## Annual Report Legacy WM 2021/2022 ## Chair’s Foreword 2022 has seen a return to more normal times for Legacy WM after the disruptions of the past two and half years. The charity has grown significantly over the past year with new projects being developed alongside the core work of Legacy WM through the “Family Fit Forward” project amongst others. I would like to congratulate and thank the Project Director and the Legacy WM staff team for their efforts, dedication and commitment over the past twelve months which has seen ongoing significant impact on the community groups with which Legacy WM engages. 2023 is likely to see further growth for Legacy WM with some exciting projects being explored and new partnerships established with other providers in the wider community. I am stepping down as Chair of Legacy WM and from Legacy WM after a period of seven years as Chair and ten years as a trustee. My involvement with Legacy WM began when the charity was very small and largely a “one man band.” It has been a fascinating and at times challenging experience seeing Legacy WM grow over the past ten years and significantly expand its range of activities and impact on the community of East Handsworth and Lozells during that time. The work that I have personally valued the most during my time as Chair has been Legacy WM’s engagement with groups within the community who are often neglected and who exist “under the radar”. Enabling these groups to engage with wider communities and “have a voice” has for me been a special part of Legacy WM’s work. I wish Legacy WM and all involved with the charity – trustees, the staff team, volunteers, and the community groups / partners linked with the charity the very best for the future. Legacy WM’s journey so far has been an exciting one and I am confident that that journey is far from over. ## Chris Smith ## Chair, Legacy WM ## CEO report This is a seminal year for us, as we managed to celebrate 12 years in style at Aston Villa with over 400 guests. The Commonwealth Games showcased the city in all its glory and has laid the foundations for future events. We were unable to deliver on our flagship arts installations partly due to the Games and delay in planning permission, these are now planned for 2023 launch. This has been an exceptional year of growth as we have almost doubled our income. This is due to having a dedicated person working on development. We now have a member of staff focusing on marketing which has meant a greater reach and awareness. A new volunteer coordinator role is providing support and development opportunities to the people we work with. The growth has meant that we have had a new structure with me as the CEO, Director and two Managers which form the Senior Leadership Team. I remain the ‘poster boy’ and feel privileged and humbled by the work of my dedicated staff team, who go beyond the call of duty. The volunteers are a crucial part of our success and the very fact that a third of our staff team started with us as volunteers speaks volume. We have had two new editions to our board and they have added to the quality and bring a unique skill set that will help us on the next phase of our development. I am extremely grateful to them. I would like to thank all our service users for being on this journey with us. Our delivery would not be possible without all our amazing funders new and old. We are grateful for your continued support – thank you. ## Treasurer’s Report I joined Legacy West Midlands in 2021 and I have assumed the role of Treasurer from Gary Bowman who did a fantastic job. From a finance perspective, the charity has grown in strength and resilience. Like a lot of organisations and individuals we have all been challenged by rising inflation, rising interest rates. In spite of this, we have managed to grow our income base through donations. We continue to generate trust and reliability and our accounts have been audited to demonstrate our careful stewardship of donated funds. We have revamped the Finance & investment committee so that we meet before the Board meeting. There is not much to report on in respect of finances. Our accounts will show that our invested funds have decreased in value due to the economic downturn this year for reasons outside of our control or influence. The accounts show that we have raised £480,805.00 income and spend £443,943.00 so that we have a surplus/ deficit of £32,445.00. We have grown our reserves to £70,140.00 and our bank balance and investment are £95,485.00 Post pandemic, Legacy WM has been needed to support the communities we serve with a variety of well-being initiatives. I congratulate the whole staff team for their determination, diligence, and adaptability. For the future, we plan to continue to grow through charitable donations and we intend to invest this money into our services which serve our diverse communities as best as possible. ## Plans for the future – ambitious for our communities We achieved our fund-raising goal of £500,00 and we anticipate an income in the region of £700,000 next year. The growth means that we have started to operate more as anchor organisation and through the work of flourish we have been able to support smaller grass roots organisation. However, the growth is not without its challenges as we are running out of office space. The Anglesey School care takers house is planned for completion next year and this will give us some additional capacity and scope to deliver more activities. Our success with our existing funders has been exceptional as we have been awarded a fouryear grant from the National Lottery Community Fund to continue our wellbeing work. We have also been successful in obtaining three-year funding from National Heritage Lottery Fund which will see us deliver a project called ‘Every Journey Matters’ and we will work with Handsworth Association of Schools to engage young people in heritage activities. We are working with a host of businesses to explore how we can offer them an opportunity to support us as part of their Environmental, Social and Corporate Governance (ESG) profiles. We are disappointed that our application to Arts Council England to become a National Portfolio Organisation (NPO) was unsuccessful. However, this has not dampened our spirits as we continue to develop our expertise in curating and delivering arts projects. The installations of our external arts pieces along the canal route have been a steep learning curve and one that we aim to build on and apply for further funding. Our plans to become a registered housing provider have been given a major boost with funding from the Oak Foundation over the next four years. We have continued to make progress with Church of England on developing St Michaels as a community hub and the related vicarage site as flats. This remains an ambitious project and will cost in the region of 5 million and it will take 3 to 5 years to deliver. We are working on the commissioning of the feasibility study which will give us an idea of what the site could potentially become. Our work with Freedom 50 has been a trailblazer as it has engaged new people into cycling and is raising awareness of the climate challenges that we face. The final leg of our cycling tour will be held in Bangladesh in February. We will use this tour to galvanise our work on climate action and develop initiatives for people to act locally that has a global impact. The work on the Daily Mile in the parks and the arts installations gives us a wider reach and greater impact across the city. We remain ambitious for our communities and believe that by working in partnership with local organisations and stakeholders we can better serve our communities. - - - (Link to full annual report https://www.legacy wm.org/news/2023/01/legacy annual reports-21-22) Charity registration number 1180546 Company registration number CE015526 (England and Walesl LEGACY WM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 LEGACY WM LEGAL AND ADMINISTRATIVE INFORMATION Trustees Christopher Smith Rooqia Malik IAppDinted 29 M￿h 20221 IAppoinled 14 December 20211 Winston Weir Enam Rahman Shaida Bibi Alison Room Shawkal Chowdhury Gurpreet Bhatl8 Jesse Gerald Carol Lyndon Gary Bowman Charity number 1180546 Company number CE015526 Reglstsred offlce Soho House S Soho Avenue Handsworth Birmingham B185LB Audltor AGS Accountants & Business Advisors Limited Unit 1 Castle Court 2 Castlegale Way Dudley DY1 4RH LEGACY WM CHAIRMAN'S AND TREASURER'S REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 Chaies Foreword 2022 has seen a return to normality for Legacy WM after the distuplions of the past two and half years. The charity has grown significantly over the post year, with new projects bèing developed alongside the core work of Legacy WM through the 'Family Fit Forward" projed, amongst others. I would like to congratulaté and thank the CEO and staff team foi their efforts, dedication and ¢ommilmenl over the past twelve months, which has seen ongoing signifi¢ant impact on the community groups with which Legacy WM engages. 2023 is likely to sge further growth for Lega¢y VVM, with some exciting projects being explored and new partnerships established with other providers in the wider community. l am stepping down as Chair of Legacy WM and from Legacy WM after a period of seven year5 as Chair and ten years as a trustee. My involvement with Legacy WM began wh8n the charity was very small and largely a "on8 man band" It has been a fascinating and at times challenging experience, seeing Legacy WM glow over the past len years and significantly expand its range of activities and impact on the community of East Handsworth and Lozells during that lime. The work that I have personally valued the most during my time a5 Chair has been Legacy Wm's engagement with groups within the community who are often neglected and who exist "under the radar" Enabling these groups to engage with diverse communities and have a voice has for me been a special part of Legacy Wm's work. I wish Legacy WM and all involved with the ch8rity- Iruslees, the staff team, volunteers, community groups and partners linked with the charity the very best foT the future. Legacy Wm's jtsumey so far has been an exryting one and l arn Gonfidenl that that journey is far from over. Chris Smith Chalmian Dale.. 10 March 2023 Treasurer's Report l joined Legacy West Midlands in 2021, assuming the position of Treasurer vacated by Gary Bowrnan who did a fantastic job in an interim capacity. From 8 finance perspective, the charity has grown in strength and resilience. As with many organisalions and individuals, we have all been challenged by inflation and rising interest rales. In spite of this. we have managed to grow our income base through grants and donations. We continue lo generate trust and rsliability. and our accounts have b8en audited lo demonstrate our careful stewardship of donated funds. We have also revamped the Finance & Investment Committee. convening prior to each Board meeting. Our accounls will show that our invested funds have decreased in value due lo global economic disruption. The accounts show that we have raised £480,903 income and spent £448,458 so that we have a surplus of £32,445 in the year to Octobar. We have grown our reserves to £240,785 and our investment account balance is £95,485 las of December 20221. Following the emergence Df Covid-19, Legacy WM has been needed to support the communities we serve with variety of wellbeing inilialives. I congratulate the whole staff team for their determination, diligen￿ and adaptability. Foi the future, we plan to continue lo grow through charitable donations and wè intend to invest this money into our services which serve our diverse communities as effectively as possible. Winston Weir Treasurar Date.. 10 March 2023 LEGACY WM CONTENTS Page Chairman's and Treasurevs Report Trusteès rèport Statement of trustees responsibilities Independent auditor's report Statement of financial activities Balance sheet 10 Notes to the financial stslemenlg LEGACY WM TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 OCTOBER 2022 The trijstees, present their report with the financial slalements of the charity lor the year 6nded 31 OGtober 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statemnt of Recommended Practice applicable lo Charities preparing their a¢¢ounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Irelanty IFRS 1021 leffeclive 1 January 20151. The Tiuslees made the decision in 2018 to close Legacy WM la registsred charity) and foryn a charitable incorporated organis81ion ICIOI under the same name, being registered with the Charity Commission as a CIO on 5 November 2018. The financial statements have been prepared in accordance with the accounting policies sel out in note 1 to the financial statements, the Companies Act 2006 and "A¢¢ounting and Reporting by Charities.. Statement of Recommended Practice applicable to charibes preparing their accounts in accordan￿ with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021. leffeclive 1 January 20191. Obje¢tives and activities 11 To advance the education for the public in". the social, economic and cullural history and heritage of the West Midlands fvA&tropolilan region r'ihe Area'l and the contribution made thereto by Asian, African, Caribbean and other immigrant communities,, works of artistic merit in all their fomis lincluding and not limited lo visual. literary and perfom)ing arts1 produced or performed in Area and in particular by members of or ralating to the said communities. 21 To relieve the sickness, promote good health, provide social housing andlor care to, and advance the education and training of, people in need wilh a preleience for those living in or having a link lo the local community. Signifi¢ant a¢tivitie$ Established In 2010, Legacy WM is a CIO situated al the hèart of the Wesl Midlands Mètropolitan region. providing health and wellbeing, and arts and heritage programmes to develop soaal cohesion. We work within marginalised comtnvnilies, aiming lo inslil a deep sense of cultural pride and genuine connections between dwerse groups, fo¢using on Ihelr needs, shared histories, and experiences. Beneficiaries from around age 5 to the elderly are engaged and consulted through co-design, monitoring and evaluation. Our heritage work has celebrated the relationship between k)¢al people with the industrial, architectur81, and cultural fabric of the city, tracing migrant journeys and developing four heritage trails. Flagship community wellbeing provision Family Fil provides wellbeing activities lor the whole family has been ￿neWed with support for a third year of delivery. Our work with young people indudes structured sports sessions and plays¢hèmes. Our arts programme will feature an arts trail along the canals connecting Bimiingham cily centre and Smethwick. Currenlly, we carry out a range of Inasive and effective provisions to address social need and improve oul¢omes including interventions on vaccine uptake and celebrating the 2022 Commonwealth Games. Public benefit The charity is a public benefit entily and the trustees ￿nffIrm that they have referred to the Charity Commission's guidance on public benefit when reviewing the charities aims and objectives. Achievements and performance Charitable activities In the past year, despite the constraints of the pandèmic and associated restrictions wè h8vè delivered Zumba, Yoga, Football, Cyding and Badminton sessions. alongside Health and Nutrition projects. We continue lo facilitate the efforts of volunleers and have welcomed several of our Community Champions onto the team as paid staff. building skills and rgsili8nce in our communitlgs. This year we have encouraged local residents to receive coronavirus vaccine. supported the annual Nowka Bais event. begun work on a pioneering arts trail, lead community consultation on Housing 21 social housing for elders, delivered a national cycling lour, perforffling arts showcase and outdoor photography exhibition marking 50 years ol Banglad&shi independence, led walking groups and have delivered wellbeing days, a residential Inp and arts sessions in green spaces. This busy programme of activities keeps us engaged in the cotllmunity, responding to emergent social need and helping individuals throughout their lives. LEGACY WM TRUSTEES REPORT {INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Financial review Financial position The board of trustees are satisfied with the performance ol the charity during the period and the positKin al 31 October 2022 and consider that the charity is in a strong position lo conlinLJg Its activities during the comin9 year. and that the charity's assets are adequate to fulfil its obligations. Overall, Legacy WM has raised funds totalling £480,903 with Ihg expenditure for the period totalling £448,458 leaving the organisalion with a surplus of £32,445. This leaves £240,785 in our funds lo be carried fonmard at 31 O¢tober 2022. Reserves pollcy We generally operate 8 balan￿d budget wilhln each financial year. In respect of reserves at th8 end of each financial year the aim is to build up to three months unrestricted reserves for operation njnning costs including salariès and slatulory redundan¢ies. 11 is anticipated that the reserves will be built up over the next three years and it will follow the principles below.. 11 A breakdown of reserves at th8 ond ol financial year, with an indicakn'on of the ststus of these figures le.g. audiledl draft management, etc.) 21 Any actual or currently planned transfers affecting reserves since that date,. and a description of the purpose and current spending plans for each category of reseives where appropriate, cross referenced to published accounts 31 Committed Reserves Funds that are allocated by an organisation from ils retained resources for a specified purpose 41 Free ReseN8s - Retsined resourcgs that are available for general unspecified ftjture purpose Plans for future periods This year we achieved our fiJndraising target and we anticipate ¢onlinued growth next year, bolstering our sustainability. Through the Flourish health¢are network, we have acted as an anchor organisation ready lo support grassroots provisions. The renovation of the Anglesey Primary School Caretaker's House is planned for complelK)n next year and will give us additional capa¢ily to deliver more a¢livilies. Our success with exisling funders has been exceptional as we have been awarded a four-year grant from the National Lottery Community Fund lo continue our wellbeing work. We have also been successlLJI in obtaining three year funding courtesy of the National Heritage Lottery Fund, which will help us deliver Every Journey Matters, working wrth Handsworth Association of Schools lo engage young people in heritsge. We are also working with a host of businesses lo explore how we can offer them an DPPOrtunity to support us as part of their Environmental, Social and Corptsrale Governance IESGI profiles. We are disappointed that our application lo Arts Council England to become a National Portfolio Organisabon was unsuccessful. However, this has not dampened our spirits as we continue lo develop our expertise in curating and delivering arts proje¢ts such as the Roundhouse lo Chance Arts Trail. Our plans to become a registered housing provider has been given a major boost with funding from Oak Foundation over the next four years. We have continued to make progress with the Church of England on developing Sl Mlchael's Church as a community hub and the related vicarage sile as flats over a period of several years. Our trailblazing work with Freedom 50 has engaged new pe()plè in cyding and is raising awareness of the ¢ll￿ale challeng8s that we face. The final leg of our cycling louf will be held in Bangladesh in February, supporting local initiab'ves. LEGACY WM TRUSTEES REPORT {INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) {CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 The rollout of Daily Mile routes in city parks and the arts inslallalions gives us a wider reach and g￿ater impact across wider Birmingham. We ￿main ambitious for our communities and believe that by working in partnership th local organisations and stakeholders we can better serve our communities. Structure, governance and managemènt Governlng docum9nt Legacy WM became a registered charity on 15 April 2011 Icharity Registered Number 11414981. On 5 November 2018 Legacy WM changed its charity status to a Charitable Incorporated Org8nisalion (Charity Registered Number 1180546, Registered Company Number CE0155261. The Charity is controlled by ils governing document, a deed of tnjst, and constitutgs a Charity Incorporated Oiganisation. The Iruslees, who are also thè directors for the purpose of Company law, and who served during the year and up to the date ol signature ol the finanual gtstements were". Christopher Smith Rooqia Malik Winston Weir Enam Rahman Shaida Bibi Alison Room Shawkat Chowdhury Gurprget Bhatia Jesse Gerald Carol Lyndon Gary Bowman (Appointed 29 March 20221 (Appointed 14 December 20211 Recruitment and appointment of new trustees Trustees are appointed by the existing trustees and serve for five years after which they may pul themselves forward for re-appoinlmenl. The constitution provides for a minimum of three trustees to a maximLJm of nine trustees, with no rrK)re than three Iruslees due for re-appointment in any one year. During the period we have rectuitsd new members lo our board which better reflects the Community which we serve. Audltor In accordan￿ with the compantys articles, a resolution proposing that AGS Accountants & Business Advisors Limited be reappointed as auditor of the company will be pul at a General Meeting. The Irustees report, including the strategi¢ report, was approved by the Board of Trustees. Winston Weir Treasurèr 10 March 2023 LEGACY WM STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 OCTOBER 2022 The Iruslees, who a￿ also the directors of Legacy WM for the purpose of company18w. are respoysible for preparing the Trustees Report and the financial slalements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees lo prepare financial slalements for each financial year which gNe a true and fair vièw of the state of affairs of the charity and ol thè incorning resources and application of resources, including the income and expenditure, of the charitable company lor that year. In preparing these financial staternenls, the trustees are rgquirad to.. select suilablg accounting trt)licies and then apply them Consistent￿., observe the methods and principles in the Charities SORP., make ju(Jgements and eslirnates that are reasonable and prudent.. stale whether applicable UK Accounting Standards have been followed, subjecl to any material departures disclosed and explained in the financial statements., end prepare the financial statem&nls on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequatè accounting records that disclose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the financial siatemenls ¢ornply with the Companies Act 2006. They are also responsible lor safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and d8lection of fraud and other irregularities. LEGACY WM INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LEGACY WM Opinion We have audited the financial ststemenls of Lega¢y WM Ilhe 'charity'l for the year ended 31 October 2021 which comprise the statement of financial activ￿lies. the balan¢e sheet and notes to the financial statements, including significant a¢coLJnting policigs. The financial reporting fiamework that has been applied in their preparation is applicable law and Uniled Kingdom Accounb'ng Stsndards, including Financial Reporting Standard 102 The Financi61 Reporting St&ndard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally AC￿pted Acwunting Praclicel. In our opinion. the financial statements.. give a true and fair view of the stale of the charitable company's affaiTS as at 31 October 2022 and of ils incoming resources and application of rèsources. for the year thèn endèd., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of Ihe Companies Act 2006. Basis for opinion We conduded our audit in a¢¢ordan¢e with International Standards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described In the Auditor's responslbilities for the sudil of the financial statements section of our report. We are independent of th& ¢harity in accordance with the ethical requirements that are relevant to Dur audit of the financial statements in the UK, including th& FRC'S Ethical standard, and we have fu￿rIled our other ethical responsibilities in aGcordance with these requirernenls. We believe that the aijdit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concom In auditing the financial slalements. we have concluded that the Iruslees use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performeLI, we have not identified any material Un￿rtaInlieS relating to events or conditions that, individually or collectively. may cast significant doubl on the charity's ability to conts'nue as a going ¢oncern for a period of al least twelve months from when the financial statements are authorised for issue. Our restx)nsibililies and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. Other information The other information comprises the infomiation included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial slalements does nol cover the Dlher information and we do not express any lorm ol assurance conclusion Ihereon. Our responsibility is to read the other infomiation and. in doing so, consider whether the other information is materially inconsistent with the financial staternenls or our knowledge obtsined In the course of the audit, or otherwise appears lo be materially rnisslaled. If we identify such material inconsistencies or apparent material misstatements. we are required lo determine wh&th8r this gives rise lo a material misstatement in the financial stslemenls themselves. 11. based on the work we have performed, we con¢lude that there is a material misstatement of this other inlomiation, we are required to report that fact. We have nothing lo report in this rggard. LEGACY WM INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEGACY WM Matt¢rs on whlch we are requlred to report by •xc•ption We have nothing to report in respect of the following rnatters in relation lo which the Charities (Accounts and Rèports) Regulation$ 2008 require us lo report to you if, in our opinion.. the informallon given in the financial statemen15 is inconsistent in any maleroal respect with the trustees report., or sufficient accountsng record5 have not been kept., or the financial statements are not in agreement with the accounting ￿e0rdS., or we havg not received all the inforrnalion and explanations we require for our audit. Responsibilities of trustees As explained rnore fully in the statement of trustees responsibilities, the trustees, who are also the dimctors of the charity for the PLJrpose of cornpany 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 intemal control as the tmstees detemine is necessary to enable the preparation of financial statemènts that are free from material misstatement. whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to Continue as a going ¢on¢otn. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or to cease operations, or have no realisti¢ allemative but to do 80. Auditorfs responsibilitlès for the audlt of the financial statèments We have been appointed as auditor under section 145 of the Charities Ad 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from fflalerial misststemenl, whether due lo fraud or eiror, and to issue an auditor's report that in¢ludes our opinion. Reasonatrile assurance is a high level of assuran￿ but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when Il exists. Misstatements can arise from fraud or error and arè considered material rf, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of delecling irregularities, including fraud, is detsiled below. EnqLJiry of management and those charged with governance around actual and potential liligalion and claims. Enquiry of staff in compliance functions lo identify any instsnces of non-cornpliance with laws and regulations. Raviewing minules of meetings of those charged with govÈmance. Reviewing financial statement disclosures and testing lo supporting documentation to assess compliance with applicable laws and regulations. Auditing the risk of management override ol controls, including through testing journal entries and other adjustments for appropriateness. and evaluating the business rats'onale of significant transactions oulside thè normal course of business. A further description of our responsibilities is available on the Financial Reporting Council's w8bsite at.. https..11 wwW.frc.org.u￿audit0rsreSponSibil1ties. This description lomis part of our audilofs report. LEGACY WM INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEGACY WM Use of our rèport This report is made solely lo the charity's trustees, as a body, in accordance with part 4 of the CTharilies (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the charitys Iruslees those matters wè are required to slal8 lo them in an auditors. report and lor no other purpose. To the fullest extent permitted by law, w8 do not 8¢cepl or assume responsibility to anyone other than the ¢harily and the charitls truslees as a body. for our audit work, for this report, or for the opinions we have formed. Thomas Plimmer (Senior Statutory Auditor) for and on behalf ofAGS Accountants & Buslness Advisors Limited 10 March 2023 Certified Accountants Statutory Auditor Unit 1 Castle Court 2 Castlegate Way Dudley DY14RH AGS Accountants & Business Advisors Limited is eligible lor appointment as auditor of the Gharity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. LEGACY WM STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2022 Unrestricted Restricted funds funds 2022 2022 Total Unrestrictèd Restricted funds funds 2021 2021 Total 2022 2021 Notes Donations and legacies Investments 19,753 98 461,052 480,805 98 5,214 410 297,205 302,419 410 Total income 19,851 461,052 480,903 5,624 297,205 302,829 Charitable activities 443,943 443.943 1,777 347,742 349,519 Net gainslllossesl on investments 14.515} 14,5151 Net in¢omellexpondlture) for thè yèarl Net movement In fund5 19.851 12.594 32,445 3,847 150,5371 146,6901 Fund balances at 1 November 2021 50,289 158,051 208,340 46,442 208,588 255,030 Fund balances at 31 October 2022 70.140 170,645 240,785 50,289 158,Q151 208,340 The stslement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. LEGACY WM BALANCE SHEET ASAT31 OCTOBER 2022 2022 2021 Notes Fixed assets Tangible assets Investments 54,895 95,485 14,657 50,000 10 150,380 64,657 Curr$nt ass¢ts Debtors Cash at bank and in hand 11 669 247,867 159,162 248,536 159,162 Crèdltors: amounts falling duo within one year 12 1158,1311 115,479) Net curmnl assets 90.405 143,683 Total assets less current liabilities 240,785 208,340 Income funds R&sliicted funds Unrestricted funds 170,645 70,140 158,051 50,289 240,785 208,340 The company is enlilled to the exernption from the audit requirement ¢ontained in section 477 of the Companies Act 2006, for the year ended 31 October 2022, although an audit has been carried out Ljnder section 144 of the Charities Act 2011. The dirgclors acknowledg8 their responsibilities for complying with the requirements of the Companies Act 2006 rith respe¢t to a¢¢ounling records and the preparation of finanaal slalement5. The m&mbers have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2(K)6, for the year in question in accordance with section 476. These financial statements have been prepared in a¢¢ordan¢e wlh the provisions applicable lo companies subject to the small companies regime. The financial statemenis were approved by the Trustees on 10 March 2023 Winston Weir Trustee Company reglstratlon number CE015526 10- LEGACY WM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 A¢rounting pollci*s Charlty informatlon Legacy WM is a charitablo incorporated organi5ab.on incorporated in England and Wales. The registered office is Soho House, 5 Soho Avenue, Handsworth, Bimingham, B18 5LB. 1.1 Accountlng convention The financial statements have been prepared in accordance with the charity's governing document, thè Companies Act 2006, FRS 102 "The Financial Reporting Stsndard applicable in the UK and Republic of Ireland" I'FRS 102.1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts In accordan¢e with the Financial Reporting Standard appliGable in the UK and Republic of Ireland IFRS 1021. (effective 1 January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The financial stslements are prepared in sterfing, which is the functional currency of the charity. Monetary amounts in these financial statemen15 are rounded Its the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 12 Going concem At the time of approving the financial statements. the Iruslees have a reasonable expe¢lation that the charity has adequate resources lo continue in operational existence for the foreseeable fLJlura. Thus the trustees continue lo adopt the going con￿rn basis of accounting in preparing the financial stalemenls. 1.3 Charitable funds Unrestricted funds arg available for use at the discretion of the Iruslees in furtherance of their charitable objectives. Reslrfcled funds Can only be used for particular reslrKled purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 1.4 Income All income is ￿COgniSed in the Statement of Financial Activities 0￿ce the ¢harily has entitlem&nt to the funds, it is probable that the income will be received and the amount can be measured reliably. 1.5 Expenditurn Expenditure is 8¢counled for on an accrual basis and has been classified under headings that aggregate all ¢osl relaled to the category. Where costs ¢annol be directly attributed to partiGular headings they have been allocaled to activities on a basis consislènl with the use of resources. 1.6 Tanglble fixed assets Tangible fixed assets are initially measured at Cost and subseqijently measured al cost or valuation, nel of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases". Plant and equipment Motor vehicles 25% on cost 25 /0 on cosl 11 LEGACY WM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Accounting policies {Continuedl The gain or loss arising on the disposal of an asset is delermin8d as the drfferen￿ be￿een the sale prO￿edS and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured al fair value al each reporting dale. Changes in fair value are recognised in net incomellexpenditure) for the ye8r. Trnnsaction ¢osts are expensed as incurred. 1.8 Impairment of fixed assets At each reporting end dale. th& charity revigws the carrying amounts of its tangible assets lo determine whether there is any indication that those assets have suffered an impaiment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the exlenl of the impaiimenl loss lif any). 1.9 Cash and ¢a$h ¢qulvalents Cash and cash equivalents inGlude cash in hand, deposits held al call with banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Taxation The charity is exempl from corporation tsx (m ils charitable activities. 1.11 Employee beneflts The ¢ost ol any unused holiday enlillemenl is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.12 Pension costs and other post-retirement benefits The Charitable company operates a defined contribution pension scheme. Contributions payable to the charitable companls pension scheme are charged lo the Statement of Financial Activities in the period lo which they relate. Donations and legacies UnrestrScted Restrl¢tsd funds funds Total Unrestricted Reslricled funds funds Total 2022 2022 2022 2021 2021 2021 Grants and donations 19,753 461,052 480,805 5,214 297,205 302.419 12 LEGACY WM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Donations and legacios Co¥tinuedl Grants rgcèlvable for ore activitiès Arts Council Aston Villa Foundation BBC Children In Need BCHNT Big Lottery Fund Birmingham City Council Birmingham City Counctl (Covid Recovery Prograrnmel Birmingham City Council Arts) Birmingham City Council (Health & Wellbeing) Birmingham City University Birmingham ORG Committee Birmingham Voluntsry servi￿ Counal Donations ESC Lottgry Fund Garfield Weston Foundation Grants- JRS Heart of England Heritage Lottèry FLtnd (Heritage Officer) Historic Englan Housing 21 Jewellery Quarter Dtrvelopmenl Trust Living Well UK Oak Foundation Intemalional Ltd PCC for West Midlands Saintbury Trust SWBH INHS health projèct) The Active Wellbeing Society The Clothworkers Foundation The Mason Foundation The Rowlands Trust Tudor Trust WMP- Football Leagu6 28,000 1,000 40,388 65,000 86.472 68,488 28.000 1,000 40.388 65,OQO 86.472 68,488 35,000 999 9,888 35,000 999 9.888 164,618 164,618 6,435 6,435 14,599 14.599 4,924 4,924 438 438 10,962 10,962 36,300 36,300 19,753 1,500 19,753 3,437 3,437 5,379 5,379 30,000 30,0(X) 6,500 6,500 1,777 1,777 4,042 4.042 12,210 12,210 10,500 11,000 10,500 11,000 11,675 11,675 900 900 440 440 7,000 7,000 16,000 16,000 3,000 3,IK>O 6.000 6,000 10,000 10,000 15,000 8,000 5,000 20,000 15,000 8,000 5,000 20,000 600 600 19,753 461,052 480,805 5,214 297.205 302,419 13- LEGACY WM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Investments Unrestricted Unrestricted funds funds 2022 2021 Interest ro¢eivable 98 410 Charitable activities Charitable Charrtable ExpenditureExpenditure 2022 2021 Depreci8lion and Impairment Marketing Gross Wages and Salaries Pensions Project- Arts Trail Project- Caretakers House Project- Flourish Project- Housing Project- Industrial Heritage Stronghold - Sculpture Project- LWM 12 Years Anni Event Project Delivery Costs Projo¢t- Cycling Project Freedom 50 Proje¢t- Nowka Bais Project- Wellbeing Sessional Workers Travel & Subsislen 14,161 2,195 215,501 5,823 24,510 5,074 2,010 167,717 3,835 6,161 3,441 10,530 24,000 17,699 59,132 2,240 12.281 61,021 19,297 4,049 20,532 5,562 1,625 4,924 6.831 2,652 2,891 393,357 312,337 Share of support costs Is8e note 51 Share of 9overnance costs Isee note 51 37,790 12,796 29,447 7,735 443,943 349,519 Analysis by fund Unrestricted funds Restricted funds 1,777 347,742 443,943 14 LEGACY WM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Support costs Support Govornan¢e osts costs 2022 Support Govemance costs costs 2021 Bank Charges Consultancy Fees Equipment Expensed Insurance Motor Expenses Office Cost PrintinglPublishing Rent Software Staff Training & Welfare Stationery & Printing Subscriptions Sundry Temps and Recruitment Venue Hire Volunteers Expense Accountancy Fees Audit F&es Legal and Professional {41 7,624 1.271 2,233 507 513 1,468 10,500 3.786 2,780 25 67 141 7,624 1,271 2,233 507 513 1,468 10.500 3.786 2,780 25 67 1211 8,316 518 824 1211 8,316 518 824 2,347 682 7,855 2,275 599 2,347 682 7,855 2,275 599 509 33 74 4.549 887 509 33 74 4,549 887 1.650 147 6.690 183 147 6,690 183 1.650 6,000 5,146 1,850 6,000 5,146 1,650 6,085 6,085 37,790 12.796 50,586 29.447 7,735 37,182 Analysed bebmeen Charitable activities 37.790 12.796 50,586 29,447 7,735 37,182 Trustees None of the Iruslees lor any persons connected wlh Iheml received any remuneration or benefits from the charty during the year. Employees The average monthly number of employees during the year was.. 2022 Numb 2021 Numbor 11 There We￿ no employees whose annual remuneration was rnore than £60,000. 15- LEGACY WM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 Net galnslllo$se$l on Investments Restricted funds Total 2022 2021 Gainll1055) on sale of inve51menls 14,5151 Tanglble fixed assets Plant and Motor Yehl¢l88 ?qulpm8nt Total Cost At 1 November 2021 Additions 25,483 243 25,483 54,399 54,156 Al 31 October 2022 25,726 54,156 79,882 Deprèciation and impairment Al 1 November 2021 Depreciation charged in the year 10,826 5,135 10,826 14,161 9,026 At 31 October 2022 15,961 9,026 24,987 Carrying amount At 31 October 2022 9.765 45,130 54,895 At 31 October 2021 14.657 14,657 10 Fixed asset investments Listed investments Cost or valuation At 1 November 2021 Additions Gainlllossl on valuation of investments 50,000 50,000 14,5151 At 31 October 2022 95,485 Carrying amount At 31 October 2022 95,485 At 31 October 2021 50,000 16 LEGACY WM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022 10 Flxed assèt Investments {Coylinuedl 11 Dobtors 2022 2021 Amount5 falllng due withln one year.. Other debtors 669 12 Creditors.. amounts falllng due withln one year 2022 2021 Othèr tsxalion and social security Trad8 creditors Other creditors 6,451 2.934 72 12,473 151,680 158,131 15,479 13 Analysi5 of n•t assets btheen funds Unrestrlctèd RestrictÈd funds funds 2022 2022 Total Unreslricled Reslricled ftjnds funds 2021 2021 Total 2022 2021 Fund balances al 31 October 2022 are represented by.. Tangible assets Investments Current assetsl S4,895 54,895 95,485 14,657 50,000 14,657 50,000 95,485 70,140 20,265 90,405 50,289 93,394 143,683 165,625 75,160 240,785 50,289 158,051 208,340 14 Related party trans8¢tlons There were no disclosable related party transactions during the year12021 none). 17- ## PRIVATE AND CONFIDENTIAL Legacy WM Soho House 5 Soho Avenue Handsworth Birmingham B18 5LB Our ref: TP/L175 Date: 10 March 2023 Dear Sirs, ## **REPORT TO MANAGEMENT** During the course of our audit for the year ended 31 October 2022, a number of matters arose which we consider should be brought to your attention. Accompanying this letter is a memorandum noting these points together with any recommendations we have for possible improvements which could be made. These matters came to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily disclose all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you immediately. We would be grateful if you could enter management’s comments against each point under the "management response" column of the memorandum and return it to us in due course. We have complied with the Ethical Standards for Auditors and all threats to our independence, as identified to you in our letter of engagement dated 10 January 2023, have been properly addressed through appropriate safeguards. No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention and we confirm that we are independent and able to express an objective opinion on the financial statements. This report has been prepared for the sole use of the trustees of Legacy WM and must not be shown to third parties without our prior consent. No responsibilities are accepted by AGS Accountants and Business Advisors Limited towards any party acting or refraining from action as a result of this report. Finally, we would like to express our thanks to all members of the charity's staff who assisted us in carrying out our work. Yours faithfully AGS AGS Accountants & Business Advisors Ltd ## **SIGNIFICANT MATTERS RELEVANT TO OUR AUDIT FOR THE YEAR ENDED 31 OCTOBER 2022** ## **Audit approach** There were no changes to our audit approach as set out to you in our letter of engagement dated 10 January 2023. ## **Summary of significant audit findings** |**Areas where issues were**
**identified during the audit**|**Findings and**
**recommendations**|**Management response**| |---|---|---| |The financial statements
should be prepared on an
accruals basis, in compliance
with the SORP|The Charity commission
require charities with a
charitable income in excess of
£250,000 to have financial
statements prepared on an
accruals basis rather than a
cash basis. The bank records
are the base of the charity’s
accounting records and some
reserves such as a PAYE
creditor have been included.
Including income and cost
reserves on top of the bank
records in the financial
statements creates the
accruals basis. Some reserves
have been omitted such as
expenditure incurred during
the year but paid for after the
year end. For the 2022 audit,
missing reserves have been
included on the schedule of
unadjusted errors as they are
immaterial to the financial
statements overall.|| |Grant documentation was
retained in an adhoc way
i.e., as retained emails.|Grant information was
difficult to obtain with some
remittances/contracts not been
available. Grant document
should be retained in a
standardised way to ensure it
can be located when
necessary.|| |Omitted holiday pay accrual|Employees holiday periods
run annually in line with their
contracts. This means there
will be a holiday pay liability
at the charity’s year end as the
periods do not much. A
holiday pay accrual should be
included going forward to
ensure wages costs are|| ||correctly apportioned to the
period they are incurred.|| |---|---|---| |Underpayment of PAYE to
HMRC|A revised EPS submission
should be made the HMRC to
inform them of underpaid
PAYE and NI of £2,147 from
June 2022 in relation to
additional payments to
employees as a cost of living
adjustment. The amount
should also be paid to HMRC
as soon possible.|| |Salary sacrifice pension
contributions for Aftab,
Apsana and Dawn are not
being paid over in a timely
manner, contrary to pension
regulations|At the year end there is a
pension creditor relating to
the salary sacrifice pension
arrangements of £16,445.
This balance has accumulated
over a number of years and
appears to have occurred due
to the direct debit with the
pension companies not being
kept up to date when
contributions increase etc. It
also appears that only the
employees pension
contribution is being paid to
the pension companies rather
than the total of the
employees and employers
pension contributions per the
payroll reports. The
underpayments and future
payments should be corrected
as soon as possible.|| |Date of the AGM|The charity should arrange for
the annual AGM to be slightly
later in the year to allow
sufficient time for the
accounts to be prepared and
the audit completed before the
accounts are presented at the
AGM.|| ## **Internal controls** The purpose of the audit was for us to express an opinion on the financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses and the matters reported below are limited to those deficiencies that we have identified during the audit. |**Control weakness identified**|**Potential implications and**
**recommendations**|**Management response**| |---|---|---| |Bookkeeping records|The bookkeeping is currently
maintained manually using an
excel spreadsheet which
records payments and receipts.
There is a higher risk of human
error when processing records
in this way such as transactions
may be mis-allocated. We
recommend moving over to a
suitable accounting software
which has features such as
automatic bank feeds in order
to reduce the risk of
transactions being entered
incorrectly.|| |No evidence found of expenses
claims being authorised before
payment|Expense sheets sampled had
not been signed by a
responsible individual prior to
payment. Expenses claims
should be approved prior to
payment to ensure that the
claims arelegitimate.|| ## **Summary of audit differences and draft letter of representation** Attached is a schedule of all of the unadjusted misstatements noted during our work. We would be grateful if you could review these and confirm that you are satisfied that none of these need to be adjusted for in the financial statements. We have also attached a draft letter of management representations required in connection with our audit. ## **Outstanding matters** Prior to issuing our audit report we require: - the signed letter of representation; ## **Anticipated audit report** We anticipate that we will issue an unmodified audit report for the year, subject to the satisfactory clearance of any outstanding/unresolved the matters outlined in this report.