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2022-12-31-accounts

REGISTERED COMPANY NUMBER: CE027569 (England and Wales) REGISTERED CHARITY NUMBER: 1197061

Report of the Trustees and Financial Statements for the Period 13 December 2021 to 31 December 2022

for

Discover U

Lewis Smith & Co. Chartered Certified Accountants The Old Doctor's House 74 Grange Road Dudley West Midlands DY1 2AW

Discover U

Contents of the Financial Statements for the Period 13 December 2021 to 31 December 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Notes to the Financial Statements 8 to 13
Detailed Statement of Financial Activities 14 to 15

Discover U

Reference and Administrative Details for the Period 13 December 2021 to 31 December 2022

TRUSTEES

REGISTERED OFFICE

Mr D Reynolds (appointed 13.12.21) Ms K Jenkins (appointed 13.12.21) Mr S Mills (appointed 13.12.21) Mr S Smith (appointed 13.12.21) 72 Bridgnorth Road Wollaston West Midlands DY8 3PA

REGISTERED COMPANY CE027569 (England and Wales) NUMBER

REGISTERED CHARITY NUMBER 1197061

INDEPENDENT EXAMINER

Lewis Smith & Co. Chartered Certified Accountants The Old Doctor's House 74 Grange Road Dudley West Midlands DY1 2AW

Page 1

Discover U

for the Period 13 December 2021 to 31 December 2022

Report of the Trustees

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 period 13 December 2021 to 31 December 2022. 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).

INCORPORATION

The charitable company was incorporated on 13 December 2021.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the CIO are to provide work related experience to adults with some level of learning disability or others similarly disadvantaged because of physical disability.

The charity aims to relieve the needs of disabled people by:

1) providing education, training and support for people with a learning disabilities.

2) by helping to find work placements and where possible paid work for said people.

Trustees have been advised of their responsibilities regarding the roles and have read the Charity Commission guidance.

Significant activities

The charity runs a tearoom, workshop and retail shop to impart social, emotional and employability skills for those with a learning disability.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity was previously an unincorporated charity and changed its status to a CIO on 13th December 2021. During its first period as a CIO Discover U has further increased the number of members accessing the service compared to the previous year and due to this increased demand we have as planned, opened an additional property in Stourbridge termed DU2. The workshop area opened to members on 17th October 2022 and our shop opened to the public from 29th November 2022.

Fundraising activities

The charity received its first National Lottery payments during the year which totalled a value of £34,023. The next payment is due in January 2023.

FINANCIAL REVIEW

Financial position

The charity was previously an unincorporated charity and changed its status to a CIO on 13th December 2021. At this date the funds of the charity were £128,911.

During the first period to 31st December 2022 the charity received income amounting to £393,107. It has spent £392,582 in pursuit of the charity's objects. Therefore the surplus of funds for the period was £525.

This resulted in the funds of the charity at 31st December 2022 being £129,436.

Principal funding sources

The charity's principle sources of funding come from member income, tearoom income, craft income, donations and grants.

Reserves policy

We ideally look to hold three months of reserves for the charity to cover bills and salaries.

Page 2

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Report of the Trustees

for the Period 13 December 2021 to 31 December 2022

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.

The charity is a Charitable Incorporated Organisation (CIO) and was registered on 13 December 2021.

Induction and training of new trustees

Typically, we would recruit from people who are known to DiscoverU and have some experience relative to our cause. As per our governing document when selecting individuals for appointment any new charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

Key management

The charity is mainly run by its Chief Officer Jennifer Bradley, who is not a trustee of the charity.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.......................................................................... Mr S Smith - Trustee

Page 3

Independent Examiner's Report to the Trustees of Discover U

Independent examiner's report to the trustees of Discover U ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the period 13 December 2021 to 31 December 2022.

Responsibilities and basis of report

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

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

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

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

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

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

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

Mr Craig Alan Beale The Association of Chartered Certified Accountants

Lewis Smith & Co. Chartered Certified Accountants The Old Doctor's House 74 Grange Road Dudley West Midlands DY1 2AW

Date: .............................................

Page 4

Discover U

Statement of Financial Activities

for the Period 13 December 2021 to 31 December 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
8,333
Other trading activities
3
314,732
Other income
2,575
Total
325,640
EXPENDITURE ON
Raising funds
220,437
Charitable activities
Other expenses
107,178
Total
327,615
NET INCOME/(EXPENDITURE)
(1,975)
RECONCILIATION OF FUNDS
Total funds brought forward
123,911
TOTAL FUNDS CARRIED FORWARD
121,936		 Restricted
funds
£
67,467
-
-
67,467
47,467
17,500
64,967
2,500
5,000
7,500		 Total
funds
£
75,800
314,732
2,575
393,107
267,904
124,678
392,582
525
128,911
129,436

The notes form part of these financial statements

Page 5

Discover U

Balance Sheet

31 December 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
7
52,604
CURRENT ASSETS
Stocks
8
500
Debtors
9
35,314
Cash at bank and in hand
36,969
72,783
CREDITORS
Amounts falling due within one year
10
(3,451)
NET CURRENT ASSETS
69,332
TOTAL ASSETS LESS CURRENT
LIABILITIES
121,936
NET ASSETS
121,936
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
7,500
-
3,444
-
3,444
(3,444)
-
7,500
7,500		 Total
funds
£
60,104
500
38,758
36,969
76,227
(6,895)
69,332
129,436
129,436
121,936
7,500
129,436

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

Page 6

continued...

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Balance Sheet - continued

31 December 2022

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

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

............................................. Mr S Smith - Trustee

The notes form part of these financial statements

Page 7

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Notes to the Financial Statements for the Period 13 December 2021 to 31 December 2022

1. 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.

Income

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

Grants are credited to the Statement of Financial Activates when received. Grants not yet received for expenditure already incurred are recognised as accrued income to match the related expenditure in the Statement of Financial Activates.

Craft and tea room sales income is credited to the Statement of Financial Activates when received.

Members fees income received through the provision of the charity's services are credited to the Statement of Financial Activates in the period to which it relates.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - Straight line over the period of lease
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 30% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities. The small trading exemption applies to the charity's trading activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

continued...

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Notes to the Financial Statements - continued for the Period 13 December 2021 to 31 December 2022

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Donated goods

Due to the charity's size, volunteer services are not valued in the financial statements as it is considered that the cost of doing so would be out of proportion to the benefit derived.

2. DONATIONS AND LEGACIES

Donations
Grants
Grants received, included in the above, are as follows:
National Lottery Community Fund
Dudley MBC
OTHER TRADING ACTIVITIES
Craft sales
Tea room sales
Member fees
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Surplus on disposal of fixed assets		 £
23,333
52,467
75,800
£
37,467
15,000
52,467
£
18,585
45,016
251,131
314,732
£
15,714
(2,119)

3. OTHER TRADING ACTIVITIES

4. NET INCOME/(EXPENDITURE)

continued...

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Notes to the Financial Statements - continued for the Period 13 December 2021 to 31 December 2022

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the period ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the period ended 31 December 2022.

6. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the period was as follows:
Average number of employees		 £
268,040
10,277
3,422
281,739
19

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

Key Management Personnel

In the year, the total aggregate costs relating to key management personnel (which is considered to be the charity's Chief Officer) were £33,198. This cost includes gross salary and employers national insurance (no pension contributions made). The Chief Officer is not a trustee of the charity.

7. TANGIBLE FIXED ASSETS

Improvements
to
Plant and
property
machinery
£
£
COST
Additions
51,156
-
Disposals
-
-
On acquisition
-
4,428
At 31 December 2022
51,156
4,428
DEPRECIATION
Charge for year
10,231
205
Eliminated on disposal
-
-
On acquisition
-
3,608
At 31 December 2022
10,231
3,813
NET BOOK VALUE
At 31 December 2022
40,925
615		 Fixtures
and
fittings
£
3,177
-
5,134
8,311
1,108
-
3,877
4,985
3,326

continued...

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Notes to the Financial Statements - continued for the Period 13 December 2021 to 31 December 2022

7. TANGIBLE FIXED ASSETS - continued

COST
Additions
Disposals
On acquisition
At 31 December 2022
DEPRECIATION
Charge for year
Eliminated on disposal
On acquisition
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
8.
STOCKS
Stocks
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Accrued income
Prepayments		 Motor
Computer
vehicles
equipment
£
£
14,280
4,262
(3,000)
-
3,000
1,270
14,280
5,532
3,570
600
(3,000)
-
3,000
404
3,570
1,004
10,710
4,528		 Totals
£
72,875
(3,000)
13,832
83,707
15,714
(3,000)
10,889
23,603
60,104
£
500
£
12,041
20,322
6,395
38,758

continued...

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Notes to the Financial Statements - continued for the Period 13 December 2021 to 31 December 2022

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Pension creditor
Accrued expenses		 £
597
3,227
677
2,394
6,895

11. LEASING AGREEMENTS

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

Within one year
Between one and five years		 £
39,250
111,750
151,000

12. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Restricted donations
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
National Lottery Community Fund
Dudley MBC Grants
Restricted donations
TOTAL FUNDS		 At
13.12.21
£
123,911
5,000
128,911
Incoming
resources
£
325,640
37,467
15,000
15,000
67,467
393,107		 Net
movement
At
in funds
31.12.22
£
£
(1,975)
121,936
2,500
7,500
525
129,436
Resources
Movement
expended
in funds
£
£
(327,615)
(1,975
(37,467)
-
(15,000)
-
(12,500)
2,500
(64,967)
2,500
(392,582)
525		 At
31.12.22
£
121,936
7,500
129,436
2,500
525

continued...

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Notes to the Financial Statements - continued for the Period 13 December 2021 to 31 December 2022

12. MOVEMENT IN FUNDS - continued

The charity has been in existence as an unincorporated charity since April 2016. In December 2021 it changed its status to a Charitable Incorporated Organisation (CIO). At this date the fund of the unincorporated charity were £128,911 and were transferred into the CIO.

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 31 December 2022.

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£

Detailed Statement of Financial Activities for the Period 13 December 2021 to 31 December 2022

INCOME AND ENDOWMENTS

Donations and legacies
Donations
Grants
Other trading activities
Craft sales
Tea room sales
Member fees
Other income
Other income
Total incoming resources
EXPENDITURE
Other trading activities
Craft purchases
Tea room purchases
Wages
Social security
Pensions
Member costs
Support costs
Other
Wages
Social security
Rent
Rates and water
Heat and light
Telephone and internet costs
Postage and stationery
Insurance
Repairs and maintenance
Motor expenses
Carried forward		 23,333
52,467
75,800
18,585
45,016
251,131
314,732
2,575
393,107
5,105
14,358
233,202
8,175
3,422
3,642
267,904
34,838
2,102
23,550
2,184
5,596
1,302
985
4,591
11,805
1,870
88,823

This page does not form part of the statutory financial statements

Page 14

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Detailed Statement of Financial Activities
for the Period 13 December 2021 to 31 December 2022
Other
Brought forward
Travelling expenses
Computer and IT expenses
Cleaning
Training costs
Refreshments
Bank charges and interest
Accountancy
Legal and professional fees
Bad debts
Sundry expenses
Improvements to property
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer equipment
Loss on sale of tangible fixed assets
Total resources expended
Net income		 £
88,823
3,027
1,471
4,361
643
2,494
1,612
2,819
759
2,320
2,754
10,231
205
1,108
3,340
830
(2,119)
124,678
392,582
525

This page does not form part of the statutory financial statements

Page 15