[TY￿ herel NUCLEUS COMMUNITY ACTION LIMITED REPORT OF THE TRUSTEES I DIRECTORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 COMPANY NUMBER 1202541 NUCLEUS COMMUNITY ACWON LIMITED REPORTOF THE TRUSTEESIDIRECTORS CONTENTS Page TRUSTEESIDIRECTORS REPORT AUDITORS REPORT 8-10 STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHE 12 CASH FLOW STATEMENT 13 NOTES TO THE FINANCIALSTATEMENTS 14-23 NUCLEUS COMMUNITY ACMON LIMITED REPORT OF THE TRUSTEES/DIRECTORS FOR THE YEAR ENDED 31 MARCH 2024 The trustees are pleased lo present their annual directors, report togetheT Wth the finanryal statements of the Charity for the year ended 31st March 2024, ￿lch are also prepared to meet the requirements for a direclor5' report and Companies Act purposes. The financial ststements com ￿Y with the Charities Act 2011. the knpanies Act 2006. the Memorandum and Articles of Association. and Accounting and Reporting by Charities". Statements of Recommended Practice applicable to charities preparing their accounts in auordance with the Financial Reporting Standard applicatje in the UK and Republic of Ireland IFRS 1021 effects.ve 1 January 2015. OUR PURPOSE AND ACTIVITIES The Charity's mission is to educate. inform and advise users. The obje¢tives are to combat poverty by education and providing expert ae¢ess lo advice and assistance in areas of social ￿elfare law. The Ch8rity's apprcAch Involves acb.vely Invo￿1ng vulnerable clients in assessing their problems, Consider their options, advising them on the likely consequences and helping them lo choose the best way forward for them. There have been no changes in these this year. We believe this approach enables and emFX)wers users lo take a central role in fundamental decisions affecting their lives and creating plans to address both short-term and long-tem) issues. The role and contrlbutlon of voluntee The contribution of volunteers and university placements to delTver our work and meet our objectives is key.. rely on volunteers, time and skills across the whole organisalion and in every team. During the year we had over 100 volunleers who have helred supwrt the work of paid staffs across the service5. Londoners. and especially in Central and West London. are faang huge increasing housing costs and general Iwing expenges. The social welfare support system M￿nI lo be there in a b'me of neeL1 is not adequate in helping people.. it is Slow to react and offer then only offers litue Sltpport. Furthemiore Londoners aff more likdy to tx Overcro￿1ed, more likely to live in povety Ihan in previous years. During the year VE have.. Hel￿d over 7920 people get &vi¢e on a sooal welfare law maller. Helped local p8)ple gain £2.5 million in by challenging wrong decisions and manage £5.7 million of debt. Our experienced swi8list a(fvisor5 were able to take on 4492 in depth cases of which.. a} 1777 were Housing cases involving possession prcceedings or homeless applicationslreviews. bl 747 ￿ere DWP or Housing Benefiu Support appeals against non-awards or overpayments. c) 1397 were debt advice and management induding DRO or bankruptcies. Our pro bono service is built on vnrking in partnerships bmth local solicitors rims. The solicitors provide pro bono appointments in areas of work for which legal aid has been severdy curtailed. Over the year our volunteer solicrtors helped advice $71 dients. We have continued to provide advice in community settings across the RBKC, bJlh jointiy wth other community organisations i.e. North Ken&nglon Fo(xl Kitchen, Clunenl James and at venues and pop up events al community centres. At both in the World's End 2nd Hdmfield areas run housir¥J advi￿ seswons al the lo¢al c￿ldren'S Centre directed at families wlh housing issues. NUCLEUS COMMUNITY ACnON LIMITED REPORT OF THE TRUSTEESIDIRECTORS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 We Gonlinue lo manage the Community Hub at the Lido Centre in West Earing. Al the Lido centre, ￿ have launched a number of Quick Advice sessions oUrSe￿eS and in partnership wlh other local charities. They include sessions on digital training, comF4elion of forms, provKle t￿tter access for GP or NHS services and run digital inclusion sessions. We continue to rent out office space, training r¢Joms and inletview spa￿$ from the Lido lo other charitie8. Due to the ¢ost of living crisis, have administered an emergency fund and a hdp to￿ardS fuel costs. With the help of KC Foundation we ware able to continue a grant scheme to provide emergency cash arKII c on*off direct payments to help pay off utilty atrears. Wrth the help of LBE we have launched a similar grant scheme to provide emergency cash or one-off dIr￿t payment5, With toth schemes any help was as part cl a longer temi plan to tackle undertying i￿e$. Publlc benefrt ststement In shaping our objectives for the year and ￿annIng our aclivilies, the Iruslees have con%dered the Charity Commission's guidance on public benefit, including the guidan￿ 'public tenefit." running a charity IPD21. The achievements and actNities above demcnslrate the public benefit arigng through the Charity's ￿tiVitIes. FINANCIAL REVIEW The statement of Finanaal AGtNilies Sho￿￿d a net surplus for the year of £92,87g12023 - del￿11 of £161,844) and total resetves al the year-end stand al £950,37212023- £857,493). At the year end the free reserves carried forward excluding tangible fixed assets total £393,85812023- £340,949) ef which £347.000 (2023 - £347.0001 ￿ds designated to building maintenance, fumiture and equipment, glaff contingency and ccmputer development Restricted funds carried forward totalled to £250,68612023- £201,586). The Charity endeavour5 to run on a balanced budget in dolivgring the various actwities ¢arrioJ out by Nucleus. Risk managemenl The Dir￿tarS and Trustees have identr.fied the mqor risks to which the Charity 15 exposed and ￿lIeVe that the systems in place are adequate to mitigate those risks. The Charity's Organisational Risk Assessment has b￿￿ reviewed to this end. We make litue use of financial instruments other than an operational bank account and sn investment in a common investment fund so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the Charity. The main risks are lo us providing effeclwe services to really tacKe povety are.. a) Failure to demonstrate society's rEed to tackle poverty and its detrimental effects on 1ndW￿ua1. b) Failure to develop new services to meet needs in a cost efficient way but which are effectsve to ople's needs and abilits.es i.e. provide a￿SSIble services te all. cl Loss of key personnel arKJ skills leading to reducb'on in effecb'veness. dl Failure lo perfom lo the required specification for the qu81ity 8SSLJrance systems or regulatory requirements both professional rdating to eff￿ts.Ve m8n8gemenl of the organisalion and its finances. e) Failure to manage or wntrol costs or expenditure and failing lo take tirndy aaion. Reductions core funding grants from Local Governments due to cuts. gl Failure lo meet conditions set in se￿1￿ contracts, the service level agreements or grants. h) Failure lo maintain and keep the buildillgs and offices in good repair and offer a good client experience. The Trustees and the Director have taken Ste￿ to try to mrfcigate the risks. The main external risk lo any small independent organisation such as ￿rS is beirg too derEndent generally on grants and contracts andlor one source of funding NUCLEUS COMMUNITY ACfflON LIMITED REPORT OF THE TRUSTEES/DIRECTORS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 We try and minimise risks by.. al Oiversifying the funding base, tying to ensure projècts and cost centres cover costs of running them b) Ensuring that we meet the requirements of the funders and continue lo use best practice and expertise. cl Man?ging and avoiding fundament failure by continually fwusing on our charita￿e aims and actively challenging ourselves to better manage and deliver services. We believe a key to meeting C￿ta￿e aims is to keep user needs central to C041esgning 2nd developing services. To this end the Trustees have. in place, mechanisms for user input ￿rosS the organisakn'on. This incluées having fc¥mer service users on the board, engagiry residents to get thar inpu( encouffjging l￿dback ficyn users and having a transparent approach to all our work. Retaining good staff is an ongoin9 issue for any charity. We recognise tha( we need lo try do so by paying ieasonable wages close to the market levets. To this end we endeav￿r to try and ensure pay, for all staff, at least the London LNing Wage. Furthermore we wll endeavour to improve temis and conditions for staff to encourage people from a diverse background to help join us in delivering our mission. We have embraced hybrid to help create a flexible working environment and to allow staff to beller manage their work-life balan￿. Principal fundlng Sources The princrpal funding sources are shown under notes 2 and 3 and comprise a mix of statutory funding, grants frcyn Gharitsble trusts commercial organisation$. The Charity also raises funds through a nurn￿er of sponsored initialive5. Nucleus aims to develop a dwerse funding base f¢x its actiwlies. currenuy we ￿Ceive funding from.. a) The Royal Borough of Kensington & Chel$8a. b} The Campden Charities. cl The London Borough of EalirKJ including via consortium lead Eaing M8ncap. dl Money and Pensions Athice Services (Debt Freg Advice). el London Legal Support Trust. K+C Foundation. g) AB Foundation. h) GLA Mayorfs Fund. We wwld like to offer a sincere Ihanky lo all the above fuTrJers for their conb'nued support. Without their understanding of the issues ￿ WOLtld not be able to do any of our work. Under the Memorandum and Artides of ASS￿lation, the Charity has the power lo invest in any ￿aY the Trustees wish. It endeavours to maximise inteTest income from use of free finanaal resources. Reserves policy. The Directors and Trustees consider il prudent to maintain an adequate level of unrestricted reserves to cover the Charity's ¢ontra¢lual commitments and provide sufficient wxking capital and have sel this at minimum of between three and nine months exFendilure. This is to help weseNe our independence.. by allowing us underwrite new projects, protect existing proiects and pump prime funding. The Directors and Trustees have identified adequate direct arNI indirert compensation as a n￿y, emerging and growng risk lo service efficacy. Traditionally the Charity has rernained compeb'tive and attracted suitable, competent staff by offering indirect benefits and non-monelary compensation i.e. flexible working especially around WFH, child and caring nee(15. The Directors and Trustees, recognise acting as a modd gcM)d employer is essential in meeting aims lo being a progressive anli-povety charity. Staff remuneration and rights need to te kept in review and protected. The Directors and Trustees re-commit lo deVelo￿ng and maintsining direct and indirect remuneration for 8t1 staff. NUCLEUS COMMUNITY ACTION LIMITED REPORT OF THE TRUSTEES/DIRECTORS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 FUTURE PLANS AND DEVELOPMENTS The need for our services is greater than ever. We revie￿ recent demand for our help. We found out that over the la513 years.. al Demand for Debt advice queries has increased by 231°/0 b) Demand for Housing advice queries has increased by 212% ¢) Demand for Welfare advice queries has increased by 2110/0 In our experien¢e, too many Londoners fa￿ an insecure precarious existence.. many are on low pay ￿lch coupled with high housing Costs has resulted in pwr housing affordakn'lity. Many of our clients are spending on average 400/0 of l￿'r income on housing. Many are using money for food and heating to cover their housing costs. Our client feedback showed that they most ￿nted lo be at4e to look after themselves.. including sometimes avoiding any support that might be available. They repeatedly comment Ihal they need more than anything else is affordable housing, a decent wageyj1n￿rne and to be debt free. In the coming year nucleus plans to continue to devdop seNices to la¢kle poverty and its effects. We wll focus on develoFyng and delivering a Gomprelyensive holistic advi* service providing housing, debt and benefit advice serVi￿S A key obJ"ective wll be to build further partnership5 or consortia and to wth statutory and vduntary services to get better outcomes especialty for Feople suffering frcm menta health issues, Charltable and political donations. During the year the Charity made no political or charitable donations Company Number.. 7202541 Charity Number. 269325 Directors l Trustees.. Alan Murdie IChaimi2n) Roy Hiscock ITre8surerl Charles Donkoh Chartes Eder Robert Allan Chantal German Secretary: Baljil Badesha Senior Management Team.. Baljil Badesha - Director Megan Redhouse- SeNices and DeveloFJnent Manager Kehinde Anifwse- Debt Advice Manager. Shamini Thevarajah - Housing Acfvice Manager Registered OffiGe'. 298 Old Brompton Road, London SW5 9JF Auditors.. Grant Harrod Lerman Davis LLP, 1st Flojr, Healthaid House, Marfbcfough Hill Harrow, HA1 1 UD B8nkers.' Lloyds Bank Plc. P.0. Box 1000, BX1 1LT CCLA Investment Management Ltd, 80 Cheapside, London EC2V 6DZ Charity Bank Ltd, 194 High Street, Tonbridge, Kent TN9 1 BE Hampshire Trust Bank, PO Box 74003. London EC2P 2QR Nationmde BS, Nationwide House, Pipers Way, Swindon SN38 hares. NUCLEUSCOMMUNITY ACMON LIMITED REPORT OF THE TRUSTEES/DIRECTORS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Govèrning document Nucleus Community Action ￿"MIted is a company limited by guarantee and not having a capital dNided by shares. The company was incorporated on 5th March 1975 and is a registered charity conslilut&J as 8 Limtted Company under the MeMorar￿um and Articles of Association. The charity registration number is 269325 and the company registration number is 1202541. Trustee Induction and trainlng The Trustees maintain a b￿r1{1ng knowl&lge of charity and company law and best practice by attendan￿ at charity and company courses run by outside providers. New Trustees are given copies of the Memorandum and Arbcles cl Association and Poliaes and Procedures of the organisalion. New members are provided with an induction by the Director This inVo￿e5 a sel of meetings and being provided wth a commttlee handt*)ok. They are offered an opportunity for co-mentoring wlh other members. All new and existing members are offered on-going subject based and skilled based external training. All committee members take an active part in the organisation's strategy during cclnmiltee meetings and an annual strategy day. Appolnlment of tru8tee8 As sel out in the Articles of Association the Chair of Tfuslees is nominat￿ by Nu¢leu8 Comrnur)ity Action Limited Management Board. M￿lterShip of the Management Board is agreed by the diarity's members at an Annual General Meeting. The Directors in office in the year are set out on page 4. The Directors have no benefiaal interest in the company other than as members and atl guarantee to contribute £1 in the event of a winding up. The Board has the power to apFoinl additional Th"reclors and Trustees with special expertise as il considers fil. They also have unlimrted investment powers. Organisation The company is structured so that the Directors and Tru5tee5 meet regularty in order lo manage its affairs. th Nucleus Community Action Limited Management Board meeting approximately every six weeks. The Management Board comprises indwiduals from a variety of backgrounds, stakeholders aTKI users. 8oard members, backgrounds include care, afvice and legal professions as well as finance and management. A Finan￿ & Personnel SuJ>¢ommittee is In place, meeb'ng regularly and reFxJrbng in tum to the Management Board. Related partle8 There are no related parties lo the charity other than t￿ trustees. There were no related party transactions in the yeai under review. Pay policy of senior Staff The arrangement for setting the pay and remuneration of the company's staff is done by the toard of directorsltru5tees and included wthin the company's budgeting process. NUCLEUS COMMUNrrY ACTION LIMrrED REPORTOF THE TrUSTEESIDIREcfoRS (continued) FOR THE YEAR ENDED 31 MARCH 2024 STATEAENT OF DISCLOSiIRE TO AUDrroR So far as the D1￿clO￿ and Tnth are wae. th￿e is no relevant a￿lIt infrffip1l￿ ofwhth the Chafity's audito￿ are unaware. Addibona]ty. the Drectors and Tntstees have laken aEE nwsary *ps that we ¢)ught to have taken a5 direct￿5 in order to ma(e thems￿ Wdre of any relevant 8u(tit inknmal￿Jn and to estsbtth that Ihe ch￿'S audiiors ae of that infoTination. STATEIIENT OF TRLISTEEY RESPONSIBILMES The Trustees {who are also direckns of Nwleu5 Communty Action LiMi￿j for the purtx)ses oft￿MpanY law) are resFonsibte for preparing the preparing the Aftnual Report and the ffinanctal statemenls in XCAxdance with applicable law and regulabon. Company requres the DKectors to Ptepwe ffinanci4 51atell￿ for e￿ knncml yw. Underth* ￿ the Directors have eleded to prepa￿ the financial ststernents in accordance United lQngdom Generalty Accepted AC￿unkng PraciKe (Unrted Kingdom Acc￿￿nting Standards and applicable Iww). Under company fair view of the state ofaffairs of Ihe o)mpany and ofrts Inc￿ and exp￿11￿￿ for that wiod. In p￿aring select Suitable acc￿n￿ng policies and then apply them ￿nsiSten￿y' observe methods and princi￿eS in the Charities SORP 2019: make judgements and estirnates that are reasonable and prudent st* ￿thether applir*Jle UK Accounting Stsrthrds have been foNtrwed. subjert tr> any mater departures dixlose(l and explavwj in the fffHi¢ial sl*ements" prepare the financial statements on the going concem basis untess it is itrdppropriate lo presume that Chaiitable company will Contin￿ in lyJsin&8s. owq)any and enab￿ ensure that the fina￿la1 statemerrts (x)mply wrth ihe Corywies Act 2006. They are also responstble for safegua￿lD9 the assets of the compafty and henc8 for taking reasonabte 51pps for the prevention detedion of tsud and othw irreguLgrilies. The Tn￿teeS are responsible forthe maintenan* and integrity ofthe Charity and the finanrAal info￿[￿110￿ included on the tharitls y￿bSite in aco)rdance with legislation in lh8 Uniied lfjngdorn gov9m1￿ the preparntion and d4seminatron offinancial statements. AUDITORS A resolution will be proposed at the Annual General Meeting that Grant Harrod Lemian Davi5 LLP- Chartered Accountants wppoirrted as auditors of the Charity for the enwing year. The report of the direc*0￿ has teen tskirKJ advaiitsge of the conyanies. exenwtion of section 415A of the Companies A(* 2006. APPROVAL This reportwas apWov￿l by the Board and stgned on its b&half by: •//ia Ak4n/ /VgEF/£ Chalr 30 0(knber 21Y24 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NUCLEUS COMMUNITY ACTION LIMITED FOR THE YEAR ENDED 31 MARCH 2024 Opinion We have audited the financial statements of NLJdeus Community Action Ltd (the 'charilatAe company'i for the year ended 31 March 2024 ￿lch compr15e the Stalgnent of Financial Ath'vib'es, the Balance Sheet. the Cash Flow Stalwftent and notes lo the financid statements, induding a summary of gnificant accounting rolicies. The financial reporting frame￿rk that has been applied in their preparation is applicaNe law and United Kingdom Attounting Standards Iunited Kingtrth Generally Accepted Accounting Practice). In our opinion the financia slalemenls.. gwe a true and fair view of the state d the charttable Company's affair5 as al 31 March 2024 and of its incoming resources and application of resource& including its income and expenditure, for the year then ended., have teen proFedy prepared in a¢¢ordan¢e wtth United lfjngdcfn Generally Accepted Accounting Practice,. and have been Fxepared in a¢¢ordance wth the requirements of the Companies Act 21x6. Basis for opinion. We conducted our audit in accordan￿ International Standards on Auditir7g (UK) {ISAs IUKI) and applicatde law. Our responsibilities under those standards are further described in the Auditors, Tesp)nsibilities for the audit of the financial statements section of our ￿pOrt. We are independent of the charitsble company in accordance wlh the ethical requirements that are rdevanl to our audit of the financial statements in the UK including the FRC'S Ethical Standard. and we have ftjfilled our other ethic responsibilities in accordance wth these requirements. We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our opinion. Con¢lu8Fons relatlng to going ¢on¢em. In auditing the finanaal stalemenls, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriale. 8ased on the ￿￿}rk we have perfomied, we have not identified any material uncertainties relats'ng to events or conditions that, individually or coll*b"vely, may cast signifscant doubt on the chantable ccxmpany's ability lo continue as a going concem for a period of al least twelve months from ￿en the financial statements are authorised for issue. Our responsibilities and the responsiblllties of the trustees with respect to going concern are descrited in the relevant sections of this report Other Informatlon The trustees are responsible for the other infomialion. The other infomation compri%s the irfomiation Included in the Annual Report, other than the finanual st8lements and our ReFL¥rt of the llldependent Auditors thereon. Our opinion on the financial statements does not cover the other inforrnab'on and, except to the extent otherwise expliciuy staled in our reporL do not express any forTn of assurance conclusion Ihereon. In connection with our audit of the financial statements. our reynsibilily is to read the other inforynalion and, in doing so, con￿der whether the other informab'on is materially inconsistent wth the finanaal statements or our knowledge obtained in the audit or Otherwi￿ appears lo be materially misstated. If we identify such material inconsi51encies or apparent material misstatements. we are required lo detemine ether this gNes rise to a material misstatement in the financial st2tements themselves. If, based on the rk we have performed, conclude that there is a materia misstatement of th"s tsther infr￿ats.0n, are required to report that fact. We have nothing to reFort in this regard. Oplnlons on othèr mattèrs pr￿trib￿d by the Companies Act 2LK6 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Trustees for the finanaal year for ￿1¢h the financia ststements are prepared is ccnsislent wlh the financial statements., and the Report of the Trustees has been prepared in accordan￿ with applicaue legal requirements. REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NUCLEUS COMMUNITY ACTION LIMITED FOR THE YEAR ENDED 31 MARCH 2024 Matters on which we are requiTrd to report by exception In the light of the kn￿edge and understathying of the charitable company and its enviromient obtained in the course of the audit, we have not identsfied material misstatements in the Report of the Trustees. We have nothing lo report in respect of the following matters where the Companies Act 2(X16 r4uires us to report to you if. in our opinion". adequate accounting r￿ordS have not been kept or retums adequate for our audit have not been received from branches not visited by us,. or the financial stalemer¢ts are not in agreement with the ac¢ounling records and return4 cf certain disclosures of Iruslees, remuneration spectFied by law are not made., or have not r￿1Ved all the informats'on and explanations we require for our audiL Responsibilities of tNstees A$ explained rnore fully in the Statement of Trustees, Responsibilitie5, the Iruslees (who are also the directors of the charitable Company frx Ihe purpose5 of company lawl are responsible for Ihe preparation of the financi31 staternents and for b&ng satisfied tha they gtve a true and fair view, and f(￿ such inlemal control as the Iru5tees delemiine is necessary to enable the preparation of financ4al statements that are free from materi31 misstatement, whether due lo fraud ￿ error. In preparing the financial statements, the Irustees are responsible for assessing the charitable company's ability to continue as a going concem, disclosing, as applicable, matter5 rdaled lo going concern and u%ng the going concem basis of accounting ijnless the trLsslees either intend to liquidate the charitable company or to cease operations, or have no realisb'c allerrtats've but lo do so. Our responsibilities for the audlt of the Ilnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, ￿ether due to fraud trr error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high levd of assuran￿, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material mis5talement en it exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected tr) influence the econc(nic decisions of users tsken on the basis of these financial statements. The extent to which our pr4xedures are capable of detecting irregularities, inclLKling fraud is detsiled bdow. To identify risks of material misstatement due lo fraud fyraud risks") assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an Opportunity to ccfflmrft fraud. Our risk assessment procedures induded: Enquiring of trustees and inspecUon of policy documentation as to the Charity's high4evd poliaes and procedures lo prevent and detect fraLKi. a8 well as whelher they have kno￿edge of any actual, Sjs￿ed or alleged fraud. Reading Board mlnutes. Using analylica procedures lo idenb'fy any unusual or unexpected relationships We communicated identified fraud risks Ihroughoul the audit team and r￿ained alert to any indications of fraud throughout the audit. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriae accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the Charity's revenue transactions are simple and l¢Th value wth few, if any, judgmental aspects to revenue recognition. We are not aware of any incentives or pressures linked to revenue recognition. We did not idenbfy any additional fraud risks In determining the audit procedures, we look into account the results of our evaluab'on and testing of the operating effectiveness of fraud risk management controls. ## REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NUCLEUS COMMUNITY ACTION LIMITED FOR THE YEAR ENDED 31 MARCH 2024 We also performed procedures including identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to unusual accounts. Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations. We identified areas of laws and regulations that could reasonably be expected to have a material _effect_ on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. Context of the ability of the audit to detect fraud or breaches of law or regulation. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non­ compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­ compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations 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 Report of the Independent Auditors. ## **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. 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Jeremy Harrod FCCA (Senior Statutory Auditor) For and on behalf of Grant Harrod Lerman Davis LLP Chartered Accountants Statutory Auditors 1st Floor Healthaid House, Marlborough Hill Harrow Middlesex **HA11UD** Date: ....8th November 2024 ....................................... . 10 NUCLEUS COMMUNITY ACTION LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds Restrided funds Notes 2024 2023 Income Grants, donations an legacies 249,158 249.158 200.7C4J Income from Charital￿e activities Donations, Grants aThJ Contmcts 337,856 277.950 615,8C6 503,974 Investment in¢orne Bank interest 11.429 11,429 6,784 Total income 349.285 527,108 876,393 711,458 Expenditure Expenditu￿ on charitable activit￿S Grants paid to individual clients Other 14 305,505 478,009 783,514 873,302 Totsl exFenditure 305.505 478,009 783.514 873,302 Net incomellexpenditurel and nel movements in funds lor the year before transfers Transfer from Unrestricted lo Restricted funds 43,780 49,099 92,879 (161,844} 43,780 49,099 92,879 {161,844) Reconciliati¢)n of funds Totsl funds brought forward e55.gYJ6 201,$87 857,493 1,019,337 699.686 250,6e6 950,372 857,493 The Statement of Financial Activities includes all gains and losses recognised in the year. Any incoming resources and resources expended derive from continuing activitie5. The notes on pages 14 10 23 fonn part of these ￿ount5 li NUCLEUS COMMUNITY ACTION LIMttED FINANCIAL STATEMENTS BAL4NCE SHEET AT 31 MARCH 2024 Notes 2024 2023 Fixed assets Tangible f￿ed assets 10 305.828 314.958 Current assets Debtors Cash at bank aTrY in haThJ 11 22,894 877,306 51.967 715.381 900.2 767,348 Liatylities CreditNs falling due within one 12 255,657 224.814 Net Cufrent assets 542.534 950,372 857.492 The fuThJs of the charity Unrestricted fLtnds General Designated Restrt(knY fund$ 14 14 352.686 347.000 250.686 308,907 347.OlXI 201.585 14 950,372 857,492 The tru5tses have prepared accounts in accordance wlh Section 398 of the Companies PLt 2006 and Section 138 of the Charities Act 2011. These accounts are Prepar￿ in accordancA with the special provisions of Part 15 of the Companies Act 2006 relating to small companies aThl cons11t￿e the annual a(xounts required by the Companies Act 2LK16 and are for circthtton to members of ￿ company. These accounts were approved by the Board of Directors and Trustees on 3 0 sign8d on its behalf by.. 2024 and an Murdie- Chaimlan John Roy HiscLKk- Treasurer Company Number.. 1202541 The notes on pages 14 to 23 form part of those accounts. 12 NUCLEUS COMfvIUNITY AQCTION LIMITED FINANCIAL STATEMENTS CASH FLOW Notes 2024 2023 Net cash {used inllgenerated from operating activities 150,495 {143.6371 Cash flows from invests'ng aclivities Purchase of laroible fixed assets Interest received 11,429 6,784 Interest paid Cash (used inllgenerated by investing activities 11,429 6,784 Change in cash and cash equNalents in the year 161,924 1136,853) Cash and cash equivalents at the beginning of the year 715,381 852,234 Cash and cash equivalents al the end cf the year 877,3C6 715,381 13 NUCLEUS COMMUNITY ACTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.1 Basis of preparation of accounts The financial slalements have been prepared in accordance with Accounting and Reporting for Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordan￿ wlh the Financial Reporting Standard applicable in the UK and the Republic of Irdand IFRS 1021 (eff￿tive 1At January 2D19- Charity SORP FRS 102), the Financial Reporting Standard appliCa￿e in the UK and tre Republic cf Irdand IFRS 1021 and the Companies Act 2006. The financial statements are prepared in sterfiry, ￿tch is the functional currency of the charity, Monetsry amounts in these financial statements ale rounded to the nearest £. Nucleus Community Action Limited meets the definib'on of a put￿lC benefit entity uThJer FRS 102 The accounts (financial stalemenlsl have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise slated in the relevant notelsl to these accounts. 1.2 Preparation of accounts on a going-concem bags The charity's financial statements show a net surplus of £92,879 for the year and the free reseNes excluding designated funds of £352,686. The Iruslees are of the view that these results and fundraising plans have secured the immediate future of the charity ffy the next 12 months and on this basis the charity is a g￿ng concern. 1.3 Income rects3nition Income is recognised when the charilaNe company has entitlement to the funds, any performance conditions attached to the itemlsl have been met, it Is kyobable Ihal the income wll be received and the amount can be rn&￿Ured reliably. Inctsne received by Nfdy of grants. donations and legxies are induded in lull in the Statement of Financial Activities ￿en r￿e1Ved, unless they relate to a specified future period, in which case they are deferred. Income from charitable activitses re￿Ned by way of revenue grants and donations are credited to restricted incoming resources on the eadier date of when they are received and ther¢ they are recewable, unless they relae to a specified future period, in which case they are deferred. Grants, donations and legacies of a general nature which are not conditional on delivering certain levels of service are included as part of Grants, Donatiorss and Legacies as shown under Notes 2 and 3. Inccme from activities indLtdes income recognised as earned las rdaled to goeds. and seNices provided) under contract. Share of clients, ￿mPensation incorne are recognised when the compensation has teen received. Investment income is included vthen recervable 1.4 Vdunleers and donated services and faulities Donated professional services and donated facilities are recognised as incom8 %th8n the charity ha$ control over the item, ariy condits'ons assttiated wth the donated item have been met, the receipt of economic tenefit for the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance ¥Mth the charib.es SORP {FRS 102}, the general vc4unteer time is not recognised and refers lo the truslee£' annud report for more Infomatlon about their contribution. On receiFI, donated professional services and donated facllitles are recognised on the basss of the vaue of the gift lo the charity, which is the amount that the charity would have teen wlling to pay to obtain services OT facilib.es of equivalent economic benefit on the open market.. a corresponding amount is then recognised in expenditure in the period of receipt. No such donations were received during the Y￿r. 14 NUCLEUS COMMUNITYY ACTION LIMITED NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 1.5 Expenditure recognib.on and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the 0￿19allOn ean be rne3￿red reliably. EX￿nditure is classified under the following actwity h82dings <8) Cost of raising funds, comprising costs of seeking donations and legacies. costs related lo property rentals, and their associated support costs (bl Expenditure on charitable acb'vitses, Nthich include expenditure associated wth the main objectives of the charity and include and both direct costs and their associated support costs. Irrecoverable VAT is charged as 8 Cost against the activty for thich the expenditu￿ Sfds incurred. 1.6 Allocal'on of support costs Support costs are those functions which assist the work of the charity but do rnt undertake charitable livitses. Support costs include back-office costs, finance. personnel. payroll and governance costs which support the charity's programmes and activib'es. These costs have ￿en allocated be￿en costs of raising funds and charitsble activities. The basis on which support casts have been allocalecl are sel out in Note 7. 1.7 Fund Structures The general fund ¢omprlses those monies which may be used towards meeting the charitable objeth'ves d the charity at the discretion of the Board Management. Th• desjgnated fund ¢ompris¢$ thg general fund set aside to be used for a SFecific purpJse as agreed by the trustees. These funds can te reallocated back lo the general fund on the agreement d the Irustees when the fund is no longer needed for the particular purpose. The restricted funds are monies raised for, and use ￿$tricted lo. a speaffc purwse, Ix donations $ut¥'eet to donor-imposed conditions. 1.8 Tangible fixed assets Tangible fixed assets are stated at cost less deprecialK)n. Individual fixed assets costing £1,000 or more are capilaised at cost.Depreciation is charged at rates calculated to write off the cost or valuatlon of the fixed assets, less their estimated r￿dUal value, over their expected useful Iwes, on the fdl(Mng bases.. Leasehold land and buildings 2Yts per annum Plant and eqLApment 25_500h Fer annum Fixtures and fittings 250 1_9 Impaimient of fixed assets At each retKJrbng end date, the charity review5 the carrying anount of ils taroible assets to determine thelher those assets have suff&red and impairment loss. If any such indiGalion exists, the recoverable amount of the asset is estimated to detemine the extent cf the irnpaiment loss lif any). Intangible assets with indefinite useful lives and intangible assets not yel available for use are tested for impaimienl annually and wherever there is an indication that the asset may be impared, appropriate pwson is made. 1.10 Debtors Trade and other debtors are recconised at the selllement amount due after any trade discount offered. Prepayments are valued at the amount prepaid NUCLEU5 COMMUNITY ACTION LIMITED NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 MARCH 2024 1.11 Cath and cash equivalents Cash and cash equivalents include cash in hand, deposlts held al call wlh bands, other short-tem liquid investments ￿th original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown thin torrowngs in Current liabilib'e5. 1.12 Creditors and provisons Creditors aThJ Ffovi&ons are reccgnlseo ￿ere the charity has a pr￿dent obligation resulbng from a past event that will probably result in the transfer of funds to a third paty and the amount due to settle ltte obligab'on can e measured or estimated reliably Creditors and provi&ons are normally ￿Cognised al their settlement amount after allowing for any trade discount due. 1.13 Financial instruments The charity has elected to apply the provisions of Section 11, '8asic Fin8nciJ Instruments" and Section 12 "Other Finanaal Instruments issues" of FRS 102 to all its financia instruments. Financial instruments are recognised in the charity's balan￿ Sheet ￿)en the chanty becomes a party to the onlractual provisions of the instrument Finallcial asset5 and liabilitie5 are offset, with the net amounts pre*nled in the finanaal statements when there is a legally enforceable right lo set off the ￿cogniSed amounts and there is an intention to settle on a net basis or lo realise the asset and settle the liability Simultaneously. Basic financial assets Basic financial assets, vthich indude debtors and bank balan￿s, are initially measured al transaction price and include transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arr2ngemenl eonslilules a financial tran￿ctIOn, vthere the transaction is measur￿1 at the pre*nl value of the future receipts discounted at a market rate of interest Finanual assets classified as receNable wthin one year are not amcrtised. Basic financial liabililies Basic financial liabilits'es, indudiro creditors and bank loans, are initially recognised at transaction price unless the arrangemenl constilules a financing transa¢lion, where the debt instrument is measured at the present value of the future payments discounted al a market rale of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at anortised cost using the effective interest rate melh¢yJ. Trade creditors are obligations to pay for goods or serv￿eS that have been acquired in the ¢ydinary ¢wrse of operab'ons from suppliers. Amounts payable are classified as CUTrent liabilities if payment is due wlhin one year or less. If not, they are presented as non