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2021-03-31-accounts

Registered number: 2118677 Charity number: 247331

COMMUNITY TRANSPORT

(A Company Limited by Guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Celebrating 57

years

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 13
Independent Auditors' Report on the Financial Statements 14 - 17
Consolidated Statement of Financial Activities 18
Consolidated Balance Sheet 19 - 20
Charity Balance Sheet 21 - 22
Consolidated Statement of Cash Flows 23
Notes to the Financial Statements 24 - 42

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Akilah Akinola Helen Marie Keenan (resigned 25 January 2021) Ian David Kerr Adam Gary Christopher Layland (appointed 25 January 2021) Corinne Elizabeth Taylor, Vice Chair Barry John Yeomans, Chair Sueb Jabbar (appointed 25 May 2021) Lesley Fleur Gorton (appointed 28 July 2021)

Company registered number

2118677

Charity registered number

247331

Registered office

Parkview House Woodvale Road Brighouse West Yorkshire HD6 4AB

Chief Executive Officer

Jo Beaumont

Independent auditors

BHP LLP New Chartford House Centurion Way Cleckheaton West Yorkshire BD19 3QB

Page 1

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Bankers

Unity Trust Bank plc Nine Brindleyplace Birmingham B1 2HB

Santander Bridle Road Bootle Merseyside L30 4GB

Legal advisors

Lupton Fawcett Yorkshire House East Parade Leeds West Yorkshire LS1 5BD

Page 2

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the consolidated audited financial statements of the group for the year 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Community Transport is a Company Limited by Guarantee, registered in England and Wales, number 2118677, and a Registered Charity, number 247331. The Directors opted, at the time of incorporation to register the name “Community Transport” and not “Community Transport Limited”.

Community Transport has a 100% shareholding in a trading company, Community Minibuses Limited (CML), number 4125371.

The Charity also uses several trading and brand names: “CT Passenger” refers to the provision of passenger transport services. “CT Office” refers to the provision of office furniture. “CT Furniture” refers to the provision of domestic furniture. “CT Training” refers to the provision of training.

Objectives and activities

The Trustees have referred to the Charity Commission guidance on public benefit and the objects of the Company are charitable in the fields of social welfare, as defined in paragraph 3, (a) of the Memorandum and Articles of Association. The public benefit requirement is met through three areas of activity:

Passenger Services

Provision of accessible transport services to people who experience disability or limited mobility, or who are unable to use conventional transport. This includes door to door transport for those experiencing health conditions, enabling them to attend health appointments, visit friends or access other services. Provision of transport for community and voluntary groups also enables those groups to better support their own service users.

The provision of specialist door to door, rather than kerb to kerb transport allows people to have choice, independence, and to be able to participate in society. Supporting local community groups enables more people to be supported, by providing the means for each group to better support its own service users at an affordable cost.

Examples of our charitable work include:

The South Staffordshire Connect service which provides door to door transport for older residents living in rural areas of Staffordshire, who are unable to travel to shops, health clinics or to meet with friends.

The Hop to the Shops service in the northeast of England similarly provides transport for people who are unable to use public transport services, enabling them to socialise and to access local services.

Page 3

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Renal transport for dialysis patients across the West Midlands, supporting those who experience renal disease to regularly attend dialysis clinics and receive door to door transport in a way which alleviates some of the side effects of the treatment.

Points to Note

As travel was restricted in 2020/2021, the charity adapted its services to provide a door to door shopping delivery service for those passengers that were unable to travel.

As a result of the restrictions imposed during the pandemic Group Travel reduced significantly during this year, but saw some signs of increasing as restrictions were eased.

Furniture Services

Provision of affordable, donated domestic furniture for people on low incomes through regional hubs, and the provision of donated and bought in office and domestic furniture through retail shops in order to generate income to support our charitable activities.

Regional hubs in Wolverhampton and Newcastle East, provide affordable furniture for families on low incomes, and also support distribution of stock to retail shops in the West Midlands and North East respectively, where donated and bought in items are sold in order to generate income.

Examples of our charitable work include:

• Working with the NHS in the northeast to furnish homes for medical practitioners arriving from overseas.

• Working with social housing providers to supply furniture for people to move from rough sleeping into accommodation.

Training Services

External services includes the provision of minibus driving related training to community and voluntary groups, enhancing the skills of volunteers, and making use of accessible transport more affordable.

Internal services includes the provision of work experience training and development, supporting people to secure and sustain employment, in the areas in which Community Transport operates as well as internal training for the charity’s staff and volunteers.

Points to Note:

The external demand for training reduced in 2020 due to national restrictions, however, internal training continued to be delivered where possible and Community Transport was successful in becoming a training provider as part of the national Kickstart Scheme in January 2021.

Support

A small central support team provides finance, human resource and governance support for operational teams.

Page 4

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Strategic plan

Although Trustees and the Executive Leadership Team continued to develop the long term strategy of the charity they were naturally focussed on sustaining the organisation throughout the challenges of the Covid-19 pandemic.

We have been working in local communities since 1964, helping to transform lives and build better communities through the provision of accessible transport and the provision of affordable furniture.

The Board and Executive Leadership Team reviewed and refined the charity’s values during 2020.

Values

Community Transport’s Values and Behaviours help us to achieve the vision and are as follows:

Page 5

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Main achievements of the Charity

Community Transport achieved social impact in the following ways:

Page 6

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Operational Sites and Services

Page 7

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Review of activities

2020/2021 was an exceptionally challenging year for Community Transport, with the closure of shops for a significant proportion of the year and enforced lockdown for our staff and our customers as a result of the pandemic. This also required changes to our passenger services and led to a reduction in demand for training.

However, during this time the charity was resilient and innovative and further developed the ability to sell furniture online scaling up operations in April 2020, enabling around 50% of expected sales to be achieved despite physical shops being closed. Equally, we adapted passenger services to accommodate fewer passengers and to provide food delivery services for our vulnerable customers. This innovation, positive attitude and speed of action contributed to a positive end of year position.

The national furlough scheme was used, where necessary, at a number of sites, and retail grants helped to support the ongoing premises costs of all retail sites.

The charity significantly increased its marketing and promotion in 2020/2021, which included developing its website, rolling out new branding and increasing its use of social media to promote services and new developments.

Resources

Employment terms and conditions are set by and reviewed by the Board of Trustees and are implemented through the Chief Executive and Executive Leadership Team. The charity is an equal opportunities employer and aims to maintain a diverse and varied workforce with fair and transparent recruitment of the best people at the heart of its policies and practices. During the year, Community Transport became a Real Living Wage employer.

People

Average Headcount Expressed as Full Time Equivalent (FTE)

Page 8

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Fundraising activities and income generation

The charity does not actively fundraise but appreciates cash donations from the sale of furniture. The charity does not use any professional fundraiser or commercial participator to carry out activities on the charity’s behalf.

Due to not actively fundraising, the charity is not a participant of a voluntary scheme for regulating fundraising, or any voluntary standard of fundraising for the activities carried out on behalf of the charity. Should the charity at some point in the future, undertake a specific fundraising campaign or start to generate more income through fundraising, the trustees will look to sign up to the voluntary fundraising code.

Financial review

Going concern

The group meets its day to day working capital requirements through its bank current accounts which had funds at 31 March 2021 of £1,748,749. The group's services achieved a positive movement in unrestricted funds of £347,641. The current economic conditions have created an element of uncertainty over demand for the group's services. However the group's forecasts and projections, taking account of reasonable possible changes in performance, shows that the group is expected to have a sufficient level of financial resources available for at least the next 12 months and therefore the Trustees believe that the group is well placed to manage its business risks successfully despite the economic uncertainty. After making enquiries, the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

The Trustees have considered the impact of Covid-19 on the Charity’s income and beneficiaries, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have plans in place to deal with and mitigate any financial losses that may arise. The Trustees therefore consider that the level of reserves for the charity are adequate. The Trustees continue to adopt the going concern basis of preparation for these financial statements.

Reserves policy

Total reserves held at 31 March 2021 increased by £336,428 to £2,176,585 with restricted funds reducing from £174,359 in 2019/20 to £163,146 in 2020/21.

The Board of Community Transport aims to develop a prudent level of reserves, some of which are designated for specific purposes. The table below summarises the current status of unrestricted reserves:

2021 2020
£'000 £'000
Total unrestricted reserves 2,013 1,666
Less: designated funds (295) (295)
Less: unrestricted fixed assets (157) (192)
Free reserves 1,561 1,179

The charitable company seeks to keep a surplus in interest-earning accounts for working capital purposes and then transfers cash as required to the current accounts to meet obligations.

Page 9

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Free reserves

Free reserves provide liquidity that reduces to a minimum the need for short or long term borrowing and the levels of interest or debt associated, thus serving as a protection in the face of unexpected trading variations or cost increases. A target of £500,000 in free reserves has been set to allow for 2 to 3 months operating expenditure. The charitable company's intention is to generate annual surpluses in the medium term to maintain this target.

It should be noted that the protection of free reserves covers the 6 principal metropolitan districts in which the charitable company operates. It would therefore be reasonable to take 16.67% as an average apportionment to any one district.

Designated funds

Community Transport maintains a capital fund available to underpin capital investment, either in the form of capital purchases, bank loans or operating leases, in particular this fund is designed to reduce maintenance expenditure on older vehicles and to move, as opportunities arise, to more appropriate operating sites. The level of this fund is set at £295K as at 31 March 2021. It is expected that this will be expended as follows:

Passenger Vehicles: £131K Goods Vehicles: £50K Dilapidations and Acquisition of alternative and new sites: £59K Repairs to existing sites: £30K Investment in IT systems: £25K

Page 10

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Principal risks and uncertainties

The Board of Trustees places the utmost importance on managing risk, and receives and approves all strategic governance policies, the risk register and governance schedule bi-annually.

The following include major risk areas to which the Charity is exposed and the dates of which they have been revised and approved:

CT achieved ISO 9001 status in October 2017 and continues to develop a document management system which allows for a more systematic review of operational policies and practices.

The Trustees believe that all major risks are being mitigated and review the risk register biannually, or more frequently in response to any changes to the major risk areas.

Structure, governance and management

Constitution

The charity reviewed its Articles of Association in 2020, however due to the impact of the Covid 19 pandemic, confirmation of the changes sought was not received from the Charity Commission by 31 March 2021. In line with the existing Memorandum and Articles of Association, adopted at an EGM on 13 July 2010, overall responsibility for the company’s activities is vested in the Board of Trustees, whose members also serve as the Charity’s Trustees. The Board is limited to a maximum of 11 members, who may serve for up to three consecutive terms of three years each, followed by a break of at least one year before seeking re-election.

Methods of appointment or election of Trustees

The Board is responsible for identifying and recruiting new Trustees (and Directors of CML) to support the interests of beneficiaries by virtue of skills, approach, experience and commitment to the objectives of the charity. The Board of Trustees is committed to constantly monitoring the number of Trustees, and reviews this formally at its last meeting of the calendar year. Induction training for new Trustees is provided by the Chair, Chief Executive and other staff members.

Page 11

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Organisational structure and decision-making policies

Oversight of the management of finance, capital assets and non-charitable trading vested in Community Minibuses Limited (CML) remains with the full Board of Trustees, supported by a Board of Directors of CML and a Finance Committee.

Overall responsibility for leadership of the Company is vested in a Chief Executive, who is responsible for business development and implementation of the strategy. The Chief Executive leads an Executive Leadership Team of 6 people.

Plans for future periods

In the coming year, Community Transport plans to expand its services within the regions in which it already has a presence, incorporating marketing, volunteering and training strategies to support that. A key focus in the coming year will be on ensuring that the right resources are in place to expand existing services and develop new opportunities, including a CT Travel Club offering passenger led transport for social and recreational purposes.

For each division the main challenges and opportunities for the coming year are:

CT Furniture services will relocate from warehouse settings to retail shops in Birmingham and Newcastle West, and will seek to open additional shops in both the North East and West Midlands, supported by a warehouse in each region that provides a support hub for those retail sites. It intended that warehouses will continue to satisfy charitable aims in providing affordable furniture for those in need, whilst the retail shops will be commercial in nature, generating income to support charitable activity. Furniture sales will continue to be marketed online, with investment in skills and resources to deliver this.

CT Passenger will focus on returning to traditional charitable passenger services aimed at preventing isolation and loneliness, and the development of both scheduled bus services and a CT Travel Club.

CT Training will aspire to expand its training provision to offer a wrap-around programme of practical driving based training with safety, customer service and health related training. Development of a driving apprenticeship will encourage younger adults to enter the sector and join the charity.

Page 12

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial yearyear. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, BHP LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Barry J Yeomans

Barry J Yeomans (Sep 30, 2021 17:09 GMT+1)

Barry John Yeomans (Chair of Trustees) Date: Sep 30, 2021

Page 13

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY TRANSPORT

Opinion

We have audited the financial statements of Community Transport (the 'parent charitable company') and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 14

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY TRANSPORT (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 15

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY TRANSPORT (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations, relevant to the group, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 16

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY TRANSPORT (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Lesley Kendrew (Senior Statutory Auditor)

for and on behalf of

BHP LLP

New Chartford House Centurion Way Cleckheaton West Yorkshire BD19 3QB

Date: Oct 1, 2021

Page 17

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
225,019
2,702,463
84
3,171
2,930,737
2,583,096
2,583,096
347,641
1,665,798
347,641
2,013,439		 Restricted
funds
2021
£
355,102
109,417
-
-
464,519
475,732
475,732
(11,213)
174,359
(11,213)
163,146		 Total
funds
2021
£
580,121
2,811,880
84
3,171
3,395,256
3,058,828
3,058,828
336,428
1,840,157
336,428
2,176,585		 Total
funds
2020
£
377,314
2,782,125
310
942
3,160,691
2,973,268
2,973,268
187,423
1,652,734
187,423
1,840,157

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 24 to 42 form part of these financial statements.

Page 18

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REGISTERED NUMBER: 2118677

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
19,20
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
16,17
Unrestricted funds
16,17
Total funds		 11,341
500,638
1,748,749
2,260,728
(404,552)		 2021
£
320,409
320,409
1,856,176
2,176,585
2,176,585
163,146
2,013,439
2,176,585		 6,579
473,107
1,368,883
1,848,569
(374,838)		 2020
£
366,426
366,426
1,473,731
1,840,157
1,840,157
174,359
1,665,798
1,840,157

Page 19

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Barry J Yeomans Barry J Yeomans (Sep 30, 2021 17:09 GMT+1)

Barry John Yeomans (Chair of Trustees) Date: Sep 30, 2021

The notes on pages 24 to 42 form part of these financial statements.

Page 20

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REGISTERED NUMBER: 2118677

COMPANY BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 11,341
771,934
1,464,446
2,247,721
(404,552)		 2021
£
320,409
1
320,410
1,843,169
2,163,579
2,163,579
163,146
2,000,433
2,163,579		 6,579
753,966
1,084,526
1,845,071
(374,838)		 2020
£
366,426
1
366,427
1,470,233
1,836,660
1,836,660
174,359
1,662,301
1,836,660

Page 21

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The Charity's net movement in funds for the year was £326,919 (2020 - £188,591).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: Barry J Yeomans Barry J Yeomans (Sep 30, 2021 17:09 GMT+1)

Barry John Yeomans (Chair of Trustees) Date: Sep 30, 2021

The notes on pages 24 to 42 form part of these financial statements.

Page 22

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
425,246
3,171
(34,525)
(31,354)
(14,026)
(14,026)
379,866
1,368,883
1,748,749		 2020
£
301,743
942
(15,800)
(14,858)
(18,251)
(18,251)
268,634
1,100,249
1,368,883

The notes on pages 24 to 42 form part of these financial statements

Page 23

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The charitable company is a company limited by guarantee. The registered office is Parkview House, Woodvale Road, Brighouse, West Yorkshire, HD6 4AB. The members of the charitable company are the Trustees named on page 1. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Community Transport meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Going concern

The group meets its day to day working capital requirements through its bank current accounts which had funds at 31 March 2021 of £1,748,749. The group's services achieved a positive movement in unrestricted funds of £347,641. The current economic conditions have created an element of uncertainty over demand for the group's services. However, the group's forecasts and projections, taking account of reasonable possible changes in performance, shows that the group is expected to have a sufficient level of financial resources available for at least the next 12 months and therefore the Trustees believe that the group is well placed to manage its business risks successfully despite the economic uncertainty. After making enquiries, the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

The Trustees have considered the impact of Covid-19 on the Charity’s income and beneficiaries, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have plans in place to deal with and mitigate any financial losses that may arise. During the year the charitable company took advantage of government support in the form of the CJRS grant income and COVID support grants. The Trustees therefore consider that the level of reserves for the charity are adequate. The Trustees continue to adopt the going concern basis of preparation for these financial statements.

Page 24

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 25

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method (unless otherwise stated).

Depreciation is provided on the following bases:

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Page 26

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Pensions

The charitable company operates a funded pension scheme (see note 21). Employer contributions are charged to the Statement of Financial Activities as incurred.

Page 27

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Donations
Grants
Donations
Grants		 Unrestricted
funds
2021
£
-
225,019
225,019
Unrestricted
funds
2020
£
-
159,098
159,098		 Restricted
funds
2021
£
33,559
321,543
355,102
Restricted
funds
2020
£
36,759
181,457
218,216		 Total
funds
2021
£
33,559
546,562
580,121
Total
funds
2020
£
36,759
340,555
377,314

Page 28

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

Revenue grants
Service income
Coronavirus job retention scheme
Revenue grants
Service income		 Unrestricted
funds
2021
£
-
2,702,463
-
2,702,463
Unrestricted
funds
2020
£
-
2,781,376
2,781,376		 Restricted
funds
2021
£
-
-
109,417
109,417
Restricted
funds
2020
£
749
-
749		 Total
funds
2021
£
-
2,702,463
109,417
2,811,880
Total
funds
2020
£
749
2,781,376
2,782,125

5. Investment income

Bank interest receivable
Bank interest receivable		 Unrestricted
funds
2021
£
84
Unrestricted
funds
2020
£
310		 Total
funds
2021
£
84
Total
funds
2020
£
310

Page 29

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

6. Other incoming resources

Profit on sale of tangible fixed assets
Profit on sale of tangible fixed assets		 Unrestricted
funds
2021
£
3,171
Unrestricted
funds
2020
£
942		 Total
funds
2021
£
3,171
Total
funds
2020
£
942

7. Analysis of expenditure on charitable activities

Summary by fund type

Passenger services
Furniture services
Other services		 Unrestricted
funds
2021
£
1,078,300
1,004,757
500,039
2,583,096		 Restricted
funds
2021
£
475,732
-
-
475,732		 Total
funds
2021
£
1,554,032
1,004,757
500,039
3,058,828

Page 30

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Passenger services
Furniture services
Other services		 Unrestricted
funds
2020
£
1,206,087
977,517
416,989
2,600,593		 Restricted
funds
2020
£
372,675
-
-
372,675		 Total
funds
2020
£
1,578,762
977,517
416,989
2,973,268

8. Auditors' remuneration

2021 2020
£ £
Fees payable to the Group's auditor for the audit of the Group's annual accounts 9,655 8,700
Fees payable to the Group's auditor in respect of:
All taxation advisory services not included above 105 100
All non-audit services not included above 1,405 1,350

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
1,461,551
96,545
44,843
1,602,939		 Group
2020
£
1,360,543
88,060
39,617
1,488,220		 Charity
2021
£
1,461,551
96,545
44,843
1,602,939		 Charity
2020
£
1,360,543
88,060
39,617
1,488,220

Page 31

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

Group Group
2021 2020
No. No.
Total 102 100

The average headcount expressed as full-time equivalents was:

Passenger services
Furniture services
Training services
Administration and support		 Group
2021
No.
26
16
1
25
68		 Group
2020
No.
30
16
1
19
66		 Charity
2021
No.
26
16
1
25
68		 Charity
2020
No.
30
16
1
19
66

Page 32

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 2 -
In the band £70,001 - £80,000 - 1
In the band £90,001 - £100,000 1 -

A significant contribution to the work of the charitable company is carried out by a pool of volunteer and trainee drivers, assistants, administrators and supporters. Much of the work of the charitable company would be impossible without the generous gift of time, effort and commitment which voluntary workers provide.

In March 2021, the charitable company had around 56 volunteers, excluding those who give their time on steering groups, Partnership Groups and the Board itself. Around 1 in 4 hours worked for the charitable company is unpaid.

Key Management Personnel Remuneration

The key management personnel of the parent charity during the year to 31 March 2021 comprised the Chief Executive, Operations Director North, Operations Director South, Finance Director, Regional Business Development Manager South and Regional Business Development Manager North.

Total compensation of key management personnel in the year amounted to £349,068 (2020 - £286,051).

In 20/21 a comprehensive benchmarking exercise was undertaken for the senior management team to review and implement salary changes. The Finance Director joined in November 20, in the previous accounts the previous Head of Finance left part way through 19/20.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 March 2021, expenses totalling £Nil were reimbursed or paid directly to no Trustees (2020 - £1,039 to 2 Trustees).

Page 33

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
493,634
-
-
493,634
237,488
9,992
-
247,480
246,154
256,146		 Short-term
leasehold
property
£
17,999
-
-
17,999
17,999
-
-
17,999
-
-		 Motor vehicles
£
852,835
34,525
(91,728)
795,632
756,634
61,263
(91,728)
726,169
69,463
96,201		 Fixtures and
fittings
£
129,221
-
-
129,221
115,142
9,287
-
124,429
4,792
14,079		 Total
£
1,493,689
34,525
(91,728)
1,436,486
1,127,263
80,542
(91,728)
1,116,077
320,409
366,426

Page 34

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

12. Fixed asset investments

Charity
Cost or valuation
At 1 April 2020
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Investments in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Registered office or principal place Class of Holding
number of business shares
Community Minibuses Limited 4125371 2nd Floor Parkview House, Ordinary 100%
Woodvale Road, HD6 4AB.
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss) Net assets
£ £ for the period £
£
Community Minibuses Limited 66,969 (57,460) 9,509 13,007

The financial results of the subsidiary for the year were:

Page 35

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13. Stocks
Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Stocks 11,341 6,579 11,341 6,579

14. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
241,682
-
71,879
187,077
500,638		 Group
2020
£
200,463
-
55,370
217,274
473,107		 Charity
2021
£
241,682
271,296
71,879
187,077
771,934		 Charity
2020
£
200,463
280,859
55,370
217,274
753,966

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
-
220,895
25,099
16,612
141,946
404,552		 Group
2020
£
14,026
221,705
19,420
7,461
112,226
374,838		 Charity
2021
£
-
220,895
25,099
16,612
141,946
404,552		 Charity
2020
£
14,026
221,705
19,420
7,461
112,226
374,838

The loan was repayable over 15 years from January 2006 in installments that were calculated to pay off the capital and interest over that period. The interest rate fluctuated at 2% over bank base rate. The loan was secured on a freehold property owned by the Charitable Company. The purpose of the loan was to assist in the purchase and refurbishment of units 17 & 18 Barton park, Bilston. The loan was fully paid off during the year.

Page 36

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds

Group statement of funds - current year

Unrestricted funds
Designated funds
Designated capital fund
General funds
Revenue funds
Retained in subsidiary
Total Unrestricted funds
Restricted funds
Capital grants
Sandwell MBC - Adult and Community Services
Coronavirus job retention scheme grant
Other
Total of funds		 Balance at 1
April 2020
£
295,000
1,367,301
3,497
1,370,798
1,665,798
174,359
-
-
-
174,359
1,840,157		 Income
£
-
2,863,768
66,969
2,930,737
2,930,737
5,500
316,043
109,417
33,559
464,519
3,395,256		 Expenditure
£
-
(2,525,635)
(57,461)
(2,583,096)
(2,583,096)
(16,713)
(316,043)
(109,417)
(33,559)
(475,732)
(3,058,828)		 Balance at 31
March 2021
£
295,000
1,705,434
13,005
1,718,439
2,013,439
163,146
-
-
-
163,146
2,176,585

Page 37

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued)

Group statement of funds - prior year

Unrestricted funds
Designated funds
Designated capital fund
General funds
Revenue funds
Retained in subsidiary
Total Unrestricted funds
Restricted funds
Capital grants
Sandwell MBC - Adult and
Community Services
Coronavirus job retention scheme
grant
Total of funds		 Balance at
1 April 2019
£
364,477
1,111,980
4,665
1,116,645
1,481,122
171,612
-
-
171,612
1,652,734		 Income
£
-
2,741,249
44,020
2,785,269
-
25,000
312,914
37,508
375,422
375,422		 Expenditure
£
-
(2,555,405)
(45,188)
(2,600,593)
(2,600,593)
(22,253)
(312,914)
(37,508)
(372,675)
(2,973,268)		 Transfers
in/out
£
(69,477)
69,477
-
69,477
-
-
-
-
-
-		 Balance at
31 March
2020
£
295,000
1,367,301
3,497
1,370,798
1,665,798
174,359
-
-
174,359
1,840,157

Capital grants relate to grants received to assist with the purchase of vehicles. Sandwell MBC relates to grants received to assist with providing services in the Midlands. Coronovirus job retention scheme grant relates to the government grant in response to furloughing employees in line with restrictions during the pandemic.

Other relates to smaller restricted income received to assist with providing the core services of the charity.

Page 38

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17. Analysis of net assets between funds

Group analysis of net assets between funds - current period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
157,263
2,305,795
(449,619)
2,013,439		 Restricted
funds
2021
£
163,146
-
-
163,146		 Total
funds
2021
£
320,409
2,305,795
(449,619)
2,176,585

Group analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
192,067
1,848,569
(374,838)
1,665,798		 Restricted
funds
2020
£
174,359
-
-
174,359		 Total
funds
2020
£
366,426
1,848,569
(374,838)
1,840,157

Page 39

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Profit on the sale of fixed assets
Decrease/(increase) in stocks
Increase in debtors
Increase in creditors
Net cash provided by operating activities		 Group
2021
£
336,428
80,542
(3,171)
(4,762)
(17,584)
33,793
425,246		 Group
2020
£
187,423
97,823
(942)
1,668
(7,450)
23,221
301,743

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents
20.
Analysis of changes in net debt
Cash at bank and in hand
Debt due within 1 year		 At 1 April
2020
£
1,368,883
(14,026)
1,354,857		 Group
2021
£
1,748,749
1,748,749
Cash flows
£
379,866
14,026
393,892		 Group
2020
£
1,368,883
1,368,883
At 31 March
2021
£
1,748,749
-
1,748,749

Page 40

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

21. Pension commitments

Community Transport participates in The Pensions Trust's Growth Plan ('the Plan'). The Plan is funded and is not contracted-out of the State scheme. The Plan is a multi-employer pension plan.

Community Transport paid contributions at the rate of 6% during the year. Participating members are not required to contribute but can contribute AVC's. Total contributions for the year amounted to £44,843 (2020 - £39,617).

It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multiemployer scheme, where the total assets are aggregated for investment purposes, and benefits are paid out of the Plan's total assets.

At 31 March 2021, the Charitable Company had outstanding pension contributions of £9,024 (2020 - £nil).

The Director commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.

The rules of the Plan give the Director the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met.

The valuation results at 30 September 2018 were completed in 2019 and have been formalised. The valuation of the Plan was performed by a professionally qualified Actuary using the Projected Unit Method. The valuation revealed a shortfall of assets compared with a value of liabilities of £113m, equivalent to a funding level of 87%. Based upon the preliminary valuation, no additional contributions will be payable by Community Transport.

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan and The Pensions Act 2011 has more recently altered the definition of Series 3 of the Growth Plan so that a liability arises to employers from membership of any Series except Series 4. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up.

The leaving employer's share of the buy-out debt is the proportion of the Plan's liability attributable to employment with the leaving employer compared to the total amount of the Plan's liabilities (relating to the employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

Community Transport has been notified by The Pensions Trust of the estimated employer debt of £112,706 (2020 - £121,346) on withdrawal from the Plan based on the financial position of the Plan as at 31 March 2021. This amount is treated as a contingent liability.

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COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

22. Operating lease commitments

At 31 March 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
352,990
369,638
722,628		 Group
2020
£
262,612
365,820
628,432		 Charity
2021
£
352,990
369,638
722,628		 Charity
2020
£
262,612
365,820
628,432

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Operating lease rentals 397,452 411,512 397,452 411,512
- - - -

23. Related party transactions

The charitable company had no related party transactions to report in either year.

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