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2024-03-31-accounts

Ongo Communities Limited

Report and Financial Statements Year Ended 31 March 2024

Company Number 08619739 (England and Wales) Charity Number 1156007

Ongo Communities Limited

Report and financial statements for the year ended 31 March 2024

Contents

Page:

2

Ongo Communities Limited

Directors, Trustees and Advisors for the year ended 31 March 2024

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 (resigned 1 Dec 23) J Williams K Merta D Clegg K Locking H Phillips (resigned 29 Nov 23) N Cresswell (appointed 1 Dec 23)

Executive leadership team: Chief Executive S Hepworth Property Director P Stones (retired 31 Mar 24) Property Director S Ellard (appointed 9 July 24) 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 3rd floor 56 Peter St Manchester M2 3NQ 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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C for the year ended 31 March 2024

Ongo Communities Limited

Ongo Communities Limited has been providing opportunities for local people and communities for close to ten 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 mental health support, 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 £295k of funding and donations 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 new five-year Customer Focus 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.

N Cresswell Director Date: 5 September 2024

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Ongo Communities Limited

Report of the Trustees for the year ended 31 March 2024

The trustees are pleased to present their annual (inco Companies Act) together with the financial statements of the charity for the year ending 31 March 2024, which 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 social objectives by co-ordinating community development activity and improving opportunities for our tenants and wider customers and communities. 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 Homes Limited, the ultimate parent undertaking.

NHF Code of Governance

The Board has adopted the National Housing Federation (NHF) Code of Governance and following an assessment against the code is fully compliant.

The charity has no shareholders so sections 1.6.6 and 1.6.7 are not applicable, nor are sections 2.8, 2.8.1 and 2.8.2 as there are no joint ventures. The group parent is registered so section 2.7.1 is not applicable. We do not have any joint ventures within the group so section 2.8 is not applicable. All entities in the Group have adopted this code so section 3.11.3 does not apply.

Key achievements and performance

During the current year Ongo Communities generated a surplus of £97k for the year (£120k surplus in the year ended 31 March 2023 ) . The Trustees consider this to be an acceptable standard of performance.

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Ongo Communities Limited

Report of the Trustees for the year ended 31 March 2023

Key achievements during the year were:

Using

community projects, we achieved £26.08 worth of value in return. This is higher than the previous year (£15.54), which was due to the revised calculations provided by HACT and the outcomes achieved from with the cost-of-living crisis, 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 2024 (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 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. 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 £1,661k (2023: £1,909k) of which £167k (2023: £532k) related to funding activities upon which restrictions were placed and £1,073k (2023: £1,053k) was received from Ongo Homes. Expenditure totalled £1,564k (2023: £1,789k) resulting in a surplus of £97k (2023: £120k 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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Report of the Trustees for the year ended 31 March 2024 (continued)

Ongo Communities Limited

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 2024 the free reserves, excluding designated funds, stood at £369k (2023: £452k) with restricted funds carried forward of £nil (2023: £nil) and designated funds of £316k (2023: £136k)..

The designated funds relate to various projects, including a match funded project to provide intensive support to 50 local people who are economically inactive and have complex needs, including mental health; provision of the Ongo Talk counselling services for up to 200 customers; and projects to support individuals, couples, and families in financial hardship.

The charity continues to investigate available opportunities to ensure its free reserves are utilised to benefit the communities in which it operates.

Future plans

During the coming years it is expected that the activities of the Ongo Communities will expand:

  1. At the 31 March 2024 the Board of Ongo Homes supported the payment of a grant to Ongo Communities during the next financial year of just over £1,000,000 to enable the charity to deliver activities that meet its objects and the new Ongo corporate plan.

  2. Applications to grant giving organisations and UKSPF 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 limited UKSPF funding 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 have a new project to provide carpets and decorating 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 2024 (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 financial institution used -term rating of A1, which is acceptable to the board:

Liquidity risk

Liquidity risk arises from the management of working capital. Rolling cash flow projections are prepared 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.

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 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 group 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 2024 (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 group 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:

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Ongo Communities Limited

Report of the Trustees for the year ended 31 March 2024 (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 for 2023-24 is shown below:

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 Ongo Homes 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 2024 (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, Community Voice, 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.

The findings within the Internal Audits informs both an individual assurance assessment and 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.

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Ongo Communities Limited

Report of the Trustees for the year ended 31 March 2024 (continued)

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.

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 group.

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.

Going concern

The Board have reviewed financial assumptions during the budget process to ensure the charity 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 there is some uncertainty in respect of inflationary pressures and future funding opportunities these do not pose a material uncertainty that 2023/24 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.

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Ongo Communities Limited

Report of the Trustees

for the year ended 31 March 2024 (continued)

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.

Following a tender process during 2021/22 Crowe UK LLP were appointed as auditors for three years. They are in the third year of their appointment to serve as auditors for the Company and the Group.

Signed on behalf of the Trustees

N Cresswell Trustee

5 September 2024

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Ongo Communities Limited

responsibilities in relation to the financial statements for the year ended 31 March 2024

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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain 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.

Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other responsibility of the trustees. The financial statements contained therein.

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Ongo Communities Limited

Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2024

Opinion

We have audited the financial statements of Ongo Communities Limited for the period ended 31 March 2024 which comprise the balance sheet as at 31 March 2024; 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:

application of resources, including its income and expenditure for the year then ended;

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our statements section of our report. We are independent of the Company in accordance with the ethical requirements that are 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

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 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 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 Directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we

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Ongo Communities Limited

Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2024

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:

Responsibilities of Directors

e 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.

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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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 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.

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.

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Ongo Communities Limited

Independent auditor's report to the members of Ongo Communities Limited for the year ended 31 March 2024

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 noncompliance 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

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 3rd floor 56 Peter St Manchester M2 3NQ 19th September 2024

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Ongo Communities Limited

Statement of financial activities Incorporating an income and expenditure account for the year ended 31 March 2024

----- Start of picture text -----
Unrestricted Restricted Total Funds Total Funds
Note Funds Funds
2024 2024 2024 2023
£ £ £ £
Income
Income from charitable activities 2 1,130,262 - 1,130,262 1,052,896
Income from donations 127,424 1,548 128,972 109,732
Income from trading activities 3 236,365 - 236,365 215,227
Grants receivable 4 - 165,571 165,571 531,524
Total income 1,494,051 167,119 1,661,170 1,909,379
Expenditure
Expenditure on charitable activities (1,036,074) (228,431) (1,264,505) (1,518,836)
Expenditure on trading activities (299,496) - (299,496) (270,484)
Total expenditure 6 (1,335,570) (228,431) (1,564,001) (1,789,320)
Net income / (expenditure) for the year 5 158,481 (61,312) 97,169 120,059
Transfers between funds 15 (61,312) 61,312 - -
Net movement on funds 97,169 - 97,169 120,059
Reconciliation of funds
Total funds brought forward 588,168 - 588,168 468,109
Total funds carried forward 685,337 - 685,337 588,168
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

The notes on pages 23 to 30 form part of these financial statements.

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Ongo Communities Limited

Statement of financial activities Incorporating an income and expenditure account for the year ended 31 March 2023

----- Start of picture text -----
Unrestricted Restricted Total Funds Total Funds
Funds Funds
2023 2023 2023 2022
£ £ £ £
Income
Income from charitable activities 1,052,896 - 1,052,896 1,084,962
Income from donations 109,732 - 109,732 380
Income from trading activities 215,227 - 215,227 140,697
Grants receivable - 531,524 531,524 875,605
Total income 1,377,855 531,524 1,909,379 2,101,644
Expenditure
Expenditure on charitable activities (903,856) (614,980) (1,518,836) (1,828,303)
Expenditure on trading activities (270,484) - (270,484) (266,814)
Total expenditure (1,174,340) (614,980) (1,789,320) (2,095,117)
Net income / (expenditure) for the year
203,515 (83,456) 120,059 6,527
and net movement on funds
Transfers between funds (49,370) 49,370 - -
Net movement on funds 154,145 (34,086) 120,059 6,527
Reconciliation of funds
Total funds brought forward 434,023 34,086 468,109 461,582
Total funds carried forward 588,168 - 588,168 468,109
----- End of picture text -----

The notes on pages 23 to 30 form part of these financial statements.

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Ongo Communities Limited

Statement of financial position at 31 March 2024

----- Start of picture text -----
Company number 08619739 Note 2024 2024 2023 2023
£ £ £ £
Current assets
Debtors 11 28,997 93,888
Cash at bank and in hand 750,154 526,522
779,151 620,410
Creditors: amounts falling due within one
year 12 (93,814) (32,242)
Total assets less current liabilities 685,337 588,168
Total net assets 685,337 588,168
The funds of the charity
Unrestricted funds 15 369,049 452,016
Designated unrestricted funds 15 316,288 136,152
Restricted funds 15 - -
Total funds 15 685,337 588,168
----- End of picture text -----

The financial statements were approved by the Board of Directors and authorised for issue on 5 September 2024

N Cresswell Trustee

S Hepworth Chief Executive

The notes on pages 23 to 30 form part of these financial statements.

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Ongo Communities Limited Statement of cash flows for the year ended 31 March 2024

----- Start of picture text -----
2024 2023
£ £
Net cash inflow/(outflow) from operating activities 223,632 28,783
Increase / (decrease) in cash 223,632 28,783
Notes
Change in cash and cash equivalents 223,632 28,783
Cash and cash equivalents at 1 April 2023 526,522 497,739
Cash and cash equivalents at 31 March 2024 750,154 526,522
Reconciliation of operating surpluses to net cash inflow / (outflow)
from operating activities
Net income/(expenditure) for the period 97,169 120,059
Decrease/(increase) in debtors 64,891 (21,873)
Increase/(decrease) in creditors 61,572 (69,403)
Net cash inflow / (outflow) from operating activities 223,632 28,783
Analysis of cash and cash equivalents
Cash in hand 2,070 1,164
Notice deposits (less than 3 months) 748,084 525,358
Cash and cash equivalents at 31 March 2024 750,154 526,522
Analysis of changes in net debt (cash at bank only)
Cash flows in the year 223,632 28,783
Net debt at 1 April 2023 526,522 497,739
Net debt at 31 March 2024 750,154 526,522
----- End of picture text -----

22

Ongo Communities Limited Notes forming part of the financial statements for the year ended 31 March 2024

INDEX OF NOTES General notes

Income and expenditure related notes

Statement of financial position related notes

23

Notes forming part of the financial statements

Ongo Communities Limited

for the year ended 31 March 2024

1 Significant accounting policies

Ongo Communities Limited is a charitable company limited by guarantee and incorporated in England & Wales under the Companies Act 2006. The address of the registered office is given on the page 3 and the nature of the operations and its principal activities are set out in the Report of the Trustees. The financial statements have been prepared under the historical cost convention and in accordance with Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) (Charities SORP (FRS 102)), FRS 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, the Charities Act 2011 and the Companies Act 2006.

Ongo Communities Limited is a public benefit entity.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires the charity's management to exercise judgement in applying the charity's accounting policies.

The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

The following principal accounting policies have been applied:

Basis of preparation - going concern

y p p prepared on a going concern basis.

The board revised the financial forecasts, for the two years ended 31 March 2026, to reflect the risks and financial impacts as relevant and proportionate to our business, including the impact of inflation. This included an assessment of grant income and delivery of projects, including an assessment whether any funds should be designated for future projects. Although Brexit and a reduction in EU funding means availability of some grants has been reduced, external grant funding continues to be available. The charity will continue to receive the agreed long term support from within the Ongo Group.

The charity has effective controls and processes in place to manage and monitor cash flows. On this basis, the board consider it appropriate for the financial statements to be prepared on a going concern basis.

Judgements in applying accounting policies and key sources of estimation uncertainty

Management do not consider there to be any significant judgements or estimation uncertainty due to the straightforward nature of the charity's

Income

Incoming resources are accounted for when receivable. Donations and gifts-in-kind are accounted for when receivable. Grants are recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be d li bl

Expenditure

Charitable expenditure includes direct costs and support costs. Support costs comprise those necessary costs which do not themselves produce the output of the charity, including central office functions and governance costs as shown in note 6. Such administration and accommodation support costs have generally been allocated on the basis of income.

Taxation

Ongo Communities Limited is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

24

Ongo Communities Limited Notes forming part of the financial statements

for the year ended 31 March 2024

1 Significant accounting policies (continued)

Grants payable

Grants are recognised in full when there is a legal and constructive obligation.

Pension costs

Contributions to the company's defined contribution pension scheme are charged to the statement of financial activities in the year in which they become payable. The assets of the scheme are held separately from those of the company in an independently administered fund.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Cash at bank and in hand

Cash at bank and in hand includes deposits which can be withdrawn within 24 hours without penalty and short term deposits which have a maturity period of 3 months or less and are not subject to significant risk of changes in value.

Liabilities

Liabilities are recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Fund accounting

Restricted funds are funds which are subject to specific restrictions imposed by the funder or donor. The aim and use of the restricted funds is set out in the notes to the financial statements.

Designated funds are set aside by the Trustees for specific purposes, but would otherwise form part of the general funds. The aim and use of the designated funds is set out in the notes to the financial statements. General funds are available to spend at the discretion of the Trustees in furtherance of the charitable objectives of the company.

2 Income from charitable activities

All income from charitable activities was generated within the UK. £1.07m of this income (2023: £1.05m) relates to contributions from the parent company, Ongo Homes Limited.

3
Trading income
Income from café facilities
Rental income
Income from Post Office
Other income		 2024
Unrestricted
£
52,936
101,764
17,313
64,352
236,365		 2023
Unrestricted
£
43,460
93,342
17,429
60,996
215,227

Rental income includes gifts-in-kind in respect of properties leased at below market rent. The facilities have been valued in excess of rent paid at £94,629. This cost is also included within expenditure.

25

Ongo Communities Limited

Notes forming part of the financial statements for the year ended 31 March 2024

4
Grants receivable
Kickstart

North Lincolnshire Council

Department for Work and Pension
*
Humber Learning Consortium
Urban Challenge
Others		 2024
Restricted
£
-
55,685
107,370
-
-
2,516
165,571		 2023
Restricted
£
102,423
136,955
127,556
98,165
36,095
30,330
531,524

All grants are classed an income from charitable activities. Those identified with an * are deemed to be grants receivable from government agencies

5
Net income/(expenditure):
This is stated after charging:
Operating lease charges - land and buildings
Operating lease charges - others		 2024
£
10,518
9,313		 2023
£
9,229
9,313

All fees for the audit of the company's annual accounts are paid by the ultimate parent company of the group.

Charitable activities
Community benefit/improvement projects
Total charitable expenditure
Trading activities
The Arc and other trading costs
Management costs
Total trading expenditure
Total resources expended		 Direct staff
costs
£
755,241
755,241
141,033
-
141,033
896,274		 Other direct
costs
£
95,345
95,345
32,259
-
32,259
127,604		 Support
costs
(note 7)
£
413,919
413,919
-
126,204
126,204
540,123		 Total 2024
£
1,264,505
1,264,505
173,292
126,204
299,496
1,564,001		 Total 2023
£
1,518,836
1,518,836
162,222
108,262
270,484
1,789,320

The Arc is a well-being hub based in the Westcliffe estate in Scunthorpe. It houses a café, post office, has rooms for hire as well as providing opportunities to offer other activities. Ongo Communities use this building as a hub for providing training and support to users of its services. All costs have been allocated to trading activities, as has any income generated from the use of the building.

During the year the charity made grants totalling £41,000.

These grants were made to local groups, such as sports clubs, resident associations, those offering health and wellbeing initiatives or other community focused groups. Applications to our community grants were accepted from not-for-profit organisations based in areas where Ongo Homes tenants are based.

26

Ongo Communities Limited Notes forming part of the financial statements for the year ended 31 March 2024

Charitable activities
Community benefit/improvement projects
Management fee from parent company
Governance costs
Total charitable expenditure
Trading activities
Management expenditure
Governance costs
Total trading expenditure
Total resources expended		 Finance and
corporate
£
212,493
50,364
1,734
264,591
26,426
2,100
28,526
293,117		 IT
£
-
16,162
-
16,162
-
-
-
16,162		 Human
resources
£
-
114,788
-
114,788
-
-
-
114,788		 Property and
offices
£
18,378
-
-
18,378
97,678
-
97,678
116,056		 Total 2024
£
230,871
181,314
1,734
413,919
124,104
2,100
126,204
540,123		 Total 2023
£
167,832
212,134
-
379,966
108,262
-
108,262
488,228

The company is charged a management fee from its ultimate parent company to cover all central finance, corporate, IT, HR, PR and governance costs. This has been allocated to charitable activities and is shown separately in the table above.

Management expenditure includes the notional cost of the gifts in kind relating to the lease of properties as detailed in note 3 to the accounts.

8
Employees
Staff costs (excluding those directors who are paid by the parent company) consist of:
Wages and salaries
Social security costs
Cost of defined benefit scheme
Cost of defined contribution scheme		 2024
£
884,029
75,505
7,400
66,491
1,033,425		 2023
£
977,365
87,189
21,257
73,234
1,159,045

The average number of employees during the year, based on headcount, was as follows:

Charitable activities
Support staff		 2024
Number
19.1
16.3
35.4		 2023
Number
22.8
18.7
41.5

One of the trustees has a contract of employment with the charity but works across the Ongo group. The cost of remuneration paid by the charity is reflected in the management fee charged by Ongo Homes in such a way that the majority of the costs are borne by the parent company. The individual did not receive any remuneration or other benefits from their trusteeship. The charity's governing document provides a legal authority for thi ti

Trustees did not receive any remuneration or benefits arising from their trusteeship directly from Ongo Communities Limited during the year (2023: none). No trustee (2023: nil) was paid expenses during the year (2023: £nil).

A defined contribution pension scheme is operated by Ongo Homes Limited on behalf of all Ongo group subsidiary undertakings. The assets of the scheme are held separately from those of the group in an independently administered fund.

The pension charge represents contributions payable by the company to the fund and amounted to £66,491 (2023: £73,234). Contributions amounting to £11,602 (2023: £nil) were payable to the fund at year end.

A defined benefit pension scheme is operated by Ongo Homes Limited on behalf of Ongo group subsidiary undertakings. The assets of the scheme are held separately from those of the group in an independently administered fund.

The pension charge represents contributions payable by the company to the fund and amounted to £7,400 (2023: £21,257). Contributions amounting to £606 (2023: £nil) were payable to the fund at year end.

27

Notes forming part of the financial statements for the year ended 31 March 2024

Ongo Communities Limited

9 Directors' remuneration

Directors' costs, with the exception of the trustee detailed in note 8, were paid by Ongo Homes Limited and the relevant portion was recharged to Ongo Communities Limited (with a mark-up) through their management fee.

10 Fixed asset investments

Subsidiary undertakings

The only undertaking in which the company has an interest is as follows:

----- Start of picture text -----
||||| |---|---|---|---| |Proportion of voting rights| |Country of incorporation or|and ordinary share capital| |Name|registration|held|Nature of business| |Ongo Recruitment Limited|England and Wales|100%|Recruitment consultancy|

----- End of picture text -----

Ongo Recruitment Limited has a wholly owned subsidiary, which gives Ongo Communities Limited an interest in:

----- Start of picture text -----
||||| |---|---|---|---| |Crosby Brokerage Limited|England and Wales|100%|Business services| |11|Debtors| |2024|2023| |£|£| |Trade debtors|15,325|12,829| |Prepayments and accrued income|13,672|81,059| |Total| |28,997|93,888| |12|Creditors: amounts falling due within one year|2024|2023| |£|£| |Trade creditors|1,771|3,816| |Other creditors|15,071|2,166| |Taxation and social security|31,311|4,090| |Accruals and deferred income|45,661|22,170| |Total|93,814|32,242| |Deferred income| |Brought forward|-|37,768| |Released in the period|-|(37,768)| |Deferred in the period|(4,607)|-| |Carried forward|(4,607)|-|

----- End of picture text -----

Income is deferred where a grant received in the year is subject to performance-related conditions received in advance of delivering the services required by that condition, or is subject to unmet conditions wholly outside of the charity's control.

13 Corporation tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

14 Share capital

Being limited by guarantee, the company does not issue shares.

28

Ongo Communities Limited Notes forming part of the financial statements for the year ended 31 March 2024

15 Analysis of movement in funds

Balance at 1
April 2023
£
Restricted funds
Department for Work and Pension
-
North Lincolnshire Council
-
Others
-
-
Designated unrestricted funds
136,152
Unrestricted funds
452,016
588,168
Total funds
588,168
Analysis of movement in funds - previous year
Balance at 1
April 2022
£
Restricted funds
Department for Work and Pension
-
Humber Learning Consortium
-
North Lincolnshire Council
-
Kickstart
34,086
Other grants
-
34,086
Designated unrestricted funds
175,074
Unrestricted funds
258,949
434,023
Total funds
468,109		 Income
£
107,370
55,685
4,064
167,119
-
1,494,051
1,494,051
1,661,170
Income
£
127,556
98,165
136,955
102,423
66,425
531,524
-
1,377,855
1,377,855
1,909,379		 Expenditure
£
(165,020)
(59,347)
(4,064)
(228,431)
-
(1,335,570)
(1,335,570)
(1,564,001)
Expenditure
£
(170,854)
(99,329)
(152,652)
(123,794)
(68,351)
(614,980)
-
(1,174,340)
(1,174,340)
(1,789,320)		 Transfers
between
funds
£
57,650
3,662
-
61,312
180,136
(241,448)
(61,312)
-
Transfers
between
funds
£
43,298
1,164
15,697
(12,715)
1,926
49,370
(38,922)
(10,448)
(49,370)
-		 Balance at
31 March
2024
£
-
-
-
-
316,288
369,049
685,337
685,337
Balance at
31 March
2023
£
-
-
-
-
-
-
136,152
452,016
588,168
588,168

Restricted funds relate to grants receivable used for charitable purposes, including projects around employment, training, work with young people, exoffenders, lone parents and other groups maximising their opportunities and prospects as well as self-employment and mental health support. The transfer from unrestricted to restricted funds represents the charity's contribution towards the costs of providing these projects.

During a previous year the charity applied to the European Social Fund for grant funding for a project to support people into employment who have mental health issues, including older people, younger people and members of groups who may be disadvantaged. This project required the charity to provide match funding over a 30 month period of £197,000 and this was treated as designated funds. Funding was received via the Department for Work and Pension and is included as such in the tables above. This project finished this year and any unspent funds have been transferred out of designated funds.

Prior to the year end the Trustees designated £316,288 of the unrestricted funds to be used for specific projects. These include match funded grants as well as projects funded solely by the charity.

29

Ongo Communities Limited Notes forming part of the financial statements for the year ended 31 March 2024

16 Analysis of net assets between funds

Fund balances at 31 March 2024 are represented by:

Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year		 Unrestricted
funds
£
26,879
747,665
(89,207)
685,337		 Restricted
funds
£
2,118
2,489
(4,607)
-		 Total funds
£
28,997
750,154
(93,814)
685,337

Comparative information in respect of the preceding period is as follows:

Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year		 Unrestricted
funds
£
19,211
601,199
(32,242)
588,168		 Restricted
funds
£
74,677
(74,677)
-
-		 Total funds
£
93,888
526,522
(32,242)
588,168

17 Related party disclosures

The ultimate controlling party at 31 March 2023 was Ongo Partnership Limited. On 1 April 2023 the ultimate controlling party became Ongo Homes Limited. Ongo Homes Limited is a Community Benefit Society and its primary purpose is to provide social housing in North Lincolnshire. Its accounts are available to the public at www.ongo.co.uk

Other than transactions between the group and other group companies, the directors do not consider that the company has any related party

During the year the charity had the following inter-group transaction with companies controlled by Ongo Homes Limited, the ultimate parent company:

Entity Purpose 2024 2023
£ £
Ongo Homes Limited Income - donation 1,073,112 1,052,896
Ongo Homes Limited Income - trading activity 56,261 56,261
Ongo Homes Limited Income - gift in kind - rent 94,629 84,287
Ongo Homes Limited Expenditure - gift in kind - rent (94,629) (84,287)
Ongo Homes Limited Expenditure - rent (24,285) (22,705)
Ongo Homes Limited Expenditure - management fee (181,314) -
Ongo Recruitment Limited Income - donation 107,424 98,341
Ongo Recruitment Limited Expenditure - staffing (20,161) (13,477)
Ongo Partnership Limited Expenditure - management fee - (212,134)
Ongo Roofing Limited Income - donation 10,000 10,000
Ongo Heating and Plumbing Limited Income - donation 10,000 -

18 Operating leases

The company had minimum lease payables under non-cancellable operating leases as set out below:

----- Start of picture text -----
Land and Total Total
buildings Vehicles 2024 2023
£ £
Not later than 1 year 4,844 1,552 6,396 10,958
Later than 1 year and not later than 5 year - - - 4,844
4,844 - 1,552 6,396 15,802
----- End of picture text -----

19 Volunteers

Our mental health support service utilises the opportunity for volunteer counsellors, those who are in their final year at university studying counselling, who are required to deliver 100 to 200 hours of counselling as part of the qualification. We have engaged 62 volunteers in the year, delivering over 6,000 hours of voluntary work for the organisation.

30