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2025-03-31-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 2025

FOR

COMMUNITIES 1ST

(A COMPANY LIMITED BY GUARANTEE)

COMMUNITIES 1ST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page
Report of the Trustees 1 to 9
Statement of Trustees' Responsibilities 10
Report of the Independent Auditors 11 to 13
Statement of Financial Activities 14
Statement of Financial Position 15
Statement of Cash Flows 16
Notes to the Statement of Cash Flows 17
Notes to the Financial Statements 18 to 26

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

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 2025. 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 Achievements and performance

CHAIR'S FOREWORD

This year has been one of growth, partnership, and significant achievement for Communities 1st. The successful merger with Welwyn Hatfield CVS has strengthened our ability to support and represent the local voluntary, community, faith, social enterprise (VCFSE) sector. As a unified organisation, we have expanded our reach and enhanced our impact, helping more groups and communities than ever before.

It has been rewarding to see the dedication and resilience of our staff, volunteers, and partners. Together, we have helped secure over £285,000 for local organisations, enabling them to deliver essential services and innovative projects. We were particularly pleased to see more groups come together to share ideas and develop stronger connections, building a sense of mutual support across the sector. The introduction of networking breakfasts and continued success of our thematic networks have also fostered stronger relationships and collective action among local groups.

We remain committed to supporting and empowering communities, ensuring everyone feels welcome and able to participate, and helping build resilience across the region. Thank you to all who have contributed to our successes this year, including our dedicated volunteers, staff, trustees, and strategic partners - we look forward to building on these achievements together

Jason John, Chair

Our Vision:

Strong local communities where everyone has the opportunity to thrive and make a meaningful difference.

Our Mission:

To partner with local communities, turning knowledge and energy into action and progress.

Our Values:

Creative | Integrity | Quality | Caring | Inclusivity | Collaboration

Our Goals:

  1. To develop a more resilient, effective and representative local voluntary, community, faith and social enterprise (VCFSE) sector.

  2. To ensure volunteering is more recognised, visible and valued in the community, providing improved community wellbeing and personal development.

  3. To achieve improved health and wellbeing where individuals facing barriers or experiencing inequalities are supported and resilient.

  4. To be a sustainable, inclusive and responsible organisation driven by our values.

Page 1

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

CHIEF EXECUTIVE'S SUMMARY

Reflecting on the past year, I am proud of how Communities 1st has continued to evolve, embracing new challenges and opportunities with determination and creativity. Our efforts have led to meaningful progress across many areas - from securing vital funding for local organisations to us being able to enhance volunteering, training, employment support, and wellbeing programmes. We've continued to respond to the changing needs of our communities with agility, compassion, and commitment.

This year marked a significant milestone in our journey with the merger of Communities 1st and Welwyn Hatfield CVS. This merger has expanded our reach and increased our capacity to support communities across Hertfordshire. It has also ensured a more unified, coordinated approach to delivering local services and amplifying community voices.

We worked with our members to shape and publish a series of local voluntary sector 'what we stand for' policy statements. These now provide a shared foundation for influencing decisions and championing the sector more effectively.

Our commitment to creating meaningful connections between business and community has been demonstrated through the expansion of our Better Business programme. We doubled our business engagement this year and saw a marked rise in employer-supported volunteering.

Through the Multiply programme, over 600 people have gained essential numeracy skills. At the same time, 133 individuals secured employment through initiatives such as Able2Enable, which supports people facing barriers due to disability or mental health challenges. Our new 'Future Focus: Empowering Potential' programme offers integrated, personalised employment pathways, designed to deliver faster and more effective results.

Innovation has remained central to our work. One example is our 'Community Thirst' Coffee Cart at St Albans Civic Centre - providing real-world work experience and life skills development. We also launched a 'dance for all' training programme that has widened access to creative opportunities for people of all abilities.

Communities 1st has further strengthened its role as a trusted local delivery partner by supporting residents moving to the UK government's new eVisa system and by securing new funding to expand our Creative Cafes in community centres across Hertsmere.

All of these achievements reflect the power of partnerships - with local authorities, funders, charities, community groups, volunteers, and residents. Thank you to everyone who has been part of this journey. Together, we are helping build stronger, fairer and more connected communities.

Stephen Craker, Chief Executive Officer

A MORE RESILIENT, EFFECTIVE, AND REPRESENTATIVE LOCAL VCFSE SECTOR

Page 2

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Highlights:

VOLUNTEERING IS MORE RECOGNISED, VISIBLE, AND VALUED

Highlights:

ADULT SKILLS AND LEARNING

Highlights:

Page 3

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

IMPROVED HEALTH AND WELLBEING

Highlights:

LOOKING AHEAD

As we look ahead, Communities 1st is preparing for a period of significant change - both within our organisation and across the wider system in which we operate. Despite the uncertainty in national and local policy landscapes, our purpose remains clear: to strengthen communities, empower voluntary action, and help local people and organisations thrive.

In the coming year, the implications of the Local Government Review and the reshaping of NHS commissioning - particularly the streamlining of Integrated Care Boards (ICBs) - will begin to take effect. These changes will alter how decisions are made, how services are commissioned, and who holds influence. As a trusted partner rooted in our local places, we will continue to represent the voice of the voluntary, community, faith and social enterprise (VCFSE) sector and ensure communities are not left behind in the process.

We are also undergoing internal transformation. Alongside our recent merger with Welwyn Hatfield CVS, we are finalising a further organisational merger that will bring together creativity, community engagement, and social enterprise in new and exciting ways. This development will broaden our service offer, and allow us to embed creative, culturally relevant and creative practice into the heart of our community programmes.

Looking ahead, we will:

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COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

At Communities 1st, we know that the future will not be without its challenges. But we also know that meaningful change happens when people come together. We remain committed to working alongside communities, partners, and our members - building a fairer, more resilient and connected future for all.

Financial review

Financial position

We internally record our performance against outcomes for the organisation and the sector. We are pleased with the activity we have undertaken which meets our strategic headlines and also those that add value to our communities and the sector.

We have active 7,238 volunteers - 68% identifying as female, 37% as male and 1% self-defined - with 11,318 hours of volunteering, helping us to provide individual support alongside developing and sustaining the local voluntary and community sector.

Income from all sources was £1,631,442 in the year to 31 March 2025 (2023/24: £1,352,470). Of the income received, £80,000 (2023/24: £61,758) was restricted for specific programmes and projects, made up of grant income. The remaining income of £1,551,442 (2023/24: £1,290,712) was unrestricted, comprising grants, donations, membership income as well as revenue generated through SLAs and service delivery. Unrestricted income remains important to the financial sustainability of the charity. Through our contracts and grants, we were able to fund local charities to undertake work to the value of £285,000.

Unrestricted Funds Restricted Funds Total 24/25
Incoming Resources £1,551,442 £80,000 £1,631,442
Resources Expended £1,516,504 £65,343 £1,581,847
Surplus/(Deficit) £34,938 £14,657 £49,595

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.

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 £875,232 at the year end.

Going concern

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern (see also Accounting Policies (Note 2) in our Annual Accounts 24/25). The Trustees have reviewed the financial position, budgets and cash flows for the period to March 2025 and consider that the charity is in a position to meet its financial obligations as they fall due.

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.

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COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

STRATEGIC REPORT 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 remains committed to reducing our environmental impact and working towards Net Zero. This year, we've focused on embedding sustainability into how we work - from improving energy efficiency in our community spaces to reducing unnecessary travel and paper use. Staff continue to reflect on their individual carbon footprints and explore practical steps to reduce them. While plans to roll out Net Zero training with partners have not yet progressed, we remain committed to supporting the local VCFSE sector to better understand and act on climate-related challenges. As we look ahead, we are exploring new opportunities to measure our progress and build environmental responsibility into our wider organisational planning.

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COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Pay Gap

Communities 1st believes in equality of opportunity for all. Although Communities 1st employs fewer than 250 staff (currently 57) and is therefore not required to publish gender pay gap information under current legislation, we have chosen to do so voluntarily and would encourage other organisations in the sector to do the same. As of 1 April 2024, the median and mean hourly earnings for male and female employees are as follows:

Male hourly earnings (£) Female hourly earnings (£) Difference (£) Difference (%)
Median 12.00 13.96 -1.96 -16.33%
Mean 14.21 14.76 -0.55 -3.83%

For comparison, the UK gender pay gap reported by the Office for National Statistics in 2024 was 7% in favour of men. In contrast, the gender pay gap at Communities 1st is 16.33% (median) and 3.83% (mean) in favour of women. This means that, on average, women at Communities 1st earn more than men. It is important to highlight that the gender pay gap reflects the difference in average earnings across all roles within the organisation and is not a measure of equal pay for the same or similar work. Communities 1st's gender pay gap does not present a concern, however gender pay and equal pay will continue to be monitored closely.

MEMBERSHIPS AND ASSOCIATED BODIES

Communities 1st is proud to be part of a range of national and local networks. These memberships help us and our members access valuable resources, share best practice, and contribute to wider conversations shaping the future of the voluntary and community sector.

We are members or partners of:

PLEDGES AND QUALITY MARKS

We actively uphold a range of recognised pledges and quality marks that reflect our dedication to fair pay, equality, the wellbeing of staff and volunteers, digital security, and environmental responsibility. We are proud to hold the following: - Living Wage Employer

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COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 11875362 (England and Wales)

Registered Charity number

1187164

Registered office

Ver House Frogmore St Albans AL2 2DR

Trustees

Jason John (Chair) Sarah Yexley (Vice-chair) Ross Gemmell (Treasurer) Roberta Beaton Chris Cloke Joy Dobbs Ann Harrison John Howson Sue Pearlman Ann Rogers Karl Wilding Julia Tilbury - Co-optee - joined in January 2025 Madeleine Clark - Co-optee - joined in January 2025

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

AUDITORS

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

Page 8

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 30 October 2025 and signed on the board's behalf by:

J J John - Trustee

Page 9

COMMUNITIES 1ST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025

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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

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 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 10

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 2025 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:

Page 11

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.

Page 12

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

9 December 2025

Page 13

COMMUNITIES 1ST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
5
Purposes of the charity
NET INCOME
Transfers between funds
15
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
1,531,048
20,394
1,551,442
1,516,504
34,938
(2,671)
32,267
886,286
918,553		 Restricted
funds
£
80,000
-
80,000
65,343
14,657
2,671
17,328
180,367
197,695		 31.3.25
Total
funds
£
1,611,048
20,394
1,631,442
1,581,847
49,595
-
49,595
1,066,653
1,116,248		 31.3.24
Total
funds
£
1,340,957
11,513
1,352,470
1,320,325
32,145
-
32,145
1,034,508
1,066,653

The notes form part of these financial statements

Page 14

COMMUNITIES 1ST (REGISTERED NUMBER: 11875362)

STATEMENT OF FINANCIAL POSITION

31 MARCH 2025

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
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
fund
£
34,189
130,579
1,238,328
1,368,907
(484,543)
884,364
918,553
918,553		 Restricted
funds
£
85,545
-
112,150
112,150
-
112,150
197,695
197,695		 31.3.25
Total
funds
£
119,734
130,579
1,350,478
1,481,057
(484,543)
996,514
1,116,248
1,116,248
918,553
197,695
1,116,248		 31.3.24
Total
funds
£
173,973
257,658
1,075,638
1,333,296
(440,616)
892,680
1,066,653
1,066,653
886,286
180,367
1,066,653

The financial statements were approved by the Board of Trustees and authorised for issue on 30 October 2025 and were signed on its behalf by:

J J John - Trustee

The notes form part of these financial statements

Page 15

COMMUNITIES 1ST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

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
Interest received
Net cash provided by/(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		 31.3.25
£
261,603
(2,422)
259,181
(4,735)
20,394
15,659
274,840
1,075,638
1,350,478		 31.3.24
£
156,141
(939)
155,202
(110,631)
11,513
(99,118)
56,084
1,019,554
1,075,638

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 2025

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
31.3.25 31.3.24
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 49,595 32,145
Adjustments for:
Depreciation charges 58,974 30,370
Interest received (20,394) (11,513)
Interest paid 2,422 939
Decrease/(increase) in debtors 127,079 (73,402)
Increase in creditors 43,927 177,602
Net cash provided by operations 261,603 156,141

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1.4.24
£
1,075,638
1,075,638
1,075,638		 Cash flow
£
274,840
274,840
274,840		 At 31.3.25
£
1,350,478
1,350,478
1,350,478

The notes form part of these financial statements

Page 17

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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 2025.

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.

continued...

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COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

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.

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.

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.

continued...

Page 19

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

2. ACCOUNTING POLICIES - continued

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.

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
Contracts and SLA
Grants
Grants received, included in the above, are as follows:
Hertsmere B Council
St Albans D Council
Hertfordshire County Council
Clarion Housing
Hoare Trust
Bedfordshire Luton Community
Community Action Dacorum - Staying connected
NHS Hertfordshire and West Essex ICB - Core 20+
UKSPF
Healthy Hubs
Cadent
Luton able 2 enable
Broxbourne able 2 enable
REND
DESP
Good Things Foundation
Assura PCN
E Visa
Adass accommodation guides
ICS Care Leavers Op
Other grants		 31.3.25
£
182,948
748,578
679,522
1,611,048
31.3.25
£
50,000
12,711
204,870
15,000
-
-
10,271
-
21,000
20,100
151,890
-
-
18,000
25,740
6,000
38,948
24,540
45,000
35,000
452
679,522		 31.3.24
£
216,937
853,568
270,452		 31.3.24
£
216,937
853,568
270,452
1,340,957
31.3.24
£
1,800
12,000
97,368
17,036
25,000
2,000
10,737
21,250
21,000
18,250
30,540
1,500
7,976
-
-
-
-
-
-
-
3,995
270,452

continued...

Page 20

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

4.
INVESTMENT INCOME
Deposit account interest
5.
CHARITABLE ACTIVITIES COSTS
Purposes of the charity
6.
SUPPORT COSTS
Information
technology
£
Purposes of the charity
36,398
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets		 Direct
Costs
£
1,267,299
Other
£
271,850		 31.3.25
£
20,394
Support
costs (see
note 6)
£
314,548
Governance
costs
£
6,300
31.3.25
£
6,300
58,974		 31.3.24
£
11,513
Totals
£
1,581,847		 31.3.24
£
11,513
Totals
£
1,581,847
Totals
£
314,548
31.3.24
£
6,300
30,369

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

continued...

Page 21

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

9. STAFF COSTS

STAFF COSTS
31.3.25 31.3.24
£ £
Wages and salaries 1,205,804 963,246
1,205,804 963,246
The average monthly number of employees during the year was as follows:
31.3.25 31.3.24
Staff 51 46
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
31.3.25 31.3.24
£60,001 - £70,000 1 1
Key management personnel include the Chief Executive Officer and Deputy Chief Executive Officer. The t ot
employee benefits of the Charity's key management personnel were £113,178 (2023/24: £104,930.11)
2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
fund funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 1,279,199 61,758 1,340,957
Investment income 11,513 - 11,513
Total 1,290,712 61,758 1,352,470
EXPENDITURE ON
Charitable activities
Purposes of the charity 1,298,745 21,580 1,320,325
NET INCOME/(EXPENDITURE) (8,033) 40,178 32,145
Transfers between funds (6,189) 6,189 -
Net movement in funds (14,222) 46,367 32,145
RECONCILIATION OF FUNDS
Total funds brought forward 900,508 134,000 1,034,508
TOTAL FUNDS CARRIED FORWARD 886,286 180,367 1,066,653

Key management personnel include the Chief Executive Officer and Deputy Chief Executive Officer. The total employee benefits of the Charity's key management personnel were £113,178 (2023/24: £104,930.11)

10. 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

continued...

Page 22

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

11. TANGIBLE FIXED ASSETS

Fixtures
and
fittings
£
COST
At 1 April 2024
37,632
Additions
1,543
Transfer
-
At 31 March 2025
39,175
DEPRECIATION
At 1 April 2024
30,200
Charge for year
2,962
Transfer
-
At 31 March 2025
33,162
NET BOOK VALUE
At 31 March 2025
6,013
At 31 March 2024
7,432
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income		 Motor
vehicles
£
183,297
-
14,750
198,047
30,830
50,314
14,750
95,894
102,153
152,467
 Computer
equipment
£
40,646
3,192
-
43,838
26,572
5,698
-
32,270
11,568
14,074
31.3.25
£
81,048
49,531
130,579
31.3.25
£
12,594
172,286
299,663
484,543		 Totals
£
261,575
4,735
14,750
281,060
87,602
58,974
14,750
161,326
119,734
173,973
31.3.24
£
164,771
92,887
257,658
31.3.24
£
29,362
145,096
266,158
440,616

Accruals and deferred income includes £260,631 (2024: £214,191) of designated funds relating to monies received in 2023-24 for 2024-25 projects and £nil (2024: £nil) of restricted funds relating to monies received in 2023-24 for 2024-25.

continued...

Page 23

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

14. LEASING AGREEMENTS

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

Within one year
Between one and five years
In more than five years		 31.3.25
£
46,303
72,955
25,778
145,036		 31.3.24
£
39,429
84,888
-
124,317

15. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Mini-bus grants
Para Dance UK
Income
Capital
TOTAL FUNDS
Net movement in funds, included in the above are a
Unrestricted funds
General fund
Restricted funds
Mini-bus grants
Para Dance UK
Capital
TOTAL FUNDS		 At 1.4.24
£
886,286
118,609
29,608
7,150
25,000
180,367
1,066,653
s follows:		 Net
movement
in funds
£
34,938
(33,064)
(32,279)
-
80,000
14,657
49,595
Incoming
resources
£
1,551,442
-
-
80,000
80,000
1,631,442		 Transfers
between
funds
£
(2,671)
-
2,671
-
-
2,671
-
Resources
expended
£
(1,516,504 )
(33,064)
(32,279)
-
(65,343)
(1,581,847 )		 At
31.3.25
£
918,553
85,545
-
7,150
105,000
197,695
1,116,248
Movement
in funds
£
34,938
(33,064)
(32,279)
80,000
14,657
49,595

continued...

Page 24

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.4.23
in funds
£
£
Unrestricted funds
General fund
900,508
(8,033)
Restricted funds
Mini-bus grants
134,000
(21,580)
Para Dance UK
-
29,608
Income
-
7,150
Capital
-
25,000
134,000
40,178
TOTAL FUNDS
1,034,508
32,145
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
1,290,712
Restricted funds
Mini-bus grants
-
Para Dance UK
29,608
Income
7,150
Capital
25,000
61,758
TOTAL FUNDS
1,352,470		 Transfers
between
funds
£
(6,189)
6,189
-
-
-
6,189
-
Resources
expended
£
(1,298,745 )
(21,580)
-
-
-
(21,580)
(1,320,325 )		 At
31.3.24
£
886,286
118,609
29,608
7,150
25,000
180,367
1,066,653
Movement
in funds
£
(8,033)
(21,580)
29,608
7,150
25,000
40,178
32,145

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

Page 25

continued...

COMMUNITIES 1ST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

16. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2025.

Page 26