OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-09-30-accounts

Company Registration Number: 08916805 Charity Registration Number: 1164509

BUILDING COMMUNITIES TRUSTEE LIMITED (A company limited by guarantee and not having a share capital)

GROUP REPORT OF THE TRUSTEES & CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

BUILDING COMMUNITIES TRUSTEE LIMITED

Contents

Protectors Report 1
Group Report of the Trustees including Strategic Report 2 - 11
Report of the Independent Auditors 12 - 15
Statement of Financial Activities 16 - 17
Balance Sheet 18 - 19
Statement of Cash Flows 20
Notes to Financial Statements 21 - 43

BUILDING COMMUNITIES TRUSTEE LIMITED PROTECTORS REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

INVEST LOCAL TRUST (ILT)

2024 ANNUAL STATEMENT BY THE PROTECTOR

Invest Local Trust (ILT) is a UK-registered charity with a single Corporate Trustee overseeing its operations. The Trustee, Building Communities Trustee Ltd (BCT), is governed by a board of directors that meets quarterly, and its day-to-day management is delegated to the Chief Executive.

The Trust Deed defines the role of the Protector as: "...to ensure the integrity of the administration of the Charity and the propriety of its procedures." This role is advisory and does not involve decision-making, except for certain powers of approval granted in specific situations. I have not had to exercise any of these powers during the past twelve months.

Over the course of the year, I participated in all Board meetings, including the in-person meeting held in June 2024, which included a tour of the Pill Unity Gardens and Allotments. I also served on a Board Subcommittee tasked with developing a closure strategy for the Trust.

I continue to be assured by the robust processes, procedures, and internal controls implemented by BCT, which ensure that funds are administered in strict accordance with the Trust Deed and in line with best practices in charity governance. Furthermore, I have observed BCT’s proactive efforts to engage local areas as we approach the end of the Trust’s funding window in 2028, ensuring that spending remains on track.

In conclusion, I am satisfied that the endowment is being managed in full accordance with the Fund’s intentions. I will continue to monitor the situation closely to ensure compliance as the organisation transitions toward its closure phase.

Scott McGregor Protector – Invest Local Trust October 2024

1

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its linked charity for the year ending 30 September 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act 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 PURPOSE AND ACTIVITIES

The Charity was established in 2014 through agreement between its Trustees and the Big Lottery Fund. It started operating in mid-2015 and received the endowment which forms the vast majority of its resources in January 2016.

The Objects of the Charity are the:

In each case for the benefit of the public.

'The promotion of social inclusion' means preventing people becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.

Background to the Charity

In setting up the Charity, the Trustees and the Big Lottery Fund had regard to the evidence that Wales has a high percentage of the population living in poverty and that a place-based funding approach can be effective in tackling multiple, interlinked problems and bringing services and support to people who would not otherwise be able to reach them.

The evidence suggested that in the most disadvantaged communities there is often community spirit and a wealth of potential, but it is often hampered by a sense of disenfranchisement and lack of confidence. This can manifest itself in a number of ways, including a lack of fundraising and project delivery skills, mistrust of the statutory or public sector and low morale. As a result, even where money has been targeted to help it has not always made the difference that was hoped.

2

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

There are approaches to providing help, however, which have done better: flexible, long-term, and locally determined approaches, which support local people and committed agencies to make a difference, over the longer term. The intention of the Charity is to build on the successes and experience of these initiatives and have the freedom to continue to learn and improve on their methods and approaches.

There is also evidence that active community measures can significantly mitigate the impact of poverty and social disadvantage, suggesting that community action can serve to reduce as well as mitigate the impacts of poverty.

Outcomes

In distributing the endowment, Building Communities Trustee Ltd (BCT) aims to achieve the following outcomes in each of its areas of benefit:

Short term outcomes

  1. Communities gain increased capacity to improve their quality of life and sense of wellbeing, by developing local solutions through improved citizen engagement.

  2. Local Third Sector 'anchor' organisations are able to take a lead role in local regeneration and developing community resilience.

  3. The Third Sector is better equipped to develop and deliver anti-poverty initiatives and use learning and expertise to inform the policy debate on poverty.

Longer term outcomes

  1. The impact of poverty on individuals and the communities in which they live has been reduced and they are more resilient to the impacts of poverty and social disadvantage.

  2. Local leadership to drive forward the engagement of target communities in local regeneration and resilience has been established and mainstreamed.

Core principles of our work

There are key activities and principles which underpin BCT’s work which are:

3

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

Funding policies

Funds are released in line with the principles set out above. The criteria are highly flexible with the key determining factor being that the applications have been agreed by the local community decision-making forum. The other key criterion used is the degree to which the activities supported generate long-term benefits. All funding awarded is additionally verified for compliance with the charity’s objectives (see above) and thus far we have found no conflict between those objectives and locally derived priorities.

For the Driving Change phase of Invest Local, BCT funds plans submitted by local community steering groups which are expected to usually contain a number of linked projects. Those plans are developed through a coproductive model which allows Trustees to work alongside local Steering Groups in the development of the plans and assure themselves that plans are consistent with our charitable and policy requirements as they are developed.

A final Board agreement of plans is still required for compliance purposes but in reality, any major concerns that Trustees have will have been identified and discussed during the development of the plan.

The Community Anchor Development Programme has awarded one off grants of £150,000 to organisations identified as “community anchors” in areas suffering socio-economic deprivation to help them address long term challenges. Decisions on which bidders to fund were made by Trustees based on information provided by staff. This programme has resulted in BCT developing systems for more orthodox competitive funding bids.

Risk Management

The Trustees have undertaken a thorough risk analysis of the issues facing the organisation and their risk framework is reviewed regularly by both subgroups and the full Board.

The principal risks relate to the nature of the Invest Local programme and its delivery and legacy and to the management of the investment.

These have been:

4

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Building Communities Trustee is a company limited by guarantee governed by its Memorandum and Articles of Association dated 28 February 2014. It is registered as a charity with the Charity Commission. It is the corporate trustee of Invest Local Trust which is an unincorporated linked charity.

Appointment of trustees

The founding Trustees were appointed by the Lottery on establishment of the charity.

Those Trustees served for 18 months before being due for reappointment; other Trustees served for a year before being due for reappointment.

Trustees shall be subject to a system of retirement by rotation, as follows:

5

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Charity is allowed a maximum of 14 and minimum of four trustees. On 30 September 2024 there were twelve Trustees

A further recruitment process for new Trustees was undertaken in the winter of 2023-24 which allowed us to strengthen the Board with five new members with a diverse range of skills.

Organisation

The board of trustees administers the charity. The board normally meets quarterly and there are three subcommittees covering Finance, investment and general purpose and programme support as well as one covering issues relating to closing the charity in 2029.

A Chief Executive has been appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters.

Key management personnel remuneration

The trustees consider the board of trustees, the Chief Executive, the Communications Manager and the Finance Manager as comprising the key management personnel of the charity, in charge of directing and controlling the charity, and running and operating the charity on a day-to-day basis. No trustee received remuneration in the year. Details of trustee expenses and related party transactions are disclosed in notes 7 and 23.

Key management remuneration is set using the same policy that is used for all employee remuneration. The annual cost of living increase is reviewed yearly by the board of trustees to ensure that any increase is affordable and sufficient to retain staff.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities. In particular, the trustees have considered how planned activities will contribute to the aims and objectives they have set.

ACHIEVEMENTS AND PERFORMANCE

The past year has been the eighth where the Charity has been fully established and working at full capacity.

In terms of funding, all thirteen communities within the Invest Local programme have now had agreement to at least a second Driving Change plan to fund work agreed by local communities based on the consultation they have undertaken and most are progressing towards their final plans which will lead them to spend their entire £1m allocation.

Some Invest Local areas have made slower progress than expected over the last year for a range of reasons: these have included prioritising cost of living responses, the difficulties getting larger capital projects off the ground and challenges re-engaging volunteers after Covid.

6

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

However, on the flip side, a number of communities are developing large scale asset acquisition projects which could entrench sustained community action within their localities for the foreseeable future.

All the areas remain affected by the cost-of-living crises despite a reduction in its national profile. This initially led to a prioritisation of short-term initiatives including “warm spaces”, an extension of emergency food projects and greater access to advice services and many of those are continuing and may become a permanent feature of the programme. The impacts of the crisis lessened slightly from the spring onwards but are returning for a third winter. This means that the Invest Local areas have almost all continued to carry out short term emergency response work with both food projects and initiatives supporting wellbeing among people suffering the impacts of firstly isolation and then plummeting real incomes.

After two years of preparation BCT launched the Community Anchor Development Programme in June 2023. Based on extensive learning from Invest Local about the importance of local community assets the programme agreed funding for 11 community anchor organisations to strengthen their work with a mix of funding, professional support and peer learning over a four-year period starting in March 2024. The programme is being evaluated to ensure all relevant learning is drawn out and disseminated.

The Charity has also continued to raise its public profile, engaging in more detailed discussions about the future options for community action in Wales and taking up a representative role for organisations undertaking community-based work across Wales. We have also encouraged communities to share local responses to the Cost-of-Living Crisis and run events in tandem with local authorities and others to promote local cross sectoral work.

The programme evaluator has supported both BCT and the Invest Local communities throughout the year. This has included detailed work on the processes used within Invest Local across the entire programme. The evaluator also completed a review of Invest Local areas’ responses to Covid.

7

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

FINANCIAL REVIEW

Overview

Building Communities Trustees Limited total income for the year was £2 (2023: £1). Expenditure for the year was £582 (2023: £179), restricted reserves at the year-end were £8,471, of which £NIL was invested in fixed assets. Reserves excluding fixed assets were £8,471.

Invest Local Trust was established by the Big Lottery fund with a national lottery grant of £16,510,000, of which £16,100,000 was invested. Invest Local Trust’s work is currently entirely reliant on this endowment and the investment returns from it.

Invest Local Trust received income from this investment of £268,644 (2023: £268,651).

Total expenditure for Invest Local Trust was £3,460,155 (2023: £2,048,724) and restricted reserves at the year-end were £7,523,657 (2023: £10,172,125).

Total expenditure for both charities in the year was £3,460,737 (2023: £2,048,902), of which £2,798,253 (2023: £1,469,602) was direct funding to areas, £296,347 (2023: £267,986) on delivery to the areas and £300,044 (2023: £268,682) on shared learning, evaluation and policy and advocacy.

The direct funding to the communities can be further analysed as £1,004,035 for Invest Local Driving Change areas (2023: £1,469,602), £1,644,218 under the Community Anchor Development Programme (2023: £nil) and £150,000 funding for the Community Networks Programme (2023: £nil).

Investment policy and performance

CCLA is Invest Local Trust’s investment manager . The Trust currently has a cautious attitude to risk. There is a limited tolerance of volatility in pursuit of returns greater than those available on cash. The intention is for the portfolio to be spent down over a 12-year period. The appropriate liquidity and cash flows are required to support a 12-year spend down with a portfolio structured to provide a total return over time greater than that available on cash deposits.

In the first half of 2020, and in the light of the substantial earnings already secured through the equity investment and the prevailing volatility of the stock market, the trustees took the decision to reduce equity holdings by around a half. This has effectively “locked-in” gains previously made and ensures that the Trust can fully fund its commitments with significantly reduced risks to future income flows.

During July 2021, after advice from CCLA, the trustees took the decision to sell the remaining portfolio of bonds. All of the cash held in the portfolio was transferred to the Charity Deposit Fund account. This account is held outside of the portfolio and is managed by Invest Local Trust, therefore reducing the fees paid to CCLA.

A further decision was taken by the trustees to transfer the equities to accumulated dividend equities. This had an instant impact on the budget as with accumulated equities no cash dividends are received. The income will only be realised on the sale of the shares. This decision was taken as there is no requirement for additional cashflow in the short term.

8

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

Since that decision, economic circumstances have changed dramatically with the highest inflation seen in decades and the ongoing conflict in the Ukraine. After speaking to CCLA the Board have decided to leave the equities in the accumulated fund. This will be reviewed in twelve months when hopefully inflation will have settled and the potential losses from holding cash will be reduced.

As the portfolio has substantially changed the original mandate has now been terminated and a new one has been signed to cover the ongoing equity holdings which remain profitable.

Funding Commitments

A funding obligation between Invest Local Trust and a Fundholder organisation is triggered when a funding offer letter is sent to the Fundholder to notify them that a specific amount of funding has been endorsed for a stated period. We record these funding commitments as creditors.

Reserves policy

Building Communities Trustee Limited had net restricted reserves of £8,471 at 30 September 2024, of which £nil is invested in fixed assets.

Invest Local Trust held total funds of £7,523,657: this is an expendable endowment to be spent by March 2029. To achieve this, we have an indicative 5-year budget to ensure that there is funding to cover Invest Local Trust’s day-to-day costs and long-term objectives.

PLANS FOR THE FUTURE

BCT remains in a financially sound position despite some recent losses in the value of the endowment but the external challenges that the charity’s partners and grantees face are substantial and still unfolding, and the development of a new programme makes our work more complex.

Our top priority over the next year will be supporting the thirteen Invest Local communities to develop longer term strategies for their work thinking, especially of sustainability and to support the roll out of the new Community Anchor programme.

All of this will take place in environments where many members of local communities are under substantial financial and mental health pressure, seriously affecting the work of the organisation we support.

We will also prioritise advocacy work trying to secure new streams of funding for community action and ensuring that community voices are heard by Welsh Government during this debate.

We will also seek to enhance opportunities and capacity of Invest Local areas, and Community Anchor programme participants to network and learn from their peers. Some of this will remain online given the significantly enhanced opportunities that have merged using virtual meetings since March 2020, and some will be face-to-face.

BCT will also seek to strengthen learning across wider community initiatives in Wales and using our role as a national organisation to build bridges across different geographies and types of community initiative.

Trustees are also aware that while BCT’s funding will take the organisation to 2029, the charity has a finite future. With this in mind it is already starting preparation for closing down the organisation in a managed and responsible way and will ensure as it does so all legal responsibilities to funders, beneficiaries, staff and the regulator are met.

9

BUILDING COMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Charity name Building Communities Trustee Limited
Charity registration number 1164509
Linked charities
1164509-1 – Invest Local Trust T/A Building Community Trust & BCT
Company registration number 08916805
Registered office Britannia House
Caerphilly Business Park
Caerphilly
CF83 3GG
Trustees David Dallimore - Chair
Dr Eva Elliot - Chair Programme sub-committee
Joanne Oak - Chair Finance and General Purposes Committee
Professor Kent Matthews
Casey Edwards
William Jenkins
Martin Blakebrough
Rhian Brewster
Alison Powell
Dr Jess Silvester
Adam Jones
Rhys Taylor – Chair Closedown sub-committee
Chief Executive C Johnes
Key management personnel C Johnes-Chief Executive
R Burgess – Communications Manager
J Lewis - Finance Manager
Independent auditors Bevan Buckland LLP
Chartered Accountants & Statutory Auditors
Ground Floor, Cardigan House
Castle Court,
Swansea Enterprise Park
Swansea SA7 9LA
Bankers Unity Trust Bank
Four Brindleyplace
Birmingham, B1 2HB
Solicitors Geldards
4 Capital Quarter
Tyndall Street
Cardiff CF10 4BZ
Investment Managers CCLA Investment Management Ltd
COIF Charity Funds
80 Cheapside,
London, EC2V 6DZ

10

BUILDING COMMMUNITIES TRUSTEE LIMITED GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also directors of Building Communities Trustee Limited for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with 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).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Board the Trustees approve the Strategic Report and the Trustees Report

David Dallimore Chair

Date: 24[th] May 2025

11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BUILDING COMMUNITIES TRUSTEE LIMITED

Opinion

We have audited the financial statements of Building Communities Trustee Limited (the ‘charitable company’) for the year ended 30 September 2024 which comprise the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘ The Financial Reporting Standard applicable in the UK and Republic of Ireland ’.

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditor’s thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

12

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BUILDING COMMUNITIES TRUSTEE LIMITED

In connection with our audit of the financial statements, 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.

The financial statements of Building Communities Trustee Limited for the year ended 30 September 2023 were audited by another auditor who expressed an unmodified opinion on those statements on 16 January 2024.

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

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

Responsibilities of trustees

As explained more fully in the Statement of Ttrustees’ 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 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 a Report of the Independent Auditors 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.

13

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BUILDING COMMUNITIES TRUSTEE LIMITED

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Audit response to risks identified

In addition to the above, our procedures to risks identified included the following:

14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BUILDING COMMUNITIES TRUSTEE LIMITED

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable 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 charitable 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Jones (Senior Statutory Auditor) For and on behalf of Bevan Buckland LLP Chartered Accountants and Statutory Auditors Ground Floor, Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Date: 10th June 2025

15

BUILDING COMMUNITIES TRUSTEE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

Note
Unrestricted
funds
£
Income and endowments from:
Charitable activities
3
-
Investments
4
-
Other income
5
-
Total income and endowments
-
Expenditure on:
Charitable activities
6
-
Total expenditure
-
Net (losses)/gains on
investments
12
-
Net expenditure
8
-
Reconciliation of Funds
Total funds brought forward
18
-
Total funds carried forward
18,19
-		 Restricted
funds
£
3,647
268,644
-
272,291
3,460,737
3,460,737
539,398
(2,649,048)
10,181,176
7,532,128		 Total
funds
2024
£
3,647
268,644
-
272,291
3,460,737
3,460,737
539,398
(2,649,048)
10,181,176
7,532,128		 Total
funds
2023
£
7,100
268,652
92
275,844
2,048,902
2,048,902
224,295
(1,548,763)
11,729,939
10,181,176

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources expended derive from continuing activities.

The notes on pages 21 to 43 form part of the financial statements

16

BUILDING COMMUNITIES TRUSTEE LIMITED STATEMENT OF FINANCIAL ACTIVITIES - PARENT CHARITY ONLY FOR THE YEAR ENDED 30 SEPTEMBER 2024 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

Note
Unrestricted
funds
£
Income and endowments from:
Charitable activities
3
-
Investments
4
-
Other income
5
-
Total income and endowments
-
Expenditure on:
-
Charitable activities
6
-
Total expenditure
-
Net movement in funds
8
-
Reconciliation of Funds
Total funds brought forward
18
-
Total funds carried forward
18,19
-		 Restricted
funds
£
-
2
-
2
582
582
(580)
9,051
8,471		 Total
funds
2024
£
-
2
-
2
582
582
(580)
9,051
8,471		 Total
Funds
2023
£
-
1
-
1
179
179
(178)
9,229
9,051

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources expended derive from continuing activities.

The notes on pages 21 to 43 form part of the financial statements

17

BUILDING COMMUNITIES TRUSTEE LIMITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2024

2024 2023
Note £ £ £ £
Fixed assets:
Tangible assets 11 6,366 4,386
Investments 12 9,532,203 11,164,227
9,538,569 11,168,613
Current assets:
Debtors 14 18,126 30,302
Cash at bank and in hand 982,497 742,972
1,000,623 773,274
Liabilities:
Creditors: Amounts falling due
within one year 15 (1,940,492) (1,285,148)
Net current (liabilities)/assets (939,869) (511,874)
Total assets less current liabilities 8,598,700 10,656,739
Creditors: Amounts falling due after
more than one year 16 (1,066,572) (475,563)
Net assets 19 7,532,128 10,181,176
The funds of the charity:
Restricted income funds 18 7,532,128 10,181,176
Total charity funds 19 7,532,128 10,181,176

These financial statements were approved by the Board of Directors/Trustees on 24[th] May 2025

David Dallimore Chair

The notes on pages 21 to 43 form part of the financial statements

18

BUILDING COMMUNITIES TRUSTEE LIMITED BALANCE SHEET – PARENT CHARITY ONLY AS AT 30 SEPTEMBER 2024

Note
Current assets:
Cash at bank and in hand
Net current assets
Net assets
19
The funds of the charity:
Restricted income funds
18
Total charity funds
19		 2024
£
8,471
8,471
£
8,471
8,471
8,471
8,471		 2023
£
9,051
9,051
£
9,051
9,051
9,051
9,051

These financial statements were approved by the Board of Directors/Trustees on 24[th] May 2025

David Dallimore Chair

The notes on pages 21 to 43 form part of the financial statements

19

BUILDING COMMUNITIES TRUSTEE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Group
Note
Net cash (used in) operating activities
25
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from sale of investments
Purchase of property, plant and equipment
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period
25		 2024
£
(2,195,637)
268,644
-
(4,904)
-
263,740
(1,931,897)
6,961,585
5,029,688		 2023
£
(1,578,249)
268,652
2,932,128
(1,580)
(2,932,128)
267,072
(1,311,177)
8,272,762
6,961,585

The notes on pages 21 to 43 form part of the financial statements

20

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the charity’s financial statements.

Basis of Preparation

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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)". The charity is a Public Benefit Entity as defined by FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

No separate cash flow statement has been presented for the charity itself as the charity has taken advantage of the exemptions in paragraph 1.12 of FRS 102.

Rounding

Figures contained in the financial statements have been rounded to the nearest pound.

Basis of consolidation

The financial statements represent the consolidated financial position of the group. This comprises Building Communities Trustee Limited and Invest Local Trust. Invest Local Trust is a linked unincorporated charity of Building Communities Trustee Limited. Building Communities Trustee Limited is the corporate trustee of Invest Local Trust.

The financial statements are consolidated on a line-by-line basis and cover the consolidated financial position and transactions. All intra group transactions are eliminated on consolidation

Presentation of the accounts on a going concern basis

The parent charity reported a net outflow of £580 for the year. The group reported a net outflow of £2,649,048 for the year. The charity has no free reserves, however, from the Trust Deed between the charity and the Big Lottery, a proportion of the restricted funds will be used towards administrative costs whilst the charity is in existence. The trustees are of the view that that on this basis the charity is a going concern and there are no material uncertainties about the charity’s ability to continue as a going concern.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

21

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. Dividends are accumulated within the equity portfolio, no income is received.

Income from grants, whether capital grants or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred. Capital grants are released to the SOFA in the year of receipt. Fixed assets relating to capital grants are capitalised, and depreciation charged is offset against the grant income, in a restricted fund.

It is not the policy of the charity to show incoming resources net of expenditure.

Expenditure

Expenditure is 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. Expenditure is classified under the following activity headings:

Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

Support costs include central functions and have been allocated to activity cost category on a basis consistent with the use of resources.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis.

22

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

Gains and losses on investments

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.

Funds distributed

Funds distributed are payments made to third parties in the furtherance of the charitable objects of the charity. The funds are recognised where the trustees have agreed to pay the fund and the recipient has a reasonable expectation that they will receive the fund, provided they comply with the terms of the agreement.

Funds offered subject to terms and conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.

Taxation

As registered charities, Building Communities Trustee Ltd and Invest Local Trust are entitled to the exemption from taxation in respect of income and capital gains received with sections 478-489 of the Corporation Tax Act 2010, sections 521-536 of the Income Tax Act 2007 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to it's charitable objects purposes only.

Fixed assets

Fixed assets are initially recorded at cost. All assets costing more than £1,000 are capitalised and valued at fair value.

Depreciation is calculated so as to write off the cost of an asset, less its estimate residual value over the useful economic life of the asset as follows:

IT Equipment - 3 years
Fixtures and Fittings - 3 years
Leasehold Improvements - 3 years

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Gains and losses arising on the disposal of investments and the revaluation to fair value are charged or credited to the statement of financial activities in the year.

The main form of financial risk faced by the charity is the volatility in equity markets and investment markets due to wider economic conditions.

23

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

Impairment of fixed assets

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

The charity has investments which are initially recognised at transaction value and the subsequently value at fair value.

24

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Funds

Unrestricted funds are available for use at the trustees' discretion for any purpose within the objects of the charity.

Restricted funds have been received with stipulation from the donor as to the purpose for which they may be used.

Designated funds are unrestricted funds earmarked by the management committee for particular purposes.

25

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1. ACCOUNTING POLICIES

Transfers from restricted to unrestricted funds are made when the expending of the funds has fulfilled the terms of the restriction.

Operating Lease

The charity classifies the lease of a property as operating leases; Rental charges are charged on a straight-line basis over the term of the lease.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities incorporating the income and expenditure account.

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3. INCOME FROM CHARITABLE ACTIVITIES

Group
Unrestricted
funds
£
Grant income WCVA
-
Social Care Wales
-
-		 Restricted
funds
£
3,647
-
3,647		 Total
2024
£
3,647
-
3,647		 Total
2023
£
3,501
3,599
7,100

26

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.
INCOME FROM INVESTMENTS
Group
Unrestricted
funds
£
Interest earned on cash and cash
instruments
-
Dividends from equities
-
-
Charity
Unrestricted
funds
£
Interest earned on cash and cash
instruments
-
-
5.
INCOME FROM OTHER SOURCES
Group
Unrestricted
funds
£
Event income
-
-		 Restricted
funds
£
268,644
-
268,644
Restricted
funds
£
2
2
Restricted
funds
£
-
-		 Restricted
funds
£
268,644
-
268,644
Restricted
funds
£
2
2
Restricted
funds
£
-
-		 Total
2024
£
268,644
-
268,644
Total
2024
£
2
2
Total
2024
£
-
-		 Total
2023
£
268,652
-
268,652
Total
2023
£
1
1
Total
2023
£
92
- 92

27

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Group
Direct costs
Funds distributed
Community anchor development
Community Networks
Trustee costs
Protector
Evaluation and research
Shared learning & Advocacy
Salaries
Recruitment
Expenses
Support costs
Rent and rates
Insurance
Printing, postage and stationery
Marketing and translation
Website
Telephones
IT
Repairs and renewals
Office move
Sundries
Training
Bank charges
Salaries
Recruitment
Legal fees
Audit
Depreciation		 Funds
distributed
Programme
support
Learning &
evaluation
Governance
£
£
£
£
1,004,035
-
-
-
1,644,218
-
-
-
150,000
-
-
-
-
-
-
9,505
-
-
-
8,000
-
-
76,723,
-
-
-
33,827
-
-
188,530
138,093
22,367
-
-
1,005
-
-
26,078
-
-
-
5,802
4,377
-
-
669
504
-
-
706
533
-
-
2,235
1,504
-
-
274
206
-
-
2,473
1,866
-
-
10,167
7,670
-
-
168
127
-
-
-
-
173
-
1,364
1,029
-
-
1,683
1,270
-
-
213
160
-
-
40,100
29,893
2,916
-
4,443
-
4,443
-
9,775
-
9,149
-
-
-
9,540
-
1,667
1,257
-
2,798,253
296,347
300,044
66,093		 Total
2024
£
1,004,035
1,644,218
150,000
9,505
8,000
76,723
33,827
348,990
1,005
26,078
10,179
1,173
1,239
3,739
480
4,339
17,837
295
173
2,393
2,953
373
72,909
8,886
18,924
9,540
2,924
3,460,737		 Total
2023
£
1,469,602
847
-
2,861
8,000
68,101
33,908
318,434
1,941
19,880
9,834
1,777
1,460
2,514
484
5,300
14,296
346
-
1,686
7,937
365
58,047
-
11,872
7,212
2,198
2,048,902

28

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

6 EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

XPENDITURE ON CHARITABLE ACTIVITIES (continued)
Charity
Programme
support
Learning &
evaluation
Governance
£
£
Support costs
Bank charges
82
62
-
Legal fees
20
15
-
102
77
-		 Total
2024
£
144
35
179		 Total
2023
£
144
35
179

29

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

6 EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

Fundholder

Invest Local Area
Fundholder
Caerau
Invest Local Trust
BAVO
Cefn Golau
Coalfields Regeneration Trust (Wales)
Clase
SCVS
Invest Local Trust
Glyn
CVSC
Invest Local Trust
Hubberston and Hakin
Pembrokeshire Association of Voluntary
Services
Llwynhendy
Menter Cwm Gwendraith Cyf
Maesgeirchen
Adra (Cartrefi Cymunedol Gwynedd)
Penywaun
Interlink (RCT)
Phillipstown
White Rose Information and Resource
Centre Ltd
Invest Local Trust
Pillgwenlly
Pobl
Plas Madoc
AVOW
Trowbridge and St
Mellons
ACE
Ynysowen
Trinity Childcare and Family Centre Ltd		 Funds
distributed
£
114
-
-
-
-
203,251
186,414
47,425
-
81,319
102,454
92,164
-
49,350
78,174
234,084
117,935
1,192,683		 Funds
committed
last year
£
-
-
(367,500)
-
(31,837)
(134,524)
-
(314,400)
-
(81,319)
(102,454)
-
-
-
(195,435)
(506,967)
-
(1,734,436)		 Funds
returned
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(114,193)
(114,193)		 Funds
committed
this year
£
-
-
367,500
-
31,837
44,859
-
266,975
105,000
-
-
253,391
-
-
117,261
272,883
200,273
1,659,980		 Total
2024
£
114
-
-
-
-
113,586
186,414
-
105,000
-
-
345,555
-
49,350
-
-
204,016
1,004,035		 Total
2023
£
1,093
36,750
-
-
44,279
-
-
406,905
202,650
(1)
15,750
-
40,000
15,750
-
690,676
15,750
1,469,602

30

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

6. EXPENDITURE ON CHARITABLE ACTIVITIES (Continued)

Funds
Funds Committed Total Total
CADP Distributed This Year 2024 2023
£ £ £ £
Blaen-y-Maes 36,631 112,433 149,064 -
Brigher Futures 33,524 116,115 149,639 -
Cornelly 35,077 114,594 149,671 -
Cwmni Bros 24,398 125,351 149,748 -
FAN Community 29,013 120,988 150,000 -
Green Squirrel 25,936 124,064 150,000 -
Gwynfi Miners 18,262 127,834 146,096 -
Home Start Conwy 27,518 122,482 150,000 -
Lee Gardens Pool 15,919 134,081 150,000 -
Llanhilleth Miners 33,750 116,250 150,000 -
The VC Gallery 18,750 131,250 150,000 -
__ __ __ _
298,777 1,345,442 1,644,218 -
__ __ __ _
Community Networks
Cardiff Third Sector Council in partnership
with ACE 10,000 20,000 30,000 -
Neath Port Talbot CVS 10,000 20,000 30,000 -
Medwrn Mon 10,000 20,000 30,000 -
Caia Park 10,000 20,000 30,000 -
Iaith Cyf in partnership with
Cymunedoli Cyf 10,000 20,000 30,000 -
__ __ __ _
50,000 100,000 150,000 -
__ __ __ _

31

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

6 EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

Funds Distributed

Invest local area
Caerau
Cefn Golau
Clase
Glyn
Hubberston and Hakin
Llwynhendy
Maesgeirchen
Penywaun
Phillipstown
Pillgwenlly
Plas Madoc
Trowbridge and St Mellons
Ynysowen		 Total
committed
to date
2024
£
694,321
966,487
444,682
738,886
996,975
450,035
572,225
305,856
591,561
353,165
894,997
936,206
543,550
8,488,947		 Total
committed
to date
2023
694,207
966,487
444,682
438,886
996,975
345,035
572,225
305,856
246,006
303,815
894,997
936,206
339,534
7,484,911

Governance costs

Group
Unrestricted
funds
£
Trustees' expenses
-
Costs of meetings
-
Trustee recruitment
-
IT costs
-
Protector's fees
-
Staff costs
-
Audit fees
-
-		 Restricted
funds
£
2,032
953
6,520
-
8,000
22,367
9,540
49,412		 Total
2024
£
2,032
953
6,520
-
8,000
22,367
9,540
49,412		 Total
2023
£
832
820
901
308
8,000
24,559
7,212
42,632

32

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

7. AUDITORS REMUNERATION

Fees for examination of the accounts

ees for examination of the accounts
Group
Unrestricted
funds
£
Auditors fee
-
-		 Restricted
funds
£
9,540
9,540		 Total
2024
£
9,540
9,540		 Total
2023
£
7,212
7,212

8. NET EXPENDITURE FOR THE YEAR

This is stated after charging:

his is stated after charging:
2024 2023
Group £ £
Operating leases 10,179 9,834
Depreciation 2,924 2,198
Auditors remuneration:
Audit fees 9,540 7,212

33

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

9. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

Group
Wages & salaries
Social security costs
Pension costs		 2024
£
366,767
32,538
22,593
421,898		 2023
£
330,054
28,148
18,279
376,481

8 trustees (2023: 7) received £1,560 in expenses (2023: £832) during the year. No trustee received any remuneration during the current or prior year.

The emoluments of one member of staff, including benefits in kind, are within the range of £60,000 to £69,999 (2023: 1).

Key Management Personnel

The key management personnel of the group during the year were the Chief Executive, the Communications Manager and the Finance Manager. The total employment benefits including employer pension contributions of the key management personnel were £172,307 (2023: £116,177).

Charity

No trustees received reimbursement of expenses during the current and previous year. No trustee received any remuneration during the current or prior year.

The charity had no employees, as all employees are employed by Invest Local Trust the subsidiary charity.

Key Management Personnel

The key management personnel of the charity during the year were the Chief Executive, the Communications Manager and the Finance Manager who are employed by Invest Local Trust.

The total employment benefits including employer pension contributions of the key management personnel were £nil (2023: £nil).

10. STAFF NUMBERS

The average monthly number of staff employed during the year was as follows:

Group
Office staff		 Total
2024
No
11
11		 Total
2023
No
10
10

All employee time was involved in providing either support to the governance of the charity or support to charitable activities. There were no employees in the parent charity from February 2016.

34

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

11. FIXED ASSETS

Fixtures &
fittings
IT
Equipment
Group
£
£
Cost
At 1 October 2023
1,490
14,957
Additions
-
4,904
Disposals
-
-
At 30 September 2024
1,490
19,861
Depreciation
At 1 October 2023
1,490
10,571
Charge for year
-
2,924
Disposals
-
-
At 30 September 2024
1,490
13,495
Net book value
30 September 2024
-
6,366
30 September 2023
-
4,386
Charity
Cost
At 1 October 2023
1,490
1,000
At 30 September 2024
1,490
1,000
Depreciation
At 1 October 2023
1,490
1,000
At 30 September 2024
1,490
1,000
Net book value
30 September 2024
-
-
30 September 2023
-
-		 Total
£
16,447
4,904
-
21,351
12,061
2,924
-
14,985
6,366
4,386
2,490
2,490
2,490
2,490
-
-

35

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

12. FIXED ASSETS INVESTMENTS

FIXED ASSETS INVESTMENTS
Group
Market value 1 October 2023
Investment additions
Investment disposals
Net gain on revaluation
Fair value at 30 September 2024
Cash held on deposit at 30 September 2024
Total investments		 2024
£
4,945,614
-
-
539,389
5,485,012
4,047,191
9,532,203		 2023
£
4,721,319
2,932,128
(2,932,128)
224,295
4,945,614
6,218,613
11,164.227

Net cash released from investments was £2,450,000 (2023: £1,655,000).

Investments by type
Equity
Fixed interest
Cash		 £
2,292,943
3,192,069
4,047,191
9,532,203		 £
2,012,324
2,933,290
6,218,613
11,164,227

All investments are held in £ sterling.

All assets are carried at fair value. The basis of fair value for quoted investments is equivalent to market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transition value). Full details of the Trustee investment policy is detailed in the Trustees Report.

36

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

13. LINKED CHARITY

The charity is the corporate Trustee of Invest Local Trust, charity number 1164509-1 – registered 23 November 2015, trust deed dated 30 March 2015. The objects of the charity are:

A summary of the results are shown below:

Unrestricted
funds
£
Income and endowments from:
Charitable activities
-
Investments
-
Other
-
Total income and endowments
-
Expenditure on:
Charitable activities
-
Total expenditure
-
Net gains on investments
-
Net income/(expenditure)
-
Reconciliation of Funds
Total funds brought forward
-
Total funds carried forward
-
Balance Sheet
Fixed assets
Investments
Debtors
Cash at bank
Liabilities
Restricted reserves		 Restricted
funds
Total funds
2024
£
£
3,647
3,647
268,642
268,642
-
-
272,289
272,289
3,460,155
3,460,155
3,460,155
3,460,155
539,398
539,398
(2,648,468)
(2,648,468)
10,172,125
10,172,125
7,523,657
7,523,657
2024
£
6,366
9,532,203
18,126
974,026
(3,007,064)
7,523,657
7,523,657		 Total funds
2023
£
7,100
268,651
92
275,843
2,048,723
2,048,723
224,295
(1,548,585)
11,720,710
10,172,125
2023
£
4,386
11,164,227
30,302
733,921
(1,760,711)
7,523,657
10,172,125
10,172,125

37

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

14. DEBTORS



15.





16.

17.		 Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Prepayments
1,998
2,963
-
-
Accrued income
16,128
27,339
-
-
18,126
30,302
-
-
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Trade creditors
10,319
9,907
-
-
Other creditors
1,404
1,206
-
-
Social security and other taxation
9,985
8,166
-
-
Accruals
11,771
6,996
-
-
Funding Commitments
1,907,013
1,258,873
-
-
1,940,492
1,285,148
-
-
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Funding Commitments
1,066,572
475,563
-
-
1,066,572
475,563
-
-
FINANCIAL INSTRUMENTS
2024
2023
Group
£
£
Carrying amount of financial assets
Investments measured at fair value
9,532,203
11,164,227
Charity
Carrying amount of financial assets
Investments measured at fair value
-
-		 Charity
2023
£
-
-
-
Charity
2023
£
-
-
-
-
-
-
Charity
2023
£
-
-

38

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

18. RESTRICTED FUNDS

Group
Big Lottery fund
Other Income
Investment income
Charity
Big Lottery fund
Previous year
Group
Big Lottery fund
Other Income
Investment income
Charity
Big Lottery fund		 At
1 October
2023
£
5,429,132
-
4,752,044
10,181,176
9,051
9,051
At
1 October
2022
£
7,470,842
-
4,259,097
11,729,939
9,229
9,229		 Income
£
-
3,647
268,644
272,291
2
2
Income
£
-
7,192
268,652
275,844
1
1		 Expenditure
£
(3,457,090)
(3,647)
-
(3,460,737)
(582)
(582)
Expenditure
£
(2,041,710)
(7,192)
-
(2,048,902)
(179)
(179)		 Gains/
(losses)
£
-
-
539,398
539,398
-
-
Gains/
(losses)
£
-
-
224,295
224,295
-
-		 At 30
September
2024
£
1,972,042
-
5,560,086
7,532,128
8,471
8,471
At 30
September
2023
£
5,429,132
-
4,752,044
10,181,176
9,051
9,051

Restricted funds were received specifically to carry out the objects of both charities.

39

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS
20. Unrestricted
Group
£
Fixed assets
-
Investments
-
Current assets
-
Current liabilities
-
Long term liabilities
-
-
Charity
Current assets
-
-
Previous year
Unrestricted
Group
£
Fixed assets
-
Investments
-
Current assets
-
Current liabilities
-
Long term liabilities
-
-
Charity
Current assets
-
-
OPERATING LEASES
Group
Due less than one year
Due after one year		 Restricted
£
6,366
9,532,203
1,000,623
(1,940,492)
(1,066,572)
7,532,128
8,471
8,471
Restricted
£
4,386
11,164,227
773,274
(1,285,148)
(475,563)
10,181,176
9,051
9,051
Total
2024
£
4,248
4,956
9,204		 Total
£
6,366
9,532,203
1,000,623
(1,940,492)
(1,066,572)
7,532,128
8,471
8,471
Total
£
4,386
11,164,227
773,274
(1,285,148)
(475,563)
10,181,176
9,051
9,051
Total
2023
£
-
-
-

21. COMPANY STATUS

The organisation is a company limited by guarantee and does not have any share capital.

40

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

22. RELATED PARTY TRANSACTIONS

At 30 September 2024 £nil was owed to trustees for expenses (2023: £nil).

There were no related transactions to note for the year ended 30 September 2024.

23. PENSION COSTS

We offer staff the opportunity to contribute to a private pension of the employee's choice. The charity's contribution is based on 10% of the employee's basic salary with the minimum contribution from the employee being 5% (gross). The employees can also stay within the auto enrolment scheme with the People’s Pension. The charity’s contribution is 3% of qualifying earnings with a minimum contribution from the employee being 5% (gross). During the year the company paid contributions for 10 employees (2023: 9). In June 2023 all eligible employees were auto enrolled into the charity's auto enrolment pension with the People's Pension. It is for the individual employees to decide which of the pensions offered by the charity is most suitable for them.

Contributions paid into a defined contribution pension scheme during the period were £22,593 (2023: £18,279).

24. INVEST LOCAL TRUST PROTECTOR

Protector fees of £8,000 were payable (2023: £8,000).

25. FUNDS HELD AS FUNDHOLDER

In the current year it was identified that the accounting treatment of funds where Invest Local Trust act as Fundholder was not in accordance with the Charities Statement of Recommended Practice (SORP). The fund should not be recognised as an asset in the accounts, or the corresponding fund commitments as a liability.

At the year end the Charity was acting as Fundholder for the following communities with the funds committed:

Clase £31,837
Hubberston and Hakin £100,000

Invest Local Trust was also fundholder for the above communities at the end of the prior year with the same fund values being held. The following figures were therefore incorrect in the 2023 accounts.

accounts.
Restated
Following
Per 2023 Fundholder
Accounts adjustment
Cash at bank and in hand £742,972 £611,135
Creditors: Amounts falling due within one year £1,285,148 £1,153,311

41

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

25. FUNDS HELD AS FUNDHOLDER (Continued)

The prior year error does not fundamentally alter the understanding of the prior year’s accounts and therefore no restatement has been made.

26. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Group
Note
Net income/(expenditure) for the reporting period (as
per the Statement of Financial Activities)
Adjustments for:
Depreciation
(Gains)/losses on revalued fixed assets
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in) operating activities
Analysis of Cash and Cash Equivalents
Cash in hand
Cash held in dealing account
12
Total Cash and Cash Equivalents		 2024
£
(2,649,048)
2,924
(538.398)
(268,644)
12,176
1,246,353
(2,195,637)
982,497
4,047,191
5,029,688		 2023
£
(1,548,763)
2,198
(224,295)
(268,652)
(16,209)
477,472
(1,578,249)
742,972
6,218,613
6,961,585

42

BUILDING COMMUNITIES TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

27. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
Group
£
Income and endowments from:
Charitable activities
-
Investments
-
Other income
-
Total income and endowments
-
Expenditure on:
Charitable activities
-
Total expenditure
-
Net gains on investments
-
Net expenditure)
-
Reconciliation of Funds
Total funds brought forward
-
Total funds carried forward
-
Charity
Income and endowments from:
Charitable activities
-
Investments
-
Other income
-
Total income and endowments
-
Expenditure on:
-
Charitable activities
-
Total expenditure
-
Net movement in funds
-
Reconciliation of Funds
Total funds brought forward
-
Total funds carried forward
-		 Restricted
funds
£
7,100
268,652
92
275,844
2,048,902
2,048,902
224,295
(1,548,763)
11,729,939
11,181,176
-
1
-
1
179
179
(178)
9,229
9,051		 Total
funds
2023
£
7,100
268,652
92
275,844
2,048,902
2,048,902
224,295
(1,548,763)
11,729,939
10,181,176
-
1
-
1
179
179
(178)
9,229
9,051

43