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2023-03-31-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 2023

Celebrating 59

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 - 43

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Trustees

Ian Kerr Adam Layland, Chair Corinne Taylor Barry Yeomans (resigned 23 May 2023)

Joseph Hall (appointed 24 May 2022) Tony Chan (appointed 30 November 2022)

Company registered number

2118677

Charity registered number

247331

Registered office

Croft Myl West Parade Halifax West Yorkshire HX1 2EQ

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 2023

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 2023

The Trustees present their annual report together with the consolidated audited financial statements of the group for the year 1 April 2022 to 31 March 2023. 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, Furniture and Training.

Page 3

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

(continued)

Strategic plan

Trustees and the Executive Leadership Team continued to develop the long term strategy of the charity, with a focus on sustaining the organisation throughout the challenges of the Covid-19 pandemic and beyond.

Community Transport has 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.

Values

Our values and behaviours are intended to achieve the vision in striving for:

Fundraising activities and income generation

The charity does not actively fundraise but appreciates cash donations from the sale of furniture. The charity utilised the expertise of Capidale Professional Fundraising from autumn 2022 and continues to use it in its large grant applications.

Due to not actively fundraising from members of the public, 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 consider signing up to the voluntary fundraising code.

Income generation is carried out through the sale of items of furniture under the brand name CT Furniture and through commercial transport and training contracts in order to fund its charitable activities.

Page 4

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

(continued)

Furniture Services

Under the brand of CT Furniture, the charity provides items of donated and bought in domestic furniture and donated office furniture through retail shops in the West Midlands and North-East, in order to generate income which is then used to support charitable activities. Items are also sold online to achieve the best price as part of the income generation strategy.

Regional hubs in Wolverhampton and Newcastle, provide more affordable furniture for families on low incomes, and also support distribution of stock to retail shops.

Examples of furniture services delivered to generate income include:

Community Transport CT Furniture attracts donations of office furniture from corporate partners, as well as domestic furniture from individual donors, which it sells both online and in store in order to generate funds.

Example of charitable furniture services include:

The charity provides individual furniture items free of charge to individuals in crisis when referred to the charity.

CT help individuals or families in need by providing them with furniture at little or no cost when referred to the charity.

Passenger Services

Provision of accessible transport services to people who experience disability or limited mobility, or who are unable to use conventional and/or public transport. This includes door to door transport for people in later life, transport to health services for those experiencing medical conditions, and provision of transport for community and voluntary groups, enabling them to support their service users.

The provision of specialist door to door, rather than kerb to kerb transport enables 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 commercial passenger services delivery include:

Renal transport for dialysis patients across the West Midlands

A number of school transport contracts delivered across the West Midlands and North-East regions.

Examples of charitable passenger services delivery include:

The Hop to the Shops service in the North-East of England provides transport for people who are unable to use public transport services, enabling them to socialise with others, and to access local shops.

Group travel, provided to Mencap in the Black Country, enabling Mencap service users to access other facilities and experiences.

Page 5

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

(continued)

Training Services

Provision of minibus driving related training externally to community and voluntary groups, enhancing the skills of volunteers, and making use of accessible transport more affordable.

External training demand has remained consistent with the previous year.

Internal training continued to be delivered throughout 2022/2023 ensuring that Community Transport staff and volunteers were trained and equipped with the skills to continue service delivery.

Support

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

Main achievements of the Charity

Community Transport achieved social impact in the following ways:

To find out more about how we make a difference visit: www.communitytransport.org

Page 6

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(continued)

Operational Sites and Services

Review of activities

2022/2023 presented challenges as it sought to recover from the impact of closures and reduced services during the pandemic as well as the impact of the economic climate on both donations and sales in the CT Furniture division. The charity was forced to increase its prices in all three divisions as a result of rising costs, and continues to review these on a regular basis.

Resources

Employment terms and conditions are set 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.

Page 7

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

(continued)

People

Equality Statement

Community Transport voluntarily provides information on pay in relation to gender, and constantly monitors against all other protected characteristics.

Gender Pay Reporting

The charity's median pay is the same irrespective of gender.

Executive Leadership Team Pay Table

Page 8

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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 2023 of £630,608. The group’s services achieved a negative movement in unrestricted funds of £515,390. 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.

Reserves policy

Total reserves held at 31 March 2023 decreased by £524,024 to £1,130,218 with restricted funds reducing from £154,512 in 2021/22 to £145,878 in 2022/23.

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

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 its obligations.

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 £750,000 in free reserves has been set to allow for 2 to 3 months operating expenditure.

Results in recent years have had a negative impact on the charitable company’s free reserves. The charitable company’s intention is to generate annual surpluses in the medium term to maintain this target. Post year end the charitable company sold a property (see note 25). The sale of the property increased the charitable company’s free reserves post year end by £762k.

Page 9

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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 designated 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 £464K at 31 March 2023. It is expected that this will be expended as follows:

Passenger vehicles £464K Goods vehicles: £nil

Dilapidations and Acquisition of alternative and new sites: £nil

Principal risks and uncertainties

The Board of Trustees places importance on managing risk, and receives and approves all strategic governance policies, governance schedules and the risk register bi-annually. Trustees are able to attend monthly risk meetings with the Executive Leadership Team.

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

Structure, governance and management

Constitution

The charity reviewed its Articles of Association in 2020. 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 minimum of three and 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.

Page 10

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management (continued)

Methods of appointment or election of Trustees

The Board is responsible for identifying and recruiting new Trustees as part of succession planning, to support the interests of beneficiaries by virtue of skills, approach, experience and commitment to the objectives of the charity, in line with the Recruitment of Trustees and Directors Policy, approved in 2021. An annual board skills audit informs the recruitment and succession planning process. 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. Trustees are encouraged to champion different aspects of the charity’s strategic interests and to participate in sector specific training, development and events, including governance training.

Organisational structure and decision-making policies

Oversight of the management of finance, capital assets and non-charitable trading vested in CML remains with the full Board of Trustees.

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 which includes two Directors of Operations and a Finance Director.

A Finance Committe considers financial management in its wider sense and in detail, taking decissions and making recommendations to the Board of Trustees in line with its terms of reference.

Plans for future periods

In the coming year, Community Transport plans to adapt and 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, and directly addressing recruitment pressures which have faced the transport and charity sectors for some years, exacerbated by the pandemic and changing recruitment environment.

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

CT Passenger

Challenges:

Meeting the pressure of increasing operational costs and negotiating more frequent price rises will remain a challenge for CT Passenger in 2023/2024. Recruitment of drivers will be a continuing challenge for the Passenger division in the coming year, as wages increases and contract expectations impact on recruitment timescales.

Opportunities:

CT Passenger will continue to explore the potential for scheduled bus routes, and programmes of day trips during summer months as well as continuing to tender for opportunities in the areas in which it operates.

Page 11

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods (continued)

CT Furniture

Challenges:

CT Furniture Services relocated to more prominent and visible shop sites prior to the pandemic. The challenge in 2023/2024 is to attract more customers to those sites which CT continues to occupy, whilst growing online sales further and maintaining those customers whose shopping habits have changed in recent years.

Opportunities:

The CT Office brand continues to contribute to overall CT Furniture sales, with large scale office furniture collections attracting removal fees. The potential to widen the source of bought in goods will present opportunities in the coming year.

CT Training

Challenges:

Meeting rising demand for externally delivered driving related training programmes will present a challenge in 2023/2024.

Opportunities:

This year will see the appointment of an additional trainer, based in Newcastle in order to meet both external and internal demand.

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 year. 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.

Page 12

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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:

Adam Layland (Chair of Trustees)

Date: Oct 3, 2023

Page 13

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF COMMUNITY TRANSPORT

We have audited the financial statements of Community Transport (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 and 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 AND TRUSTEES OF COMMUNITY TRANSPORT

Other information

The other information comprises the information included in the trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees' 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.

Opinions 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 the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 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 AND TRUSTEES 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 parent 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 and 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 auditor’s 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.

Page 16

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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, in accordance with 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 and its trustees those matters we are required to state to them in an auditor’s 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 the charitable company’s members as a body and the charitable company’s trustees 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 3, 2023

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 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
30,993
3,012,033
23,607
3,066,633
3,582,023
3,582,023
(515,390)
1,499,730
(515,390)
984,340		 Restricted
funds
2023
£
123,390
-
-
123,390
132,024
132,024
(8,634)
154,512
(8,634)
145,878		 Total
funds
2023
£
154,383
3,012,033
23,607
3,190,023
3,714,047
3,714,047
(524,024)
1,654,242
(524,024)
1,130,218		 Total
funds
2022
£
217,862
3,195,139
11,608
3,424,609
3,946,952
3,946,952
(522,343)
2,176,585
(522,343)
1,654,242

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

The notes on pages 24 to 43 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 2023

Note
Fixed assets
Tangible assets
10
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Creditors: amounts falling due after more than
one year
15
Total net assets
Charity funds
Restricted funds
16,17
Unrestricted funds
16,17
Total funds		 12,204
559,241
630,608
1,202,053
(522,020)		 2023
£
486,014
680,033
(35,829)
1,130,218
145,878
984,340
1,130,218		 16,078
622,704
1,001,822
1,640,604
(477,759)		 2022
£
491,397
1,162,845
-
1,654,242
154,512
1,499,730
1,654,242

Page 19

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REGISTERED NUMBER: 2118677

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2023

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:

Adam Layland (Chair of Trustees)

Oct 3, 2023 Date:

The notes on pages 24 to 43 form part of these financial statements.

Page 20

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

REGISTERED NUMBER: 2118677

CHARITY BALANCE SHEET

AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Creditors: amounts falling due after more than
one year
15
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 12,204
676,729
504,488
1,193,421
(522,020)		 2023
£
486,014
1
486,015
671,401
(35,829)
1,121,587
145,878
975,709
1,121,587		 16,078
738,065
875,630
1,629,773
(477,759)		 2022
£
491,397
1
491,398
1,152,014
-
1,643,412
154,512
1,488,900
1,643,412

Page 21

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

CHARITY BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2023

The Charity's net movement in funds for the year was £(521,825) (2022 - £(520,168)).

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:

Adam Layland (Chair of Trustees)

Date: Oct 3, 2023

The notes on pages 24 to 43 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 2023

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 provided by/(used in) investing 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		 2023
£
(375,568)
34,500
(30,146)
4,354
(371,214)
1,001,822
630,608		 2022
£
(515,500)
13,139
(244,566)
(231,427)
(746,927)
1,748,749
1,001,822

The notes on pages 24 to 43 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 2023

1. General information

The charitable company is a company limited by guarantee. The registered office is Croft Myl, West Parade, Halifax, West Yorkshire, HX1 2EQ. 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 2019), 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 2023 of £630,608. The group's services resulted in an in-year negative movement in unrestricted funds of £515,390. 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 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 2023

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.

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 2023

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 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:

2.7 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.

2.8 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.

Page 26

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.9 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.

2.10 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.

2.11 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.

2.12 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.

2.13 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.14 Pensions

The charitable company operates a funded pension scheme (see note 22). 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 2023

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.

3. Income from donations and legacies

Donations
Grants
Donations
Grants		 Unrestricted
funds
2023
£
30,993
-
30,993
Unrestricted
funds
2022
£
34,937
51,079
86,016		 Restricted
funds
2023
£
-
123,390
123,390
Restricted
funds
2022
£
-
131,846
131,846		 Total
funds
2023
£
30,993
123,390
154,383
Total
funds
2022
£
34,937
182,925
217,862

Page 28

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

4. Income from charitable activities

Service income
Coronavirus job retention scheme
Service income
Coronavirus job retention scheme		 Unrestricted
funds
2022
£
3,185,468
-
3,185,468		 Unrestricted
funds
2023
£
3,012,033
-
3,012,033
Restricted
funds
2022
£
-
9,671
9,671		 Total
funds
2023
£
3,012,033
-
3,012,033
Total
funds
2022
£
3,185,468
9,671
3,195,139

5. Other incoming resources

Profit on sale of tangible fixed assets
Profit on sale of tangible fixed assets		 Unrestricted
funds
2023
£
23,607
Unrestricted
funds
2022
£
11,608		 Total
funds
2023
£
23,607
Total
funds
2022
£
11,608

Page 29

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Passenger services
1,574,249
Furniture services
1,519,052
Other services
488,722
3,582,023
Unrestricted
funds
2022
£
Passenger services
1,661,104
Furniture services
1,565,692
Other services
570,005
3,796,801
7.
Auditors' remuneration
Fees payable to the Group's auditor for the audit of the Group's annual accounts
Fees payable to the Group's auditor in respect of:
All taxation advisory services not included above
All non-audit services not included above		 Restricted
funds
2023
£
132,024
-
-
132,024
Restricted
funds
2022
£
150,151
-
-
150,151
2023
£
11,850
975
1,625		 Total
2023
£
1,706,273
1,519,052
488,722
3,714,047
Total
2022
£
1,811,255
1,565,692
570,005
3,946,952
2022
£
10,145
110
1,480

Page 30

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
1,722,174
129,929
57,648
1,909,751		 Group
2022
£
1,853,887
134,280
58,661
2,046,828		 Charity
2023
£
1,722,174
129,929
57,648
1,909,751		 Charity
2022
£
1,853,887
134,280
58,661
2,046,828

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

Passenger
Furniture
Training
Administration and support		 Group
2023
No.
65
24
1
17
107		 Group
2022
No.
62
28
2
17
109		 Charity
2023
No.
65
24
1
17
107		 Charity
2022
No.
62
28
2
17
109

Page 31

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8. Staff costs (continued)

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

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 3 2
In the band £90,001 - £100,000 1 1

A significant contribution to the work of the charitable company is carried out by a pool of volunteer drivers, sales assistants, and administrators. 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 2023, the charitable company had around 30 volunteers, excluding those who give their time on boards and committees.

Key Management Personnel Remuneration

The key management personnel of the parent charity during the year to 31 March 2023 comprised the Chief Executive Officer and Operations Director North, Operations Director South.

Total compensation of key management personnel in the year amounted to £271,744 (2022 - £295,545).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, trustee expenses of £661 were reimbursed or paid directly to 2 Trustees (2022 - £NIL).

Page 32

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

10. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
553,794
-
-
553,794
261,984
14,504
-
276,488
277,306
291,810		 Short-term
leasehold
property
£
34,064
-
-
34,064
18,802
3,213
-
22,015
12,049
15,262		 Motor vehicles
£
744,741
78,481
(155,937)
667,285
560,416
58,343
(145,044)
473,715
193,570
184,325		 Fixtures and
fittings
£
129,221
3,706
-
132,927
129,221
617
-
129,838
3,089
-		 Total
£
1,461,820
82,187
(155,937)
1,388,070
970,423
76,677
(145,044)
902,056
486,014
491,397

Page 33

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11. Fixed asset investments

Charity
Cost or valuation
At 1 April 2022
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 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 place Registered office or principal place Registered office or principal place Class of Holding
number of business shares
Community Minibuses Limited 4125371 Croft Myl, West Parade, Halifax, Ordinary 100%
West Yorkshire, HX1 2EQ
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss) Net assets
£ £ for the period £
£
Community Minibuses Limited 306,884 (309,083) (2,199) 8,632

The financial results of the subsidiary for the year were:

Page 34

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

12.
Stocks
Stocks
13.
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2023
£
12,204
Group
2023
£
291,734
-
75,445
192,062
559,241		 Group
2022
£
16,078
Group
2022
£
156,827
-
98,466
367,411
622,704		 Charity
2023
£
12,204
Charity
2023
£
291,734
117,488
75,445
192,062
676,729		 Charity
2022
£
16,078
Charity
2022
£
156,827
115,361
98,466
367,411
738,065

14. Creditors: Amounts falling due within one year

Trade creditors
Obligations under finance lease and hire purchase
contracts
Other creditors
Accruals and deferred income		 Group
2023
£
236,606
16,212
41,572
227,630
522,020		 Group
2022
£
226,427
-
19,693
231,639
477,759		 Charity
2023
£
236,606
16,212
41,572
227,630
522,020		 Charity
2022
£
226,427
-
19,693
231,639
477,759

Page 35

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

15. Creditors: Amounts falling due after more than one year

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Net obligations under finance lease and hire
purchase contracts 35,829 - 35,829 -

Page 36

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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
Kickstart
Education & Skills Council
Traineeship
Lets Chat Grant
Total of funds		 Balance at 1
April 2022
£
567,000
921,900
10,830
932,730
1,499,730
154,512
-
-
-
-
154,512
1,654,242		 Income
£
-
2,759,749
306,884
3,066,633
3,066,633
-
11,761
14,587
5,000
92,042
123,390
3,190,023		 Expenditure
£
(43,000)
(3,229,940)
(309,083)
(3,539,023)
(3,582,023)
(8,634)
(11,761)
(14,587)
(5,000)
(92,042)
(132,024)
(3,714,047)		 Transfers
in/out
£
(60,000)
60,000
-
60,000
-
-
-
-
-
-
-
-		 Balance at 31
March 2023
£
464,000
511,709
8,631
520,340
984,340
145,878
-
-
-
-
145,878
1,130,218

Page 37

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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
Kickstart
Education & Skills Council
Traineeship
Total of funds		 Balance at
1 April 2021
£
295,000
1,705,434
13,005
1,718,439
2,013,439
163,146
-
-
-
-
163,146
2,176,585		 Income
£
-
3,128,618
154,474
3,283,092
3,283,092
-
14,112
9,671
112,734
5,000
141,517
3,424,609		 Expenditure
£
-
(3,640,152)
(156,649)
(3,796,801)
(3,796,801)
(8,634)
(14,112)
(9,671)
(112,734)
(5,000)
(150,151)
(3,946,952)		 Transfers
in/out
£
272,000
(272,000)
-
(272,000)
-
-
-
-
-
-
-
-		 Balance at
31 March
2022
£
567,000
921,900
10,830
932,730
1,499,730
154,512
-
-
-
-
154,512
1,654,242

Page 38

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16. Statement of funds (continued)

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.

Kickstart relates to grants received to provide employability services for a number of young people. Funding was secured to assist in the delivery of skills training and in reimbursing wages of trainees.

Education and Skills Council Training Scheme relates to grants received to support the facilitation of placement opportunities as part of a wider scheme.

The Let’s Chat Grant supports a pilot project, deliver with partners in the West Midlands. The project encourages people to socialise and engage with others, reducing loneliness and isolation. It is hoped that the pilot will continue beyond September 2023, and has been nominated for a national award for diversity and inclusion.

Page 39

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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
Creditors due in more than one year
Total		 Unrestricted
funds
2023
£
340,136
1,202,053
(522,020)
(35,829)
984,340		 Restricted
funds
2023
£
145,878
-
-
-
145,878		 Total
funds
2023
£
486,014
1,202,053
(522,020)
(35,829)
1,130,218

Group analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
336,885
1,640,604
(477,759)
1,499,730		 Restricted
funds
2022
£
154,512
-
-
154,512		 Total
funds
2022
£
491,397
1,640,604
(477,759)
1,654,242

Page 40

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Profit on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase in creditors
Net cash used in operating activities		 Group
2023
£
(524,024)
76,677
(23,607)
3,874
63,463
28,049
(375,568)		 Group
2022
£
(522,343)
72,047
(11,608)
(4,737)
(122,066)
73,207
(515,500)

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents
Analysis of changes in net debt
Cash at bank and in hand
Finance leases		 At 1 April
2022
£
1,001,822
-
1,001,822		 Cash flows
£
(371,214)
15,171
(356,043)		 Group
2023
£
630,608
630,608
New finance
leases
£
-
(67,212)
(67,212)		 Group
2022
£
1,001,822
1,001,822
At 31 March
2023
£
630,608
(52,041)
578,567

20. Analysis of changes in net debt

Page 41

COMMUNITY TRANSPORT

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

21. Capital commitments

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Contracted for but not provided in these financial
statements
Acquisition of tangible fixed assets 464,486 464,486 464,486 464,486

22. 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 £57,648 (2022 - £59,130).

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 2023, the Charitable Company had outstanding pension contributions of £15,826 (2022 - £18,049).

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 2021 were completed in 2022 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 small surplus of assets compared with a value of liabilities of £3.8m, equivalent to a funding level of 100%. 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.

Page 42

(A Company Limited by Guarantee)

COMMUNITY TRANSPORT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

22. Pension commitments (continued)

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 £47,251 (2022 - £73,652) on withdrawal from the Plan based on the financial position of the Plan as at 31 March 2023. This amount is treated as a contingent liability.

23. Operating lease commitments

At 31 March 2023 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Not later than 1 year 412,459 592,276 412,459 592,276
Later than 1 year and not later than 5 years 789,049 1,230,948 789,049 1,230,948
1,201,508 1,823,224 1,201,508 1,823,224
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Operating lease rentals 595,211 619,692 595,211 619,692

24. Related party transactions

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

25. Post balance sheet events

On 8 August 2023, the charitable company sold it's warehouse in Bilston and made a profit on sale of £762k.

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