Company Reglslratlon NuMr 00241676 Charty Number 228577 MANCHESTER SETTLEMENT A COMPANY LIMITED BY GUARANTEE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
MANCHESTER SETTLEMENT ACCOUNTS YEAR ENDED 31 MARCH 2022 CONTENTS PAGE Mombers of the B08rd and Professional Advisers Trustees, Report Independent Autlilors, Report to the M8mber5 Statement of Financial Activities 14 17 Balance Sheèt Cash Flow Statement 19 Notes to the Accounts 20
MANCHESTER SEThLEMENT MEMBERS OF THE BOARD AND PROFESSIONALADVISERS BOARD OF TRUSTEES Rolè Dat8 of in year inlmenl Date of in year resi nation el8 Do David Black Michellè Ri Carol Bartram Maria Lesler Michael Conw8 Toni An lin Martin Sutton ela Beacon Lukes ib Abdullahi Treasurar 2010912022 Chair 2810212022 2010912022 2010912022 2010912022 2010912022 Na COMPANY SECRETARY Adiian Ball 2410912019 SENIOR MANAGEMENT TEAM Role Adrian Ball Chief Executive REGISTERED OFFICE AND PRINCIPAL ADDRESS New Roundhouse 1328 - 1330 Ashton Old Road Openshaw Manchester M11 1JG AUDITORS Crowe U.K. LLP Chartered Accountants & Registered Auditors The Lexicon Mount Street Manchester M2 5NT BANKERS The Cwperative Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP SOLICITORS HLF Berry 446 Barlow Moor Road Chortlon ManchÈsler M21 OBQ Page 1
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Chair's R¢port I would like to begin my report by thanking the Trustees, Chief Executive, staff and volunteers that have contributed to th8 charity during the year. The ¢h8rty has continued lo grow its impact through the exlonsion of services aNI the d8velopmenl of new services. often related to the post covbj landscape. We have benefitted greatly from many partnerships that have provided both funéing for our aclivilies, and advice and support lo enable us lo increase our effectiven&ss. 2021122 saw the charity investing our reserves into a number of Sgrvice delivery projects. demonstrating our commitment lo recycling sury)lus funds within the communty. We were able to continu8 the delivory of a telephone befriending serVe for some of most isolated communrty members as a result of this inl8rnal prioritisatr'on. for in5tsnce. The general expansion of Charty activity allowed for tho appointment of a marketing professional. which has18d to huge improvements in the way that the charity presents ilsew lo the ¢ommunity and our partnèrs. Work which we are sure S11 bode well for when seek further resources to cary forward our strategy. We have been very appreciatwe of the support provided to us by Lloyds Bank Foundation in developing a new charity purpose statement (STRONGER COMMUNITIES TOGETHERI and associated Theory of Change which will b8 evident throu9h)ul this report and will slftjcture our future impact reporting. Our Supported Housing Services have benefited from a new block contra¢l from Manchester Cty Council which has recognised our expertise in working lo se¢ur8 the best possible outcomes lor young pgople who arrived in the UK a5 unacwmpanied asylum seekers. This 5 year contract gives se¢urity for our services in tho medium leim, and a platform frir further development and growth in the fa¢e of curttrnlly unmet ne8ds. The community services that we have delivered from The New Roundhouse for many years have become much more ctrnlral to our purpose. Our work stream$ have supported drfferenl sections of the community young people, families and older people through programmes of engaging. community led activities that have improved the lives ol individuals and have provided platfoms lor those individuals lo get involved in supporting others. We have been excited lo work with local volunteers to e$tsblish a Food Panty providing very low-cosl food packages for lo¢BI famllias that are r6ally struggling. Page 2
MANCHESTER SEThLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Our childcare and family support services have continued to work with very large numbers of children dnd families. Our Nursery provision was just 3 yèars old in September 2022 bul Combined with our after-school provision was provided education for over 130 children each week. with a waiting list at most tSmes ol the year. We are very proud of the way that our staff team have embraced the community and family focuss8d nalure of our provision. This ¢ommunity focus was reinforced through OUT charity re-branding exerGise, whereby all our Ghildcarè was branded as 'Manchesler Settlement Community Nurserl,. Corporate Challenges It has been a year of continugd steady growth for the charity. Core management systems h8ve Improved considerably due to investments in our admin, marketing and finance teams, laying the foundations for fulure xpansion. Ch8rty financÈs remained strong, allowiThJ the board of Iruslees to embark upon dialogue with long lenn leaseholders (the LTE Group) regarding th8 buy out of their right to use significant parts of our buildlng. The Conclusion of thls transaction is planned for athumn 2022, socuring the future space for the growth of services. A nurnber ol twstees have Indicted a wish lo reli in the near future. Recruitment programme has been instigated which alw6 to have recruited a number of new truslees lo the board by the 2023 AGM. Tha truslees would like to thank all of the funders that have made our significant achievements possible. Major fundgrs have in¢luded- Manchester City Council Lloyds Barbk Foundation Young Manchester One Manche$ter OUT work would not be possible without the commitment of our passionate volunteers and stsff who are driven to Improve the Iwes of young people. The board would additionally wish lo pass on Ihelr thanks to them all. Revlow of Charlty's Position OUT financial po8ltion at the end of the reporting period is h8allhy. Our free reserves lunrestricted funds that ar8 not us8d lo lund property} provlde for around six months of operating costs as per charity commission guidelines. Plans for tho next 12 month The charity wlll wntinue to implement internal and extemal plans that enable us to deliver on our newly cOnsered purpos& statement- STRONGER COMMUNITES TOGETHER. Strvl¢e areas and thelr priorities Young Peoples Servlc*¥ Ilncludlng Supported Houslng To work with investment partners in order to increase the supply of hoFne$ for Vulnerab young adults in Manchester We wish to continue with our seNice impTovemenl plans. focussing upon continued staff development Wish to become a recognised centre of excellence with regard lo working with asylum seeking young people To prepare for a future OFSTED framework that will be a rnarKJalory inspection arrangernenl for the service Page 3
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Child and Famlly SorvlGgs To berome a recognis8d Family Hub. within the Manchester and n81ional neiwork of family hub centres To explore options for growth of our impact upon children and families in other community settings To achieve al least silver standards in all council quality awards To prepare for future Olsted inspectitsns Community, Health and Wellb•lng To develop a long term strategy for ensuring an appropriate mix of largeled and open access services that can be shown for the impact they have on individuals an(1 the community as a who To d8velop our premises to includè a café styla environment To develop new partnerships that will ensure that our community hub continugs to be useful for the community To respond lo dev&loplng needs, particularfy around fuel and general poverty of families and adults To build a service offer that Is attraGtive to health coMmissnerS with regard to ¢ommunity health education and messaging Charlty Leadèrship and Management To continue our woik in éeveloping leaders In our charlty. Our new lead8rship group will be helpful ¥Mth this To creatè a new SharePolnt plattoTm to drfve future developments arwnd internal wmms and data management To develop initial then longer term plans for the most impactful and erMiCallY resilient ways of using all ol the* spaces in The New Roundhouse To build tho capacity and strength of our board of Iruslees and management team. and the qualKy of Systems that seNe them, so as to have a sound succession plan To continue lo progress our new marketing strategy To devise a 'consultan¢y" offer to other org8nisations in areas sueh as markeliry, finance and childcare Page 4
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Slgnificant Events DiSCUSSK>ns with the LTE group {inveslors and leaseholders in the New Roundhouse} progress al pace. such Ihat a conclL¢sion is expected lo th8 buyout of thèir parts of the buildin9 in 2022123. Signature Maria Lester Chair Date: 20 October 2022 Pag6 5
MANCHESTER SErrLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 INTRODUCTION The trustees are pleased to psent their annual Trustees, report together with the fi'nancial Statements of th8 charity for tha year ending 31 March 2022 which are also prepared to meet the requirements for 8 directors, report and aou1$ for Companies House. CHARITIES ACT PURPOSES The financial slalements wmply with tha Charitie$ Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reptrrting by Charilie8.' Statement of Recommended Practice applicable to charities preparing thelr accounts in accordance wr(h the Financial Reporting Standard applicable in the UK and Republlc of Ireland IFRS 102)18ffeclive 1 October 20191. The directors of the charitable company (the charity) ar8 its truste8s for the purpose of charity law. Th8 trustees and officers serving during the year and since the year end are as per page 1. STRUCTURE GOVERNANCE AND MANAGEMENT Legal status Manchester Sèltlemenl is a private company limlled by guarantee {rggislralion numb8r 002418761 and is a registered charity (registration number 2285771. 11 is governed by rts Memorandum 8nd Articles of Asso¢lation dated 12 August 1929 8s amended 16 January 1997. 28 November 2013 and 19 Sept&mber 2017. Governance The tharily has a board of Iruslees that oversees the runnlng of the organisation. The board of trustees are elected al the Annual General M8eb'ng. Each year, they also eloct three honorary officers from their own number a Chairperson, vI-chaIrporSOn, and Treasurer. They also elect a Company Secretary who do8s not need to be a Iru5tee. The board shall bè not less than three and with the upper limlt defined by the board from lime to timg. Trustees must resign at the Annual General Meeting if they have been on the board for three years but may sland again for re-election. Trustees are recruited ar5d el8cted if a particular skill or experience is identified. The board of trustees may cop1 advisors to Ihg board as and when partlcular skills are required. Charty Govemance Code The Trustees have adopted Ihe Charity Govemance C¢JJe. an update version of whi¢h was published in D8cembèr 2020, and are guided by Ils principl6s and recomrnended practice for good govemance. Inducting Trustees All new trustees are inteThiewed prfor to appointrnenl by the Chair and CEO before being ¢onsid8red for appointment by the trustees. Upon appointment they are required lo undergo DBS Clearance checks as part ol our safeguarding policy. New trustees then spend a half day in the charity touring the diffent projettts lo meet Staff and service users. They are inducted into the rolè of a trustee based upon th8 Chority Commission guidance. Decision Making The trustees have agreed a scheme of delegation which specrfies the d8clsSons, limits and tolerances that are available lo the CEO and lo other stsff. The tnJstè8s agree the charity's strategy and budget plus a limited range of slalutory policies. The CEO may make decisions that are in accordance with the charity's strategy an agreed budget. including the hirong of siaff and aeing contracts. Page6
MANCHESTER SEThLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 OUR THEORY OF CHANGE We have rethought our whole purpose as a community charity during this year. The exercise has been an extremely valuable one, prompting Iwstegs, leaders and staff to refiecl upon their own rolo In achieving the outcomos that we aspire for our beneficlaries. We have moved from vision and mlssion statements to a simple stst8ment on our purpose that has united staff. volunleeTS and slakeholflgrs behind a powerful understanding of what we are here lo do, for lthom and how we will go about doing il. CREATING STRONGER COMMUNITIESTOGETHER V,'hat We Njish to See ur ATmsl Vhat We r SeNce51 Respert the stfenEths #rtd need5 vf all ol otsr siakeholders Belleve that ppople are most powerful connected to wmmtthities 8etiuthlul and transparent Be brave pnough to Ihallenge boynda¥ie Oiir Value? MANCHESTER SETTLEMENT The most s[gnifnt developments arislng from Ihls revi8w were.. 1) The formal recognltion of our aspiration lo seg a Strong Community Infrastructure. This recognf(ion brings lo the front the work we have done behind the scenes previously to support existing and emergent Community groups. 2) We have adopted cross ¢utting charity outcomes, thBt apply across 011 of our service areas. 8nd hBve begun lo assess th8 types of outcomes we achieve in these areas. 31 Our re-branding exercise, which has picked up from our theory of change, and has been implemented as a tool lo further progr8SS that change. Pag8 7
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Public Benefit In shaping our objectives for the year and planning our aclivilies. the tnjslees h8ve considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit.. running a charrty,. The original objects ot Manchester University Settl6ment defined in th8 M8morandum and Articles of Association registered in 1929 are: To promote the social welfare of the poorer residènts in the Clly of Manchester and neighbourhood. The beneficial area is the City of Manchester and District. In 2013 Manchester Settl¥menl adopted a new Set of Memorandum and Articles which elaborated on this slightly saying: To promote thè advancement of education, the furtherance of health and all other measures for the so¢i81 wèlfare of the poorer residents in the City of Manchester and ngighbouring districts. The Iruslees believe these ortginal objects to stsll be relevant and applicable, however they plan to review and update them 8ubjgct to Charity Commission approval in 2022123. The Trustees, report Sets out the activities and achievements of the charty during the y8ar ended 31 March 2022. From the TTUStees' port f( can be s88n what the benefits are and that the benefrts are related to the aims set out above. Our work has continued to be cenlred around 5 cross cutting outeomeg 11 Leamlng and Growth 21 Economic Welfare 31 Wellbeing 41 Inclusion and Acco$S 51 Community Power All of this work has benefrted both the direct beneficiaries themselves their Comrnunill throughout Ihg City of Manchester. Al of the beneficiarie5 coultl be descrtbed within the terms of the original 1929 Memorandum an¢J Articles of As$o¢iBlion as "the poorer r&sidents of the City of Man¢hesler and neighbourhood. and no individual has been excluded on the basis of Iheir inability to Pay or by geographical or inappropriate restrictions. The availability of places is limited only by numbers and criteria of need. In most cases there is no charge lo th& b8nefici3ry because paymenl is recewed on their behalf from the public purse. Page 8
MANCHESTER SErrLEMENT TRUSTEES. REPORT YEAR ENDED 31 MARCH 2022 ACHIEVEMENTS SUPPORTING OUR. CROSS CUThING OUTCOMES t)igital Skills groups and ¢18sseg Arts and Crafts groups ESOL classes Conversation Clubs Well Women Peer Support groups Post Covid Irnpa Training Parent Peer Supporters Programme Foetal alcohol syndrome act¢vity Healthy eating dental health education Slay and play childcare sessions Nursery education and care to 4 years After school club daily sessions PSHE for asylum sgeking young peoplg Education advocacy for youThJ people School Holiday healthy eating clubs Youth led culture wlhin all our youth provision Fre8 or lowest posslble cost a¢tivty Welcoming, friendly, caring spaces Renown8d provision for SEN children Beneficiaries have 3Q+ nationalities Targèting activity at excluded individuals Telephone bglriending for isolated individuals Ensuring suitable access lo those with learning and other disabilities Engaging people with mentsl health issues Advocating for vulnerable young people Celebrating different Gullures and religions Youth trustee Youth nels New friendships Greated daily Par8nts groups create lasting support groups Parents Whataspp group I notlce board We constantly strove to bring isolaled people into positive group environments Our supported housing work is based upon creating social network$ We are a trusted source of information on local agencies Whole youth off&r creating a community for the young people Food Pantry Project One Money Advice Service Be W811 advice and support Slgnposting and Ir)formalion SeNic8 Ciltiens Advi Sessions Free IT devlces Free Community Café Free crèche and stay and play sessions Striving to be kjwesl cost childcare provider in the aiea Pop Up school unrform shop Supporting Benefits applicatK)ns Frge youth activities and trips Frge loo(J and drinks provided daily Free holiday activities and a hot meal Budgeting skills for school aged throu h to adults Wellbeing Wednesdrt . Thursday CommunTrty Drop in Signposting lo speci8list advtce Covid Heatth Equity Wotk Tai Chi I Senio¥ Exercise l Massa SenK)r Catch Up Groups Buggy walks Early Help I lamily support appro&h onsures good referral to olhor support PHSE progr8mmo for asylum $8eke7S Unks with exlernal support agenci99 e.g.. CAMHS. 42nd Stre81, Eclypse Worltl Changers stsmmer youth pro9ramme I mind you mall¢r project Openshaw Community Organisations NeOrk is facilitated Objectives In place lo secure funds to pass on to community groups Free gpace provided for community groups lo grow their proje¢ts 40+ volunteer5 per year are 5UPPOrted such that they can improve themselves and the lives of others Volunt6er Prolect ideas are investad Community membèrs have a continual voice in our strategy and how we deliver Page 9
MANCHESTER SETTLEMENT TRUSTEES. REPORT YEAR ENDED 31 MARCH 2022 CONTEXT Man¢hesteT Settlement has been Providing an evolving mix of servitS to the residents of North Manchester lor 130 years with the objective of enhancing the lives of community mèmbers through proje¢ts lo improve health. aducalion ané comrnunity d8velopmenl. The oblectives for this work were relevani 125 years ago and continue lo be relevant in 2022. The refreshed 2D20 Our Manchestgr Strategy highlights the areas of strength and cf)portunity wlthin Manchester. and areas of conlw)uing challenge wilhin Manchester. Health.. Mancunian$ have some of the poorest health in the country e.g. healthy life of beh)w 58 years and high deaths from cancer. heart, and respiratory illnesses. Poverty.. In March 2019. around 45,150 ¢hildr8n under 16 lived in low-income Iwjuseholds {41( } Sn MarKhesler compared with the av8rage of 30% across the rest of the country. A fair economy: Too many of our residents have insecuie wot1( and hwer pay compared to many workers who work in our city. Fewer Manthester re$entS178¥0} eam al least the Real Living Wage. compared to all workers in our ¢ity {87°hl. and ham of residents with no or low qualrficalions are unemployed. Afftjrdable housing.. Manchester has committed to ¢realing 32,000 new homes by 2025- this must include a range of affordable homes across the ctty to support diverse communities. Climate change.. The Gity has commilted to becoming zero-CArtfyon by 2038 at thè lalesl and the Counal declare(i a Climate Emerg8ncy in July 2019. Brexitr. The UK'S departure from the European Union presents a challenge for many businesses and our communitses. Manchester Sett18menl contlnugs to bulld the capacity of those who may face these barriers to have the best chances lo take part and contribut8 lo the developirBJ cuKur81 an(1 ecOr)miC vision for Manch8sler. FINANCIAL REVIEW Finan¢i#l position The charlty endod the fin8n¢ial year in a very positive financial posili¢)n. The av8ilabillty of grants lo support our long-lerm charitable work with communities affected by Covid-19. and the business support grants available to us ensured that we weTe able to not rely upon subsidising setvice delivery from other charitable funds. The previous years. legacy fund has allowed for the selected support of eharily funded projects that would have had to cease otherwise. Our principal 50ur¢es of funding during the year continued to be unreslricled fee funding from the sales of child¢8re places or rental income from our houses plus restricted grant funding for service development or delwery projects., these are all recordeLt as income from charitable activities - 99.97Y• of the total income of the charity {2021.' 66.10/.l- The other 0.03Yo is derived from voluntary donations. and investment income. Proportion of income from charitable activities in the yèar 2021 was lower due to receN4ing large residual legaGy. Overall. our incomp dg¢r8ased by 12.6°h compared to the previous year12021 saw an increase of 60Vol. Our risk management plan focusses the attèntbn of Iruslegs managers upon areas of financial volatility on a monlhly basis. OLJr budget for 2022123 predicts a surplus of £2K which has been agreed by the board. The budget utilises £82k of designated funds fijnded through the remaining £267k legacy fund received in the previous year. The board have allocated this designated fund lo projects and developments that have a 5ignifi¢ant impa¢l upon our beneficiaries. The priorities for this lund havo been sel for improved and expanded sèrvices in Befriending, Yothh Activities, Family Support and for improvements to our premises. Page 10
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 In 2021122 reslricled funds raised for Projects support lolalled £157,164 with associated expenditure of £162,455. In the prewous year restricted funds raised were £269,555 with expendilure of £244,997. Any restricted funds unspent are carried fOard for use in following years where permitted. Golng Con¢orn The Iruslee rlsk 88sessm8nl of the trading conditions, Cash flows an¢J reserves Is that whllst the grant income forecast for the next year is reduced, the high level of reserves enables the charity to designate funds to projects that further charitable objective5. The trustees conclude that the charily is a going concem and that therg are no material uncertainbes that cast doubt upon the ability of the charity lo remain as a going concern during the 12 months trom the sSgnlng of the accounts. Investmont powers and poll¢y The trustees, havitvJ regard to the Iwuidty requirements of operating the charSty operate a number of Instsnt access current and deposit accounts attracting low levels of interest with high str88t banks. Balances are monitored to maxlmise protection from bank failures. The Flagstone account managernenl platfom has bee adopted to simplify the management of multiple accounts. Rlsk Managem9nt The Iruste8s hava a risk management strategy which comprises of: an annual review of the principal risks and uncertaintigs Ihal the Charity face$ and the establishmenl ol policios, Systems an(J procedures lo mitigate thos8 risks identifi8d in bi-monthly updates regarding significant changes to th8 risk reglsler. the impl8menlalion of proctrdure$ designed to minimise or manage any fvx)t8nlial impact on the charity should those risks materialise. This work has identified that the key risks for the charity and th¢ key actions are: Actions to reduce dsk Risk -Number8 of tru8tegs I skill proflkn ol truste8$ Progress with current recruitrnent activty i Future lunding of Communty and Yoijth Re priorilisation of manager lime to bid writing I programmes Increased costs for running the building upon New approachl modelling of how to present &xil of Manchester College and apply lor overheads Plan to have NHS partners elc delivering from the building whilst paying for sessional room hlre Reserv•$ policy The Irusl8&s operate a risk based approach to identifying an ideal level of reserves that will give our partners and stskeholdgrs confi¢Jenc8 that the organisalion is robust. whilst demonslratlng we maximlse the Impact of our funds upon ben8ficiaries. The nature and variability of our contracts and Sncome along with our contractual commitm8nts impact upon OUT risk analysis. The risk analysis has identrfied that an absolute minimum of thre8 months of operating costs should be maintained. but that six months of operating costs would enable us lo deliver a well-mar)aged service that would allow us to ensure a hlgh quality redesign or transfer of assets and activities for Ihe benefit of our beneficiaries. Pago 11
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 For 2022123 our minimum level of Teseryes is required to be £308,000 wilh a tsrget levol of reserves of £616,000. Of the unrestri¢ted fund of £1,060,213 (note 151 £269.399 has been ulilised to fund the freehold houses, £38,549 fixtures and fittings and £66,303 lo fund rèfurt>ishmenl. At the 3151 March 2022 there were £685,962 of free r8sèrves which is over the upper target level of reserves. The management team will closely monitor income and expenditure during the forthcoming y8ar and depending upon financoal perfomiance 11 seek to invest any surplus resorye to secure k)ng term public benefit. Pay policy for senior staff Dire¢lors are not P8itl but may claim expenses Incurred. The salary scale of the Chief Executive is approved by the full board of Iru8lees following an analysis of comparative organisations and a performance ravlew. Fundralsing The charity had no fundraising activities requiriTrJ disdosure under S162A of the Chafiltes Act 2011. Posl Reporting Year Events Al the time of writing the trustees are going through a process of acquiring the long tem) sub lèase currently owned by the LTE gr¢LFP. The acquisition of this leastr will r9dU free roserves lo a lèvel whi¢h the trustees have accountsd for throtjgh the designation of such funds in th8 2022123 budget. Acquiring the space will prowde security lo all current Man¢hesler Setllgmenl operations, and will provide a platform for considering new Charitable servicesl projects. The acquisition will mean that IrreaSed building manag&ment costs will b8 borne by the charity annually, and thèse have been considered with forward budgets. Trustees. responsibilits.es in r8lalion to the financial statements The charity twstees (who a also the osirectors of the Manchester Settlement the purposes of company18wI are responsible for preparing a trustees. annual report and financial stat8ments in accordance with applicable law 8nd United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practlcel. Compary law requbres the charity trustees to prepare financial statements for each year whlch give a trua and fair view of Ihe stale 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 the financial stalemenls, the trustees are required to-. Select suitable accounllng polioies and then apply them consistenlty., observe the methods and principles in the Charitigs SORP.. make judgements and estimates that are Teasonable and prudenl stats whether appli¢able UK accounting standards havè begn followed, subject to any material departures disclosed and explained In the financial stalemenl5', prepare the financial statements on the going concern basis unless it is inappropriate to pr88ume that the charlly wlll continue Sn business. The Iruslees are responsible for keeping proper ac¢ourbting rec(*ds that disclose with reasonable accuracy at any time the financial position of the charity and lo enable IheThi lo ensure that the financial ststements ¢ompty with the Companies Act 2006. They are also responsibl¢ for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of traud and olher irregularities. The trustees are responsibl8 for the maintenance and integrty of thg rPOrate and financial infomialion included on the charitsble company's website. Legislation in the United Kingdom gov8ming the preparation and dissemination of financial statements may dlffer from legislation in otherjurisdiclions. Page 12
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2022 Stslement as lo disdosure to our auditors In so far as the Insle8s are awa at the lime of approving our trustees, annual report there is no r81evant information, being infomalion neèded by the auditor in connection with proparing their report. of which the charity's auditor is unaware, and the trustees, hoving made enquiries of fellow directors and the audltor that they ought lo have individually lakon, have each lak&n all steps that helshe is obliged lo take as a director in order to make themselves aware of any relevant audit infomiation and lo establish that the auditor is aware of that information. The Trustees have lakerb advantage of the small Companies exemptions provided in selOn 415A of the Companies Act 2006. By order of the board of Iwstees Maria Lester- Chair Dale: 20 October 2022 Page 13
MANCHESTER SETTLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2022 Opinion We have audited thè financial statements of Manchestèr Setuefflenl I'lhe charitable ¢ompany'l for th8 year ended 31 March 2022 which comprise Statement of Financial Aolivities, Balance Sheet, statemènt of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includirvJ Financial Reporting Standard 102 The Financial Reporting Standard applicabl¥ in the UK and Republic of Ireland Iuniled KInj0M Generalty Accepted Accounting Practicel. In our opinM)n the flnanclal slalemenls.. give a true and fair view of the slate of the charitabte company's affairs as 0131 March 2022 ènd of Its irtome and expenditure, for the year then ended., have been properly prepared in ¢(dance with Uniled Kingdom Generally Accepted Accountlng PraclKe,' and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We condLEctsd our audit in accordance wlth International Standards on Auditing (UK) IISAS {UK}l and applicable law. r regponsibililies under those stsndards are further described In the Auditor's responsibililbes for the audit of the financial slalements s8ction of our report. We are Independent of the charitable company in accordance with the ethical requirements that are relevant to our audlt of tha financial statements in tho UK, including the FRC'S Elhi¢al Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that Ihg audit evidence we have obtained is suffici8nl and appropriate lo provide a basis foi our opinion. Concluslons relating to golng concern In audrting the financial slalemenls. we have conGluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriale. Based on the w(Kk we have performed, we have not identified any material uncertainties relating trj events or conditions Ih8t, individually or colle¢tThiely. may cast significant doubl the charitable companys ability to continue as a going ¢Dncern for a period of at least twelve months from when the financial slalements are 8Lthorised for issue. Our rasponsibilities and lh8 responsibilities of the trustees with respect to goirbg concern are described in the rebvanl sections of thi5 report. other information The Iruslges are responsible for the other Infomation contained within th8 annual report. Tho other information comprises the infom)ation included in thè annual report. other than the finan¢lal statement$ Bnd our audllor's report thereon. Our opinion on the financlal statemen15 does not cover the other infomalion and. except to the extent olhemise expliciuy staled in our report, we do not express any ftrm of assurance conclusion thereon. Our responsibility is to read the other informallon and. in doing so, consider whethgr the other informatin Is materially inconsistent wlh the finanual ststemenls or our knowlèdge obtained in the audrt or othe18e appears lo be materially mi5slaled. If we identify such material inconsistencies or apparent material misstatements, we are qUired lo delemiine whether this gives rise lo a material misstatement in the financial stslements themselves. If, based on the work we have perfomed. we conclude thot thère is a material mlsslal¢m¢nl of this olher infomiation, we are required to report that fact. We hav8 nothing lo reKK)rt in this regard. Page 14
MANCHESTER SErrLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2022 Oplnions on other malters prescribod by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit Ihg information given in the tru5tees' report, which includes the directors, report pr&pared for Ihe purposes of company law. for the financial year for whlch the financial statements are prepared Is consistent with tho financial statements., and tha directors, report included within the Iruslees, ieport have been prepared in accordan with applicable legal reqLFiremenls. Matters on which we are requlred to report by exceptlon In light of the knowledge and understanding of the charitable company and Iheir environment obtained in the course of the audit, we have not identified material misslalements in the directors. report included wilhln the tru8lees' report. We have nothing lo report In respect of Ihe following m8tters in relation lo whKh the Companies Act 2006 requires us lo rgport to you if, in our opinion: adequate and woper accounting cordS have not been kept; or the financral 5tatern8nts are not in agreement with the accounting records and returns.. or certain disclosures of trustees. remuneration specified by law are not made,. or we have nol rg¢eSv¢d all the informalton and explanations we require for our audit.. or th8 Irustees wer& N)1 entitled to prepare the ffin8n¢ial statements in accordance with the small companies iegime and tske advantage of the small companles, exemptions in preparing the trustees, direclors. report and from the requ1ment to prepare a strategic report. Rosponslblllties of trustees As explained more fully in the tru5tees' responsibilities slalernent set out on page 12, the Iruslees (who are also the diredors of the charitable company for the purposes of company law} are responsible for the pr8paralion of the financial staternenls and for being satisfied that they give a true and fair view, for such inlemal control as Ihe trustees determine is necessary to enable the preparation of financial slalaments that are free from material misstatement. whether due to fraud or error. In prep8ring the financlal ststemenls, the trustees are responsible for assessing the charitablè compony's abilty lo continue as a going concem. disclc>sing, as appli¢able. matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or lo Cease op9ralions, N have no realisti¢ alternative bul to do so. AudIt0S responsibilitios for the audlt of the flnancial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whol8 are fre$ from matèrial mi$¥tstement, whether due to fraud or grror. and lo issuo an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance wtth ISAS IUKI will alway5 éeleGt a material misstatement when it exists. Misststemenls can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influen¢e the economic decisions of users taken on the basis of these financial slatemenls. Detsils ol the extant lo which the audit was considered capable of detecting irregularities. including fraud and non-compliance with laws and regulations are sel out below. A further descripts'on of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al.. www.Ir¢.or .uklaudilorsres nsibililies. This d6scriplion forms part of our aL110r,$ report. Extsnt to which the audlt was considered Capable of detacting irregularities, includlng fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identrfied and assess&d the risks of material misslalemenl of the financial statements from irregularities, whether due lo fraud Page 15
MANCHESTER SEThLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2022 or error, and discusse ese beeen our audf( team members. We I en designed and p8 orm audit procetjures sponSive to those risks, including obtaining audll evidence sufficlenl and appropriate to provido a basis foT our opinion. We obtained an understandlng of the legal and regulatory ffameworks within which the charit8ble company operates, focusing on those laws and regulations that hav8 a direct effect on the determination of malerFal amounts and disclosures in the financial slalem8nts. The laws and regulations we considered in this context were the Companies Acl 2006, the Charities Act 2011 together with the Charities SORP {FRS 1021. We assessed the required compliance wrfch these laws and, regulations as part of our audit proc&dure5 on the ralated financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial slalements but Compliance wlth whiGh might be fundamental to the charitable company's ability lo operate or lo avoid a mal8rial penalty. We also considered the opportunf(ies and inc$nb'ves that may exist within the Charitat¢ company for fraud. The laws and regulations we considered in this context for the UK oporalions were employment legislation, taxation legislation and health and safety legislation Auditing standards limtt the required audit Pfo¢edures lo identify non-cornpliance with these laws and regulations to enquiry of the Truste9$ and other managerllenl and inspection of regulatory and legal corresponden, if any. We Idonlified the greatesl risk of material impact on the financial statements from irregularities. including fraud, to be within the liming of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries trf management, 5amp19 18sling grant agreements from source agreement to posting in the nominal ledger. sample testing of registèr attendance to invoicing and inclusion in local aulhorily fundlng claims, sample testing rental hir8s from booklng to inVOiCAng, sample tesllng on the posting of joumals. reviewing ac¢ounling estimates for biases, reviewSng regulatory correspond?n¢e with thg Charity Cornmission and reading minutes of meetings of those charged wtth gove[nan. Owng to the inherenl limitations of an audr(, there is an unavoKlable risk that we rnay not have del8Cted some material misstalem8nls in the financ181 statements, even though we havo properly planned and performed our audit in 8ccordance with atjditing standards. For example, the further removed non-compliance with laws and regulatsons {irregulariliesl is from the events 8nd transacllons refiected in thè financial statements, the less likely the inherently limited procodures required by auditing stsndards Would Identify it. In addition, as with any audit, there remained a higher risk of non4lelection of irregularities, as these may involve collusion, forgery, inlenlion81 omissions. misrepresentations. or the override of inlemal controls. We are not responsible for preventing non-compliance and Cannot be expected to detect non-MplianGe vllh all laws and regulations. Use of our report Thls report is made soFely lo the charitsble company's members, as 8 body, in accordanc8 With Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the ¢haritsble company s member5 those matters we are required lo slate to them in an auditor's report and for no other purpose. To the fullest extent permilted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the chorilable Company's members as a body and thè charitsble company's trustees as a bo¢Jy, for our al11 work. for this report, or for the opinions we have fom)ed. Vicky Szulist Senior Statutory Auditor For and on bèh8M of Crowe U.K. LLP statutory Auditor Th& Lexicon Mount Street Manchester M2 5NT 31 October 2022 Pa 816
MANCHESTER SEThLEMENT STATEMENT OF FINANCIAL ACTIVITIES (Incorporatlng an income and expenditur• account) FOR THE YEAR ENDED 31 MARCH 2022 Unreslricled funds Restricted Totsl fund$ funds 2022 Total funds 2021 Note Incomè from: Donallons and legacies Charitable adivilies Other trailing activilBs Investments 282 954,896 15,738 135 282 345,4S9 936,697 6,745 157.164 1.112.060 15.738 135 Totsl 971,051 157.164 1.128,215 1.289,601 ExpendltUTe on: Charitable ac11vieS 834,837 162,455 997.292 878,436 Total 834,837 162.455 997,292 878,436 Net incoming resources before transfers 136.214 (5.2911 130,923 411,165 Gain on Investments Transfers 10 5,000 6,622 5.000 15 {6,6221 Net mov¢rnent in funds 147,836 11,913 135.923 411.165 Reconciliation of funds: Total funds brought forward Total funds carrlod for4¥ard 15.16 15.16 2,593,930 2.741.766 982,569 970.656 3,576,499 3,712.422 3,165,334 3,576.499 The ch8rity has no rgwgnised gains or losses other than the results for the year as above. Tho notes on pag05 20 to 34 fomi part of these aecounts Page 17
MANCHESTER SEThLEMENT BALANCE SHEET Reglstered Company number: 0024167 AS AT 31 MARCH 2022 2022 2021 Notè Flxed assets Tangible assets Inv8slmenls 2.689,325 40.000 2,705,499 35.000 10 2,729.325 2,740,499 Current assets Debtors 11 76,278 961,854 1.038,132 86,486 818,378 904,864 Cash Cr•dltors: amounts falllng due within one year Net ¢uri8nt assèts Credltors: amounts falling du• after more than ong ygar Net as$ets 12 S5,035) <58,993} 983,097 845,871 19,8711 3.576,499 3,712,422 Funds Restricted Unreslricled.. Deslgnated funds Other 16 1S 970,656 982.569 1,681,553 1.060,213 3.712,422 1.716,503 877,427 3,576,499 The finala1 statements have been pPared in accordance with the provisions appliGable to companies subject to the small companSes regime and in accordance with the provisions of FRS 102. These financial statements were approved and authorisad for issue by the board of trustees on the 201h October 2022 8nd are signed on their behalf by.. Maria Lester The notes on pages 20 to 34 lonn part of th•sè accounts Page 18
MANCHESTER SETTLEMENT CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2022 Cash flow Statement 2022 2021 Cash Inflows l {outtlow6) from operating a¢tlvities Nel cash provlded by operating 8¢tivities 20B.380 443,437 Cash Flows from Investing •¢tivities Dividends and interest from investments Purchase ol frxed assets Net cash applied to investing activit 135 46,039} 660 (27.8131 145,9041 {27.1531 C•sh Flows from financlng actlvities Loan repayment 114.000) {92.845} Change in cash and cash equivalents in the year 148.476 323.439 Cash and c8sh 9quivalents at tho beginning of Ihe year 818.378 494,939 Cash and cash equlvalents at th• ond of the year 966,854 818.378 Net Movement In Funds 2022 2021 N•t movemfrnt In funds for thg r•portlng porlod (•• r tho Statemont of Fln•nclal Actlvltl•¥) 135,923 411,185 Adluslments for: Depraclallon Int8r6st recolved Ilncro8seyDecre88e In dobtors IncreasollDecreaso1 in cr&Jllor8 62,213 1135) 10,308 171 50,424 16601 {29,9681 12,476 N•t calh provld•d by operatlng a¢fjvltlo8 208,380 443,437 The noto$ on pages 20 to 34 fomi part of thes• accounts Page 19
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 GENERAL INFORMATION M8nohester Settlement is a private company limited by guarantee and a registered charity. The registered office and prfncipal address is 1328-1330 Ashton Old Road, Openshaw, Manchester, M11 1JG. The charity is incorporated in the UK. ACCOUIffiNG POLICIES Bas1$ of KGountlng The accounts have been prepared under Companies Act 2006, and in 8c¢ordance with the Financial Rfiporting Standard 102 IFRS 1021 and follow the recommendalK•ns in 'Accounting and Reporting by Charities: Sialemenl of Recommenc18d Practic8° issued in 2015 (revised 1 October 20191. The charity meets the definition of a public benefit enbty. Golng concorn As disclosed in the Chair's Report on page 3 and the TnJstee's Report gn page 11, the trustees assessment of the trading cor)ditions, cash 11ows and reserves is Ihal whilst the Implicatn$ of Covid-19 are ntinuIng and with new inflationary pressures. plans are in pla¢e to mediate the impact. and flexibilities exist that will enable the man8g8menl team to reduce costs in a timety way should trading ry)ndilions require it. and conGlude that the charity 15 a going concem. It is therefore fell that there are no material uncertainties that cast doubt upon the ability of the charity to rèmain as a going concem during the 12 months from tho signing of the accounts. Incomlng re50ur¢•s All Income is recognised in the Statemgnl of Financial Activities when the conditions for receipt have been mel and there is w50nable assurance of receipt. Dona*ion$ Donations include amounts received under Grft Aid logother with Income Tax recoverable Ihereon. Resourc•s •Xnded The costs ol projects, fund-raising and publicity. and manag8menl and administration comprise expenditure. including staff costs, directly attributsble lo the activity. Where Costs cannot be directly attributed to spe¢ifiG activities they have been allocated to core costs which arg then rscharged to each delivery area on the basis of proportionate use of square footage in the premises. Charitabl? oxpendlture Includes all expenditure directly related to the objects of the Gharily lin accordanc8 With the SORPI and comprsses project Costs, grants and directly attributable support costs. Govemance costs include those costs incurred in the governance of the charitys ass8ts and a associated with constilulional and statutory requirements. Fund accountlng Unrestri¢ted fijnds ar8 avBilable for use al the discretion of the dire¢lors in furtherance of the general charitable objectives. Restricted funds represent funds received whose use is subject lo restrictions imposed by the donor. Designated funds represent funds eamarked for a particular use by th8 trustees. Page 20
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 2. ACCOUNTING POLICIES Iconl.} Inve5tmgnl assets Fix8d asset investments comprise a Lowry drawing whh is induded at the trustees. best estimate of market valu9, informed by &xpert advice. Deprèciallon Depreciation is calculated so as to write off the cost of an asset. less its estimated rèsidual value. over the useful èconomic life of that 8sset os follows- Fixtures and fittings Leasehold property Land and buildings Refurbishment 250h p.a. straight line 149 years straight line 50 years straight line 15% p.a. straight line Majority of assets lting more than £SOO are ¢apitali5ed al cost. Assets obtained during quarter 4 are depreclated In th8 followlng accounlirwJ year. Long leasehold propety is assessed annually for indications of impairment and if nectrssary the carrying value reduced accordingly. Dobtor¥ Trad8 debtors are recognise(J at the settlement amount after any trade discounts offered. Pr&paymenls are valued at the amount repaid net of any trade discounts due. CaBh at bank and In hand Cash al bank and in hand includes cash and short term hlghly IIquKI inveslments with a shcc maturity of three months or less from the d81e of acquisition or openlng of the deposit or similar account. CrndSlors Short lemi CT8ditors are measured at the transaction price. Otr Ilnanclal liabdf(ies. including bank loans, are measured Initially al fair value. nel of transaction costs, and are measured subsequently at amorti5ed cost using Ihe effective Interest method. Flnanclal In$trum8nts The company only enters into basic financial instruments transadions that result in the recognition of financlal assets and liabilitie5 like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related Pa&S and investments in non-pultable ordinary shwes. Financial assets that are measured al cost and 8mortised cost are assessed at the end of ea¢h reporting period for objective evidence of impaimenl. If objeGtivo eviden¢e of impaimient is found. an impaimient loss is recognised in the Statement of Financial Activity. Ponsion costs The charity operates a definod contribution pension s¢herr for employees. The assets of the scherlle are held separately from those ol thè charity. The annual contributions payable are charged lo the Stslemenl of Financial tivities. Page 21
MANCHESTER SETTLEMENT NOTES TOTHE ACCOUNTS YEAR ENDED 31 MARCH 2022 2. ACCOUPMNG POUCIES (cont.} Torn1ination payments The charity accounts for termination payments in the accounting period they are announced. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF UNCERTAINTY The company makes &stimales and assumptions conMIng the fvture. The resultiro accounting estimates will. by definition, seldom equal the related actual results. The estimates and assumptions that have a signrficant risk ol causing a material adjustment to the carrying amounts of as$8ts and liabilities within the next financial yeai ar addressed below. 11} Usgfvl ecor)omi¢ livgs of tsroiblg assets The annual depreciallon ¢harge for tangible assets is sensitive lo changes in the èstimated useftjl economic lives and residual values of the assets. The useful economic lives and residLJal values are re-assessed annually. They are amended ¥then necessary to reflect cvrrenl estimates, based on technological advancement, future inveslmenls, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the fixed assets, and accounting policies for the usefijl economic lives for each class of assets. {ii) Impalrment of debtr)rs Th8 company makes an estimate of the recoverable value of trade and other deblois. Trade debts have b8en reviewed by Ihe management leam and trustees. only those with a realistic chance ol recovery have remained as assets. When assessing Impairment of Irada and other debtors, rTh4nagemenl considers factors In¢lLKling the current credtt rating of the debtor, the ageing profile of debtors and historical experience. See note 12 for the net carying amount of the debtors and associated Impairment provision. lili) Key sources of estimation uncertainly Approximately £402.000 of the forecast income in 2022123 Comes from fees. it inclLwJes £394,000 fe8s from the nursery and child¢arè service. The demand for these services Ss very sensitive to the ability of parents to pay nursery fees. Actual fee incoma received in Q1 2023 has in fact exceeded forecasts. which indicates less risk than feared. Page 22
MANCHESTER SEThLEMENT NOTES TOTHE ACCOUNTS YEAR ENDED 31 MARCH 2022 DONATIONS AND LEGACIES 2022 2021 Residuary Legacy CJRS grant Donations 287,826 57,283 390 282 282 CHARITABLE ACTivmES Grants and Contracts Fees Rental income Other 2022 Young Pèople's Housing Project Communty Development Childcare Organisational Development 464.456 115,639 32,623 25.000 637,718 46,492 10,809 11,645 27.502 521,757 127,284 438,019 25,000 1,112,060 377,894 377,894 46.492 49,956 Grants and contracts 2021 Fees Rentsl income Other Young People's Housing Project Community Developmenl Childcare Organisatn81 Development 313,466 92,070 46,3 23,OIK) 474.836 176,604 909 2,620 12.781 1.987 490,979 94,690 326,041 24,987 936 697 266,960 266,960 176 604 OThER TRADING ACTIVITIES 2022 2021 Room Hire 15,738 15,738 6.745 6.745 Page 23
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 RESOURCES EXPENDED Charltable A¢tivitles Artivltles undgrtakgn dire¢tly Total 2022 Support costs Houses Young Peoples Housing Project Community Development Childcare 6,319 299,782 118,716 369.865 794,682 6.319 392,983 138,977 459,013 997,292 93.201 20,261 89,148 202,610 Support GQ5ts 2022 Activity eXnSeS 2.006 11,188 17.393 3.664 105,728 21,084 3.611 1.130 23.507 4.743 194.054 Repairs and maintenance Rates and facilities management Staff costs Depreciatlon Insuran¢e Mis¢ellaneous expenses Office cosls Professional lees Governance costs Auditors, remuneration 8,556 202.610 Page 24
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 Charitable Activities Adivilies undertaken diredy Support Total 2021 costs Houses Young Peoples Housing Project Cofflmunity Development Child¢are 6.319 306,957 75,039 331,893 720,208 6,319 379,742 90,862 401,513 878,436 72,785 15,823 69,620 158.228 Support costs 2021 Activity expens85 Uliltties Repairs and maintenance Rates and facilities management Staff costs DepciatIOn Insurance Miscellaneous expenses Office costs Professional fees 715 10.444 18.249 3,293 77.774 15.227 3,804 304 19.046 1.164 150,020 Governance costs Auditors, remunerdlion 8.208 158 228 Pag8 25
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 STAFF COSTS AND NUMBERS 2022 2021 Wages and salaries Soaal security costs Pension costs 588.068 36.211 21.899 646.178 487,fv16 32,7DO 16,647 536,993 2022 No. 2021 Chief Executive CordInatOrS Project workers Adminislralive workers 30 23 32 One member of staff received remuneratlon in excess of £60.00012020121: none). DurSng the year. no trustees had travel expanses reimbursed {2020121.' none>. No Iruslee received remLFnoralion or benefits in kind during th8 year. Th8 key management personnel disclos8d on page 1 rec8iv8d aggrègat8 remuneration, including employers Nl and pension costs of £70,54712020121= £65.9751. There were no statutory radundancy payments made in th8 year ended 31 March 202212020r21: non8}- OPERATING SURPLUS Operating surplus is slated after charying: 2022 2021 Staff pension contributions Depreciation Auditors, remuneration as auditors 21,899 62,213 16.647 50,424 Page 26
MANCHESTER SELEMENT NOTESTO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 TANGIBLE FIXED ASSETS Flxtures and Long leasehold Fr••hold land fittlngs proyrty and bulldings Relurbishment Total Cost or valuation Al 1 April 2021 Additions in Ihe year Al 31 March 2022 126,143 24,001 150,144 2,244.252 635.457 110.960 22.038 132,998 3,116,812 46,039 3,162,851 2.244.252 635,457 Doprèclatlon At 1 April 2021 Charge for the year Al 31 M8rch 2022 97,103 14,492 111,595 179.514 15,062 194,576 87.951 12.709 100,660 46.745 19.9) 66.695 411,313 62,213 473,526 Net book value At 31 March 2022 Al 31 March 2021 38,549 29.040 2,049.676 2,064.738 534.797 547,506 66,303 64.215 2.689,325 2.705,499 10. INVESTMENTS Movement Sn rnarket value 2022 Market valu& at 1 April 2021 Rev35ualion Market value at 31 March 2022 35,000 s.01 40,000 The L. S. Lowry drawing is included in the aceounls at £40,000 being the valuation at 31 March 2022. The drawing is held in safekeeping by the Whthorth Art Gallery, M8nchesler, who have provided the voluation of the drawing. 11. DEBTORS 2022 2021 Trade debtors Other debtors 44.873 31.405 57,297 29,189 76,278 86,486 Page 27
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 12. CREDITORS: Amounts falling duo wlthln ong yèar 2022 2021 Trade credttors Taxation and sodal securfty Accruals and deferred income Loans other creditors 9.459 8,972 25.275 5,171 9,280 27,272 3,884 13,386 11,329 55.035 58.993 13. CREDITORS: Amounts falling due aft•r more one y•ar 2022 2021 Other creditors iauaker loan) 9,871 9.871 Quakor loan (un$è¢urnd Amalysis of the maturity of the loan is given klow.. <1year 2-5 years 3,884 9.871 13.755 Thé charity decid8d to make an earfy full repayment of the loan provlded by Quaker during the year. Page 28
MANCHESTER SELEMENT NOTES TOTHE ACCOUNTS YEAR ENDED 31 MARCH 2022 14. FINANCIAL IMSTRUMENTS 2022 2021 Financial assets that are measured at amortised cost.. Cash held Trade debtors Other debtors gxduding prepay7nents 961,854 44.873 30 818,378 57,297 1,006.757 875,729 2022 2021 Financial liabillties that are measured at amortlsed cost.. Trade creditors Other creditors Accrua15 9,459 7,773 12,219 5,171 19,302 12,635 29.451 37.108 15. UNRESTRICTED FUNDS Balance at 1 In¢omlng Outgolng April 2021 rosource$ rosourc•$ Transfers Galn Balance at 31 March 2022 D•signat•d funds Fixed asset fund Hous8S Residuary Legacy 1,156,960 271,717 287.826 1,716,503 115.0621 6,3191 120,1911 141,5721 6,622 1.148,520 265,398 267,635 1,681,553 6,622 Unr•strieted funds Other charitable ftjnds 877,427 971,051 1793,2651 5.000 1,060,213 2,S93,930 971,051 834,837 6.622 5,000 2.741,766 The ffixed asset fund is des*3nated as the Mancheslgr Settlement part of the value of the New Roundhouse building and should be considered alongside the New Roundhouse Capi181 Project reslricled fund (note 16). Together these lunds comprise the total value of the New Roundhouse building. The Houses fund is designated as Ihe value of the funds invested in the five houses owned by the charity lo deliver charitable sewices. The Residual Legacy Fund comprises of a single legacy donation with no restricted el8ments received in installments during 2020121. The pfiorities for this fuThl have been sel for improved and expanded sery1S in Page 29
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 B&friending, Youth Aclivilies, Famlty Support and for improvements to our prernises. During FY 2021122 there was £20,191 utilised from Residual Legacy Fund. Tiansfers A transfer hos been made of £6.622 to the d*signated fixed asset fvnd to make a contrfbutlon lo the unrestricted fund for the Ngw Roundhouse Capital pioiecl, this being one year of depreciation on the long leasehold property. Galn A gain of £5,000 has been made by revaluation of The L. S. Lowry drawing to market value of £40,000. Balan¢e at 1 Incoming Outgolng Aprll 2020 re$ourc&5 re$our¢es Balanco at Transfers 31 March 2021 Deslgnated funds Fixed assel fund Houses Residuary La9acy 1,165,4(KJ 278,036 115.0621 16,3191 6.622 1,156.960 271,717 287.826 287,826 294.448 1,716.503 1.443,436 121,3811 Unr•strScted funds Olhgr ¢harilable funds 757,265 1.020.046 {612.058I (287,8261 877,427 2,200,701 1,020.046 833,439 6.622 2.593.930 Pag¢ 30
MANCHESTER SErrLEMENT NOTESTO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 16. RESTRICTED FUNDS Balanco at 1 Incoming Aprll 2021 resources Outgoing resources Transfern Balance at 31 March 2022 New Roundhous9 capital project Our ManGh&sler- VCS grant EYPP14CT Limited F Beswi¢k- Science 8CtNities Laing Charitable Trust Dalmore Capital Lloyds FoundatKJn Morson Group One Manch8ster- p8r&nt project LandAid Charitabl8 Fund Football Foundation - Retum lo Football The 42nd Street- Winter Discharge Funds MACC- Hate Crime 4CT Limitsd - Cuf(ure Grant MCC - VCSE Pantry GMCVO 4CT Limited- PSayschemes 21122 907.778 (6,6221 9D1,156 38.333 8.000 138.3331 19.7921 15111 111,9831 17.500} 16.7841 19011 115,394} 12.708} {4501 (2,8631 1,792 7,650 11.983 7.500 6,784 901 15,394 19.469 7,139 16,761 450 3.330 467 1,000 7.500 800 5.760 12,724 {8361 (7,1001 {6001 (5,7601 (12,7241 164 400 City of Soci81 Action - YOU MCR 500 {5001 MFT NHS- Covid ChaMon$ Project One MCR- Social Recovery Fund MCC- Covid Health Equity Fund Young MCR- OCON Manchester City Council- 1st 1000 days Manchester City Council- Extended Additional Restrictions Grant FASD 2,500 10,000 5,000 19,600 2.500 10.000 5,000 18,012 11,5881 {22.2611 2.318 25,000 5,057 13.867 (13.8671 1,000 982,569 3,000 157.164 4,000 970,656 162.455 6,622 Page 31
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 Balance al 1 April 2020 Incoming resources Outgoing r&sources Transfers Balance at 31 Morch 2021 New Roundhouse capital project Our Manchester- VCS grant EYPP14CT Limited F Beswck- Science aclivtties Laing Charitable Trust Dalmorg Capital Lloyds Foundation Morson Group One IAanch$ster- parent project LandAitJ Charitable Fund Manchèster City Council Neighbourhood Covid 19 Support The National Lottery Community Fund Manchester City Council Buzz Holiday Playscheme Grgater Sport- Tackling InequalitK*s Fund Power to Change- C-19 Trading Income Support Manchester City Council - 1st 1000 days Manchester City Council - Additional Rgs1ri¢lions Grant Jigsaw Homos FASD 914,400 16.6221 907,778 38.333 15.800 138.333} 114.0081 1,792 7,650 11,983 7,500 6,784 7,650 8,303 17.500 7.500 28,589 113,8201 3.642 901 27,514 125.4471 112,1201 158,6271 15.394 19,469 78.096 500 15001 110,0001 11,2231 10.000 1.223 9,237 19,2371 20,000 I20,LoI 25,000 122,6821 2.318 18,000 118,L)001 1,000 {1,0001 1,000 964.633 1,000 982.569 269,555 244,9971 6,622 The New Roundhouse Capitsl Project relates to the development of the new premises. The restriGled fvnd on the New Roundhouse represents Ihe amounts wntributed by Manchester Collego who have been granted B long tèrm lease. thus restricting thèir use of part of the building. The Wellbeing and Communtty (Our MCR, EYPP14CTI projects develop commijnty activities to promote community engagement in learning. health and wellbeing. F Beswi¢k- Science Activilies fund is a one-off donation over ten years lo support scien¢e relale¢J actiwties with young people. The Volunteer coordinator fund has been established by a grant from th8 John Laing Charitable Trust and Dalmore Capital to fund the co-ordination of voiunl&ering across the charty. Lloyds Charitable Trust Is 8 restricted fund that supports Dur work with young people leaving care Ihrough the provision of supported houslng and actNities lo promote engagement. The Morson Group has funded 18 monlhs of intemel provision into th8 supported houses project. Page 32
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 One Manchester has grant funded an 1&month project to devetop Parent and Communlty Led childcaie initiatives. Hale crime is a grnnt from MACC to deliver activities that promote hate crime reporting meGhantsms. MCC Buzz Holiday Playscheme funded summer and Easter activilles for vulnerable childran. FASD is a grant that help to facilitate netAvotl(s of families caring for thildren affected by Foetal Alcohol Spectrum Disorder IFASD}. LandAid Ch&rilable Fund is a combination of 3 grants provided to us by the Land Aid Property Charity lo supp¢)rt projects with vulnerable young people. Two grants {£57k ar £17.4kl were provitjed for refurbishment Projects. and 8 further £3.7k for enhanced IT projects. The National Lottery Communty Fund funded 6 months of our Open-Door 8efriending Service. Greater Sport- Tackling Inequalltles Fund provided for a coordinated programme of actSvi¢ies for isolated adults. Power to Chang-19 Trading Income Support was an income support fund to support reduced eamed income through lockdown. MCC 151 1000 days. is a Manchester Council Grant for supporting the parents. MCC Additional Restrictions Grant is a wuncil grant to support ¢h8rilable businesses throughout lockdown. Football FoundalK)n- Relurn to Footb811 Is a grant lo promote football with young people. The 42no Str8et- Winter DI8charge Funds- are funds for rè distrlbulion lo individuals in financial har(tship- 4CT Limited- cultu Grant- is a grant for delivery of actNily to promote cultural awareness wlth young people. MCC- VCSE Pantry- refers 10 8 grant lo buy refrigeration equipment. GMCVO- a grant to provide out of hours mental heamh support. Cty of Social Action- Young MCR- a 9rant for youth soci81 actSon projects. MFT NHS- Covid Champions Project- a hoath promollon grant. grant for the manag8ment of a network of communty organisations. One ManGhesler - Social Recovery Fund - including distribution of lund5 to other groups. MCC- Covid Health Equity Fund a heallh promotion grant, including the distribution of fvnds lo other groups. Young Manchester- OCON- a grant for the provisKJn of youth and play aGtiviti&s. Page 33
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022 17. ANALYSIS OF NET ASSETS BY FUND 2022 Unrostricted Rostricted Total funds fund5 funds 2022 2021 Restricted fvnds Unreslricled funds Total funds 2021 Tangible fixed assets Investments 2.689,325 1,797.721 907,778 2.705,499 1,788,169 901.156 40.000 913,597 2,741.766 40,000 983,097 3.712,422 35,000 761,209 2,593,930 35.000 836,000 3,576,499 Other net assets 69,500 970,656 74,791 982,569 18. CAPITAL COMMITMENT Manchester Settlement has onlered into a contract with Emerge LTD for capital goods and ServeS. At lh8 year end, MS paid lull cost of £1376 for building bin shelter, which was complolpd over the May- June 2022 period. 19. OPERATING LEASE COMMITMENTS The ¢harity had total commitments under operating leases expiring as follows.. Equlpmont Property 2022 2021 2022 2021 <1year 2-5 years
5 years 521 912 521 14,980 60,067 27,531 102,578 14.281 57.125 40,463 111,869 1,433 1,433 1,954 20. COMPANY LIMITED BY GUARANTEE Under paragraph 8 of Ihe Settlement Memorandum, every member undertakes to contribute to Ihe assets of the Settlement in the event ol being wound up while he or shè is a member, or within one year after he 01 she ceases lo be a member, for payment of the debts and liabilities of the Settlemenl contracted before he or She ¢eases to be a member, and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributions among themselves. such amounls as may be required, not exceeding £1 per member. 21. RELATED PARTY TRANSACTIONS There are no entities vjilh significant ¢ontroVinleresl over the ch8rity. There were related party transactions with a sole trader (IA services}, a close family member of a SMT member. All transactions were on normal commercial terms, totsling lo £2.235 in FY 2021122 (FY 2020121.. £4,978), with an outstanding balance of £400 al the year end. Thère werg also trans8dions with a sole trader Icalligraphy Inkl run by a MS Iruslee. All transactions We on normal commercial terms. totsling to £311 in FY 2021122 IFY 2020121.. none), with an oulslaniling balance 01 £92 at the year end. Page 34