THE PATCH FOUNDATION CIO REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 Thg Patcfl Foundatlon CIO Ch•rlty No: 1196435
THE PATCH FOUNDATIOM CIO REPORT OF THE BOARD CONTENTS Page Report of the BoArd Report of the Audltor Con9011d•tod siatement ot Comprehenslve Income CIO Statonwrd of Cornprehengfv? In¢om• CoMolld&ted Stbtsment ol Chang•$ in Reserv•s CIO Ststemon¢ of Change8 In R9s¢rve$ Con801idated Stat•ment ot Flnan¢lal A¢tlvltle& 10 11 12 13 Consolld•tad Statement ol Flnancial Posltlon 14 Consolldated Statsment ol C8¥h Flows 15 Notes to the Flnandal Ststemonts 16-27
THE PATCH FOUNDATION CIO REPORT OF THE BOARD The Board i8 pleased to wesent ts report ar*J audited flnarKial 5tatemerts for the year 8ndwJ 31 Dember 223. Rofer•n¢e 8nd adminislratlon Infomiatlon Charlty Name Charty Reglslralon Number The Patch Fcwndatlcm CIO 1196435 Board of Trustees The Board is compos&J of th8 lollowir¥J In¢thviduals'. Angus Ball (Chairl Hilary Slmmons Rachagt Loulse Lud(ratt Registered Olfi Courtx Tennis Pavilion Eastem Parade Southsea Hampshire P049RF Audltors Barnett & Turner Accountants Ltd 66 West Gate Man5fi91d Notbnghamshlre NG181RR Page 1
THE PATCH FOUNDATION CIO REPORT OF THE BOARD Structur•, Governonc• and Managomont Govèrning Docum•nl The organisation is a foUndan charf(able incorporated organisatlon (CIO) and was registered with the Charity Commlssion for ErrfJland and Wales on 5 November 2021. Th8 charty Is govern by its constitution. rrust90S The trustees who servod during the year were as lollows: Angus Ball (Chair) Hilary SSmmons Rachael Loulse Luokraft Rlak M8nag8rn•nt Consldoration has been given to the rlsks to which the charfty may be 8xrx)sed. and r( is considered that the systems that have been eslablished are suitable for the minimisalion of such risks, lor saleguarding ol the assets of the charity. arKI tor the prevenlion and detection ol fraud. Public B•no1 In planning the charty's activities lor the yw regard has been given to the Charity Commission guidan on pU1C benefit. olganllOna1 Structure The charfty is govemed by its L*)ard ol volunteer trusle8s who are responsible for overseeing strategy and p)licy, approving annual dgets and aw)un15. and who work in conlunction with Ihe senior executlve staft. Attendance at meetlng5, interests and skills are monitored and reviewed annually. Board rnombers give their time voluntarily and receive no beneffts from the Gharty In restect of this Commitsnenl. Any expenses reclaimed from the Charity or payfftents madg to them are set out In the notss to the accounts. Objectives and actlvltlo$ The Charlty's objects and princlpd activities are to: Promote community participation in healthy recreatlon. Promote art and the a¢fv8ncement ol education In ihe arts. To provide asslstance In the provision of facilities in the interests of so¢ial welfare for recrealion or leisure lorindmduals who have need of suGh fadlllles by reason of age, infimiity or disability. Page 2
THE PATCH FOUNDATl¢)N CKI REPORT OF THE BOARD R•vl•w of tho year On 31st Deoember 2021. The Patch Foundallon CIO acquired the entire share capital ol Courtx Ltd. Courtx Ltd was incorporated lo safeguard the lulure 0112 grass tennis courts surrlKI[ng opgn space in a grade 2 listed publlc park known as Cano8 Lake Park in Southsea, Hampshire. Addilionpj tennis courts, a calé and an award winnlng pavilion were bullt. Othor lacllilies indud8 communlty nelball and baskelball courts. Durfng 2023 relalion8hlps wlth qualffled Instructors provkllng physical and menlal well-belng 6esslons were expanded. The Pavillon proves lo be an excellent destination with projectlons aTr music in the studio settlna the appropriate envlronment for a varlety ol a[lIes. The barlt8rrace was refurbished to enhanc8 the expodence of those wlshlng lo soclallse after thelr particlpallon Sn various classas, and also provldes some hgaiihy snacks and drlnk6. Tha Soclais for Senlor8 Ipeoplo over 60yrs old who Ilve alone) conllnue lo m99t most days at the Pavllion or Calé Fresco. The soclal gel logethers prevent loneliness and provhle a sense of belonging. Work5hop6 have now been Introduced Such a6 '0nllne Scam Awarene88' and 'Salety at Home" The provlslon of the hlghesl quallty tennis facllltSe8 Conno$ to be one ol our hlghesl prtorllles, and the expandSn9 member8hlp and varlety of teams and coaching reflects our success in thb field. Flnonclol r•vlv• The delalled Ilgures are Included In the flnanclal statements. Tho charfty achleved a surplus of Incom8 over exp8ndilur8 lor thg year or £1,645.332 12022.. £2.430,5081. Unr8slrfGled gengral reseNes as at the year end were £4,016,109 {2022.. £2,405,880) and re61rfcted lunds wore £59.731 12022: £24,628). Plfin8 for th• futur• The Patch Foundallon CIO, through Courtx Ltd, conlSnu8s lo be commttted to croallng an er¥Jaged community and hopes lo do thls by expandlng hs Dfl8rlrys. Th9 ambhlous prolect to Install an Art Trall Is underway and udllses the under-usad porlph8ral grounds around the lennls urts lo create an iting area lor leisure and cultural actlvttle8. ThL8 will provlde addllSonal Interest at the Courtx sitg and attraot a wider vlsllor demogr8phlc. The main features of the Art Trall wtll bo a serfes of sculptures and an lrnmerslve subterranean Spaco to display dlgltal visual art and this wlll be compllmenled by communlty workshops whlch wlll engage Ihe vIsors. Further relurblshments planngd lor the Pavilion 11 ensuro it is a destination for many wantlng a 8ale and welts)ming envlronment. Provlding Padgl tennSs court8. which is now one of the fastesl growlng sports. Is belng exFlored wlth the possibility ol installing up to 3 ¢ourts lat¢r this year. Supporfng communltles Continues to be our focu5 and wg continu9 to seek new partnershlps to provide ¢)pportun¢kne8 10 8xFerlence the various act5vIe8 al Courtx. Pag• 3
THE PATCH FOUNDATION CIO REPORT OF TrIE 8QARD R•8•Ms polley 11 hes been Ihe wllcy ol the chadty that unrestrlcted funds should be malntalned al a level equlvalgnt lo between three and six months oxpendilure. The trustees con51dered that reserves ai ihis16vel, would ensure that, in the event ol a signllicant drop in funding, they would have been ableto continue the charity's current activities whilst con5id8ralion was gfven lo ways in which addrtional funds may have been ralsed. Tru8t••J' r••pon8lbllltlo8 8l•tgm•nt The Iruslees are responslble for Prepan9 th8 Trustees. Annual Rep)rt artd the flnancial statements in accordance wllh applicable law and United Kingdom Ac¢ounting Standard8 Iunlted Klngdom Generally Accepted A¢¢ounllng PractiC81. The law appllcable lo charlues In England & Wales requlres the trustees lo prepare financial statements lor each linancl81 year whlch gfve a Ifug and falr view of the Slate ol aflalrs ol the charity and ot the incoming resources and appllcallon ol resources of the ¢harlty lor that year. In preparlng Ihese Ilnancial slalements. the Iruslees roqulred lo- Select sullable accounting policles and then apply them conslslenlly. Observe the methods 8nd prlnciplès In Ihe Charities SORP 2019 IFRS 102>. Make judgements and esllmales that are reasonable and prudent. Stale whether applicable accounllng standards have been folbwed. Subject lo any materlal departures dlsclosed and explalned in the linanclal stal8mants. Prepare the financial sta18ments on the golng wncem basls un19s$ It Is Inapproprfate lo presum8 that the chatY will conllnue In operation. The Iruslees are responslble lor koeplng proper accounilro records that disclose wllh rea8Dnable ac¢ura¢y al any Ilme the Ilnanclal posltlon of the charlly and enable Ihom lo ensure that the financfal slalgmenls comply wllh the Charllles Act 2011, the Charilles (Accounts and Reports) Regulallon8 2008 and the provislons ol the ConstllLrtSon, They are also respon81ble for salegu8rdlng Ihe asse18 the charity and hence for tang reasonable 51gps lor the preventSon and dete¢tlon of Iral and other Irregularlt48s. ProVIon of Intovfftlon to the audltor We, the Trustees of the Charfty who held offlce al the dale of approval ol these Ilnan¢lal Statements as set out abovg each conllrm, 80 lar as we are aware. that.. there Is no relevant audll Informailon ol whlch the Charlty's audllor Is unaware,. arKI we have taken all the steps that we ought lo have taken as Trustees lo make ourselves awar8 of any relevant aLJII inlormallon and to eslabllsh that the Charity's audiloi is awa ol that Information. lle4
THE PATCH FOUNDAnON CIO REPORT OF THE BOARD Corpornts GornanCe- Intsrnal fin•n¢lol control The Board aGknowledges Its ultimate responsibility for ensuring thatthe charily has In place a systern of controls that18 approprlate to the varfous business environments In which it operates. These *ntrols are deslgned to glve reasonable assurance with respect to the.. reliability of Ilnancial Informallon usgd wlthln the Charfty or for publIcaon. maintenance of proper aGcounling records., and 5afeguardlng ol assets agalnsl unauihorl$8d u80 or dlsposd. It Ss the Board's re5ponslbility lo establish and maintdn systems of Internd flnanclal conlrol. Such systems can only promde reasonablg and not absolute assurance aoainst linancld mi8slat8m8nt or loss. Key elementg Include ensuring that: forni pollclgs and prOcUr&S are In place, IndudlrvJ the do¢umentatlon ol key system8 and wlgs relating lo the delegallon of aulhoriiles, which allow Ihe monllorlng of controls and restrict the unaulhorlsed u59 ol the charity's assets., experlenced and sullably qualllled stall lake respons1b1l lor Important tlnesS lunctlon8; IoTecasts and budgets arg PTepared which allow th& Board and management to monllor tha key buslnesg rlskg and financial objective8, and progress towards financial plans sel for thg year and the modlum lemi., all slgnlll¢ant new InllSallve8, malor Commllmenls and Investmenl project8 are subfrgct to formal aulhorlsailon procedures. Ihrouoh the Board members and others. By ordgr ol the Boa Angus B811 Chair 22 Octcèer 2024 Page 5
THE PATCH FOUNDATION CIO Jndependent Audltors Rèport to Tho Truste8$ 01 Th• Patch Foundatlon CIO Oplnion We have auithied the Iln8ncial slatemenls of The Patch Foundation CIO Ith8'paront charitvl and Ils subsidiary Ilhe group'l for the year ended 31 December 2023 which comprise the consolidated slalgment ol flnancial activities, the Statement of financial p)sllion. the consolidated slatemenl of cash flows and th8 related notes, includlng a summary of slgnificant accounting Policies. The financil reporting framework that ha5 been applied In Ihelr pparatiOn Is applicable law and United Kingdom A¢counting Standards, induding Financial R9POrting Standard 102 'Thè FinanGial Fleporting Standard applicable in Ihg UK and Republi¢ of ITgland' (United Klngdom Generally Accepted Aocounilng Prac111. In our opinlon the finandal statements= give a Iwe and fair vlew of the state ol the group's arKI of the parent charivs aflaiTS as at 31 Dember 2023 and ol the group'5 incoming resources and appllcallon of resources. including ils income and expenditure lor the year then ended., have Ln properly prepared in a¢¢ordanc8 with Unf(ed Kingdom GerTallY Accept Accountino Practice.. and hav8 Ixen prepared in accordance ¥th the requlrements ol the Charities Act 2011. 815 lor opinion We conducted our audit in accordance wlih Inlernationat Standards on Audlting (UK) IISAS (UKI) and applicable law. Our responsibillties under those standards are further described Sn the Auditovs responsibilities for the audit ol the finan¢ial statements section of our re5XSrt. We are independent of the group in accordan with the ethical requirements Ihal are relevantto our audil of the financiat stalemants in the United Kingdom. indudlng the Financial Reporting CDuncil's Elhlcal StandaTd, and we have lullilled OUT other ethlcal responsibilliies in accordance wtth these requirements. We believe that the audit eviden we have obtained Ss sulficienl and appropriate lo provide a basis lor our oplnion. Concluslon6 r8latlng to golnu concern In auditing the financial statements, we have wnciLKled that the truste88' US8 ol Ihe goiNJ ¢oncem basis of accounting In the preparatton of the financial slatemgnls is approprsate. Based on the work we havè performed, we have not Idenltfied any material uncertainties relating lo events or conditions that. Indiwdually OT collectively, may cast slgnrficant doubt on the group's or the parent charity's ability to continue as a goSng concern for a period of al least twetve months from when the financ1 stalgments are authorfsed lor issue. Our responsiEilities and the responsibilities ol the trustees wilh fespect to going concern arg descrlbed in the relevant seclions ol this report. <)Iher inlormation The other intormatlon cornprises the information included in the annual report other than the linancid slalerrtenls and our auditols report thereon. The Iruslees afe responsible for the other information contained within the allnU repDrL Our opinion on the flnancia5 51atemenls does not cover the other information and, except lo the exlenl olherwisg expliutly staled in our retyjrt, we do not express any form of assurance conclusion thereon. Pa9e 6
THE PATCH FOUNDATION CIO Our rgsponslbillty Is to ad the othgr Infonnal#)n and, In doing so, consider whelher the other Informalion is malerfally incon51Stenl wlh the linanclal statements or our knowtedge obtsined in the urse of the audit. or othgrwise appeaTS lo be materially misslaled. If we identKy such materral Incons5stgncies or apparent materfal misstatements, we are required lo delemine whether this gives rise to a material mis8tatement in the financial statements themselves. If. based on the work Wg have performed, we conclude that there is a material mlsstalement ol this other information. wg are required lo report that facL We have nothing to report in this regard. Alatters on vthl¢h we are r•qulred to report by oxcgption We have nothing lo report in respect of the followng matters In relation lo which the Gharftles (Accounts and Reports} Regulations 2008 requires us to report to you if, in our oplnion: the information given in the Iruslees, annual repjrt is Inconslst&nt In any rnater r88Pg¢t with th8 financial statements,. or sufficient a¢Unting records have nol been kept.. or the financiai statements are nol in agTgement with the a¢¢ounting records arKI retums; or we have nol received all the inlormalw)n and explanations we require for our audit. Re8pon8lblllUeg of INgte As explained more fully in the INs199s' responsibllities slalem8nl, the IrustBes are responsible lor the preparation ol the linanci slalemenls and for belng salisfied thal they give.a true and fair view. and for such internal control as the trustees determlne is ne¢essary to enable the preparation of ffinarwial slalemenls that ao free from material mlssiaiement, whether due to fraud or error. In preparlng Ihe financial statements, the trustees are responsbi le for asse88ing the group's and the parent charity's ability lo continue as a going 00nm, disdosing, as applicable, matters Telated to going concern and using the golng Goncem basis ol accounting unless the trustees either intend to liquidate the group or the parent charity or to ¢ease operations. or have no realistic ahemative but to do so. Auditor's responslbllllles lor tho audlt of the flnan¢lal 8181gm•nt$ Our objectlvgs are to obtain reasonable Urance about whether the financiai slatements as a whole a Irge from malerfal misstatement, whether due to fTaud or error, and to issue an audiloffs report that includes our opinion. Reasonable assurance is a hlgh level of assuTance, but is not guarantee that an audit conducted in accordance Tr1h ISA5 IUKI will daYs delt a material mlsstatement when it exists. Misslatemenls can arise from fraud or error and are considered material if, indNidually or in the aggregate, they could reasonably be expeGted to influence the economic declsions of users taken on the basis ol these financial stalernents. Irregularities. including fraud, are Inslances of non-compliancewiih laws and regulations. We design procedures in line with our responsibilities, ouvined alx)ve, lo detect malorial misslalements in respect of irr8gularilies, including fraud. The gxtent lo which our procedures are capable of detecllng Irregularttles. induding fraLKI is detailed below: As part of our plannlng process.. We enquired of management the systems and controls the charity has in place, the areas ol th8 linanaal statements thal are moslly SUOptib1e lo the rtsk ol IegularitIeS and fraud, and whether thorg was any known, suspeGted or alleged fraud. The charity dKd not inlom us of any known. suspected or dlegad fraud. Pgge 7
THE PATCH FOUNDATION CIO We obtaln8d an understandirvJ of ihe legal anrj reoulatory frameworks appluble to the charity. We detem)Ined that the lollowlng were most levant.. FFIS 102, Charftles Act 2011. We ¢on81dgred the incenllves and opportunities that exlsl In the chadty, Indudlng the extent of management bias, which present a potential lor Irregularities and fraud to be perpetuated. and tailored our risk assessment accordingly. Using our knowledg8 ol the chartty, together wilh the dIsSSIonS held al the plannlng stage. we IoTmed a conclusion on Ihe risk ol misslatemenl due lo irregularitK88 IrUding fraud and tallored our procedures aGGordlng lo th15 risk assessment. The key procedures w8 undertook to d8t8ct Irreoularllles Inctudlng fraud durlThJ the course ol the audit includod.. Idenllfylng and testing loumal enlrles and the overall aGGounllng records, In partlujlar thos8 Ihal were slgnlllcant and unusual. Aevlewlng the linanclal slalement dlsclosures and (klerrnining whether accounttng polld86 have been approprlalely applied. Obtaining Ihird-party conllrmalion of bank balances. Revlewing doGumentallon such as the toard mlnutes, lor dlscusslons of Irr¢gularMlas Includlng fraud. (Xwlng to tho Inherent Ilmllation8 of an audll, there Is an unavoldablo rfsk Ihat we may not have dgtacled some malerlal mlsslalemenls In the flnanclal Slalemenls even though we have properly planned and perfomed our audit In a¢wrdan¢e with aLKliting standards. The prlmary responslblllly lor the prevenllon and delection ol Irregularitles and fraud rests with the those charged with goveTnan¢e ol Ihe ontlty. A further descrtpllon of OUT responslbllltS6s lor th8 audll ol the fSnanclal 8talemenls Is located on the Flnan¢lal Reportlng Councll's websSie al: www.frc.org.ukjaudltor8respon8lbllllle8. Th18 descflpllon forms part ol our audilorfs report. L8 of our report Thls report Is made solety lo the charlly's IrLtslees, 88 a body, In accordance wtth secllon 15101 the Chari1188 A¢t 2011 and regulations mado under sectton 154 of that Act. Our aud51 work has boen undertaken so that we might slate to the Gharily's trustees those matters we aro requlred lo slate lo them In an audllorfs report and lor no olhor purpose. To the lullasl oxlenl pormitted by law, wo do not accept or assume resF)onslblllty lo anyone other than the charliy and the charlty's trustees, as body, lor our audll work, lor th18 reFort, or lor the oplnlon8 We have lormad. Jonathan Wllson FCA CTA (Senlor Slalulory Audrtorl For and on behaK ol Barnett & Turner Accountants Ltd Chartered Accountants Slatulory Auditors Cromwell House 68 West Gale Mansfield Nottinghamshlre NG181RR 28 oober 2024 Pagg 8
THE PATCH FOUNDAMON CIO CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023 Totsl Total 2022 Turnov•r Operatlng expendlture 2,738.755 {1,093,4231 3.562,053 11.731,5451 Operatlng surplus 1,645,332 1430,508 rotal COMwehSlVe Incorn lor the ygar 1,64S,332 2,480, The consolidated financlal statBrnents wer8 apwoved by the Board on 22 OCtor 2024. Jus B1 TTusl¢o (Chaw) The consolidated results late wholty lo ntInUIr operabons. The aLronN)anylng notes form pRrt of iheso financial stalgments Pog• 9
THE PATCH FOUNDATTh CK) cio srATEUENT OF TOTAL COUPREHENSIVE INCOIAE FOR THE YEAR ENOED 31 DECEMBER 2023 Total Total TuTno7Mr OperatlrvJ èXFnd 1064,418 1,485,508) 880,234 1691.7801 Operntlng ¥ury*l 578,910 168,454 Total comprohen8l¥e In¢om•lor th• y 578,910 168,454 The ¢n$011athd fln&ndd slateftwrts ar¢¥oved by Ihe Board on 22 tktober 2024. u8 8811 Trust89 ICh&trl The CIO'8 r88uft8 Tolate to nnU1j opwatkn& Page 10
ThE PATCH FOUNDATION CIO CONSOUDATED STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrkted R•gtrl¢t Gfrn•r91 Funds Art Trnll Balanco brought lon[d Surplus from 8tal8ment of 0mprehense Incomg 2.401880 24,628 2,430,508 8•lan¢• ot 31 00mber 2022 2,405,880 24.628 2,430,508 Balaneg brought fopHard 2,405,880 24,628 2,480,508 SuWus tr 8tatam8nt ol cornprehenslv8 lrtom8 1,810,9 35,103 1,645,332 B8n at 31 Doc•Mr 2023 4.018,109 59.731 4,075.840 Paga 11
THE PATCH FOUNDA710N CIO CIO STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2023 Unr•strlct Ganeral Funds Total BalarKo brouohl forw•rd Surplu8 from ¥ta19monl of Comprèhensive inoome 161454 168,454 Balance at 31 D•c8mbw 2022 168,454 168,454 B•l•nc• brought torward 188,454 188,454 Surplus Irom Blatement ol comw8hen5¥ Incorne 578,910 578,910 881•n •t 31 D•¢•mb9r 2023 747.364 747,364 g•12
THE PATCH FOUNDATION CIO CONSOLIDATED STATEME OF FINAKCIAL ACTIVITIES YEAR ENDED 31 OECEMBEA 2023 Unrestrlcted General Fund 2023 Restrfcted Fund Totsl Total Nots Ineome from: DonaliDns and grants Other tradlng acltvibes Other incorne 2.064,251 501,335 173,169 2,4.251 501,335 173.169 860,234 515,882 2.185,937 Total Incomo 2,738,755 2.738.755 3,562.053 Expgndlturo on: Raising funds- trading actfvltles Charitable aclivitbs 1.079,373 14,050 1.079,373 14,050 1.112,096 19,449 Totsl expendliuro 1,093,423 1,093,423 1.131,545 Ilot Incomo tor tho yoar bEtore olhgr recognlsed gains and losses 1,645,332 1.645,332 2,430,508 Transfer tetween funds 15 135.1031 35,103 Met nw)v8m•nt In fvnd¥ 1,610.229 35,103 1,645,3W2 2.430,508 Reconclllatlon of funds Fund balance brought forward 2,405,880 24.628 2.430,508 Fund balance at 31 De¢embgr 2023 15 4,016,109 59,731 4.075.840 2,430.508 The Statement ol Financi Activilles indudes all gnS and losse8 reCni%e in the year. All a¢llvlUes derive from conllnuing operations. Tho acrompanyirKJ notes form part of these finandal stalemerrts. Page13
THE PATCH FOUNOATION CIO STATEMwf OF FINANCIAL posmoN 31 Decernber 2023 NoteB Grol 2023 Charty 2023 Ftxed asgets Tangible fixed assets 11 3.3.151 2,802.344 3,003,151 2,302,344 Current alsels Stock Debtor8 Cash at bank and in hand 3,$00 474,447 685,523 3,SOO 177.788 178.410 13 412,850 350.174 172.047 3,997 1,163,470 359,698 763,024 176,044 Crèdltors.. amounts lalllng ue wthin one year 14 IW,7811 1231,5341 115,6601 (7,5) Nel current ¥880 1,072,689 128,164 747.384 168,454 Total assats loss ¢urrenl 118blllll•s 4,075.840 2.430,508 747,364 168,454 Net 8g¥ets 4,075,840 2,430,508 747,364 168,454 Ropres8nled by Unr•rIcted fvndg Genera5 funds Resited fund# 15 15 4,016,109 59,731 2,405.680 24,628 747,364 168,454 Tol•l 4.075NO 2.430,508 747,384 168,454 Approved by the Board on 22 October 2024 Angus all (Chairl The accompanying notes form part of these finandd ststements. Pago 14
THE PATCH FOUNDATION C COIISOLIDATED STATEMENT OF CASH FLOWS for the year 8ndod 31 Dec*mbor 2023 Note ea$h generaled from operatlng aclMtIo$ Capltal expendllurè 17 1A67,718 2,548.285 Paymenls to a¢quir8 tanglble fixed assets SubsidSary flxed assets acqulred 1860.6051 1231.9751 12.232,9001 Net co$h Inflow l (outtlow) frcffi capltAI exptrnditurg 507,113 {£464,8751 Flnandng Nel movement in short term borrowlngs 95,000 Nfrt ¢h Inflowllouthow) from financing N•t chany In cagh ond ¢88h equEv•lents 18 $07,113 178,410 Caah and $h equfval•nts fornrd 178,410 Cash and cagh equlvatent8 rrIed forynrd 685,523 178,410 The accompanylng notes form part ot these flnandal statements. Page 15
THE PATCH FOUNDATION CIO NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 1. Gengral Inlonnatlon The organlsatlon is a loundatlon charitable incorwrated organisatlon ICIO) and was reglslered vAth the Charty Commlssion for England and Wales on 5 November 2021. I Statsm•nt ol compllan These linanclal slatsments have been prepared In compllance th FFIS 102,'The Flnancial Reportlng Standard appll¢able in the UK and the Republlc of Ireland. the Statement ot Recommended Pradce appllcable lo charities prepartng their accounts Sn aGGordance with the Flnanclal Reportlng Standard appllcable In the UK arKI Rewbtic of Ireland IFRS 1021 (Charfles SORP {FRS 1021 and the Charllles Ac12011. 3. Aecountlng pdl¢l•• Ba#1• ol pr•p•r4tlon The Ilnandal statements have been prepared on hlslorlcal cost basls. The flnanclal slalemenls are prepared In slerllno. which18 the funclional currency ol the enllty. The flnandal statements have been prepaigj on a golng concern basls. Con•olld•l8d •¢¢ounts The group Is requSred to preparg consolldaled ac¢oun16. Thes& con801kJaleil accounts comprlse the flnandal 8tatements of The Patch FourJatlon CIO and ol Its subskllary Courtx Ltd. All Irrtra-oroup transactFon8 afKI balance8 are ellmSnated on con8011datlon. Bu•lnM• Comblnollon• The cost of a buslness comblnallon Ss the falr vu& ai the acqukliion dale, ol the Conslderatlon pald and liablllties incufred QT a86umed, plus (xists direcuy 8ttrlbulable lo the business comblnallon. Where the panI chadty acqulres a non-¢haritablg subsidiary and the consSderallon pald Is nil and Is less than the nel assets acqulred, the gain Is recognlsed as other Income in the period of acquisition. Incornlng r•8ourc Atl Incomlng resources a Includ In the statement of financlal act1150$ when entlllomenl has passed to the Gharity,. I Is probable thal the economic benefits associated with the transacllon 11 flow lo the charity and the amountcan be reliably measured. The folk)wSng specific pollcte8 are applied to particular calegorfes of inGomg'. Income froTn donation8 or grants 1$ cOgnISed when there is evijence of enlltlem&tt lo the glft, receipt is probab and Its amount can be measured reliably. During the year under review Angus Ball. Trjjsteg, made donatlons of £1,651,401 12022.. £688,187) to The Palch Foundatlon. Thesa donation5 were recognised as Soon as there wa8 eviden of enlitlemenL Pagè 18
THE PATCH FIXINDATIOM CIO YEAR ENDED 31 DECEIABER %)23 IPA irw))me fr( Contracts lor the sFlY of seNtces Is rgcognlsed with the delNery of the contraded service. Thls b das&fied as unrestricted funds unless there is a corrtraclu requirement for rt to b& Snt on a partIwr puw aThJ rettjmed If unspenL In which case It may be regarded as reSted. Alultt p•tlod Incom• In d9termlnlng the revenue lo b8 reojgntsed on grants. or o)ntract income wh)se project spans more than one perlcrfl of account.. Management recognise Income where Ihare is enliuemenl lo the income. tt is probable the economic bonefrt will flow to entity and the revenue can b8 liab]Y measured under the terms of Ihe apreement. ROUle81 •xpwthd Expendtture is r8LX)gnL80d on an actruth Lwis as a labilhy Is Incurred. endItUre Incl88 any VAT whlch cannot be fully rernvered, arMJ18 cla8StfvJ under hdI8 of the 8talemenl ol lInaThal aclNilles to which it rdates.. I costs are allocated lo gxpendllure calegodes refiecllng th• use ol the resree. Dlrect costs attributable to a slngle a¢bvity are atlocaled direclly lo that advity. Shared cosls are aA)ortloned betrmgn the advrt6e8 ntr6J1 to on a Taasonable, luStWbIe and wn6btsnt ba616. Fkn•nclal In•trum•ftts A finw581 assel or a f6n8ndal alIty is reco2nlsed onty when the entity becomes a paty to th& OjntraGtu Provian8 ol th¢ inslrumenl. linanclal Instruments a Inttially recognSsed al th8 amount receivable or payat4e Indudlng any related transacilon costs. unless the arrangement ConlluteS a Ilnancing Iransactlon. wh9re It is rei>Jgnwl at tho wesenl value ol the fvlure payments dlscounted at a market rat6 01 int8Test for a simRar debt instrumenl. Currenl assets and current Ilabililies are subsequently measured at tho cash or other con$ideTallon expected lo b6 pakl or receSv&d and nct discounted. Debt Instrumgrrfs are subsaquonyy measured al amortised cost. Tar*glbl• I1 ••••l• xed assets are stated al cost les8 ao%mulatsd iJ8pre(aatk>n. Dweoation16 pnJvhJ8d lo wrfle off the cfJ8t of 8uch fixed asset8 over their estlmakny economk Ilves at folknwing rale8: Buildings (including professn fee8) FtureS. littirvJs. and 4uiFThnt r the fe of the assodated toase 5.56% slrdohl Ilne 12.5% on a r•Juthg WarKe bask% P•n#lon• Courtx Ltd rat88 a defined contribulbn plan IOT it¥ errpk>yees. A defined cOnMtion plan Is a pension plan uThJer whth the company pays fixed contr1EtiOnS Into a separnte gntrty. Once the ¢ontritxJtions have been paid Ihe company has futher paYrrn1 obllga1ions. The contrlbutions are re(nised as an expense in profft or loss Ythen they lall du8. Amounts not paid are shown in acryuals as a liaLxlrty in the BalarKe shegL The assets of the tyan are hekl separataty from the company In IndenY administered fur Paue 17
THE PATCH FOUNDATION CKJ NOTES TO THE FINANQAL STATEMEIITS YEAR ENDED 31 DECEMBER 2W23 st(ks are recogntsed at the lower of ¢0* and net reisable value Toxatlon Th8 Patch Foundalh)n CIO rs a registered Charity arKI r5 exempt from paylng rpOratIOn lax on ch8rWle activilies. Cwrtx Ltd is not Teglstsred as a charlty and Ihetyfore corporallon tax would be payable on taxal)le profits should thgy arfse. Op•ratlng leases RenlaLs urK19r operating leases are tharged lo the statement of fina[81 actlvltles on a stratght-llne basls over the term of Ihe lease. Provl8lons Provisions are recognlsed when the entity has an OblaOn at Ihe balarKe 5h99t date as a result of a past event, il Is probable that an outllow ol e¢0MiC benefits 11 be requlred in Seement and the amount can be rellably estimated. ¢>IUcal area# ol ludgement In determining whether leases are finance or operating lease5, management judges as to whgther lor nthi the significant risks and rewards of ownership have transferred lo the entkty. U9eful I1 of depreciable asgets Management revlews the useful INes of assets at ea¢h rerKJrtiThJ date. Page18
THE PATCH FOUNDATION Cto NOTES TO THE FIMANCJAL sfATEMEiirs YEAR ENDED 31 DECEMBER 2ty23 In¢oming ro)rC9S- group Voluntary IoMe Unrestrlct•d UnreBtrlctsd Donations lincludlro gift aid) 2,064.251 880.234 2,064.251 860.Z34 Other trAdlng ictfvlt19$ Unrestricted Unrgstrlclgd 2022 Subsldlary urKlertaking 501,335 515,882 501,335 515,882 Other Sncom• Unréstrf¢ted Unr•strlct8d Acquisition ol $ubsithary undertaking WaTver of loan from A Ball to Courtx Ltd HMRC inleresl 2.090.937 95,000 173,2 167 173,169 2,185,937 Page19
THE PATCH FOUNDATION CIO NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2W23 Operating surplus The opgraling surplus k arrived at after oharglng l {crediting) Gmup 2023 Group 2022 Charlty 2023 Charlty 2022 DeprecHlon Audltor's remuneration- audTI of financial statements 159,798 162.530 8,410 8,375 3.210 2,910 Expendllure- group All expendllure Is accounted for on an accruals basls and has wherever practicable been allocated to Ihe relevant Gatsgory. Irrecoverable VAT 18 charged to the appropriate cost category Unrestrlcled Trading Support ¢o¥ts Qovwnonce Group Qroup Staff costs Other staff Telated expenditure ActNily cosls - cost of sdes Facilities costs Depreciation Admin costs Finance sts Govemance 541,283 541,283 568,076 2,940 137,564 177,117 159.798 50,999 9.672 2.940 2.484 137,564 144,511 177.117 177.165 159,798 162,530 56,639 60,664 9,672 7,740 8,410 8,375 5.640 8,410 1.079.373 5,640 8,410 1,093,4¥8 1.131,545 Page 20
THE PATCH FOUNDATION CIO NOTES TO THE FINANCIAL STATEMENTS YEAH ENDED 31 DECEIIBER 20rJ Employee eosts 2023 2022 Salaries Social security costs Penslon 505,268 28.752 7,263 528,141 32,283 7.652 541.283 568,076 All employe88 were pald through Courtx Ltd. No employeè was pald In exc886 of £60,OC#) durlng the year. Employ•• co•l•- k•y man•oom•nt w•onn 2023 2022 The aggregate remun8ratlon of tho sanlor leader8hlp team (who aT8 also key management per80nnel) durlng the yew was as follows.. Salarfes So¢ial 8ecurlty c081s Pgn5ion 78,956 8,464 1,943 78,119 8,638 1,915 89.363 88.672 10 T•xotlon The Patch Foundailon GIO Is a reolstered Chartty and Is exempt from paylng corpwalSon tsx on charllable actlvllles. Courlx Ltd Is not reglstered a8 a charlty and Iherefoie corporallon tax woukl be payable on taxable profi'ts should they arise. Page 21
THE PATCH FOUNDATION CIO NOTES TO THE FINANCIAL STATEMENTS YEAR ENOED 31 DECEMBER 2023 11 T•nglblo flxgd a88Ot8- Group Flxtur Ilttlng$ and equlpmont Frgehold propeity Prof¢s8lonal le• Tol•l Cost Brought forward dllions 018posal 1.689,749 511,572 262.052 22.826 513,073 328.207 2,464,874 860.605 Al 31 December 2023 2,201,321 284,878 839,280 3,325,479 Accumulatod doprnclatlon Brought forward Charge for year Ellmlnated on dlsposal 90,888 90,888 56,209 53,363 15,433 15,547 162.530 159,798 At 31 De¢embor 2023 181,776 109,572 30.980 322,328 Nel book value at 31 Drfember 2023 2,019,545 175,306 808,300 3,003.151 Nel book vue al 31 Decembor 2022 1598,861 205.843 497.640 2,302,344 All Ilxed as601s were owne(I by the sub81dlary company Courtx Ltd Pag8 22
THE PATCH FOUNDATION cro NOTES TO THE FINANCIAL STATEMEMTS YEAR ENDED 31 DECEMBER 2023 12 Investments: wholly ¢ontroll•d subsldlary undortaklng$ The pent charftablg CIO vrfholty controls the lollowlng non-charttable ¢ompany Country of registratlon or Incorporatlon Courtx Ltd (rnpany number 08803582) England and Wales Linwted by shares Ststgrnont ol total comprehenslve Income Courtx Ltd 20YJ 2022 Turnover 2.045,009 1,144,585 Opèrallng expendkture 11,084,980) {1,117.5611 Operaling surplus 960.029 27,024 &Jrplus l (deficit) forthe year 960,029 27,024 The aggregate of the assets, liabilitie8 and r9serves were: Assets 3,411.064 2.486,000 Ll8blliltes 1333.0741 1368,0391 ReseNe5 3,077,990 2.117.961 Pag9 23
THE PATCH FOUNDATION cro NOTES TO THE FINANCIAL STATEMEiirs YEAR ENDED 31 DECEMBER 2023 13 DolXoYs Croup 2023 Group Charlty Charlty 2022 Trade debtors Prepayments Other debtors VAT 5elUement 1.842 4,286 413,050 55.269 2,272 3.317 172.199 412,850 172,047 474,447 177,788 412,850 172,047 14 Creditors: arnounts falling du• wlthln ong Group 2023 Group 2022 Charlty 2028 Charlty 2022 Trade ¢rediloTS Social security and other taxes Other loans Accruals and deleried incy)me Amounts due lo group undertaklngs Other creditors 56,682 12,836 18,169 19.635 173,000 19.744 19.816 7.950 7,590 7,710 1,447 90,781 231.534 15,660 7.590 The 2022 loan was on an interest free basls. 150 Movom•nt In lund$- Oroup Brought lorwaryl Imlancg Baknn¢• #t 31 Do¢embtr 2D23 Incomlng Ouiy)Ing TMn#fer8 UnrerICt lund• General fund 2,405,880 2,738.755 11.093.423) {35.1031 4,016,109 Yolal Unye•trad fundB 2.405,880 2.738,755 11,093.4231 {35,103) 4.016,109 RÈstri¢t¢d ld¥ Arts Trail 24,628 35,103 59,731 Tolal ll*l•d funds 24,628 35,103 59,731 Total fvrrtlrl 2,430,508 2,738.755 11.093.423) 4,075,840 Page 24
THE PATCH FOUNDATION CIO MOTES TO THE FINANCIAL STATEMEwrs YEAR ENDED 31 DECEMBER 2023 1 Ith)vempnt In lurKl$-Group- prlor year Broughl lordrd bAkn¢o Balonce at a1 Dacwttb¢r 2022 Ing Tt8nsfer8 Unrestsl¢ted funds General fund 3,562.053 {1,131,5451 124.6281 2.405,880 Tolol unr•sirf¢iod fund$ 3,582.053 (1.131,545) {24,6281 2,405,880 Reslrfcled lunds Arts TMI 24.628 24.628 Totsl r•51rlcled funds 24,628 24.628 Totsl funds 3.562.053 11,131,545) 2,430.508 16 Anglys18 ol net a89è18 betWn lund8 Hxed (*Nem Cr•diiors falUn9 aswts du•wlthin 4)M ygar Total Unregtrlcted Iwid8 General 3,003.151 1,103.739 190,781) 4,016,109 Resirfcted funds Arts trall 59,731 59.731 Tolal funds 3,003.151 1,163,470 (sYI.7811 4,075,840 Page 25
THE PATCH FOUNDATION CIO NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2DrJ 17 C•¥h outflow Irom oporjtlng I1vItI Nel movement in funds Depreciation of langlble fixed assets Ilncreas81 I decrease in debtors DeoToase l {Increase} In stock (Decrease) I Incroase In credllors 1,845,332 159,798 1296,659) 2,430,508 162.530 1177.7881 13,5001 136,535 1140,753) 1.367,718 2,548.285 Anal1# ol ca•h •nd eo•h •qulv4lents Brought lorward Co•h Flow Non-cagh Ch4nge8 Al 31 Decomb•r 2023 Ca8h al bank and Sn hand 85 Total 178,410 507.113 685,Sfd 19 8u•Sn•M combln8llon• and goo(hvlll On 31 DocBmt4r 2021 Th& Patch Foundatlon CIO a¢guirod the 8nllTe Bhare capltal ol Courtx Ltd lor 11 consSderalion. Rgcognl8gd amounts ol thnufiablg fjS$gts a¢qulred and Ilabllltl85 assumgd Book Valu• F•lr Valu• TaThJlble Ilxgd assets 2,232,900 2,232,900 Current a888ts Total a888ts 2.303,818 2,303,318 Nel Ilabllltles 1212,3811 1212,3811 Total enlIable net assets 2,090,937 2,090,937 Exce8S Ot consideratlon ov81 lair value of a88ets {2,090,937) Toiat purchow consldor•llon Paoe 26
THE PATCH FOUNDATION cro NOTES TO THE FINANCIAL sfATEMENT8 YEAR ENDED 31 OECEMBER 2023 Oporallng l•a60 commltrnènts Ai the year end the group had to1 commitments under coeratlng leases explrlng after mor& than 15 years of £159.16712022: £169,167>. 21 P•n*lon eommttnI I stall are elFglble lor employers, penslon contrfbutlons lo be paid to a stakeholder or equlvalent ¢onlribulory personal p8nslon scheme. wlth the level ol conlrfbuiion dependlng on their own level ol contrfbulion. The Chartty and Ils subsidiary have no Ilablllty beyorKI Ihe payment ol Ils agreed monthly contribution8. The tolal penslon Charge for th8 year was £7,26312022: £7,652). The amwnl outstandlng at th6 year-end was £1.44712022: £985). Tru•t•• èxponw• No Trustee expenses were Incurred Sn the year. 23 Relotod party tranMctlon• Durtng Ihe year under revSew A Ball, Trustee of The Patch Foundatlon CIO and dlrg¢tor of Courtx Ltd made donatlon8 to the charlty 011,651,401 12022.. £688,1871. Loans prevlou51y made by A B811 lo Courtx Lld amounllng to £173,002 were walved In the year under review (2022.. £95.000 was walvedl. As at 31 December 2023 Courtx Llmrted owed A Ball £NII12022: £173,002 was owed lo A Ball). Opgratlng l&ase8 entered Into by Courtx Ltd were guaTanteed by A Ball, dlrector of Courtx Ltd. Ultknfit• ¢ontrolllng pgty. The Patch Foundallon CIO18 controlled by Its Board of Tru8tees. Pag8 27