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2021-03-31-accounts

Company registration number: 11875362 Charity registration number: 1187164

Communities 1st

(A company limited by guarantee) Annual Report and Financial Statements

for the Year Ended 31 March 2021

Communities 1st

Contents

Contents
Reference and Administrative Details
Trustees' Report 5 to 11
Statement of Trustees' Responsibilities 12
Independent Examiner's Report 13
Statement of Financial Activities 14
Balance Sheet 15
Notes to the Financial Statements 16 to 23

Communities 1st

Reference and Administrative Details

Trustees

Ross Gemmell Jason John, Chair Karl Wilding Susan Pearlman Sarah Yexley Ann Harrison Joy Dobbs Christopher Cloke Ann Rogers

Secretary

Stephen Craker

Senior Management Team

Stephen Craker, CEO Helen Ives-Rose Christine Halpin Tom Watkins

Nicola O’Neill

Principal Office

Community Centre 2 Allum Lane Elstree Borehamwood Herts WD6 3PJ

The charity is incorporated in England & Wales

Company Registration Number

11875362

Charity Registration Number

1187164

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Communities 1st

Reference and Administrative Details

Solicitors

Dechert LLP

Accountants

Caplan Associates Chartered Accountants 3 Stirling Court Stirling Way Borehamwood Hertfordshire WD6 2FX

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Communities 1st

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.

Trustees

Ross Gemmell

Jason John, Chair Karl Wilding Susan Pearlman Sarah Yexley Ann Harrison Joy Dobbs Stuart Nagler (resigned 11 September 2020)

Christopher Cloke Ann Rogers

Objectives and activities

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

What we do

Mission

To work with people across all sectors to make a positive and sustained impact on the wellbeing of local people through Support, Knowledge, Voice, Infrastructure and Innovation.

Vision

Working to build inclusive, empowering and vibrant local communities .

Values

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Communities 1st

Trustees' Report

Strategic Aims and Objectives

During this strange and difficult year we, along with many others, have been faced with some dramatic and tough challenges. Our communities have needed our help more than ever, and we have stepped up to give our very best support we could.

At the beginning of the pandemic we faced a difficult choice: we could continue with our usual day to day services, or we could step up, develop and evolve our organisation in order to meet the new needs of the community. We chose to do the latter, and we have grown from an organisation with 60 volunteers covering an area of 250,000 people, to one with 7,000 volunteers, covering an area of over 2 million.

To successfully pivot our services to meet the community’s new needs during the pandemic, we have had to be flexible, adaptable and dedicated. Looking to the future, our volunteers and staff will continue to do all they can to support local communities.

Throughout these rapid changes, our Centre for Voluntary Service has continued in our core role, providing support with funding and development to 98 community, voluntary, faith and social enterprise organisations.

A lot of our clients have lost their confidence and may struggle to become fully independent again. We will continue providing essential services to clients who require it, whatever the future may bring.

Our Year: April 2020 – March 2021

A week before the first UK national lockdown was announced, we created our Compassionate Community Connector programme, to deliver essential services to residents in vulnerable situations who would need to isolate or shield.

5,000 people signed up to volunteer with us in the first few months of the national lockdown. Our recruitment team grew dramatically from 1 ½ people to 105 people, and several of our volunteers moved into recruitment roles.

At the beginning of the pandemic we received 1,200 referrals for individuals who needed our service, including from people abroad who wanted to refer their family members in Hertfordshire. Many of these people didn’t have anyone else to turn to, and were reaching the end of the supplies in their homes.

We were then asked by Welwyn and Hatfield Centre for Voluntary Service and Broxbourne and East Herts Volunteer Centre to help support their volunteer recruitment and coordination. After forming this partnership the area we were supporting rocketed from 250 thousand people to around 600 thousand.

Several organisations who were responding directly to the pandemic also requested our assistance, including Harpenden Cares, Wheathampstead Community Group, and several food banks. We recruited volunteers for those still offering key services in the height of the first lockdown, including One YMCA and Herts Area Rape Crisis & Sexual Abuse Centre (HARCSAC).

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Communities 1st

Trustees' Report

By June Hertfordshire County Council had asked us to form a partnership of organisations who could deliver these essential services across the whole of Hertfordshire. Along with seven other voluntary organisations, we formed Community Help Hertfordshire.

This partnership has delivered vital services throughout the pandemic, including the Covid Information Champions initiative and Digital Inclusion project. It has also had a significant impact by bringing together county and district councils, as well as two NHS organisations, which may lead to the first strategic commissioning board for the Hertfordshire voluntary sector.

In November of 2020 we were approached by the local NHS to help them coordinate and recruit volunteers for vaccination sites across Hertfordshire and West Essex. We were subsequently asked to take on sites across Bedford, Luton and Milton Keynes.

This meant increasing our area of coverage again, this time from 600 thousand to over two million. We have recruited over 4,800 volunteers so far to assist the vaccination effort, and we continue to vet and train volunteers for 22 vaccination sites across these areas.

Throughout the past year we have continued to streamline and adapt our computer system, to allow us to go from having around 60 volunteers to around 7,000.

“The Dashboard works well for expense claims and it’s been a great way to feel I’m contributing to the national effort of support for local communities.” – Mandy (Recruitment and shopping broker volunteer)

We created a programme to schedule volunteers for vaccination centre shifts, and then made it possible for volunteers to book their own shifts online. Volunteers using our technology have had constant support and training from digital champions.

We trained volunteers to help us with recruitment, scheduling and brokerage, to allow our staff to return to their day jobs and continue delivering our original services.

Throughout the pandemic we have faced every challenge head on, and have continued to adapt and streamline our organisation to be able to fulfil the ever changing needs of the community.

Deliver Essential Services to Isolated Residents During COVID

Between April 2020 and March 2021 we have:

Case study – 21/04/20 – Tina - One of our volunteers spoke to an anxious 72-year old woman living alone with underlying health conditions. She was struggling to use her laptop until our volunteer showed Tina how to reboot it and join her

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Trustees' Report

scheduled zoom meeting. Tina was registered for our telephone befriender, prescription collection and technical support schemes. After the call Tina was much happier, and full of praise for the organisation.

Empowering Voluntary Sector Groups

Between April 2020 and March 2021 we have:

For example: We held a number of application ‘surgeries’ for member organisations applying to the SACDC Community Grants Fund. 18 out of 19 groups that we supported were successful in their grant

For example: We recruited tech support volunteers to help several organisations deliver services online and reach service users who struggled with technology, including Herts Inclusive Theatre.

Supporting Individuals Wellbeing

Between April 2020 and March 2021 we have :

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Communities 1st

Trustees' Report

Over the Christmas period:

Inspiring and Facilitating Volunteering

Between April 2020 and March 2021 we have:

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Communities 1st

Trustees' Report

Looking to the future…

Structure, governance and management

Nature of governing document

The charity is controlled by its governing document, a deed of trust, and constituted as a limited company, limited by guarantee as defined by the Companies Act 2006.

Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

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Communities 1st

Trustees' Report

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

The annual report was approved by the trustees of the charity on 2022 and signed on its behalf by:

......................................... Jason John Trustee

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Communities 1st

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Communities 1st for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 2022 and signed on its behalf by:

......................................... Jason John Trustee

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Communities 1st

Independent Examiner's Report to the trustees of Communities 1st

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 14 to 23.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Communities 1st (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Communities 1st are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since Communities 1st's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of Communities 1st as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Philip M Caplan Chartered Accountants ICAEW

2022

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Communities 1st

Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Statement of Financial Activities for the Year Ended 31 March 2021
(Including Income and Expenditure Account and Statement of Total Recognised Gains
and Losses)		 Statement of Financial Activities for the Year Ended 31 March 2021
(Including Income and Expenditure Account and Statement of Total Recognised Gains
and Losses)
Unrestricted
Restricted
Total
31 March 2021
Note
£
£
£
Income from:
Donations and legacies
3		 688,225
35,501
723,726
Investment income
4		 40
-
40
Total income
688,265
35,501
723,766
Expenditure on:
Charitable activities
5		 (543,542)
(20,501)
(564,043)
Total expenditure
(543,542)
(20,501)
(564,043)
Net income
144,723
15,000
159,723
Net movement in funds
144,723
15,000
159,723
Reconciliation of funds
Total funds brought forward
105,300
-
105,300
Total funds carried forward
13
250,023
15,000
265,023
Unrestricted
Total
funds
Restricted funds
2020
Note £
£
£
Income and Endowments from:
Donations and legacies
3		 511,109
34,920
546,029
Total income
511,109
34,920
546,029
Expenditure on:
Charitable activities
5		 (405,809)
(34,920)
(440,729)
Total expenditure
(405,809)
(34,920)
(440,729)
Net income
105,300
-
105,300
Net movement in funds
105,300
-
105,300
Reconciliation of funds
Total funds carried forward
13
105,300
-
105,300

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2020 is shown in note 13.

The notes on pages 16 to 23 form an integral part of these financial statements.

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Communities 1st

(Registration number: 11875362) Balance Sheet as at 31 March 2021

2021
2020
Note £
£
Fixed assets
Tangible assets
9		 30,434
25,542
Current assets
Debtors
10		 111,856
74,815
Cash at bank and in hand
11		 378,878
36,766
490,734
111,581
Creditors: Amounts falling due within oneyear
12
(256,145)
(31,823)
Net currentassets
234,589
79,758
Netassets
265,023
105,300
Funds of the charity:
Restricted income funds
Restricted funds 15,000
-
Unrestricted income funds
Unrestricted funds 250,023
105,300
Total funds
13
265,023
105,300

For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 5 to 15 were approved by the trustees, and authorised for issue on

2022 and signed on their behalf by:

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

Jason John Trustee

The notes on pages 16 to 23 form an integral part of these financial statements.

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Communities 1st

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

1 Charity status

The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Community Centre 2 Allum Lane Elstree Borehamwood Herts WD6 3PJ

These financial statements were authorised for issue by the trustees on 1 September 2021.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Communities 1st meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Income

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

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Communities 1st

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

Donations

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

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.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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Communities 1st

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

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Motor vehicles 25% reducing balance basis Equipment and fittings 33% reducing balance basis

Trade debtors

Trade debtors are amounts due from voluntary organisations and individuals who have undertaken to fund or meet the cost of services provided.

Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

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Communities 1st

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

3 Income

Unrestricted
funds Restricted Total
General funds funds
£ £ £
Donations
Contracts and SLA 283,899 - 283,899
Donations 404,326 35,501 439,827
Total forperiod ended 31 March 2021 688,225 35,501 723,726
Total forperiod ended 31 March 2020 511,109 34,920 546,029
4
Investment income
Unrestricted Unrestricted Unrestricted
funds
Restricted
Total
General
funds
funds
£
£
£
Donations
Contracts and SLA
283,899
-
283,899
Donations
404,326
35,501
439,827
Total forperiod ended 31 March 2021
688,225
35,501
723,726
Total forperiod ended 31 March 2020
511,109
34,920
546,029
4
Investment income
Unrestricted
funds
Total
General
funds
£
£
Interest receivable and similar income;
Interest receivable on bank deposits
40
40
Total forperiod ended 31 March 2021
40
40
5
Expenditure on charitable activities
Unrestricted
funds
Restricted
Total
General
funds
funds
£
£
£
Charitable objectives of the Charity.
-
1,617
1,617
Staff costs
364,018
15,000
379,018
Allocated support costs
177,524
3,000
180,524
Governance costs
2,000
884
2,884
Total forperiod ended 31 March 2021
543,542
20,501
564,043
Total forperiod ended 31 March 2020
405,809
34,920
440,729

In addition to the expenditure analysed above, there are also governance costs of £2,884 (2020 - £2,621) which relate directly to charitable activities.

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

Communities 1st

6 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

7 Staff costs

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:


year expressed as full time equivalents was as follows:
2021
2020
No
No
Employees 23
11

No employee received emoluments of more than £60,000 during the year.

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

Communities 1st

8 Taxation

The charity is a registered charity and is therefore exempt from taxation.

9 Tangible fixed assets

Furniture and
equipment Motor vehicles Total
£ £ £
Cost
At 1 April 2020 11,256 23,000 34,256
Additions 24,046 - 24,046
Disposals (676) (8,000) (8,676)
At 31 March 2021 34,626 15,000 49,626
Depreciation
At 1 April 2020 3,714 5,000 8,714
Charge for the year 10,201 2,500 12,701
Eliminated on disposals (223) (2,000) (2,223)
At 31 March 2021 13,692 5,500 19,192
Net book value
At 31 March 2021 20,934 9,500 30,434
At 31 March 2020 7,542 18,000 25,542
10
Debtors
2021 2020
£ £
Trade debtors 77,114 57,568
Prepayments 7,000 1,134
Other debtors 27,742 16,113
111,856 74,815
11
Cash and cash equivalents
2021 2020
£ £
Cash at bank 378,878 36,766

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Communities 1st

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

12
Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 12,723 1,164
Other creditors 185,360 4,007
Accruals 58,062 26,652
256,145 31,823

13 Funds

13
Funds
Balance at 1
Incoming
Resources
Balance at 31
April 2020
resources
expended
March 2021

£
£

£
£
Unrestricted funds
General
105,300
688,265
(543,542)
250,023
Restricted funds
-
35,501
(20,501)
15,000
Total funds
105,300
723,766
(564,043)
265,023

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Communities 1[st]

Notes to the Financial Statements for the Year Ended 31[st] March 2021

14 Reconciliation of net income to net cash flow from operating activities

2021 2020
£ £
Net income/(expenditure) for the reporting period (as per the
statement of financial activities) 159,723 105,300
Adjustments for:
Depreciation charges 12,701 8,714
Interest (40) -
Loss/Profit on sale of fixed assets (2,223) -
Increase in debtors (37,041) (74,814)
Increase in creditors 224,322 31,821
-------------------------------
Net cash provided by operating activities 357,442 71,021
-------------------------------
15 Statement of cash flows
2021 2020
£ £
Cash flows from operating activities
Net cash provided by operating activities 357,442 71,021
Proceeds from the sale of capital assets 8,676 -
Purchase of capital assets (24,046) (34,255)
Other proceeds 36,804 -
-------------------------------
Net cash provided by (used in) financing activities Note 11 378,876 36,766
-------------------------------

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