2021-03-31-accounts - Wheels 2 Work County Durham

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REGISTERED CHARITY NUMBER: 1160215

Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2021 for Wheels 2 Work County Durham

Wheels 2 Work County Durham

Contents of the Financial Statements for the Year Ended 31 March 2021

	Page
Report of the Trustees	1 to 2
Independent Examiner's Report	3
Statement of Financial Activities	4
Balance Sheet	5
Notes to the Financial Statements	6 to 11

Wheels 2 Work County Durham Report of the Trustees for the Year Ended 31 March 2021

The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the Charitable Incorporated Organisation (CIO) are the relief of unemployment for the benefit of residents in County Durham or in such other geographical areas as trustees may decide, through the provision of modes of transport and connected services such as training that will enable individuals to take up new employment and skills.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

This report of Wheels 2 Work County Durham covers the year ended 31 March 2021.

The scheme loans scooters to people with job offers who would be unable to take them up without private transport. This may be due to shift timings or particular route issues that mean that public transport is not feasible.

The first rider joined the scheme in December 2016 and by the end of the first financial year seventeen riders had benefited from Wheels 2 Work. During 2017-2018 41 riders participated in the scheme, with a further 45 people benefiting during 2018-2019, and another 73 during 2019-2020. During the last financial year, (2020-2021), 54 riders participated in the scheme, despite the impact of the Covid-19 pandemic and subsequent job losses. The overall number of people supported into employment by 31 March 2021 totalled 230. Demand has continued to grow as the scheme becomes better known.

The trustees confirm that they have referred to the guidance contained in the Charity Commissions' general guidance on public benefit when reviewing the CIO’s aims and objectives and in planning future activities.

FINANCIAL REVIEW

Financial position

The attached financial statements show the state of the finances and related transactions during the past year, which the trustees consider to be correct.

Incoming Resources to the CIO in 2020-21 amounted to £83,363 (2019-20 £115,613) whilst Resources Expended were £132,979 (2019-20 £156,769). That resulted in a loss of £49,616 (2019-20 loss £41,156). Closing Net Assets at 31 March 2021 were £50,463 (2020 £100,079). The losses are due to the impact of the Covid 19 pandemic; client job losses resulted in a significant number of bikes handed back to the scheme which in turn reduced the level of income from client loan fees. In addition, our main revenue grant from Durham County Council was received in April 2021 just after the end of the report year. The Job Retention Scheme supported staff costs for much of the year which helped to offset some of the losses reported above.

Investment policy and objectives

Funds are maintained in an instant access bank account giving security and rapid access.

Reserves policy

The target of the reserving policy is to maintain a level of reserves which will ensure a continuation of operations for at least six months without income. Reserves are defined as undesignated current assets. At 31 March 2021 the level of reserves was £30,463 (2020 £56,079). The 2021 level of free reserves equates to the cost of operating for a period of approximately 4 months without income. This reflects the unrestricted funds after designation of £20,000 for delayed expenditure of funds received during 2020 which could not be utilised during the year due to the Pandemic.

Going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. The trustees of the charity have concluded that there are no material uncertainties related to the events or conditions that may cast doubt on the ability of the charity to continue as a going concern.

Page 1

Wheels 2 Work County Durham Report of the Trustees for the Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable incorporated organisation (CIO) registered on 29 January 2015. The organisation was established under a constitution that established the objects powers and governance of the CIO.

Recruitment and appointment of new trustees

The charity trustees are members of the CIO. They are responsible for investing and expending funds of the charity in such a manner as they shall consider most beneficial for the achievements of the objectives. They enter into contracts on behalf of the charity. They are responsible for the proper management and administration of the CIO in accordance with the constitution.

The trustees are subject to retirement after a maximum of 3 years unless they retire or are removed in accordance with the constitution. Retiring trustees may be reappointed for a further term. Appointments are made by members of the CIO at its Annual General Meeting or at other times by ordinary resolution. Trustees are recruited for their ability to manage the charity in accordance with the provisions of the constitution and in furtherance of its objects. There must be a minimum of 3 trustees.

The present trustees have a variety of backgrounds and skills and the board seeks to maintain an appropriate range of skills to match the tasks undertaken by the board. Trustees must be familiar with the activities of the charity and in sympathy with them. Potential trustees identified by the existing trustees are, discussed with the other trustees then approached to check their availability.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have assessed the major risks to which the charity is exposed and where necessary have taken steps to minimise such risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1160215

Principal address

Bullion Hall, South Approach, Bullion Lane Chester-Le-Street, County Durham, DH2 2DW

Trustees

Members who acted as trustees were as follows:

P J MacLellan J Armstrong S Reay G Mitchinson (appointed 25 Jan 2021) A J Allsop (appointed 25 Jan 2021)

REFERENCE AND ADMINISTRATIVE DETAILS

Independent examiner

Mr P. Harnby ACA ICAEW Mitchell Grievson Ltd Kensington House, 3 Kensington Bishop Auckland County Durham DL14 6HX

Approved by order of the board of trustees on 29 November 2021 and signed on its behalf by:

P J MacLellan Trustee

Page 2

Independent Examiner's Report to the Trustees of Wheels 2 Work County Durham

Independent examiner’s report to the trustees of Wheels 2 Work County Durham

I report to the charity trustees on my examination of the accounts of Wheels 2 Work County Durham for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.

Mr P. Harnby ACA ICAEW Mitchell Grievson Ltd Kensington House 3 Kensington Bishop Auckland County Durham DL14 6HX

28 January 2022

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Wheels 2 Work County Durham

Statement of Financial Activities for the Year Ended 31 March 2021

INCOME AND ENDOWMENTS FROM Charitable activities Wheels 2 Work County Durham scheme Total Income EXPENDITURE ON Costs of Generating Funds Governance, application and monitoring of grants Charitable activities Wheels 2 Work County Durham scheme Total Expenditure NET INCOME AND NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Funds brought forward TOTAL FUNDS CARRIED FORWARD	Notes 2 3	Year Ended 31.03.18 Unrestricted funds £ 167,152 167,152 14,441 79,873 94,314 72,838 41,926 114,764	Year Ended 31.03.18 Restricted funds £ - - - - - 5046-	Year Ended 31.03.21 Total funds (All Unrestricted) £ 83,363 83,363 1,113 131,866 132,979 (49,616) 100,079 50,463	Year Ended 31.03.20 Total funds (All Unrestricted) £ 115,613
					115,613 1,310 155,459
					156,769
					(41,156) 141,235
					100,079

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

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Wheels 2 Work County Durham

Balance Sheet

At 31 March 2021

At 31 March 2021	1 March 2021
2018 Unrestricted funds Notes £ FIXED ASSETS Tangible assets 7 19,720 CURRENT ASSETS Debtors 8 - Cash at bank and in hand 98,661 98,661 CREDITORS Amounts falling due within one year 9 3,617 NET CURRENT ASSETS 95,044 TOTAL ASSETS LESS CURRENT LIABILITIES 114,764 NET ASSETS 114,764 FUNDS 10 & 11 Designated funds Unrestricted general funds 114,764 TOTAL FUNDS 114,764	2018 Unrestricted funds £ 19,720 - 98,661 98,661 3,617	2018 Restricted funds - - - - - - - - - -	2021 Total funds (All Unrestricted) £ 17,625 12,008 28,736 40,744 7,906 32,838 50,463 50,463 20,000 30,463 50,463	2020 Total funds (All Unrestricted) £ 27,760 13,228 63,555
				76,783 4,464
	95,044 114,764	- -		72,319 100,079 100,079
				44,000 56,079
				100,079

The financial statements were approved by the Board of Trustees on 19[th ] November 2021 and were signed on its behalf by:

Peter J MacLellan Trustee

The notes form part of these financial statements

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Wheels 2 Work County Durham

Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the Charitable Incorporated Organisation (the registered office of which can be found at Page 2), which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£).

These financial statements have been prepared on the going concern basis. In using this basis the trustees have taken account of the reserves of the charity at 31 March 2021 and its prospects for subsequent periods.

Tangible Fixed Assets

Tangible fixed assets are included at cost less depreciation and impairment.

All assets costing more than £500 are capitalised. Depreciation is calculated to write down the cost of tangible fixed assets to their estimated residual value over their expected useful lives (a full year’s charge is entered in the year of acquisition; no charge is entered in the year of disposal) as follows:

Motor Scooters and Bikes - over 3 years Plant & Equipment - over 3 years Computer Equipment - over 3 years

Financial Instruments

Basic financial instruments are recognised at amortised cost.

Income

Income (including grants) is recognised in the period in which the charity has entitlement to the income, the amount of income can be reliably measured and it is probable that the income will be received.

Any rental income received in advance of the rental period is deferred until that period.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are unrestricted funds that have been earmarked for a particular purpose by the trustees. They do not form part of the charities free reserves.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

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Wheels 2 Work County Durham

Notes to the Financial Statements for the Year Ended 31 March 2021

2. INCOME FROM CHARITABLE ACTIVITIES

Activity Scheme income Wheels 2 Work County Durham Scheme Grant funding Wheels 2 Work County Durham Scheme	Year Ended 31.03.21 £ 51,516 31,847 83,363	Year Ended 31.03.20 £ 60,813 54,800 115,613

The charity acknowledges and is grateful for the following grants received during the period:

DCC Sustainable Transport funds Sir James Knott Trust Garfield Weston Bishop Auckland & Shildon AAP Coalfields Regeneration Trust Job Retention Scheme Total Grant Funding	2021 Total 20,000 - - - - 11,847 31,847	2021 Capital Funding element 20,000 - - - - 20,000	2020 Total 10,000 5,000 10,000 19,800 10,000 £54,800	2020 Capital Funding element 10,000 - - - - £10,000

In addition to the above grants:

£5,000 was received from County Durham Community Foundation to subsidise eligible clients’ rental costs. £1,000 was received from Barbour Foundation to purchase push cycles for suitable clients

3. CHARITABLE ACTIVITIES COSTS

Governance CIO Administration, Grant finding and Monitoring Depreciation and (profit)/losses on disposal Net scheme operation costs (see note 4)	Year Ended 31.03.21 £ 1,113 6,733 16,029 109,103 132,979	Year Ended 31.03.20 £ 1,310 8,296 21,358 125,805 156,769

The notes form part of these financial statements

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Wheels 2 Work County Durham

Notes to the Financial Statements for the Year Ended 31 March 2021

4. BREAKDOWN OF NET SCHEME OPERATION COSTS FOR THE YEAR ENDED 31 MARCH 2021

Direct Scooter & Rider Costs Salaries and Staff Costs Management & Overheads Office Costs Marketing Total (included as part of Note 3)	Year Ended 31.03.21 £ 51,915 55,284 - 1,729 175 109,103	Year Ended 31.03.20 £ 65,748 54,940 - 4,717 400 125,805

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for any earlier period.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for any earlier period.

6. STAFF COSTS

Wages Social Security Pensions Total (included as part of Note 3)	Year Ended 31.03.21 £ 59,703 603 1,121 61,427	Year Ended 31.03.20 £ 58,425 1,590 1,030 61,045

The average number of employees for each of the years ended 31 March 2021 and 31 March 2020 was 3.

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Wheels 2 Work County Durham

Notes to the Financial Statements for the Year Ended 31 March 2021

7. TANGIBLE FIXED ASSETS

Motor Scooters Plant & Equipment £ £ 62,832 1,200 8,144 (9,186)	Motor Scooters Plant & Equipment £ £ 62,832 1,200 8,144 (9,186)	Totals £ 64,032 8,144 (9,186)
61,790	1,200	62,990
35,072 16,911 (7,818)	1,200	36,272 16,911 (7,818)
44,165	1,200	45,365
17,625	-	17,625 27,760
27,760	-
	2021 £ 1,164 10,844 12,008 2021 £ 2,425 1,000 1,009 540 2,932 7,906	2020 £ 495 12,733 13,228 2020 £ 65 540 3,859 4,464

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Wheels 2 Work County Durham

Notes to the Financial Statements for the Year Ended 31 March 2021

10. DESIGNATED FUNDS

The trustees have decided to designate funds according to the following schedule. This is to recognise the planned timing of expenditure and the purpose or limited geographic area for which the grants were made.

Fund Purpose AAP local funding For delivery of Wheels 2 Work in designated areas in 2020/21 Scheme Relaunch Funding Revenue costs of relaunching the scheme as CV19 restrictions lifted Capital Funding To expand and maintain the scooter fleet (DCC Sustainable Transport fund) Total Designated	31 Mar 21 £20,000 £20,000	31 Mar 20 £12,000 £12,000 £20,000 £44,000

11. MOVEMENT IN FUNDS

At 31.03.20 £ Unrestricted Funds Designated Funds (see note 10) 44,000 General Fund – Tangible Assets 27,760 General Fund – Current Assets 28,319 TOTAL FUNDS 100,079 Net Movement in funds, included in the above are as follows: Incoming Resources Resources Expended Unrestricted Funds Designated Funds (see note 10) 20,000 (44,000) General Fund – Tangible Assets 3,032 (13,167) General Fund – Current Assets 60,331 (75,812) TOTAL FUNDS 83,363 (132,979)	Net Movement in Funds £ (24,000) (10,135) (18,992) (49,616) Transfers 0 0 0 0	At 31.03.21 £ 20,000 17,625 12,838
		50,463
		Movement in Funds (24,000) (10,135) (15,481) (49,616)

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Wheels 2 Work County Durham

Comparatives At 31.03.19 £ Unrestricted Funds Designated Funds (see note 10) 89,813 General Fund – Tangible Assets 13,776 General Fund – Current Assets 37,646 TOTAL FUNDS 141,235 Net Movement in funds, included in the above are as follows: Incoming Resources Resources Expended Unrestricted Funds Designated Funds (see note 10) 12,000 89,813 General Fund – Tangible Assets 19,920 5,936 General Fund – Current Assets 83,693 61,020 TOTAL FUNDS 115,613 156,769	Net Movement in Funds £ (45,813) 13,984 (9,327) (41,156) Transfers 32,000 (32,000) -	At 31.03.20 £ 44,000 27,760 28,319 100,079 Movement in Funds (45,813) 13,984 (9,327) (41,156)

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