and governance
anagement expenditure Includes the nDtlonal cost ol the gilts in kind relaiing the lease Df wperties as deiailed In no 2 10 the accounts.
Employees
2023
2022
siallcosL8 lexcltsdlng directors who ale pa by the group) conslsi ol..
Wages and salaries
977.385
87.189
21.2S7
73.234
1.007.813
82.02S
22.728
78.034
Cosi DI defined benefii scheme
Cosi DI defined contribution schem
1.IS9.04S
1.188.598
No emplDyees. including key rnanagemeni personnel. are pa dlreciiy by the CDmpany, althDugh li Is recharged by Ihe group eniily loi ernoyment
costs Incurred on Its behdl. Contracts ol employmeni ale In the name ol Ongo Cornmunibes Llmlted. The ave tosts represent Ihe charge made to
Ongo Cornmunities Lirnited 2nd Is based Dn the IDllowing average number olemployees (excluding dlrecioisl durlng the year..
2023
Number
2022
Number
As detailed abDve. whilst tontiacts ol employrnent 2re in the narne ol OngD Cornmuniiies Limited employees ale nDI pald dlreciiy by the charity. One
ol the Ilustees is an employee Dlthe group and has a coniraci ol ernOyMeniwlth the charity. Thai IndIvU21 recelved rernuneiabon underLqking thely
Yole as a group ernployee and dld not receive any remuneratlon Dr Olhei benefiis Irom their trusieeship.
Trustees not receiie any iemuneraiiDn Dr benellts directly from Ongo Cornmunibes Miled durlng the year120>'. none) ND Ilustee 12022.. one)
was pa expenses during the year 12022. £1001
Adelined coniribuiiDn pensiDn scherne was operated by OngD Parkneiship Lirniied on behall DI all OngD giotsp subsidiary underLqklngs. The asseL8 01
the scheme are he separately Irom those ol the group In 2n Independenlly adminlsieied fund
The pension ch2rge represents cDntlibutlons payable by the CDmpany Ihe lund and amDunted 10 £73,22412022.' £78.0341. CDntributlons amountlng
io £nil12022.- £nill were payable tD the fund at year end.
A defined benefit pension scherne is operated by Ongo Homes Miled on behdl DI Ongo group subsidiary tsndertakings. The asseis ol the scherne
are he separately Irom those ol the group In 2n Independenlly adminisieied fund
The pension ch2rge represents CDntlibutlons payable by the CDmpany Ihe fund and amDunted io l,257(2022.' £22.7281. CDntributlons amountlng
to £nil12022.- £nill were payable tD the fund at year end.
29
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
Dlrectors. remunÈraiion
Direcls. CDSIS ale pad by Ongo Paitnershlp Llmlted and the relevani PDfiiDn was Yechaiged to OngD Comrnunibes Llrnlted Iwith a rnark-tspl thrDugh
their rn2nagemeni lee.
10 Flxed asset In¥esiments
SubsidLoryundertskings
The only underLqking in whh the CDmpany has an interesi Is as follows..
Proportlon of tIng rfghts
and ordlnary share capllal
held
Country of Incorporaiion or
Name
Nature ol buslness
Onoo Recrultment Miled
Enoland and Wales
l00W.
Recmiimentconsultancy
Ongo Recruitment Miled has a wholly owned sUbSlrY, whlch glves Ongo CDmmtsnltles Llmlted an Interesi In..
Crosby BrDkerage Lirnited
England and Wales
l00W.
Business SeNices
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
11 Debiors
2023
2022
Trade debtors
Amounts owed by group undertaklngs
Piepaymenis and acciued incDme
12,829
765
60
71,190
81,059
92,888
72,015
12 Credltors: amounts falllng due wlthln one year
2023
2022
Trade credltDrs
Other crediiofs
Tayation 2nd social securlty
Accruals and deleried income
Amounts Dwed 10 group underiaknngs
3,816
2,166
4,0
22,170
9,414
s,ssB
79,887
32,242
101,M5
Deferredineorne
Brought forward
27,768
137.7881
40,334
140.3341
37,768
Delerred In the perlod
Carried I08rd
37,768
Income is defeiied where a giant received in the year i% subject to pertormance-relaied tondltlons recelved in advance ol delrieying the services
13 Corporatlon tax
The tharily Is exempi IrDm tax on Incorne and galns Idllng wlthln secbon 505 01 the Taxes Act 1988 or secbon 252 01 the Taxatlon ol Chargeable
Galns Atl 1992 tD the extent thaithese aye applied tD Its charitsNe objeciries.
14 ShAre eapltal
Being Iirniied by gu2r2ntee, the cornp2ny does not issue shares.
30
Ongo Communltle$ Llmlted
Notes lormlng part ol the flnanclal ststsments
for ihe yearended 31 March 2022
15 Analysls of movemeni In funda
Transfers
beMeen
funds
BaLqnce al
31 March
2023
Balanceat 1
Aprll 2022
Income
ExpÈndlture
Restrlcted funds
Deparimeni loi Work and PensiDn
Humber Learning Consortlum
North nColnshIre CDuncll
Kickstari
Other gianis
127.55
.165
136.955
102.422
86.425
1170.8MI
I.329}
11S2.8S21
1122.7941
188.3511
43.298
1.184
IS.697
34,08
1.928
34,08
531.524
1814.9801
49.370
Designated unresiiicied ltsnds
Unresiricted lunds
175,074
258,949
138.1S2
4S2.018
1.377.5
11.180.340)
110.4481
434,022
1.377.5
11.174.340)
149.3701
S88.188
Total funds
468 109
1.9.379
1.789.320
S88188
Analysls of movemeni In funds- prevlous ye&r
Transfers
beMeen
funds
BaLqnce al
31 March
2022
Balanceat 1
Aprll 2021
Income
ExpÈndlture
Restrlcted funds
Deparimeni loi Work and PensiDn
Humber Learning Consortlum
North nColnshIre CDuncll
Kickstari
Other gianis
152.082
88.78
194.472
342.814
97.451
1285.8081
11n.9011
1249.3851
I308.7}
1131.1MI
113.728
85.115
54.913
34.088
33.703
875.805
I1.1.976}
287.457
34.088
Designated unresiiicied ltsnds
Unresiricted lunds
197,MO
264,S82
121.9261
1285.5311
17S.074
2S8.949
1.226.029
1986.1411
461,S82
1.226.039
1986.1411
1287.4571
434.023
Total funds
461,S82
2.101.
2.095.117
468.109
Restricted funds relate tD grants receiv2ble used lor chaiiiable purpDses. including projects around em0meThI, Iraining. WO Wilh young people. ex-
ollenders. lone parents and Dlher groups maximising iheir oppoitunibes and prospects as well as sell-emplDymeni and menial health Suppori The
tr2nsler from uniestrlcied to restricted lunds represents the charlty's CDntributlon towards the CDSIS Df wvlding Ihese projects.
During the previous year ihe charity successlully 2pplied 10 be a gateway IDr the Government's Kickstari prDiect which funded employers tD crea
jobs lor 18 10 24 ye2r Dlds Dn Universal Credit. The chaiily receives funding In three elements-. lal to lund employee wages.. this IS immediately passed
on 10 the employers or ietsined where stall are employed by OngD CDmmunities. Ibl tD prv SUKWrt io the employees during the Ille ol thely
emplDyment contract. and Icl tD enable the ch2rity tD adminisiei the scheme. The first two elements have been classed as restricted funds. the lat
as unresiiicied This funding came to an end during this financial year Where employees lell the scheme the amount received loi providing them
SuppDrt during their contratiw2s nDI repayable 10 the lunder. hence acredlt io unrestlicied funds as disclosed in the note ave
During a previDUS year ihe ch2rity Wied 10 the European Social Fund lor giani ltsnding lor a projeci to suppori people inio emplDyment who have
mentsi hedth issues. including older people. younger people 2nd members ol groups who may be disathaniaged. This prDiect required the ch2rity to
provide match Funding Dver 2 30 month period ol £197,MO This piojeci commenced during the previous financial year and Is treated as a designated
ieseive. Funding IS received Via North Lincolnshire CDuncil and is Included as such In Ihe Lqbles above.
Ongo Communities Limited
Notes Ic*rmlng part ol the flnanclal ststsments
for ihe yearended 31 March 2023
16 Analysls of net 88gets belyen funds
Fund balances ai 31 March 2023 ale reyesented by..
Unresirfcted
lunds
Restrlcted
funds
Totsi lunds
Debiors
Cash ai bank and In hand
74.677
174.8771
93.888
S28.S22
132.2421
801.199
132,2421
588.168
588.188
Comparairie InlormaiiDn In respeciol the preceding peiiDd i4 as follows..
Unresirfcted
lunds
Restrlcted
funds
Totsi lunds
Debtors
Cash ai bank and In hand
5.079
492.2
163,8781
68.938
4.917
137.7871
72.015
497.739
1101.8451
434.022
34.088
468.109
17 Related party dlsclosure9
Ai 31 March 2023 Ongo Homes Llrnlted was the conirolling party DI Ongo Cornmunltles Llmlted. OngD Homes Limlted is a Cornmuniiy Benellt Socieiy
and ils Primary purpose IS tD provide socld housing in North LlncDlnshiie. Its atcounis are available to the at hltps'.IAvww.ongo.tO.uklcDrpDrate-
in1oimationlfin2ncial-stement5.
Ai 31 March 2023, rhe uibmaie controlling party. by virtue ol ils control ol Ongo Homes Llmlted. was Ongo Partnershlp Llmlted, a comp2ny
incDrpDrated In England 2nd Wales under regiStraiiDn number 08048224. Its consolidated accounts ale available tD the pU1t liom CDmpanies
House. CrDwn Way. Maindy. Cardill, CF14 3UZ. Ongo Partnership Limiied's primary purpose w2s io Dversee Ihe straiegic direction ol and provide
corpora services to ils Subsldiaiies. allowlng them io locus Dn delivery and enhancemeniol their cDre seivlces.
On 1 April 2023 Ongo Hornes Limlted became the ultlmate payeni CDmpany ol Ongo Cornmunibes Lirniied. vla a transfer ol engagements between
Ongo Homes Llmlted and Ongo Partnership Lirniied.
Other Ihan transacbons bemeen the gmup and other gmup companles. Ihe dlrectors do not CDnslder that Ihe company has any relaied party
tr2nsactlons
16 OperAtlng SeS
The CDmpany had minlrnurn lesse pay2bles under non-cancell2ble operaiing leases as set Otsl below..
Land and
Land and
2023
2022
10.958
9.229
14.202
Laiei than 1 year and nDI larthan 5 years
15.802
23.431
19 Volunteers
Our menid health Supwrt service utilises the oppoitunily lor volunieer tDunsellors, those whD ale In their find year ai university Siudying Counselling.
whD are required io deliver 100 tD 200 hours ol cDunselllng as part DI the qualilicatlon We have engaged 23 vDlunieers In the year, delivering over
3.000 hours ol voluniaiy work IDr the organiSaliDn.
31