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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 11875362 (England and Wales) REGISTERED CHARITY NUMBER: 1187164

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

COMMUNITIES 1ST

(A COMPANY LIMITED BY GUARANTEE)

COMMUNITIES 1ST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page
Report of the Trustees 1 to 7
Statement of Trustees' Responsibilities 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Statement of Financial Position 13
Statement of Cash Flows 14
Notes to the Statement of Cash Flows 15
Notes to the Financial Statements 16 to 23

COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

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.

STRATEGIC REPORT

Achievement and performance

Strategic Report - Achievement and Performance

'Working with you to make a bigger difference' - that's the strapline from our new four-year strategic plan which we launched this year and I am delighted to say that I believe we are doing just that. As you read through this impact report you will see how our work has moved on from the pandemic, but not eased off! It is our responsibility to be an ever-changing organisation, responding to the circumstances and the environment in which we work. It is impossible for us to do that alone and essential that we collaborate with you, our residents, volunteers, community organisations, statutory and business partners to deliver the best we can for our communities. I think we have done that and I consider it an accolade to all involved to see how much has been achieved.

Our mission

Our vision

Our values underpin everything we seek to achieve. We are:

Our goals

It's been another year of significant change. Whilst the impact of COVID has subsided the demands arising from other issues have grown and presented new challenges. We have taken things in our stride and responded well with an adaptable approach. By the end of the year Communities 1st and its services looked quite different from what they were at the beginning.

During the first half of the year, as the country started to recover from the COVID pandemic, our activity began to reflect this. The vaccination programme slowed down, as did the requests for volunteer support and we stopped delivering pulse oximeters in June. Many individuals were able to turn back to their family and friends for help, so the number of clients requiring support with shopping, prescription collection and other practical tasks declined markedly. We have continued to provide a service to people who have little or no alternative support structures in place and the numbers are still significant, but they are nowhere near those we experienced during the height of the pandemic.

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COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Meanwhile other activity has ramped up. Following the breakout of war in Ukraine in February 2022 Communities 1st worked with County and District Councils, the NHS and our voluntary and community partners to coordinate our response. We have held regular peer to peer support groups for Ukrainian arrivals and their hosts, set up our 'Herts with Ukraine' website, provided advice, information and signposted people onto relevant services and given practical assistance with community transport as required. We are starting to see the benefits of this with a number of Ukrainians becoming increasingly independent and less reliant on our and others support.

The rising costs of living has presented us with challenges throughout the year - and still does. In addition to cascading information and directing people to sources of help, we have spent time working with VCFSE organisations to support the warm space initiative. With funding received from local authorities and a philanthropic partner we have provided three warm spaces ourselves and facilitated the establishment of 12 others. We are currently evaluating the scheme to help plan for next winter and any 'cool spaces' which may be needed in the summer months.

The Multiply Project is another new initiative that we helped launch this year. It's a national scheme headed up by the Department of Education, intended to help adults develop their numeracy skills, unlocking job opportunities and/or a return to education. Working with Step2Skills and other partners, we have encouraged people to get involved and sign up for our new workshops designed to improve individual's confidence with numbers. We've had some great feedback!

Turning back to health issues, we have been fortunate to receive NHS funding to work with our partners to address targeted areas of clinical need. A new project 'Our Health Matters' commenced in October 2022. Focusing on two of the most deprived wards in Hertsmere, we have been talking to residents about the barriers they face when accessing health services and working with NHS colleagues to consider how best to overcome them. Our work culminated in a highly successful Health and Cancer Awareness event which was held at Aberford Hall in March 2023.

Our involvement in the NHS international staff recruitment work has also expanded. With the help of our volunteer buddies we have successfully supported the new recruits settle into their new life and find their way around their new surroundings. Our NHS partners at Watford and Lister Hospitals have placed high value on our contribution noting the positive impact it has had on staff wellbeing, so much so that they spread the word and the service has now expanded to include Herts Community NHS Trust and Cambridge and Peterborough NHS Foundation Trust.

Alongside all of this we have continued with our core business of supporting and representing local VCFSE organisations, and promoting and brokering volunteer opportunities. Our Stronger Together Networks (STNs) have expanded to reflect the changing environment in which we work. This year we have introduced three new networking groups for those working with refugees and asylum seekers, a forum for volunteer managers and another group focusing on equality and diversity. This year we also launched 'Let's Give', a new service for volunteers enabling them to upload information about their skills and interests onto our website, allowing volunteer involving organisations to reach out to them about potential volunteering roles.

From my perspective these have been the highlights of the year. We have had to support our volunteers, staff, trustees, funders, VCFSE organisations and partners throughout this change and development, and in the middle of it all we moved offices. The relocation may have been a little disruptive at the time but now we are ensconced in our new home, it has allowed us to bring all our staff together in one place and enabled a much greater sense of 'team' and coordinated working.

It remains for me to thank all our volunteers and staff for their incredible hard work and for all that they have achieved as detailed in the remainder of this report.

A MORE RESILIENT, EFFECTIVE AND REPRESENTATIVE LOCAL VOLUNTARY, COMMUNITY, FAITH AND SOCIAL ENTERPRISE (VCFSE) SECTOR

2022/23 facts and figures:

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COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Some feedback:

VOLUNTEERING IS MORE RECOGNISED, VISIBLE AND VALUED IN THE COMMUNITY PROVIDING IMPROVED COMMUNITY WELLBEING AND PERSONAL DEVELOPMENT

2022/23 facts and figures:

Some feedback:

IMPROVED HEALTH AND WELL BEING WHERE INDIVIDUALS FACING BARRIERS OR EXPERIENCING INEQUALITIES ARE SUPPORTED AND RESILIENT

2022/23 facts and figures:

Some feedback:

'I broadcasted a 15minute slot on Radio Verulam called 'Health Matters', which was always 'on message'. Volunteering to support people living in St Albans is a privilege and through volunteering I am able to support people who, for whatever reason, need that support' (Community Information Champion)

'I am the carer of an 80-year-old gentleman who has cancer. It was good to be able to talk to so many expert organisations in one place' (Participant of the Health and Cancer awareness event)

'Such a nice gentleman. As we seemed to get on so well on the phone I asked him if he would like me to call regularly. He readily agreed, so we've arranged to have regular chats. He seemed really pleased. So am I!' (Volunteer undertaking Christmas wellbeing calls)

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COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

BEING A SUSTAINABLE, INCLUSIVE AND RESPONSIBLE ORGANISATION DRIVEN BY OUR VALUES

2022/23 facts and figures:

Some feedback:

'The driver is always so friendly and helpful and the service is exceptional. It means I can get out of the house every week' (Client of the shopper bus service)

'Just to say thank you for taking me to my hospital appointments. I don't know how I would have managed otherwise. Thanks to the team who facilitates this and the volunteers who help me.' (Client of the community car service)

'Your DIY and gardening service has stopped me from going into a care home. I have no one else to help.' (Client of handyperson service)

'Thank you for the information. My guest found it very useful to meet a fellow Ukrainian and she has been in touch with another one since.' (Host to Ukrainian guest attending peer to peer group meeting)

'My buddy helped me a lot, from showing me around and giving me information about the country. I have also had help looking for accommodation. I know for a fact that I would have been lost without her' (International NHS recruit)

'I attended the shopping on a budget session and felt it was very informative. It has helped me focus on different aspects of budgeting and the best ways to get the most out of my money' (Client of Multiply project)

WHAT DOES THE FUTURE HOLD?

As we move towards 'business as usual' in the post-pandemic world it is becoming increasingly obvious that funding pressures are reinstating themselves as a more significant driver of events. Whilst there may be increasing competition for funds, the demand for services is not declining, the cost of living crisis impacting on individuals' own financial circumstances and events both at home and abroad affecting the vulnerability of our community. So, our work must continue in challenging times.

We must build on our strengths, drawing on our experience to date, the knowledge we have accumulated and the connections we have made. Our work through the pandemic has given us great insight into how we can add value working with our community, statutory and business partners. We have established a strong foundation from which we can continue this collective and collaborative work. We are driven to push forward with this modus operandi, helping to create strong local communities where everyone has the opportunity to thrive and make a difference.

We look forward to the months and year ahead.

Financial review

Financial position

The charity continues to seek ways to diversify its income to ensure a robust financial future. the charity has developed sound financial management systems and along with the support of the team has generated a positive financial outcome for the period. The charity has had success in grant application.

Investment policy and objectives

All reserves not required for day-to-day operational costs are invested in accounts with unity trust bank.

Financial Risk Review

Internal risks are minimized by the implementation of procedures for the authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.

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COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

Financial review

Reserves policy

It is the policy of the trustees to maintain free reserves of at least three month's running cost to enable the charity to meet all the commensurate costs in the event of extreme scenario of winding-up, the running cost reserve is £351,924 at the year end.

The charity continues to seek ways to diversify its income to ensure a robust financial future. The charity has developed sound financial management systems and along with the support of the team has generated a positive financial outcome for the period. The charity has had success in grant application.

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

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.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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

Net Zero

Communities 1st are developing our Net Zero strategy and will start to report our annual progress against our carbon reduction targets in 2024. We are fully training all our workforce to become advocates for Net Zero across our organisations and local communities. We will seek best practice in our response to Net Zero and will actively share this with our hirer sand clients across all our services. We aspire to becoming part of the solution to Climate Change and want our current and future clients to be part of that solution too.

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COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Gender Pay Gap

Communities 1st believes in equality of opportunity for all. Although Communities 1st employs fewer than 250 staff (44) and is therefore not required to publish gender pay gap information, we have chosen to and encourage other organisations in the sector to do so as well. At 1 April 2023, the median and mean male and female hourly earnings were as follows:

Male hourly earnings (£) Female hourly earnings (£) Difference (£) Difference (%)
Median 11.06 13.21 -2.15 -19.44%
Mean 13.28 13.88 -0.60 -4.48%

The UK gender pay gap reported by the Office for National Statistics in 2022 is 8.3% in favour of men. Communities 1st's median gender pay gap is 19.44% in favour of women and mean pay gap is 4.48% in favour of women. The gender pay gap is measured across all jobs, not of the difference in pay between men and women for doing the same job. Communities 1st's gender pay gap is not a concern, however gender pay and equal pay will continue to be monitored closely.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

11875362 (England and Wales)

Registered Charity number

1187164

Registered office

Ver House Frogmore St Albans AL2 2WH

Trustees

Jason John (Chair) Sarah Yexley (Vice-chair) Ross Gemmell (Treasurer) Chris Cloke Joy Dobbs Ann Harrison John Howson Sue Pearlman Ann Rogers Karl Wilding

Company Secretary

S M Craker

Senior Statutory Auditor

Neil C Harding

Auditors

Bradshaw Johnson Chartered Accountants Statutory Auditor Croft Chambers 11 Bancroft Hitchin Hertfordshire SG5 1JQ

Page 6

COMMUNITIES 1ST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

AUDITORS

The auditors, Bradshaw Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 20 September 2023 and signed on the board's behalf by:

J J John - Trustee

Page 7

COMMUNITIES 1ST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

The trustees (who are also the directors of Communities 1st for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with 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".

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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF COMMUNITIES 1ST

Opinion

We have audited the financial statements of Communities 1st (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, 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 Auditors' 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 Auditors 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF COMMUNITIES 1ST

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

In preparing the financial statements, the trustees are responsible for assessing the 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 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. 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the Charitable Company's industry and its control environment, and reviewed the Charitable Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Charitable Company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the Charitable Company's rationale of any significant transactions that are unusual or outside the normal course of business.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF COMMUNITIES 1ST

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

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 auditors' 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.

Neil C Harding (Senior Statutory Auditor) for and on behalf of Bradshaw Bradshaw Johnson

Chartered Accountants Statutory Auditor Croft Chambers 11 Bancroft Hitchin Hertfordshire SG5 1JQ

27 October 2023

Page 11

COMMUNITIES 1ST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Investment income
4
Other income
Total
EXPENDITURE ON
Charitable activities
5
Purposes of the charity
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,604,693
458
26,359
1,631,510
1,392,196
239,314
661,194
900,508		 Restricted
funds
£
134,000
-
-
134,000
15,500
118,500
15,500
134,000		 31.3.23
Total
funds
£
1,738,693
458
26,359
1,765,510
1,407,696
357,814
676,694
1,034,508		 31.3.22
Total
funds
£
1,368,596
53
4,100
1,372,749
961,078
411,671
265,023
676,694

The notes form part of these financial statements

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COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

STATEMENT OF FINANCIAL POSITION 31 MARCH 2023

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
93,711
184,256
885,554
1,069,810
(263,013)
806,797
900,508
900,508		 Restricted
funds
£
-
-
134,000
134,000
-
134,000
134,000
134,000		 31.3.23
Total
funds
£
93,711
184,256
1,019,554
1,203,810
(263,013)
940,797
1,034,508
1,034,508
900,508
134,000
1,034,508		 31.3.22
Total
funds
£
75,904
409,655
784,765
1,194,420
(593,630)
600,790
676,694
676,694
661,194
15,500
676,694

The financial statements were approved by the Board of Trustees and authorised for issue on 20 September 2023 and were signed on its behalf by:

J J John - Trustee

The notes form part of these financial statements

Page 13

COMMUNITIES 1ST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in 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		 31.3.23
£
279,959
(992)
278,967
(44,636)
-
458
(44,178)
234,789
784,765
1,019,554		 31.3.22
£
475,052
(956)
474,096
(71,682)
3,420
53
(68,209)
405,887
378,878
784,765

The notes form part of these financial statements

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COMMUNITIES 1ST

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
31.3.23 31.3.22
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 357,814 411,671
Adjustments for:
Depreciation charges 26,829 16,712
Loss on disposal of fixed assets - 6,080
Interest received (458) (53)
Interest paid 992 956
Decrease/(increase) in debtors 225,399 (297,799)
(Decrease)/increase in creditors (330,617) 337,485
Net cash provided by operations 279,959 475,052
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank 784,765 234,789 1,019,554
784,765 234,789 1,019,554
Total 784,765 234,789 1,019,554

The notes form part of these financial statements

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COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. STATEMENT OF COMPLIANCE

Communities 1st is a charitable company 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: Ver House Frogmore St Albans AL2 2WH

The charitable company's financial statements have been prepared in compliance with Charities SORP (FRS 102) as it applies to the financial statements for the year ended 31 March 2023.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statement are prepared in sterling.

Communities 1st meets the definition of a public benefit entity under FRS 102.

Going concern

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

Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income is deferred when monies have been received in advance of a service being rendered. The deferred income is released at the point when the service has been rendered.

Donations

Donations are recognised when the charitable company 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 charitable company before the charitable company is entitled to the funds, the income is deferred and not recognised until either those are conditions fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probable that these conditions will be fulfilled in the reporting period.

Grant receivable

Grants are recognised when the charitable company 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 statement of financial position as deferred income to be released.

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continued...

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

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 charitable company 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 cost 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.

Tangible fixed assets

Individual fixed assets costing £150 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

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

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

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 ot 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 charitable company 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 the amortized cost using the effective interest method.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

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

continued...

Page 17

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Fund accounting

Restricted 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.

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

3. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
Contracts and SLA
Grants
Grants received, included in the above, are as follows:
Covid-19
On The Day Passenger Transport project
Social Prescribing (NASP)
Hertsmere B Council
St Albans D Council
Hertfordshire County Council
Clarion Housing
Herts Sports Partnership
University of Hertfordshire
Herts Partnership University - NHS Foundation Trust
Hoare Trust
British Red Cross VCSEP
Bedfordshire Luton Community
NAVCA
Community Action Dacorum - Staying Connected
NHS Hertfordshire and West Essex ICB - Core 20+
Hertfordshire and West Essex ICB - International Recruits
Herts Valley CCG
Shopper bus
Other grants		 31.3.23
£
532,524
807,881
398,288
1,738,693
31.3.23
£
6,868
-
-
75,417
4,399
-
4,022
-
-
-
8,700
6,000
1,500
5,000
40,127
36,000
55,500
12,639
134,000
8,116
398,288		 31.3.22
£
232,460
781,792
354,344
1,368,596
31.3.22
£
112,146
5,613
21,231
84,334
73,770
6,000
5,000
2,250
2,250
30,000
11,750
-
-
-
-
-
-
-
-
-
354,344

continued...

Page 18

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

4.
INVESTMENT INCOME
Deposit account interest
5.
CHARITABLE ACTIVITIES COSTS
Purposes of the charity
6.
SUPPORT COSTS
Purposes of the charity
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Deficit on disposal of fixed assets		 Direct
Costs
£
1,125,313
Information
technology
£
44,535		 31.3.23
£
458
Support
costs (see
note 6)
£
282,383
Other
£
237,848
31.3.23
£
26,829
-		 31.3.22
£
53
Totals
£
1,407,696		 31.3.22
£
53
Totals
£
1,407,696
Totals
£
282,383
31.3.22
£
16,712
6,080

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

9. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Staff		 31.3.23
£
1,062,048
1,062,048
31.3.23
46		 31.3.22
£
736,990
736,990
31.3.22
50

No employees received emoluments in excess of £60,000.

continued...

Page 19

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10. 2022 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Other income
Total
EXPENDITURE ON
Charitable activities
Purposes of the charity
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Fixtures
and
fittings
£
34,626
2,075
36,701
20,600
4,800
25,400
11,301
14,026		 Unrestricted
funds
£
1,348,096
53
4,100
1,352,249
941,078
411,171
250,023
661,194
Motor
vehicles
£
40,992
33,848
74,840
5,124
11,083
16,207
58,633
35,868		 Restricted
funds
£
20,500
-
-
20,500
20,000
500
15,000
15,500
Computer
equipment
£
30,690
8,713
39,403
4,680
10,946
15,626
23,777
26,010		 Total
funds
£
1,368,596
53
4,100
1,372,749
961,078
411,671
265,023
676,694
Totals
£
106,308
44,636
150,944
30,404
26,829
57,233
93,711
75,904

continued...

Page 20

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income		 31.3.23
£
158,661
-
25,595
184,256
31.3.23
£
16,634
102,006
144,373
263,013		 31.3.22
£
320,351
82,304
7,000
409,655
31.3.22
£
4,482
432,586
156,562
593,630

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals and deferred income includes £88,900 (2022: £92,500) of designated funds relating to monies received in 2022-23 for 2023-24 projects and £nil (2022: £15,500) of restricted funds relating to monies received in 2022-23 for 2023-24.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
15.
MOVEMENT IN FUNDS		 31.3.23
£
38,129
120,742
158,871		 31.3.22
£
-
-
-
Unrestricted funds
General fund
Restricted funds
Peer-to-peer support groups
Supporting International Nurses
Mini-bus grants
TOTAL FUNDS		 At 1.4.22
£
661,194
5,500
10,000
-
15,500
676,694		 Net
movement
At
in funds
31.3.23
£
£
239,314
900,508
(5,500)
-
(10,000)
-
134,000
134,000
118,500
134,000
357,814
1,034,508		 At
31.3.23
£
900,508
-
-
134,000
134,000

continued...

Page 21

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

15. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Peer-to-peer support groups
Supporting International Nurses
Mini-bus grants
TOTAL FUNDS		 Incoming
resources
£
1,631,510
-
-
134,000
134,000
1,765,510		 Resources
expended
£
(1,392,196 )
(5,500)
(10,000)
-
(15,500)
(1,407,696 )		 Movement
in funds
£
239,314
(5,500)
(10,000)
134,000
118,500
357,814

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Donations and legacies
Peer-to-peer support groups
Supporting International Nurses
TOTAL FUNDS		 At 1.4.21
£
250,023
15,000
-
-
15,000
265,023		 Net
movement
in funds
£
411,171
(15,000)
5,500
10,000
500
411,671		 At
31.3.22
£
661,194
-
5,500
10,000
15,500
676,694

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Donations and legacies
Peer-to-peer support groups
Supporting International Nurses
TOTAL FUNDS		 Incoming
resources
£
1,352,249
-
5,500
15,000
20,500
1,372,749		 Resources
expended
£
(941,078)
(15,000)
-
(5,000)
(20,000)
(961,078)		 Movement
in funds
£
411,171
(15,000)
5,500
10,000
500
411,671

Peer-to-peer - This is monies received from Hertfordshire County Council to deliver peer-to-peer support groups.

continued...

Page 22

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

15. MOVEMENT IN FUNDS - continued

Supporting International Nurses - This is monies received from Herts Partnership University to support international nurses to integrate in local communities.

Mini-bus - This is monies received to purchase shopper buses.

16. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 23