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← Empower Community Foundation

2024-03-31-accounts

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

Company Registered Number: 07613369 Charity Registered Number: 1161019

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Foundation, its Trustees and Advisers 1
Trustees' Report 2 - 6
Trustees' Responsibilities Statement 7
Independent Auditor's Report on the Financial Statements 8 - 11
Consolidated Statement of Financial Activities 12
Consolidated Balance Sheet 13 - 14
Foundation Balance Sheet 15 - 16
Consolidated Statement of Cash Flows 17
Notes to the Financial Statements 18 - 41

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024

Trustees A Grayson, Chair
M Pitt
H Kotecha
Company registered
number
07613369
Charity registered
number
1161019
Registered office
10 Queen Street Place
London
EC4R 1BE
Independent auditor
MHA
Colchester Business Park
910 The Crescent
Colchester
Essex
CO4 9YQ
Bankers
Triodos Bank UK
Deanery Road
Bristol
BS1 5AS

Page 1

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report together with the audited financial statements of the Foundation for the year 1 April 2023 to 31 March 2024. The Annual Report serves the purposes of both a Trustees' Report and a Directors' Report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the Group and the Foundation qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Group aims to have a demonstrable impact on causes falling within the Empower Community Foundation's (ECF) objects. The Group and Foundation's key objective for the year was to act as a Trustee to the local community funds which are due to be received from projects where the Group and Foundation has an interest. The projects mainly comprise fully operational and validated solar PV systems which are owned and operated by a special purpose vehicle.

ECF administers and oversees the financial management and allocation of surplus revenue share from projects in favour of communities where the projects are undertaken, in consultation with a Local Community Fund Panel for the rooftop portfolio and via the relevant Community Foundation in the case of the CIC-based solar parks (see below).

Per the Objects of ECF, investment in ventures designed to further said Objects and an investment programme began into ConsensusPower Trading PLC (CPT) and EarthHealth Partnership (EHP), and the strategic investment in the purchase of a shareholding in ActionFunder Ltd.

ECF’s objects have been designed to allow maximum flexibility for each locality to make its own decisions in relation to best application of support for that area, broadly in favour of projects which will reduce or reverse negative social and/or environmental impacts in the local community.

b. Strategies for achieving objectives

The strategy for the period was to implement the objectives of the Group and Foundation and prepare for future surplus funds to be distributed.

The principle that members of the community local to that project are best placed to identify and recommend the most beneficial recipients and uses of grant funding is embodied in the structure and implementation of the grant making activities of ECF. These are currently the Local Community Fund Panel for Empower Community Solar 1 LLP (known as ‘Empower Sunderland’) and the use of the ActionFunder online platform for matching.

In each case, ECF Trustees review and approve the most suitable recipients of grant funding as recommended by the local entity.

Page 2

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

The projects have commenced in the special purpose vehicles and the Foundation's share of funds are in the process of being received and distributed.

In the case of Empower Community Solar 1, the primary focus of grant making has been the general improvement and energy efficiency of community centres in the Sunderland area. The covid situation has meant that many of these centres’ building improvement plans were stalled, so grant making for these activities slowed during the period, with a number of smaller grants to wider groups such as food banks and women’s refuges made instead. Unallocated funds have accrued for future grant making.

Drove Lane Solar Park CIC donated to a grant fund entitled ‘Empower Salisbury’ via the ActionFunder platform.

New Mains of Guynd Solar Park CIC donated to a grant fund entitled ‘Empower Angus’ via the ActionFunder platform.

Achievements and performance

a. Key performance indicators

Income distributable to charitable beneficiaries is considered to be the key performance indicator. Grants distributed to institutions for community benefit in the year totalled £98,728 (2023 - £108,144), with unallocated funds from one financial year carried over into the next.

b. Review of activities

Regarding the activities outlined above, the Trustees are aware of their responsibility to balance the needs of beneficiaries and to award grants to new projects where appropriate and carry forward any unallocated grant funds where no suitable recipient has yet been identified.

c. Investment policy and performance

The Foundation is expecting to receive funds in the future to invest in future community projects and for the time being is donating 100% of community benefit funds received.

The investment policy of the Group and Foundation will be to invest any surplus funds in aligned ventures that maximise the potential to expand the reach and quantum of the objects. Further investment policies are reviewed on an ongoing basis.

Further social and ethical considerations which are not outlined in the objects are taken into account as part of the investment policy, as the governing document of the Foundation does not mandate consideration of other matters.

Page 3

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Group and Foundation has adequate resources to continue in operational existence for the foreseeable future. The Trustees consider that the Group will generate future profits from current contracts to eventually reverse the net liability position and sufficient cashflows to meet its obligations for the next 12 months and the foreseeable future. Both Drove Lane Solar Park CIC and New Mains of Guynd Solar Park CIC made profits in the financial year and this further supports the expectation of future profits. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The Group and Foundation is not currently exposed to operational risks of the sort that would require to be ameliorated by emergency expenditure.

The Group aims to maintain a level of reserves in future sufficient to enable its project and donor activities to be undertaken year on year once funding is received. At the year end, there was a deficit in unrestricted funds of £3,248,304 (2023 - £4,241,549).

While the Group is in deficit, the earnings before depreciation for the Group for the year ended 31 March 2024 was £1,864,737 (2023 - £895,893). The deficit in last year is a result of the capital outlay required to initially purchase the solar harvesting equipment which is being depreciated and investments in CPT, EHP and ActionFunder. Once these items are fully depreciated/repayed, the Group is expected to recover the deficit.

c. Financial risk management objectives and policies

The potential for grant fraud is acknowledged as being a risk to which the Group and Foundation and similar charities, may be subject. It is felt that the extensive due diligence that will be carried out on future grant applications mitigates against it as strongly as the Group and Foundation's resources will allow.

Structure, governance and management

a. Constitution

Empower Community Foundation is registered as a charitable company limited by guarantee and was set up by a Trust Deed.

The objects underpin the detection process for beneficiaries of the community funds distributed.

Page 4

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The management of the Group and the Foundation is the responsibility of the Trustees who are elected and coopted under the terms of the Trust Deed.

c. Organisational structure and decision-making policies

The Board administers the Group. A Chief Executive will be appointed by the Trustees to manage the day-today operations of the Foundation when and if required.

ECF is a designated member of Empower Community Solar 1 LLP and receives the 40% of surplus revenue from it on an annual basis, for grant making in the Sunderland community.

ECF is the beneficial owner of Drove Lane Solar Park CIC and New Mains of Guynd Solar Park CIC and receives income by donation for distribution to the communities local to each community, as well as potential for future investment in new projects.

ECF is 100% shareholder in CPT and a member of EHP.

ECF is a 10% shareholder in ActionFunder and has a non-executive board role.

d. Policies adopted for the induction and training of Trustees

Trustees are recruited following recommendations from existing Trustees and after consideration of the existing Board's requirements.

The Trustees are appointed under the Trust Deed, with a minimum of three Trustees. The Trustees undertake appropriate training and induction under their terms of reference, with an experienced Trustee as a mentor.

There are currently no Trustees to induct and training for Trustees is maintained through Charity Commission updates.

e. Pay policy for key management personnel

The Trustees comprise the key management personnel of the Group and Foundation and are in charge of controlling, running and operating the Group and Foundation on a day-to-day basis. All Trustees give of their time freely and received no remuneration for the year and no Trustee expenses were incurred.

f. Related party relationships

None of our Trustees received remuneration or other benefits from their work with the Group and Foundation.

The Foundation is expecting to receive funding in the future from the related entities to accumulate for future reinvestment and distribution as charitable grants.

Page 5

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management (continued)

g. Financial risk management

The Trustees have assessed the major risks to which the Group and the Foundation are exposed, in particular those related to the operations and finances of the Group and the Foundation, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

h. Principal activities

The principal activity during the year was that of the advancement of environmental protection and conservation, improvement of community spaces, reduction of energy costs and advancement of education.

Plans for future periods

The Group and Foundation plans to increase and develop its level of operations as its related entities evolve.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditor

The auditor, MHA, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the Members of the Board of Trustees and signed on their behalf by:

................................................

A Grayson Chair

Date: January 31, 2025

Page 6

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024

The Trustees (who are also the Directors of the Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial period. 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 Group and the Foundation and of their incoming resources and application of resources, including their income and expenditure, 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 the Group and the Foundation's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Foundation 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 Group and the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the Members of the Board of Trustees and signed on its behalf by:

................................................

A Grayson Chair Date: January 31, 2025

Page 7

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EMPOWER COMMUNITY FOUNDATION

Opinion

We have audited the financial statements of Empower Community Foundation (the 'Foundation') and its subsidiaries (the 'Group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Foundation Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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:

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable 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 Trustees with respect to going concern are described in the relevant sections of this report.

Emphasis of matter

We draw attention to the disclosure in Note 15, which describes a material uncertainty related to the recoverability of an amount owed by a subsidiary of the Company and the associated investment in that subsidiary. The inherent uncertainty of the future trade of the subsidiary may have a significant impact on the financial statements. Our opinion is not modified in respect of this matter.

Page 8

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EMPOWER COMMUNITY FOUNDATION (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, 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 course of 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 matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 9

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EMPOWER COMMUNITY FOUNDATION (CONTINUED)

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable 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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 10

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EMPOWER COMMUNITY FOUNDATION (CONTINUED)

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 Group's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the Group's Trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Group'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 Group and its Members, as a body, for our audit work, for this report, or for the opinions we have formed.

Cara Miller ACCA (Senior Statutory Auditor)

for and on behalf of

MHA

Statutory Auditor Colchester, United Kingdom

Date: January 31, 2025

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

Page 11

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Note
Income from:
Donations
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2024
£
-
5,423,662
12,940
131,006
5,567,608
4,574,363
4,574,363
993,245
(4,241,549)
993,245
(3,248,304)		 Total
funds
2024
£
-
5,423,662
12,940
131,006
5,567,608
4,574,363
4,574,363
993,245
(4,241,549)
993,245
(3,248,304)		 Total
funds
2023
£
10,500
3,272,140
12,376
38,093
3,333,109
3,303,579
3,303,579
29,530
(4,271,079)
29,530
(4,241,549)

The Consolidated 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 18 to 41 form part of these financial statements.

Page 12

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 07613369

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due within one
year
16
Net current assets / (liabilites)
Total assets less current liabilities
Creditors: Amounts falling due after more
than one year
17
Total net assets / (liabilities)
Group funds
Restricted funds
19
Unrestricted funds
19
Total funds		 2024
£
1,181,795
3,453,310
4,635,105
(2,559,343)		 2024
£
11,782,217
300,100
12,082,317
2,075,762
14,158,079
(17,406,383)
(3,248,304)
-
(3,248,304)
(3,248,304)		 As Restated
2023
£
459,838
2,745,072
3,204,910
(3,695,346)		 As Restated
2023
£
12,622,328
50,100
12,672,428
(490,436)
12,181,992
(16,423,541)
(4,241,549)
-
(4,241,549)
(4,241,549)

Page 13

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 07613369

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

The Foundation was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

A Grayson

Chair Date: January 31, 2025

The notes on pages 18 to 41 form part of these financial statements.

Page 14

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 07613369

FOUNDATION BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due within one
year
16
Net current assets
Creditors: amounts falling due after more
than one year
17
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
Unrestricted funds
Total funds		 2024
£
5,512,729
374,425
5,887,154
(589,848)		 2024
£
350,200
5,297,306
(4,009,736)
1,637,770
1,637,770
-
1,637,770
1,637,770		 As Restated
2023
£
2,558,889
189,833
2,748,722
(232,475)		 As Restated
2023
£
50,200
2,516,247
(2,232,500)
333,947
333,947
-
333,947
333,947

Page 15

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 07613369

FOUNDATION BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

The Foundation was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

A Grayson

Chair Date: January 31, 2025

The notes on pages 18 to 41 form part of these financial statements.

Page 16

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Interest received
5
Proceeds from the sale of tangible fixed assets
Net cash generated from investing activities
Cash flows from financing activities
Repayments of loans
16,17
Interest paid
8
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 2024
£
2,167,535
12,940
11,180
24,120
(370,508)
(1,112,909)
(1,483,417)
708,238
2,745,072
3,453,310		 2023
£
2,395,949
12,376
35,058
47,434
(911,731)
(1,199,322)
(2,111,053)
332,330
2,412,742
2,745,072

The notes on pages 18 to 41 form part of these financial statements.

Page 17

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. General information

Empower Community Foundation is a charitable company limited by guarantee, incorporated in England and Wales. The Charity Registration Number of the Foundation is 1161019 and the Company Registration Number of the Foundation is 07613369. The address of the registered office and principal place of operation is detailed on page 1. The nature of the Foundation's operations and principal activity are detailed in the Trustees' Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Empower Community Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The presentational and functional currency of the Group and Foundation is pound sterling and the financial statements have been rounded to the nearest pound sterling.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Foundation and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Foundation has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Related entities

Empower Community Foundation is a relevant legal entity to two Community Interest Companies (CICs), four companies and three Limited Liability Partnerships (LLPs) formed to advance charitable solar powered activities. Empower Community Foundation does have the power to control or govern the financial and operational policies of the two CICs, one company and one LLP and therefore is required to prepare consolidated financial statements including these three entities. Further details regarding these entities can be found in Note 14.

Page 18

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.3 Going concern

The Group has net current liabilities of £2,075,762 (2023 - £490,436) and total net liabilities of £3,248,304 (2023 - £4,241,549) at the Balance Sheet date.

Based on above and on the resources available, the Trustees consider that the company will remain in operational existence for the near future. The Trustees consider that the Group will generate future profits from current contracts to eventually reverse the net liability position and sufficient cashflows to meet its obligations for the next 12 months and the foreseeable future. Both Drove Lane Solar Park CIC and New Mains of Guynd Solar Park CIC made profits in the financial year and this further supports the expectation of future profits. The Trustees have considered relevant information, including the annual budget, forecast future cashflows and the impact of subsequent events in making their assessment. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

2.4 Income

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Other income from the sale of goods is recognised when all of the following conditions are satisfied:

Page 19

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 20

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

2.8 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

Investments in associates are stated at the amount of the Group's share of net assets. The Consolidated Statement of Financial Activities includes the Group's share of the associated companies' net income or expenditure using the equity accounting basis.

2.9 Debtors

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

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Foundation anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Page 21

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.12 Financial instruments

The majority of the Group's financial assets and liabilities qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 15. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost as detailed in Notes 16 and 17. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

Investments in associates are measured at fair value using the equity method as detailed in Policy 2.8.

2.13 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

Page 22

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

3. Income from donations

Donations
4.
Income from charitable activities
Environmental protection and conservation
Environmental protection and conservation		 Unrestricted
funds
2024
£
Unrestricted
funds
2023
£
10,500
Unrestricted
funds
2024
£
5,423,662
Unrestricted
funds
2023
£
3,272,140		 Total
funds
2024
£
Total
funds
2023
£
10,500
Total
funds
2024
£
5,423,662
Total
funds
2023
£
3,272,140

Page 23

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5. Investment income

Unrestricted
funds
2024
£
Bank interest receivable
12,940
Unrestricted
funds
2023
£
Bank interest receivable
12,376		 Total
funds
2024
£
12,940
Total
funds
2023
£
12,376

6. Other incoming resources

Fees
Gain on sale of tangible fixed assets
Recharges
Bank interest receivable
Total 2023		 Unrestricted
funds
2024
£
123,516
7,490
131,006
Unrestricted
funds
2023
£
15,656
22,437
38,093		 Total
funds
2024
£
123,516
7,490
131,006
Total
funds
2023
£
15,656
22,437
38,093

Page 24

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7. Analysis of expenditure on charitable activities - by fund

Environmental protection and conservation
Environmental protection and conservation		 Unrestricted
funds
2024
£
4,574,363
Unrestricted
funds
2023
£
3,303,579		 Total
2024
£
4,574,363
Total
2023
£
3,303,579

8. Analysis of expenditure on charitable activities - by type

Environmental protection and conservation
Environmental protection and conservation		 Grant
funding of
activities
2024
£
98,728
Grant
funding of
activities
2023
£
108,144		 Support
costs
2024
£
4,475,635
Support
costs
2023
£
3,195,435		 Total
funds
2024
£
4,574,363
Total
funds
2023
£
3,303,579

Page 25

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Analysis of expenditure on charitable activities - by type (continued)

Analysis of support costs

Depreciation
Audit and accountancy fees
Bookkeeping fees
Bank charges
Professional subscriptions
Legal and professional fees
Premises and associated maintenance costs
Insurance costs
Loan interest payable
Asset management fees
Arrangement fees
Performance fees
Technology costs
VAT adjustments
Solar monitoring
Distributions paid
Management fees
Sundry expenses
Other donations		 Total
funds
2024
£
871,492
107,306
20,000
1,636
476
1,171,250
250,098
65,497
1,112,909
78,388
5,430
486,752
51,391
5,266
30,815
44,127
137,294
12,008
23,500
4,475,635		 Total
funds
2023
£
866,363
87,097
32,570
1,934
-
329,918
217,515
24,844
1,118,828
56,886
14,287
152,331
7,500
4,796
26,488
87,087
128,388
103
38,500
3,195,435

Page 26

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

9. Analysis of grants

Environmental protection and conservation
Environmental protection and conservation		 Grants to
institutions
2024
£
98,728
Grants to
institutions
2023
£
108,144		 Total
funds
2024
£
98,728
Total
funds
2023
£
108,144

No grants made to any one institution in either the year ended 31 March 2024 or the year ended 31 March 2023, which were deemed to be material to the Group for the purposes of these financial statements.

10. Auditor's remuneration

2024 2023
£ £
Fees payable to the Group's auditor for the audit of the Group's annual
accounts 53,000 52,050
Fees payable to the Group's auditor in respect of:
All non-audit services not included above 30,550 42,400

Page 27

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

11. Staff costs

The average number of persons employed by the Foundation, including trustees and directors, during the year was as follows:

Group Group Foundation Foundation
2024 2023 2024 2023
No. No. No. No.
Employees 4 4 3 3

No employee received remuneration amounting to more than £60,000 in either year.

The Group incurred no staff costs during the year ended 31 March 2024 (2023 - £NIL) .

12. Trustees' remuneration and expenses

During the year, the Trustees, who are considered to be the key management personnel, didn't receive any remuneration or other benefits (2023 - £NIL) .

During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL) .

Page 28

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

13. Tangible fixed assets

Group

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
On disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Plant and
machinery
£
19,491,952
-
(6,708)
19,485,244
6,869,624
866,025
(3,019)
7,732,630
11,752,614
12,622,328		 Computer
equipment
£
-
35,070
-
35,070
-
5,467
-
5,467
29,603
-		 Total
£
19,491,952
35,070
(6,708)
19,520,314
6,869,624
871,492
(3,019)
7,738,097
11,782,217
12,622,328

Page 29

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Fixed asset investments

Group
Cost
At 1 April 2023
Additions
Transfers intra group
At 31 March 2024
Foundation
Cost
At 1 April 2023
Additions
At 31 March 2024		 Investments
in
subsidiary
companies
£
50,000
-
(50,000)
-
Investments
in
subsidiary
companies
£
50,200
-
50,200		 Investments
in
associates
£
100
300,000
-
300,100
Investments
in
associates
£
-
300,000
300,000		 Total
£
50,100
300,000
(50,000)
300,100
Total
£
50,200
300,000
350,200

Page 30

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Fixed asset investments (continued)

Principal subsidiaries and associates

The following were subsidiary undertakings of the Foundation:

Names Company Registered **Principal activity ** Class of Holding Included in
number office or shares consolidation
principal place
of business
Drove Lane 09296615 10 Queen Street Production of Ordinary 100% Yes
Solar Park Place, London, electricity through
CIC EC4R 1BE solar technology
New Mains SC508660 C/O Henderson Production of Ordinary 100% Yes
of Guynd Loggie, The electricity through
Solar Park Vision Building, solar technology
CIC 20
Greenmarket,
Dundee,
Scotland, DD1
4QB
Empower OC387463 10 Queen Street Production of N/A -% Yes
Community Place, London, electricity through
Solar 1 LLP EC4R 1BE solar technology
Consensus 14554406 1 Bartholomew Production of Ordinary 100% Yes
Power Lane, London, electricity through
Trading EC2N 2AX solar technology
PLC

Page 31

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Fixed asset investments (continued)

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(loss) Net assets/
£ £ for the year (liabilities)
£ £
Drove Lane Solar Park CIC 2,192,864 (1,780,211) 412,653 (936,684)
New Mains of Guynd Solar Park CIC 1,952,786 (1,764,505) 188,281 (862,822)
Empower Community Solar 1 LLP 1,354,289 (1,532,922) (178,633) -
Consensus Power Trading PLC - (732,880) (732,880) (682,880)

Page 32

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Fixed asset investments (continued)

The following were associates of the Foundation:

Names Fair value of Registered Class of Holding
investment office or shares
at 31 March principal place
2024 of business
£
Britford Solar Connections Limited 50 Cubico Sustainable Ordinary 50%
Investments, 70 St
Mary Axe, London,
EC3A 8BE
Solar Connections (New Mains of Guynd) 50 KPMG LLP, Saltire Ordinary 50%
Limited Court, 20 Castle
Terrace,
Edinburgh,
Scotland, EH1 2EG

Empower Community Foundation is deemed to control the financial and operational policies of Empower Community Solar 1 LLP due to its role as a member of the LLP.

Both Britford Solar Connections Limited and Solar Connections (New Mains of Guynd) Limited were dormant during the year ended 31 March 2022 and 31 March 2021.

The shares in Drove Lane Solar Park CIC and New Mains of Guynd Solar Park CIC are held by Empower Community Foundation Limited. The shares in Britford Solar Connections Limited are held by Drove Lane Solar Park CIC. The shares in Solar Connections (New Mains of Guynd) Limited are held by New Mains of Guynd Solar Park CIC.

Page 33

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

15. Debtors

Amounts owed by group undertakings
Due within one year
Trade debtors
Amounts owed by group undertakings
Amounts owed by associates
Other debtors
Prepayments and accrued income		 Group
2024
£
-
-
175,669
-
6,710
414,832
584,584
1,181,795		 Group
As Restated
2023
£
-
-
42,067
16,707
6,710
31,262
363,092
459,838		 Foundation
2024
£
4,008,836
4,008,836
-
942,461
6,710
400,462
154,260
5,512,729		 Foundation
As Restated
2023
£
2,232,500
2,232,500
-
214,701
6,710
20,293
84,685
2,558,889

The amounts owed by group undertakings above includes a balance of £480k (2023: £20k) owed by Consensus Power Trading plc, an entity incorporated on 22 December 2022. The recoverability of the debtor is dependent on the Company's ability to generate future profits from the platform being developed. Whilst the Directors are confident of the future success of the platform, the entity and the platform are in its infancy and the future profitability is inherently uncertain. The Directors' believe they have strong interest from a number of parties, including some well-known names, and that their interest will generate significant income in the future. In addition to this there is an investment in the entity in Note 14 which has not been impaired but subject to the same uncertainty.

The amounts owed by Consensus Power Trading plc and Earthhealth Partnership LLP is disclosed as falling due within one year. In December 2024, this balance was converted into a formal unsecured loan with a repayment date of the 5th anniversary of the first drawdown.

Page 34

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Amounts owed to group undertakings
Amounts owed to associates
Other taxation and social security
Other creditors
Accruals		 Group
2024
£
2,025,322
51,931
-
100
34,568
5,000
442,422
2,559,343		 Group
2023
£
3,378,672
41,167
-
100
8,783
200
266,424
3,695,346		 Foundation
2024
£
222,764
-
111,137
-
-
-
255,947
589,848		 Foundation
2023
£
117,500
-
97,975
-
-
-
17,000
232,475

Other loans of £2,025,322 (2023 - £3,378,672) are secured by a fixed and floating charge over the assets of the Group.

17. Creditors: Amounts falling due after more than one year

Group Group Foundation Foundation
2024 2023 2024 2023
£ £ £ £
Other loans 17,406,383 16,423,541 4,009,736 2,232,500

Other loans of £17,406,383 (2023 - £16,423,541) are secured by a fixed and floating charge over the assets of the Group.

Included within the above are amounts falling due as follows:

Between one and two years
Other loans
Between two and five years
Other loans
Over five years
Other loans		 Group
2024
£
2,752,502
4,558,760
10,095,121		 Group
2023
£
2,340,835
3,944,116
10,138,590		 Foundation
2024
£
222,764
556,910
3,230,062		 Foundation
2023
£
117,500
352,500
1,762,500

Page 35

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

18. Prior year adjustments

The results for the year ended 31 March 2023 have been restated to correctly present payments orignally classified as being made to the Earthhealth Partnership LLP previously included within other debtors. As a result, investment additions of £50,000 have now been recognised in both the Foundation Statement of Financial Position and the Consolidated Statement of Financial Position. Other debtors have also decreased by £50,000 in both Statement of Financial Positions. In addition to this, the Related party transaction note has been restated to reflect the above and the split between other debtors and amounts due from group undertakings has changed by £16,707.

19. Statement of fund

Statement of funds - current year

Balance at
Balance at 1 31 March
April 2023 Income Expenditure 2024
£ £ £ £
Unrestricted funds
General funds (4,241,549) 7,346,210 (6,352,965) (3,248,304)

Statement of funds - prior year

Balance at
Balance at 31 March
1 April 2022 Income Expenditure 2023
£ £ £ £
Unrestricted funds
General funds (4,271,079) 3,333,109 (3,303,579) (4,241,549)

The General fund has been created to monitor the incoming resources which have no restrictions over their usage in respect of activities undertaken by the Group.

Page 36

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

20. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2024
£
Tangible fixed assets
11,782,217
Fixed asset investments
300,100
Current assets
4,635,105
Creditors due within one year
(2,559,343)
Creditors due in more than one year
(17,406,383)
Total
(3,248,304)		 Total
funds
2024
£
11,782,217
300,100
4,635,105
(2,559,343)
(17,406,383)
(3,248,304)

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2023
£
12,622,328
50,100
3,204,910
(3,695,346)
(16,423,541)
(4,241,549)		 Total
funds
2023
£
12,622,328
50,100
3,204,910
(3,695,346)
(16,423,541)
(4,241,549)

Page 37

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Purchase of tangible fixed assets
Profit on the disposal of tangible fixed assets
Increase in investments in associates
Decrease/(increase) in debtors
Increase in creditors
Interest paid
Net cash provided by operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2024
£
993,245
871,492
(12,940)
(35,070)
(7,491)
(250,000)
(721,957)
217,347
1,112,909
2,167,535
Group
2024
£
3,453,310
3,453,310		 Group
As Restated
2023
£
29,530
866,363
(12,376)
-
(22,437)
(50,000)
285,704
99,843
1,199,322
2,395,949
Group
2023
£
2,745,072
2,745,072

Page 38

Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

23. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2023
£
2,745,072
(3,378,672)
(16,423,541)
(17,057,141)		 Cash flows
£
708,238
1,353,350
(982,842)
1,078,746		 At 31 March
2024
£
3,453,310
(2,025,322)
(17,406,383)
(15,978,395)

24. Related entities

In addition to the subsidiaries and associates listed in Note 14, Empower Community Foundation is related to a number of other entities, either as a designated member or relevant legal entity. These other related entities are listed below:

ECS Peterborough 1 LLP Empower Peterborough CIC Empower Community Management LLP ECSP1 Construction Limited

Empower Community Foundation does not have the power to govern and direct the financial or operational policies of any of the above entities under any statute or agreement, as the operational policies of the entities are determined and directed by other entities. Empower Community Foundation and the above entities do not operate as a single entity and the risks and rewards of the various entities are not those of the Foundation.

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Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

25. Operating lease commitments

At 31 March 2024 the Group and the Foundation had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Group
2024
£
79,248
316,991
1,057,464
1,453,703		 Group
2023
£
73,979
295,916
1,060,323
1,430,218

The following lease payments have been recognised as an expense in the Consolidated Statement of Financial Activities:

Group Group
2024 2023
£ £
Operating lease rentals 76,958 71,597

26. Members' liability

Each member of the Foundation undertakes to contribute to the assets of the Foundation in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

27. Related party transactions

The Group has taken advantage of the exemption in Section 33.1A under FRS 102 not to disclose transactions with wholly owned members of the Group.

During the year, Empower Community Management LLP settled invoices totalling £Nil (2023: £13,290. At the year end, a balance of £6,710 (2023: £6,710) is due from Empower Community Management LLP. This loan is unsecured, interest free and repayable on demand.

During the year, Empower Community Foundation gave loans of £396,288 (As Restated 2023: £4,173) to EarthHealth Partnership LLP, in which a director of Drove Lane Solar Park CIC and New Mains of Guynd Solar Park CIC is also a member. At year end, an unsecured balance of £400,461 (As Restated 2023: £4,173) was owed to Empower Community Foundation. In December 2024 the amounts advanced were converted into a formal unsecured loan with interest accruing at 20% per annum for each day outstanding, the interest and capital is due on the 5th anniversary of the first utilisation date.

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Docusign Envelope ID: 355F0619-943E-461B-BC7A-060DCA3BCC4F

EMPOWER COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

28. Post balance sheet events

On 6 December 2024, the Company entered into a formal loan agreement with Consensus Power Trading plc, a subsidiary, in which there was a balance owed by this subsidiary at year end which is included in Note 15. The Company also entered into a formal loan agreement with Earthhealth Partnership LLP, a related party, in which there was a balance owed by this company at year end which is included in Note 15. Both loans are unsecured, with interest accruing at 20% per annum for each day outstanding, the interest and capital is due on the 5th anniversary of the first utilisation date

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