Company Roglslratlon Number 00241676 Charity Number 228577 MANCHESTER SETTLEMENT A COMPANY LIMITED BY GUARANTEE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023.
MANCHESTER SETTLEMENT ACCOUNTS YEAR ENDED 31 MARCH 2023 CONTENTS PAGE Members of the Board and Profession81 Advisers Trustees, Report Independent Auditors. Report to the Members 13 ststemenl of Fin8ncial Actwilies 16 Balance Sheet 17 C8sh Flow Statement 18 Note$ to the Accounts 19
MANCHESTER SEThLEMENT MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS BOARD OF TRUSTEES Role Dale of in year intmenl Date of in year nation An laDo David Black Carol Bartram Maria Lester Michael Conw8 Marbn Sutton An ela Beacon Phili Lukes Na ib Abdullahi Treasurer 0811112022 Chalr 2010912022 2010912022 | 2010912022 2010912022 COMPANY SECRETARY Adrian Ball SENIOR MANAGEMENT TEAkl Role Adrian B811 Chief Executive REGISTERED OFFICE AND PRINCIPAL ADDRESS New Roundhouse 1328- 1330 Ashton Old Road Openshaw hlanchesler M11 1JG AUDITORS Crowe U.K. LLP Chartered Accountants & Registered Audito The Lexlcon Mount Street Manchester M2 5NT BANKERS The C¢>operalive Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP SOLICITORS HLF Berry 446 Barlow Moor Road Chorllon Manchester M21 OBQ Page 1
MANCHESTER SEThLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 Chair'$ Roport I would like to bggin my report by thanking the Trustees. Chief Executive. staff and volunteers that have contributed to Ihe Charity during the year. The chgrity has continued to grow ils impact Ihrough the extension of seNi¢es and the development of new services that positively impact upon the wide range of inequalities that the residents of North Manchester face on a daity basi5. The trustees arè very proud of the staff and volunteers that are driven to redu¢e these inequalities and improve the life chances of local p80pI&. IIIIG sfpn MANCHESTER SETTLEMENT 'J•iriE5 1¢" W8 have benefitted greatly from many partnerships that have provid8d both funding for our activities. and advicg and support lo enable us to increase our effectiveness. We are please(J lo have bogn abl& lo ¢orLtinue to secure funding for th8 delivery of Health Engagement and Education PTojecls for another year and are developing a strong track record of delivery of Ihgsg type of services across North Manchester. 2022123 saw a concerted effort lo ensure we maintained sufficient fvnds in order lo complete the 'buy back" of the long-tem sub lease on signfft3nt parts of our building. Th8 continued support of the Lloyds Bank Foundation and more rec8ntly Power to Change have additionally allowed us to review parts of our intemal processes and systems ready for future challenges. We have worked th Iheir funded consultants lo review nursery processes. and HR management information system and document management systems. All these work strands will add efficiency and value for th& next stsges of our development. Our SLJPPOrted Housing Services continues to $u¢cesslully deliver a block contract from Manchaster City Council which builds on our expertisg in working lo secure thè best possbble outcomes for young people who arrived Ihe UK as unac¢ompanied asylum seekers. The community services that we have (lelivered from The New Roundhouse for many years have bècome much more central to our purpose. The New Roundhouse now has a clear identity as a Community Hub with a huge footfall of children, young p8ople, and adults foi up lo 14 hours per day, 7 days per week. Activities Page 2
MANCHESTER SErrLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 provided directly by our staff or volunteers are complimenkd by activities provided by local partners organisalions. Ouf chIldca and lamily support services have continued to work with very larg& numbers of children and families. Our Nursgry provision was just 4 years old in September 2022 but combined with our after-school provlslon was provided education for over 130 children each week. We are very proud of the way that our staff team have ernbraced the communrty antl family locussgd nature of our provision. This community focus was reinforced through our charlty rrtjrandlng exarcise, whefeby all our childcare was branded as "Manchester Settlement Community Nursery". Corporate Challgnges It has been a year of continued steady growth for the charSty. Cora management systems have improved considerabty due to investments in our a(Jmin, markelino. and finance teams. laying the foundalN)ns for future expanslon. The koy challenges foi the charity moving into 2023124 will be regarding the inflationary pressures that impact upon all aspe¢t of our busin8ss. As a real living wage employer, our annual salary increases particularly for lower rates have been high110% for April 20231. when Ihls Is not matched by equivslenl increases in grant OT contract income. there are clearly pressures upon project viabilty- In January 2023, OFSTED launched new compulsory standards for assessing Supported LNing 16- and 17- year-olds which will have a significant impact on a large part of our service delivery. We took the opportunity to restru¢tur8 the Housing staff team in anticipation of the pressure$, in readiness for Ofsled r8gislrath.on in 2023. The trustees would I{0 lo thank all the fvnder5 that have made our significant achievements possible. Major funders have included.. Manchester Clty Council Uoyds Bank Foundation Young Manthestgr Ono Manchester 4CT Limited Manchest8r University NHS Found8tion Trust Greater Manchester Centre for Voluntary Organisation Our work would not be possible without the commitment of our passionate volunteer5 and staff who are driven lo improve the live5 of young people. The bDArd would addlllonally wish lo pass on their thanks to them all. R•vlew of Charlty's Posltlon Our financial position al the entl of the reporting period Is healthy. Our free reserves lunrgstrtcled funds that are not used to fund proFetyl provlde for around six months of operating costs. Plans for the next 12 monlh The charity will continue to implement Intémal and 8Xtemal plans that enable us to deliver on our nowty consid8rgd purposè statement- STRONGER COMMUNITIES TOGETHER. Page 3
MANCHESTER SErrLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 S•rvice are¥s and thelr prlorltlgs Young Peoplos SeTvi¢*s Ilncluding Supported Houslng) To work with investment partners in order lo incr8ase the supply of homes for vulnerable young adults in Manchester We continue with our service improvement plans, focusslng upon continued staff development We become a recognised centre of excellenGe with regard lo working with asylum seeking young people To prepare for a future OFSTED framework that will be a mandatory inspection arrangement for the service Chlld and Family S•rvices To become a recognised Family Hub, within the Manchester and national neork of fomily hub cenlres To explore oplions for growth of our impact upon Children and families in othef cornmunty sethngs To achieve al least silver standards in all council quality awar¢Js To prepare for future OFSTED inspections Community. H&alth and Wellb•lng To d&velop a long tenn strategy for ensuring an appropriate mix ol targeted and open accoss services that can be shown lor the impact they have on individuals and thè community as a le To develop our premises to include a café style environm¢nt To develop new partnerships Ihat will ensur? that our community hub conunues to be useful for the community Pag8 4
MANCHESTER SErfLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 To respond lo developing n8@ds, particularly around fuel and genefal poverty of families and adults To build a service offer that Is attractive to health commissioners wth regard lo community hgalth education and messaging Charity Leadership and Management To continue our work in developing leaders In our charity. Our naw leadership group will be very helpful with this To create a new HR management Information plattomi to drive future developments around internal comms and data managemenl To develop initial then longer term plans for the most impactrul and economically resilient ways of uslng all of the spaces in The New Roundhouse To build the capacity strength of our board of trustees and management team. and the quality of system5 that serve them. so as to have a sound succession plan To continue to progress our new marketing strategy To ¢Jevise a 'consullancy' offer to other organisalions in areas such as marketing. finance and childcare SignSfl¢ant Events The °Dèed of Surrenderf which Iransf8rred the sub lease of parts of the building from the LTE Group back to Manch&ster Setuemenl was completed on the 271h of Aprtl 2023. This will have implications for our assats, liabilities. antl operat*)nal profftability from that dale. All premises-related costs lutililies, ¢leaning repairs etc.) will incrèase now that LTE are not conthbLrting to these costs. The 2023124 budgat pressures have necessitated a reduction in staffing levels in our a¢Jministralion functions and the application of other operational budgets to medlale lor these extra Costs. Income targets for room hire have been increased. and a new target (or income from Gonsullancy h8ve been in1rcCed. Cashflow predicttons havg been amended lo reflect these cost pressures. Signature Maria Lester Chair Date= 201h July 2023 Page 5
MANCHESTER SEThLEMENT TRUSTEES. REPORT YEAR ENDED 31 MARCH 2023 INTRODUCTION The trustees are pleased lo presenl their annual Trustees, report together with the financial stslements of the charity for the year end8d 31 March 2023 which are o1$0 prepared to et the requirements for a directors. report and accounts for Companies House. CHARITIES ACT PURPOSES The financial statements comply with the Charities Act 2011. the Companies Act 2006. the Memorandum and Articles of Association, and AOUntIng and Reporting by Charities.. Ststemenl of Re¢ommendetl Pradice applicabl8 to charities prep#rir their accounts in accoréance with the Flnancial Rgporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effectlve 1 October 2019}- The dlrectors of the charitable company (the Gharityl are its trustees for th8 purpose of ¢harity law. The trustees and officers servirvj during the year and since the year end are as per page 1. STRUCTVRE GOVERNANCE AND MANAGEMENT Legal status Manchester Sgtuement is a private company limited by guarantee Ireglslralion nurnber 00241676) an(1 is a registered charity Iregislration number 2285771. 11 is govemed by its Memorandum and Arti¢les of AssocSation dated 12 August 1929 as amended 16 January 1997. 28 November 2013 and 19 September 2017. Govem8nco The charity has a board of Irustees that oversees the running of the organisation. The board of truslees are al8Cted al the Annual General Meeting. Each year. they also elect three honorary officers from their own number.. a Chalrperson, Vicg-chairperson. and Treasurer. They also elect a CDmpany Secretary who does not need to be a trustee. The board shall be not less than three and with the upper limit defined by the board from lime lo time. Trusloes musl reslgn al the Annual General Mtsellng if they have beon on the board for three years but may sland again for re-e¢t10n. fruslees are recruited and elected if a particular skill or experience is identifi8d. The board of trustees may co-opt advisors to the boaid as and when particular skills are required. Charity Governan Code The Trustees have adopted the Charity Governa Code, an updated version of which was published in Decomber 2020, and are guided by its piinctples and recommended practice for good governance. Inducting Trusleos All new trustees are interviewed prior to appointment by the Chair and CEO before being considered for appoinltnenl by the trustees. Upon appointment they ar8 required to undergo D8S clearance checks as part of our safeguarding policy. New trustees then spend a half day in the charity touring the different projects to meet staff and seTViCO users. They are inducted into the role of o trustee based upon the Charity Commission guidancg. Declsion Making Th8 trustees have agr88d a scheme of delegation lch specifies the decislons. limits and tolerances that aro available to Ihe CEO and lo other staff. The trustees agree the charity's strategy and budget plys a limited range of stslulory policies. The CEO may make decisions that are in accDrdance wllh thg charity's strategy and agreed budget, including the hiring of staff an(J a9reeing conlraGIs. Page 6
MANCHESTER SEThLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 OUR PURPOSE CREATING STRONGER COMMUNirrES TOGETHER Our stralegiG framewrxk continues to direct our decision making and our pre¢tice across all parts of the charity (RETING 8TRONtif. R COMfllJNITIE5 TofyEIHtR ¥halWe 'i%h 10 See . rtAimsj' *thfvy 111)al We Dur ve shatpeopleartr musipowertulvtherbcuDn¥tediofornrnunitit5 Be Ir)11 a tran5paieni 8p travE ena&8hto 31{nI boundaries MANCHESTER SETTLEMENT Public Banefil In shaplw our object8 for the year and planning our actNities, the tNstees have considered th8 Charity Commission's guidance on public benefit, including the guidance 'pub5ic benefrt.. running a charity,. The original objects of Manchester Unwerslty Settlement (old name for Manchester Settlemenll defined in the Memorandum and Articles of Association registered in 1929 are.. To promote th8 social welfare of the poorer residents in the City of Manchester and neighbourhorxj. The beneficial area is the City of Manchester and District. In 2013 Manchester Settlement adopted a new sel of MemorandLtm and Articles which olaborated on this slighdy saying: To promote the advancement of education, the fvjrtherance of h8allh and all other measures for the social welfare of the poorer residents in the City of Man¢hest8r and neighbouring éislricts. The Irusl8es believe these original objects to still be relevant and appIable. however they plan to review and update them subject to Charity Commission approval in 2023124. The Trustees, report sets otrt Ihe activities and achievements of the charty during the year ended 31 March 2023. From the Trustees, report il can be seon what the benefits are and that the benefits are related to the aims set out above. Our work has continued to be centred around 6 cross cutting outcomes. 1) Learning and Growth 2) Economic Welfare 3) Wellbelng 4) Inclusion and Access 5) Social Relation5hipslConnecls 6) Communty Power Pag& 7
MANCHESTER SErrLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 All this work has benofiled both the direGt beneficiaries themsalves and their communities throughout tha City of Manchester. All the beneficiaries could be described within the tem)s of the original 1929 Memorandum and Articles of Association as 'lhe poorer residents of the City of Manchester 8nd neighbouthood and no individu81 has béen exduded on the basis of th8ir inability lo pay or by geographical or inappropriate restrictions. The availability of places is limited onty by numbers and criteria of need. In most casos there is no charge to the beneficiary because payment is recaived on their behalf from the publi¢ purse. ACHIEVEMENTS SUPPORTING OUR CROSS CUThING OUTCOMES DlgFtsI skllls groups and classes Arts and crafts groups ESOL classes Conveisalion clubs Well Women peer support groups Health Champions training First Aid training Stay and play childcare sessions Nursery education and care to 4 ygars After school club daily sessions PSHE for asylum seeking young p8ople Education advoc8¢y for young people School holi¢Jay healthy eating clubs Youth led Culture within all our youth provision Free or lowest P055ble ¢osl acbvlty Welcoming. friendly, caring spa¢es Renowned provision for SEN childr8n Baneficiaries have 30+ nalionalilies Targeting activily at excluded individuals relephone befriending for isolated individuals Ensuring suiiable access lo those wilh leaming and other disabilities Engaging people with ment81 heath issues Advocating for vulnerablè young people Celebrating drfferent CLtltures and religions Youth trustee Youth anels New friendships created daily Paren15 groups create lasting support groups Parents WhatsApp group I notice board We constantly strive to bring isolated people into positive group environmenls Our supported housing work is based upon creating social fiehvorks We are a trusied source ol inlormation on Ioc81 agencie5 Whole youth offer creating a Gommunity lor the young people Food pantry project Ona Money advi service Be Wèll advice and support Signposting and information seNIC8 Citizens advice sessions Free IT devices Flee Communty Café Free Grèche and stay and play sessions StrÈving lo be lowest 0081 childcare provider in the area Pop Up school unrforn) shop Supportlng benefits applications Free youth activities and trips Free food and drfnks provlded daily Free holiday activities and a hol meal Budgeting skills for school aged throu h to 8dulls Page 8
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 W8Mb•hg wedmY* ' Thursday communily drop in Signposting to spe¢iali51 advice Covid Heolth Equity work T81 Chi I senior exercise I massage" SenK)T Calch Up groups Buggy walks Earty holp I family support approach ensures good refeiral to other support PHSE programme lor asylurn gtek8rs Links wilh ext8fnal support agoncl85 e.g.. CAMHS. 42Dtt Street. Eclypse l Mind You Motter projoct Projerj 627 - school transTUon projèct OnshaW Community Organisations Nehwork is facilitated Objectives in place to secure funds lo pas5 on to community groups Free space provided for community groups to grow their projects 40+ volunteers per year are supwrted such that they can improve Ihgmselves and the lives of others Volunteer project ideas are invested in Community members have a ¢ontinual voice in our strategy and how we deliver CONTEXT Manch8ster Settlemgnl has been providing an evolving mix of services lo thè residents of North Manchester for 130 years with the objedive of enhancing thé Ilves of communrty members through projects lo improv8 health, edUtIon and community development. The objèctives for this work were relevant 125 years ago and continue to be relevant in 2023. The refreshed 2020 Our Mancheslgr Strategy highlights the areas of strength an opportunity within Manchester, and areas of continuing challenge wthin Manchester. Health: Mancunians have some of the poorest h@allh in the country e.g. heatthy lrfe of beb)w 58 years and high deaths trom cancer. heart, and respiratory illnesses. Poverty.. In March 2019, around 45,150 children under 16 lived in low-income households 141%) in Manchester compared wlth the average of 30.10 across th8 rest of the country. A fair economy: Too many of our residents have insecLJre work and lower pay Compared to many workers who work in our city. Fewer Mar)¢hester residents178Y.l earn at least the Real Living Wage, compared lo all workers in our city 187g/(Il. and haw of residents with no or low qualifications are unemploy9d. Affordable housing: Manchester has Committed to creating 32,000 new homes by 2025- this musl indude a range of affordabl8 homes across the city lo support dSverse communitie$. Climate change= The clty has committed to becoming zero-carbon by 2038 at the klesl and the Council tleclared a Climate Emerg8ncy in July 2019. BrexiL. The UK'S departure from the European Union presents a challenge for many businesses and our communi118S. an¢h8sler Setllemenl continues to bulld the capacity ol Ihoso who may face these barriers to have the best chances to tske part and conlribuie lo the developing cultural and economic vision for Manchester. FIMANCIAL REVIEW Financial posltion The ch8rily ended th¢ financial year in a very positive financial PDSition. The availability of gran15 to support our long-tem) ¢harttablg work with communities affected by Covid-19. and the business sUPPOrt grants available to us ensurod that we were able lo not tEly upon subsidi5ing service delivery from other charitable funds. The Pa9
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 previous and this years, legacy fund has allowed for the selected support of charity fijnded projects that would have had to Cease otherwise. Our principal souices of fvnding during the year continued to be unrestricted fee funding from the sales of childcare places and rental income from our houses plus reslricled grant funding for service dgvelopmenl or delivery proje¢ts- thèse are all recorded as Income frorn charitsble activities- 96.34Y• of the total income of the charity 12022.. 99.97V.l. The other 3.66°h is derived from voluntsry donations and investment income. Proportion of income from charitable activities in the year 2023 is lower du8 lo receiving larger residual legacy during the year. Overall. our income increased by 13.2Wo ¢ompar8d to the prevk)us year (2022 saw a decrease of 12.6•hl. Our risk managemènt plan ftxusses the attention of Iruslees and managers upon areas of financial volatility on monthly basls. Our budget for 2023124 predicts a surplus of £5K which has been agreed by the board. The budget utilises £15k of designated funds funded through th8 remaining £281k legacy fund received in the previous and ¢urrer)t years. The board have allo¢ated thls designated fund to projects and developments that have a signincanl impact upon our beneficiaries. In 2022123 restricted funds r8ised for projects support lotalled £168.918 wth assctiated expenditure of £174,342. In the previous year restficled funds raised were £157,164 with expendilure of £162,455. Any restricted funds unspent are carried foNard for use in following years where permitted. Going Con¢?m The trustee rlsk assessmènt of the trading conditlons, cash fk)ws and reserves is that whilst the grant incom& forècast for the next y8ar is reduced, the high levgl of reserves enables the charty to deslgnate funds lo projects that further charitable objectives. The trusle8s ¢on¢lude tmal the Gharty is a going concerF) and that there are no material un¢ertainties that cast doubl upon the ability of the charlty to remaln as a going concern for at least next 12 months from the signing of the accounts. Investment powars and policy The trustees, having regard lo the liquidity requiremonts of operating the charity operat& a number of instant access currgnl and doposrt accounts attracting low levels ol interest with high street banks. Balan¢8s are monilor8d to maximise protection from bank failurès. The Flagstone a¢¢ount management platform has been adopted to simplify the management of mulllple aGwunls. RSsk Management The trustees hav• a risk management Strategy which comprises of.. an annual review of the principal risks ond uncertainll&s that the charity faces and the establishment of policies. systems 8nd procèdures to miligale tho$8 risks entIfIed in bi-monthly updates regarding significant ¢hanggs lo Ihe risk register. the impl&menlalion of procedures designed to minimise or manage any potenlial irnt on tho charity Should thosg risks malèrialisa. This work has identified that the key risks for the Gharity and tho key actlons are- Risk Actions to refluco risk Numbers oi trustees 18klll profile of truste08 Progress wlth current recrullmgnt activity IncreaseLI costs for ninning the bullding upon exit New approachl modelling of how to present and of Man¢hestef Colleg apply for oveTheads Plan lo have NHS partners elc delivgriNJ f¥om the building whilst paying for sessional room hire Pago 10
MANCHESTER SEThLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 R•serves poll¢y The trustees operate a risk-based approach lo entI.ng an ideal level of reserves th81 wlll give our partners and stakgholders confidencg that the organisation is robust, whilst demonstrating we maximise the impact of our funds upon beneficiarles. The naturè and variability of our contracts and income along with our contractual Commitments impact upon our risk analysis. The risk analysls has identified that an absolute minimum of three months of operating costs should be maintained, but that six months of operating costs would enable us to deliver a well-managed service that would allow us to ensure a high-qualty redesign or transfer of assets and activities for the benefit of our beneficiaries. For 2023124 our minimum level of reserves is required lo be £321.000 with a largel level of reseNes of £642,ODO. Of the unrestricted fund of £984,657 Ino18 15} £263,009 has been ulilis8d lo fund the fr8ehold houses, £37.495 fixtures and fittings and £51.253 to fund refurbishm8nt. At the 31&l March 2023 there were £632,900 of free reserve8 which is just below of the laiget l&vel of reserves. The management team will closely monitor income and expenditure during the forthcoming year and depending upon financial performance will seek lo invest any surplus reserve to Secure long term public benefit. Pay policy for senltsr staff Directors are not paid but may claim expenses incurre¢J. The salary Scale of the Chief Executive is approved by the full board of Irustees following an analysis of Gomparative organisalions and a performance revlew. Fundralslng The charity had no fundraising activities requirir4J disclosur8 under S162A of the Charities Acl 2011. Post Reporting Ygar Evtrnts At the lime of writing the trustees have completed a process of acquiring the long-lemi sub lease currently owned by the LTE group. The acquisitn of this lease will reduce freg reserves to a level which the trustees have 8c¢ounted for through the designats'on of such funds in the 2023124 budget. Acquiring the space will provide security to all Gurrenl Manchester Settlement operations and will provide a plafform for considerlng new charttable serviceslproiects. The acquisition will mean that increased building managemenl Gosls wll be borne by the charty annually and these have been considered with forward budgets. Trustees, responslblllties in rnlatlon to the financlal statement$ The charity twslees (who are aL80 the diredors of the Manchester Settlement for the purposes of company law} are responsible for preparing a trustees, 8nnual report and financial slalements in accordance wlh applicable law and United Kingdom A¢counting Standards {Uniled Kingdom Generally Accepted Accounting Practicel- Company law requires Ihe charty tSleeS lo prepare financial ststements for 8ach yaar which give a true and fair view of the state of affairs of the charitable Gompany and of the incoming resources and application of resources, including the income and expenditure, of the charitable Company for that peTiod. In preparing the financial stalemenls. the trustees are r4uired to.. select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP., make judgements and eskn"mat8S that are r8asonable and prudent.. slate whether appll¢able UK aecountsng standards have begn followed, $ubj8ct to any material d8partures disclosèd and èxKlalned in Ihe ffinancial statements., prepare the financial statements on the going conc&rn basis unl8SS it is inappropriate lo prèsume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any tirne the linancial position of the tharity and lo enable them lo ensure that the financial 51alements compty Page 11
MANCHESTER SETTLEMENT TRUSTEES, REPORT YEAR ENDED 31 MARCH 2023 with the Companies Act 2006. They art also sponsible for safeguardlng the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible lor the maintenance and integrity of the COTporale and financial information includgd on th8 charitsble company's websit8. Legislation in the Unlted Kingdom gtsveming the preparation and dissemination of financial slat8m8nts may differ from legislation In olherjurisdictions. Statem•nt as to dls¢losure to ¢ur audltors In so far as the Iruslees are aware at the lime of approving our trustees, annual report there is no relevant inforrnalion, being information needed by the auditor in connection wilh preparing their report, of which the charity's auditor is unaware, and the trustees, having made enquiries of fellow directors an¢J the auditor that they ought to have individually tsken. have each taken all steps that he15he is obliged lo take as a dlredor in ord@r to make themselves aware of any relevant audit infOrMatn and to establish that the auditor is aware of that infomialion. The Trustees have tsken advantage of the small companies exemptions providBd in $tion 415A of the Companies Act 2006. By order of the board of tnjstees Maria Lesler- Chair Dale 20th July 2023 Page 12
MANCHESTER SETTLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2023 Oplnlon We have audlled the finaneial statements of Manchester Setuement I'th8 charitable company'l for thè year ended 31 March 2023 which comprise Statement of Financial Activitles, Balance Sheet, Slalement 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 Stsndards, including Financial Reporting Stsndard 302 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generalty Accepted Accounling Praclicel. In our opinion the financial slalemenls.. give a true and fair view of the stale of the charitable company's affairs as al 31 March 2023 and of its income and expenditure, lor the year then ended- have been properly prepared in accordance with Uniled Kingdom Generally Accepted Accounting PractiC8,' and have been PTepared in accordance with the requirements of the Companies Act 2006. Basis for opinSon We conducted our audit in accordance with Inlernalion81 Stsndards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities undgr those standards are further described in the Auditor's responsibilities for the audit of the financial slalemen15 SeCtM)n of our report. We are independent of the charitable company in accordance with the ethical requirements Ih8t are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordan wllh these requirements. We beli8ve that the audit evidence we have obtained is SLrfici8nt and appropriate to provide a basis for our opinion. Conclusions relating to goln9 concem In auditing the financial slalgmenls, we have concluded that the Irust88'5 use of Ihe going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainlios relating lo events or conditions that, Individually or collectively, may cast signific8nl doubt on the chlritable companvs ability lo continue as a going concern for a period of al least bNeFve months from when the financial statements are aulhorised for issu8. Our responsSbilities and tha responsibillti&s of the Iruslees with respect to going con¢arn are dascribed in Ihe relevant sections of this report. Oth•r inforniatlon The trusteeg are responsible for th8 Other Information conlalnod within the annual report. The other Information comprises the information included in the annual report, other than the financial slalements and our auditor's report Ihereon. Our opinion on the financial statemenls does not cover the other infomialion and, except to the extent otheiSe explicidy slated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility 15 to read the other information and. in doing so, consider whether the other infomialion is materially inconsistent with the financlal slatements or our krwledge obtained in the audil or olhewSse appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, we are required to determine whether this gSves rise to a materfal misstatement in the financi81 ststemenls themselves. If, basgd on the work we have perfomied, we conclude that thère is a material misslatemant of this other infornalion. we are required to report thal fact. We hav& nothing lo report in this regard. Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion based on the WOTk undertaken in the Course of our audit the information given In the trustees, report, which includes the directors, report prepared for the purposes of rnpanY law. for the finarrial year for which th& financial ststemgnts are Page 13
MANCHESTER SErrLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2023 pr&par8d 15 consislgnl with the financial statements. and the directors, report included within the trustees, report have been prepared in accordance wilh applicable legal requirements. Matt8rs on whlch we arn requlred to report by ex¢8ptlon In light of the knowledge and undtsrstsndlng of the charitsble company and their envlronment obtalned in th& course of th8 audit, we have not identified material misstatements In the directors, report included within Ihe trustees, report. We have nothing lo report in respect of the following matters in relation lo whi¢h the Companies Act 2006 raquires u5 to report to you rf, In our opinion-. adeqvale and proper accounting records have not been kept. or the financial statements are not in agreement with thè accounting records and returns- or Certain disclosures of trustees, remuneration sp8¢lfied by law are not made.. or we have not recelved all the infomation and explanallons we requlre for our audit,. or the Irusle8s w8r8 not entitlgd to prepare the financial stst8menls in accordance with the small companies regime and take advantage of the small companies, exemptlons in preparirvj the Iruslees, direcloTS' report and from the requirement lo preparg a strategic report. Respon$lbllltles of trustggs As 8xplained more fully in the Iruslees, r8sponsibi1rt18S Statement sel out on page 11, the Iru$lees Iwho are also the diredors of the charitable company for the purposes of company18wI are responsible for the preparation of the fin8n¢ial slalements and for being satisfied that they give a true and fail view, antl for such internal control as the Iwstees determine is necessary lo enable the preparation of financial statements that are free from material misststement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability lo continue as a going con¢em, disclosing, as applicable, matters relatèd to going concern and using the going concern basis of accounting unless the trustees either intend to 1Squidate charitable company or to cease op8rations. or have no reallslic altgrnalive bul lo do so. Audltofs responslbllltles for the audlt of the flnancial sLit8ments Our objectives are to oblaln reasonable assurance about wh8ther the financial statements as a whole are free frorn material mi5slatemont, whether due to fraud or error, and to issu8 an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material mi551atem$nt when it exists. Misststemenls can arise from fraud or emr and are considered material sf, individually or in the aggreg8tÈ, they could reasonably be expected to influence the economic docisions of users taken on the basis of these financial statemenls. Details of the exleNI lo which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A furth8r description of our responsibilities for the audlt of th8 financial statements is located on the Financial Reportlng CounGil'8 website al- www.frc.or .uklauditorsies nsibilikn"es. This descriptlon forms part of our auditor's report. Extent to whleh tho audit wa$ considered capable of dete¢tlng Irregularltlès, Including fraud Irregularities, including fraud. are instances of non-complianc8 With laws and regulations. We Identif and assessed the risks of material misststement of the financial statements from irgUIantieS, Ythether due to fraud or error, and discussed these beeen our audit team members. We then designed and performed audit procedures responsivo to those risks, including obtaining audit evidence sufficient and approprfate lo provide a basls for our opinion. We obtsined an understanding of the legal and regulatory framewotfrs within which tho charitable compary operates, focusing on those laws and regulations that have a direct effact on the detemiinalion of material amounts and disclosures in the financlal statgmenls. The laws and rulatIonS we considered in thSs Context Page 14
MANCHESTER SETTLEMENT INDEPENDENT AUDITORS, REPORT TO THE MEMBERS YEAR ENDED 31 MARCH 2023 were the Companies Act 2006. the Charitlgs Act 2011, togethér with the Charili8s SORP IFRS 102}. Wo assessed the required comFAian¢o wth these laws and regulations as part of our audit procedures on the related financial slatemonl items. In addition, we ttjnsidered prowsions of other laws and regulations that do not have a direct effect on the financial ststemenls bul compliance with which fflighl be fundamental lo the charitable company 5 ability to opèrate or to avoid a material penalty. We also considered the opportLJnities and incentives that may exist thin the ctharilable company Igr fraud. The laws and regulations wè considered in this context for the UK operalions were employment Eegislalion, taxation lègislation and health and safely legislation Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations lo enquiry of the Trustees and other management and inspection of regulalory and legal correspondence. if any. We identified the greatest risk of material impact on the financial ststemenls from irregulariligs. induding fraud. to be within the liming of recognition of grant and contract income and the override of controls by managern¥nl. OUT audrt procedure5 to respond lo these risks included enquiriès of management. sample lesling grant agreements from source agreement lo posting in the nominal ledger, including local authortty funding claims. sample testing on the postlng of joumals, r8viewing aOUntIng eslimales for biases. reviewing regulatory correspondencè with the Charity Cornmission and reading minutes of meètings of those charged with govemance. Owing to the inherent limitations of an audit, there 1$ an unavoidable rtsk that w8 may not have detected Some material misstatements in the financial stalemenls, even though we have propedy planned and performed our audit in accordance with auditing standards. For exampl8, Ihe further removed non-compliance with laws and regulations {irregularitiesl is from the events an(J transactions reflected in the finan(aal statements, th6 18SS likely the inherenuy limited procedures required by auditing standards would identify it. In addition, as with any audit. there remained a higher risk of non4election ol irregularities. as these may invofve collusion. forgery, intentional omissions. misr8presenlations. or the override of inlemal controls, We are not responsible for provenling non-cornpliance and cannot be expected to delect non-compliance with all taws anrl regulations. Use of our report Thi$ report is made solety to the charitable company's memb&rs, a5 a body, in accordonce with Chapter 3 of Part 16 of the Compani8s Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members tho$8 matters we are required lo slate lo them in an auditor's report and for no other purposg. To the full8St extent permitted by law. we do not accept or assume responsibility to anyone other than th8 chadlable company and the charltable company's members as a body and the charitable companWs trustees as a bo(ty. for our audit Wofk. for Ihls report, or for the opinions we have formed. Vicky Szulisl Senior Statutory Audrtor For and on behalf of Crowe U.K. LLP The Lexicon Mount Street Manchester M2 5Nr 31 July 2023 Page15
MANCHESTER SETTLEMENT STATEMENT OF FINANCIAL ACTIVITIES (Incorporatlng an Income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2023 Unre5tri¢ted funds Restrictsd Total funds Total fundj funds 2023 2022 Note Income from: Donations and legacies Charifable actimties Cther trading activities In$trInts 44.373 1.042.227 19,354 2.350 4(3n 1.211.145 19.354 2,350 282 1,112,060 15,738 135 168,918 Total 1.108,304 168,918 1.277,222 1,128,215 Expend5ture on: Charitable actimties 982.302 174,342 1.151644 997,292 Total 982,302 174.342 1.1W644 997.292 Net IncoTrlng resourcas bofore transfw8 126.002 {5,424} 120,578 130,923 Gain on Intrrents Transfers 10 5,000 15 6,622 (6,6221 Net mov•mgrit in funds 132.624 (12,046) 120,578 135,923 Reconcllalion of fwds.. Totsl funds brought forward Total funds ¢arried forward 15,16 15,16 2,741.766 2,874,390 970.656 958.610 3.712,422 3,833,000 3.576,499 3,711422 The charity has no recognlsed gains or losses other than the results for Ihe year as above. The notes on pages 19 to 32 fom part of these accounts Page 16
MANCHESTER SEThLEMENT BALANCE SHEET Reglstered company number: 0024167 AS AT 31 MARCH 2023 2023 2022 Nole Flxed assets Tangible assets Inves1rr*nts 2,645,449 40,000 2.689,325 40,000 10 2,685,449 2,729.325 Current assets Debtors Cash 11 99,176 1,114,939 1,214,115 76.278 961.854 1,038,132 Credltors: amounts fallSng duo withln one year t current assets Credltor$'. amounts falling due after mo than one year 13 Net assets 12 {66,5641 155,0351 1,147,551 983,097 3,833,000 3,712,422 Funds stricted Unr8stricted: Designated funds (ther 16 15 958,610 970.656 1.889,733 984,657 3,833,000 1,681.553 1,060.213 3,712,422 Thg financlal slalements have been prepared In accordance with the provisSon$ applicable to companies subjKt to the small companies regime and in accordance with the provisK)ns of FRS 102. These financial slal8menls were approved and authorised for Issue by the board of Imstges on the 20th July 2023 and ara signed on their beha by.. Maria Lesler Tho notss on pages 19 to 32 form part of these acGounts Page 17
MANCHESTER SETTLEMENT CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2023 Cash Ilow Statement 2023 2022 Cash hrflows I loutflows} from operatlng aGtl¥itlès Net ¢ash promded by operating actitieS Cash Flow$ from investlng aCtltIeS Bank interest receiwj Purchase of fixed assets I cash applied to inting actithtios Cash Flows from financlng actfvitles Loan repaynEnt Change in cash and cash equivalents in Ihg year Cash and cash equivatents at the beginning of the year Cash and cash oqulvalents at thfj ond of the year 1n,121 203.3801 2,350 (21,386} 135 146,0391 (19.036) {45.904) {14,000) 143,476 153.085 961.854 818.378 1.114939 1.854 Slat*ment of Nat Debts nt Brought Ft)rward 1,854 Cashfiow nt Carried Forward £1,114,939 £153,085 Net Movement In Fund$ 2023 2022 N•t movement in funds for the reporting pèrlod {as per the Statement of FknanGlal Actlvitios Adjustrrents for: Depreciation Interest recei1 120.578 135,923 65.262 12,350) 62.213 {135} {5,0(K)) 10,208 171 ReIa00n (Increase)IDecrease in debtors Incr888ellDeGrease} in creditors Not cash provided by operatlng activitie8 122,898) 11,529 172,121 203,380 The notes on pag8$ 19 to 32 fomi part ol Iheje a¢counts Page 18
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 GENERAL INFORMATION Manchester Settlement is a private company limited by guarant8e and a registered charity. The registered office and principal address is 1328-1330 Ashton Old Road, Openshaw. Manchester. M11 1JG. The ¢harty is incorporated in the UK. ACCOUNTING POLICIES Basls of accounting The accounts have been prepaiod under Companies Act 2006, and in accordance with the Financial Reporting Standard 102 IFRS 1021 and follow the recommendations in "Accounting and Reporting by Charities.. Stslemenl of Recommendod Practice" issued in 2015 Irevised 1 October 2019}. The charity meets the definition of a public benefit entity. Golng ¢on¢gm As disclosed in the Chair's Report on page 3 and the Tnjstee's Report on page 10. the trustges assessment of the tradin9 conditions. cash flows and resetves 18 that with new inflationary pressures, plans are in place lo mediale the impacl, and flexibilities exist that will enable the management team lo reduce eosls in a timely way shwld trading conditions require it, and conclude that the charily is a going concern. 11 is therefore leli that there are no material uncertainties that cast doubt upon the obilily of tho charity to remain as a going concem for at least next 12 months from the signing of the a¢counts. Incoming rOUrceS All inc(Ime Is rg¢ognised in the Slalomènt of Flnan¢ial ActivitS when the conditions for receipt havé been met and there is reasonable assurance of receipl. Donatlons Donations include amounts recaived unéor Gift Aid together wth Income Tax r8(x)verabla Iher90n. Re50ure•s expended Th8 costs of projects, fund-r8isSng and publicrty, and management and administration comprlse expendllure. including staff costs, directly attribul8ble lo the activity. Where Costs cannot be directly attributed to specific activities they hav8 been allocated lo core ¢osls which are then recharged to each delivery area on the basis of proportionate use of $quaTe footage in the premises. Charitable •xpenditure Includes all expenditure directly relat8d lo the obiects of the charity (Sn accorfance with the SORP) and comprises project costs, grants and directly attrlbutsble support costs. Governan costs include those costs incurred in the governance Of the charity's assets and are 8SSOCk4ted with conslitutional and statutory requirefflents. Fund accountlng Unrestricted funds are avallable for use al the discretion of the dlrectors in furtherance of the general charitable objeclN8s. Restricted funds represent funds received whose use is subject lo resldctSons imposed by donor. Designated lunds represent funds earmarked for a particular use by the tru5te&s. Page 19
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 2. ACCOUNTING POLICIES Icont.) Investment assets Fixed asset inveslmenls comprise a Lcwry drawing which is included at the trustees. best estimate of market value, inforrned by expert advice. D8preciation Depreciation is calculated so as to write off the cost of an asset, less Ils eslimaled residual value, over the uselul economic Ilfe of that asset as follows.. Fixtures ané fitb'ngs L8as8hold property Land and buildings R¥furbishment 25OA p.a. straight line 149 year5 Straight line 50 years straight line 15Vo p.a. stralghl line Majority of assets co$ting more than £500 are capitalised al cost. Assets obtsined during quarter 4 are depreciated In the followkng accounthng year. Long le8sehold property is assessed annually for indications of impairment and if necessary the carrying value reduced accordingly. Dobtors Trade debtors are recognised at the s8tt18menl amount aft8r any trade discounts offered. Prèpayments are valued al the amount repaid net of any Irado discounts due. Cash at bank and in hand Cash at bank and in hand indudes cash and short term highly IKiuid investments wth a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. Credltors Short term ¢r8ditors are measured al the transoction prlce. Other finan¢ial liabilities, including bank loans. are measured inillally al fair value, net of transacllon costs. and are measured subsequently al amortised cost using the effective interest method. Financlal In5trum•nts The company only enters Inlo basic financial instruments transactions that result in the recognltion of financial assets and liabilities like trad8 and other accounts receivable and payable. loans from banks and other thir parties. loans to related parties and investments in rK)n*uttable ordinary shares. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of imp8im)ent. If obje¢live èvidence of impairment is found, an impairment loss is recognised in the SÈatement of Financk41 Activity. Penslon costs The charfly oporates 8 éefined conlribub.on pension scheme lor employees. The assets of the 5chem8 are held separately from those of the charity. Th8 annual contributions payable are chafged to the Statement of Financial Aclivitie5. Pag8 20
MANCHESTER SETTLEMENT NOTESTO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 2. ACCOUNTING POLICIES Icont.) Termination payments The charity accounts for lerminalion payments in the a¢¢ounting period they are announced. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF UNCERTAINT The company makes eslirnales and assumptions conceming the future. The resulting a¢counting estimates wlll, by definition, seldom equal the related actual rèsutts. The estimates and assumptions that have a slgnificant risk of causing 8 material adlustmenl to the carrying amounts of assets and liabilities within the next financial ye8r arg addressed below. {1) Usglul èconomic lives of tsngible assets Th& annual depreciation oharge for tangible assets Is sensitive lo changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They ore amended when necessary to reflert current estimates. based on technological advanGement. 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 useful ecorw)mic lives for each class of assets. lill Impalrment of debtors The company makes an estimate of the coVerable value of trade and other debtors. Trade debts have bèen reviewed by the management team and trustees, onty those with a realistic chance of recovery have remained as assets. When 8888ssing impairment of trade and other debtors, management considers factors including the currenl credil rating of the debtor, the ageing profile of debtors and historical experyance. See note 12 for the nel carying anK)unt of the debtors and associated impaimient provision. liill Key sources of estimation uncertainly Approxlmately £480,000 of the forecast income In 2023124 comes from fees. It Includes £469,000 fe8s from the nursery and child¢are servi¢$. The demand for these services is very sensiiive to the ability of parents to pay nurs8ry fees. Actual fee income received in April 2023 has begn in line wilh th8 forecast. Page 21
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 OONATIONS AND LEGACIES 2023 2022 Re8iduary Lega¢y Oonalions 42,750 1.623 44,373 282 282 CHARITABLE ACTIVITIES (>ants and c¢xtracts Rental inc0e 2023 Young Pec¢le's Pk)usirKJ Project Comrnunity Dewb)pnEnt Childcare Ctganisathonal DowBkpment 512.544 155.751 4.167 35.250 707,712 10.869 18.396 34,860 S23.413 174.147 478.335 35,250 1.211,145 439,308 439,308 64,125 (>ants and contracts Fees Rentsl incor 2022 Youw People's PbusiThJ Project Con#Nnity De)p1Thnt chic3re ()ganisational Deknpnt 464.456 115,639 32.623 2S,000 637.718 46,492 10,809 11.645 27.502 521,757 127.284 438.019 25.000 1.112.060 377.894 377.894 46,492 49,956 OTHER TRADING ACTIVITIES 2023 2022 Hire 19,354 19.354 15,738 1 5,738 Page 22
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 RESOURCES EXPENDED Charitable A¢tlvlties tivStle$ undertaken dlrect T¢)tal 2023 Support costs ' Pbuses YourrfJ Peoples Fknusing Project COnIty De*bpnEnt Childcare 6.319 329.042 170.116 407.730 913.207 6,319 438,589 206,632 505,105 1,156,644 109.547 36.516 97,375 243,437 Support Costs 2023 Acthiity e>penses Utilities Repairs and rraintenance Rates arbrj facilities man&Jement Staff costs Depreciation Insurance Miscellaneous eypgns8S Cffice Costs Professional fees 1,034 22,302 17,831 119,377 24,908 4,318 762 36,858 1,394 233,117 rnan G05ts Auditors, remunerallon 10,320 243,437 Page 23
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Charltable Activltles £tlvllles undertaken directly T¢)tal 2022 Houses Young peOpS Ftsusing Propct Comnijnity Dfftk>prYtnt "Chithare 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 costs 2022 Aclimty gwenses Util'ties Repair5 arKI maintenanee Rates and facilities managerrent Staff costs Depreciab Insurance scelLqneous e)penses (Krice costs ProfesSic81 fees 11.188 17,393 105.728 21.084 3,611 1,130 23.507 4,743 194.054 I>)rnance costs Auditors, remunerab'on 8.556 202.610 Page 24
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 STAFF COSTS AND NUMBERS 2023 2022 Wages and s91aries Social security costs Pension ccksts 672.989 588.068 36,211 21.899 646.178 27.692 746.344 2023 No. 2022 Chief ÉxBcutive cOrdInatorS Proj8Ct wjrkers Administrati Mrykers 32 30 42 40 Total number of staff Includes large numb8r of part time workers. On8 member of staff received remuneration in excess of £60,00012021122: one). During the year, no trusl¥es had travel expenses relmburse(J12021122: none). No trustee received remuneratw)n Of benefits in kind during the year. Th8 key management personnel disclosed on page 1 received aggregate remuneration, including employers Nl and pension costs of £74,23812021122- £70,547}. There were no slalulory redundancy payments made in the ygor ended 31 March 202312021122.. nonel. OPERATING SURPLUS Operating surplus is slated after charging= 2023 2022 Staff pen&on contributions Depreciation Auditors, renerati[ as auditors 27,692 65,262 21,899 62.213 32 Page 25
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 TANGIBLE FIXED ASss Ftre$ and Long leasehold Fr•ohokl land ffttlngs prope and bulkllngs R•furbtslwrnnt Total Cost Qr ¥aat1 At 1 April 2022 Add11t$ in Ihe year At 31 Wrch 2023 150.144 16,486 166,630 2,244.252 635.457 132.998 4,900 137,898 3.162,851 21,386 3.184,237 2,244.252 635,457 Depreciation Al 1 Aprll 2022 Charge for the year Al 31 Vorch 2023 111,595 17,540 129.135 194,576 15.063 209.639 100,660 12,709 113.369 66,695 19.950 86.645 473,526 65,262 538,788 Net book value Al 31 hlorch 2023 Al 31 [ch 2022 37,495 38,549 2.034.613 2,049,676 522,088 534.797 51.253 66,303 2.645.449 2.689,325 Tho "Deed of Surrand8rf whTrch transferred the sub lease of p8rts of the building from the LTE Group back lo Manchester Setuement was completed on the 27h of Apdl 2023. 10. INVESTMEMTS Movement In market valuo 20Z3 Arkel luS at 1 April 2022 PEwdlualion rket fdlug at 31 Vorch 2023 40,000 40,000 kSstorical cost at 31 March 2023 Thg L. S. Lowry drawing is included in the accounts at £40.000 bging the valuation on 41h April 2022. Trustees consider the value to remain the same as al valuatK)n dale. The drawing is held in safekeeping by the whitVrth Art Gallery, Manchester, who have provided the valuatson of the drawing. 11. DEBTORS 2023 2022 Trade debtors Olher debtors 58.946 40,230 .873 31.40S 99,176 76,278 Page 26
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 12. CREDITORS- Amounts falling du• within one year 2023 2022 Trade creditors Tayation and social security Accruals and deferred incon Loans Other creditor5 10.100 12.873 27.790 9,459 8.972 25.275 15,801 11.329 66.564 55.035 13. DEFERRED INCOME Am)unt as at 3110312022 Afft)unl released Arounl deferred in the year 'Balance as at 3110312023 4,500 11.0001 6,700 6,700 Deferred incotne cgnsisls of funds received for activrties to be undertaken from 0110412023 as Volunteering celebration event and Environmental project. Anx>unt as al 3110312021 'AnK)unt reaSed Arwunt deferred in Ihe year Balance as at 31103J2022 6.429 11.929) 4,500 14 FINANCIAL INSTRUMENTS 2023 2022 Financial assets that are n*asured at anM)rlised cost Cash held Trade d&btors Cxher debtors ey£luding prepayrrEnts 1.114,939 961,854 44.873 1.196 1.175.081 1,006,757 2023 2022 FlnarKial liabilities that we measured at amSed cost. Trade creditor5 0er creditors Accrua 10.100 9.282 10.770 9,459 7,773 12,219 30,152 29,451 Page 27
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 15. UNRESTRICTED FUNDS Balance at IncoThlng 0goIng 1 Aprll 2022 resourcos re$our¢es Transfors Gain Balance at 31 March 2023 Dgsignaled lunds Fixed asset fund Houses Lease purchase fund Residuary Legacy 1,148,520 265.398 115.062) 16.3191 6,622 1,140.080 259.079 210,000 280,574 1.889,733 210.0 42.750 252.750 267,635 1,681,553 29.811 151.192) 6,622 Unrostricted funds Cxher charitable fun 1.(KO,213 855,554 1931,110) 984.657 2,741.766 1,108,304 982.302 6,622 2,874.390 The fixed asset fund is designated as the Manchester Selllem8nt part of the value of the New RendhOUse bullding and should be considered alongside the New Roundhouse Capilal Project rgstrtcted fund (note 161. To9elher these funds comprise the lolal value of the New Roundhouse building. The Houses fund is deslgnaled as the value of the funds invested in the five houses owned by the charity lo deliver charitable services. The Residual Legacy Fund compTises of tNo legacy donations with no r9Stricled elem8nls rwived during 2020121 and 2022123. During FY 2022123 there was £29.811 utilised from Residual Legacy Fund. Lease purchase fund wa$ d8slgnated to be used in 2023124 for purcha59 of LTE lease of New Roundhouse building. Transfers A transfer has been made of £6.622 to the designated fixed asset fund to make a contribution to the unreslrict¢d fund for the New Roundhouse capital project, this being one year of depreclalion on the long18Bsehdd property. Balanco al In¢oming Outgoing 1 >r11 2021 iesourcos resourcos Transfers Galn 8alanGo at 31 March 2022 Deslgnatod funds Fixed asset fund 1,156,960 271.717 287,826 1,716,503 {15.0621 16.319} 20.191 {41,572} 6,622 1,148,520 265,398 267,635 1.681,553 uses Residuary Legacy 6.622 Unro$tricted funds Cther charitable funds 877.427 971,051 {793,265} 5,000 1,060,213 2,593.930 971,051 834,837 5.000 2,741766 Page 28
MANCHESTER SEThLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 16. RESTRICTED FUNDS Balance at 1 Incorning Outgoing prll 2022 resources rgsour¢es Transfers Balance at 31 arch 2023 New Roundhouse capitsl project The 42nd Street- Winter Discharge Funds LandAid charitab Fund F Beswick- Science actimth'es 901,156 16,6221 894,534 467 14671 16391 13461 {2,5001 (10.0001 (10.0001 (34.2931 {9,2241 16,761 7,139 16,122 6.793 T NHS - Co¥id Champions Propcl e MCR- Social ReCory Fund C- ¢oMd Heath Equity Fund Young MCR- OCC hester City Crjjncil - 1st 10LK) 2,500 10.000 5.000 18.012 5.000 19.600 3,319 4,167 days MACC - Hate Crimg 4CT LIlted- Culture (>ant FASD CAJr Manchester- VCS grant EYPP14CT Limited 4CT Limited- YIF Limng Planet Centre- Mcl)i1Ssing Community Climte Barclays - Swrting Foundation GV0 5.057 16641 17.9001 400 4.000 4,000 38,333 39.593 4.0 {38,3331 {39,5931 4,000 500 (5001 390} 16.710) 500 6,710 110 City of Soclal Action- YouThJ MCR Manchestsr City Council- Warm Hub Manchester City Councll- Winter Vaccinabon Propct Manchester City Council- (Xjr IR FcHJd Partnership MU NHS Foundation Trust- VCSE infiuence MU NHS Foundation Trust- Locdity Volunteering MU NHS FouThlats"on Trust- Equalities Fund CorNnunity Foundations.. The FredMII Tfust Fund Young MCR- SEND Pov•pr to Change 500 {500} 4,000 11,500} 2,500 12,500 3,135 3,135 1.500 5,500 5.217 12831 9.380 5,0)0 3.000 8.000 174.342 970.656 168.918 6,622} 958,610 Page 29
MANCHESTER SErrLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 The New Roundhouse Capital Project relates to the development of the new premises. The festricted fund on the New Roundhouse represents the amounts conlributed by Manchester Colleg6 who have bgen granted a long lem lease. thus restricting their use of part of the building. The Wellbeing and Communty {Our MCR, EYPP14CT> projects develop community actsvilies to promote cornmunty engagement In leaming. health and wellbeing. Fred Beswick - Sci&n¢e Activilles fund 1$ 8 one-off donation over ten years to support science related actlvities with young p8ople. Hate crime is a grant from MACC lo d81iver activiti'es that promote hate crime reporting mechanisms. FASD is a grant that helps to facililale networks of families caring lor Ghildren sff¢¢ted by Foetal Alcohol Spectrum Disortler {FASDI. MCC 1st 1000 days is a Manchestgr City Council Grant for supporting the PantS. The 42nd Street- Winter Discharga Funds are funds for re distribution to indivlduals in financial hardship. 4CT Limited - Culture Grant is a grant for délivery of actlvty to pronK)te cultural awareness wth young people. GMCVO 15 a grant lo provlde out of hours menlal haallh 5UPPOrt. City c*f Social Action - Young MCR is a grant for youth social aclton projects. MFf NHS- Covid Champions Proj6Ct Ss a health Fyownolion grant. One Manchgsler - Social Recovery Fund is a grant for the management of a network of GommunTty organisations. including distribution gf funds lo othèr groups. Manchester City Council- Covid Health Equity FuThJ is a health promotion grant, including the distribution of funds lo other groups. LandAid Charitable Fund is a caprtal fund for refurbishment of housing for young people. Barclays - Sporting Foundation Is a funil to continue weekly football segsions for young asylurn seekers and refvgees and to help them to access coa¢hinglrefereeing ¢ourses. buy new equipment et¢. Manchester City Coun¢il - Warrn Hub is fundlng to set up and provide access lo public community SPaS. Manchester Cty Councll - Winter Vaccination Project is a fund to erbgage with and promote take up of winter vaccines. Manchester City Councll - Our MCR Fotxl Partnership C8pilal is a fund to refurbish fwd pantry room. MU NHS Foundation Trust - VCSE influenc8 Is a fijnd to contribvtg to cost of slrucluring represèntstion of th8 Voluntsry sector in lo¢al decislon making. MU NHS Foundation Trust - Locality Volunteertng 1$ funding lo (leliver èn action research prolecl investigating what makes for good local volunl8ering. MU NHS Foundation Trust - Equalities Fund is funding to deliver a community heallh education and engagement programme. Community Foundations -The Fr8dMill Trust Fund is to supp1 general community actlvities. Young MCR- SEND Funding is 8 fund to deliver a 10-week programme of specSal noeds SUPPDrt for families. Page 30
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Young Manchester organisations. OCON is funding to manage a partnership project developing Openshaw community Power lo Change is a furK1 to support staff Costs incurred during the engagement with organisational (Jevelopmenl consultants. Living Planet Centre - Mobilising Community Climate was a fund to purchase small items fly gardening projects. Balance at 1 Incomlng Outgolng )rll 2021 r•sour¢os resources Transfers Balance at 31 March 2022 w Roundhouse capital project r ManchesÈr- VCS grant EYPP14CT Limited F Beswck- Sclence att11eS 'Laing CharItae Trust Dalrmre Capital ! Lk)yd8 Foundation ' Nth)r8on Group One Wbnchester - parent wopct Landd CharitsbTe Fund Fcrfjtball Foundation - Return to Foolball The 42nd Street- Vvinler Discharge Funds M4CC . Hate Crifr£ 4CT Limitsd- CUre Grant C - VCSE Pantry GVCVO 4CT Liwuted- Pwschemes 21122 City (rf knial Action - Young KR 7.778 16,6221 901, 156 38,333 {38,333) 19.792) (5111 (11,983) 17.gJO) 16,784) (g)11 115,3941 12,708) {4501 1,792 7,650 11,983 7,139 6.784 901 15,394 19,469 16,761 450 2,863) 467 1,LK)O 7,500 eA)o 5,760 12,724 18361 7,1001 {6001 5,7601 112,7241 164 400 500 (5001 NHS- Comd ChaP10n$ Project e VCR- S181 ReCOTY FuThJ C - Comd Heath Equity FLnd Young MCR- WC InChester City C(n¢11 - 1st 10 days Manchesler City Ctyjncil - end Additional Restrictions Grant FASD 2,500 10.000 5.000 19,600 10.000 5,OC 18.012 (1.5881 122,2611 2.318 25,000 5.1)57 13,867 113.8671 1,000 982,569 3,000 157.164 {162,4551 16,6221 970,656 Page 31
MANCHESTER SETTLEMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 17. ANALYSIS OF NET ASSETS BY FUND 2023 Unrestricted Restricted Total lunds lund5 funds 2023 2022 Lhrestricted Restricted funds funds Totsl funds 2022 Tangib fixpd assets 1,156 2.689.325 1.750.915 894,534 2.645,449 1.788.169 40.000 1.083.475 2,874,390 40.000 913,597 2,741.766 40,000 983,097 3.712,422 (Xher net assets 64,076 958.610 1, 147,551 3,833,000 69,500 970,656 18. OPERATING LEASE COMMITMENTS Thg charity had lot81 commitments under operating le85es explrlng as follows.. EquipTrwnt Propgrty 2023 2022 2023 2022 <1year 2-5 years
5 years 2.706 5.976 521 912 16,759 67,037 13,966 14,980 60,067 27,531 102,518 8.682 1.433 19. CONIPANY LIMITED BY GUARANTEE Under paragraph 8 of the Selllement Memorandum, every member undertakes to contribute to the assets of the Settlement in the event of being wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the debts and Ii8tAlities of the Settlement contracted before he or she ceases lo be a member. and of the costs. charges and experbses of winding up and for the adjustment of the rights of ihe ¢ontribution$ among themselves, such amounts as may be required, not exceeding £1 per member. 2Q. RELATED PARTY TRANSACTIONS Thgre are no entttias with signrficanl conlrollinterest over the charity. Thère were related party transactions with a sole trader (IA Sal¢e$}, a close family member of a SMT member. All transactions werè on nomial commercial terns, lotaling to £2.048 in FY 2022123 IFY 2021122.. £2,235). with an outstanding balancè of £281 at the year end. Page 32