## 2021/22
The Federation Of Groundwork Trusts
(Operating as Groundwork UK)
## Annual Report and Financial Statements
**Registered office:** Suite B2, The Walker Building, 58 Oxford Street, Birmingham, B5 5NR
**The Federation of Groundwork Trusts Operating as Groundwork UK**
**Charity registration no.** 291558 **Company registration no.** 01900511
CONTENTS
2.
## Contents
|Page|3|About Groundwork UK|
|---|---|---|
|Page|4|Chair’s statement|
|Page|5|Governance|
|Page|8|Objectves and public beneft|
|Page|9|Strategic report|
|||Page 9 Performance overview|
|||Page 17 Sustainable development|
|||Page 18 Equity, diversity and inclusion|
|||Page 20 Plans for the future|
|||Page 22 Financial performance|
|||Page 25 Risks and uncertaintes|
|||Page 27 Trustees’ responsibilites|
|Page|28|Independent auditor’s report|
|Page|33|Statement of fnancial actvites|
|Page|34|Charity balance sheet|
|Page|35|Cash fow statement|
|Page|36|Notes forming part of the fnancial statements|
|Page|55|Advisers|
|Page|56|The Board of Trustees|
Annual Report and Financial Statements 2021/22
ABOUT GROUNDWORK UK
3.
## About Groundwork UK
**Groundwork** is a federation of charities mobilising practical community action on poverty and the environment across the UK.
We’re passionate about creating a future where:
- Every neighbourhood is vibrant and green Every community is strong and able to shape its own destiny
- No-one is held back by their background or circumstances
We believe that working with local communities to build their resilience is vital in facing up to the challenges of a globalised economy and a changing climate.
This means creating green jobs that build wealth in local communities, changing behaviour to reduce wasted food, energy and water, providing biodiverse, accessible green spaces, supporting businesses to be more responsible and empowering communities to lead activities that improve their quality of life and promote health and wellbeing.
Groundwork harnesses the passion, skills and experience of more than 1,200 employees and around 100 volunteer trustees across the UK. In 2021/22, the Groundwork federation delivered projects and programmes to a value of some £90 million involving and benefiting more than 900,000 people.
Groundwork UK is the central body of Groundwork, responsible for the brand, systems and agreements that hold the federation together. We add value to Groundwork’s local activities by building the organisation’s profile, developing strategic relationships with partners, funders and commissioners, managing programmes and contracts delivered by Groundwork Trusts and others and furthering Groundwork’s mission by distributing grants to local communities on behalf of public bodies and private businesses. We act as Groundwork’s national voice in the outside world and help all parts of Groundwork gain the benefits of being in a federation by providing opportunities to collaborate, share ideas and capacity and learn from good practice.
Groundwork UK is registered as a company and charity under the name The Federation of Groundwork Trusts, denoting its status as the membership body for Groundwork Trusts. This report outlines the activity, priorities and financial position of Groundwork UK and how it contributes to Groundwork’s collective achievements and impact, more details of which can be found here: Our impact - Groundwork.
CHAIR’S STATEMENT
4.
## Chair’s Statement
Groundwork grew from a time of social and economic crisis in the late 1970s and early 1980s. As we mark 40 years of operations, I’ve been proud to see how our entire federation has stepped up to support communities through current times of crisis.
In many communities across the country we have been a point of stability helping people through – and gradually recover from – the Covid pandemic. We have helped people stay connected and active through our community hubs, supported young people to get back on their feet and into work, helped those who are isolated regain their confidence and distributed thousands of emergency grants to community organisations doing vital work in their local areas.
We are now doing all we can to support families and communities struggling with rising bills and making desperate decisions about eating or heating. We have seen a huge increase in the number of visits and calls to vulnerable people made by our Green Doctors – helping people with their household bills and connecting them with other forms of support. Our youth and community workers are providing activities to address ‘holiday hunger’ and our allotments and community gardens are helping people keep well and supplement their shopping with fresh food.
Underlying all of this is the need to continue addressing the climate and nature emergencies. Groundwork Trusts are at the forefront of work to connect people with the environment on their doorstep, to build a more circular economy, deliver green skills and jobs and ensure our communities are more resilient in the face of extreme weather events.
Throughout the last year we have continued to strengthen our financial position and maximise the benefits of collaboration across our federation. We have also made important strides in ensuring we are operating fully in line with our values – agreeing clear targets and actions aimed at reducing our own carbon footprint and ensuring we are promoting equity, diversity and inclusion in what we do and the way we work.
Groundwork’s value rests in its approach and its people. That approach – finding joined-up solutions to social, environmental and economic issues impacting our communities – has never been more important if we’re going to play our part in addressing increased hardship and chart a ‘just transition’ to net zero. To do that well we need to support our people through what will be a challenging period for many in society and ensure they have the direction, resources and freedom to develop creative responses to the needs of those we exist to serve.
I know all my fellow trustees and executive leaders across our network are committed to this task, and that Groundwork UK will continue providing the support and leadership required for Groundwork to be more than the sum of its parts.
**Graham Hartley, Chair** - 20 September 2022
GOVERNANCE
5.
## Governance
## How we are organised and governed
Groundwork UK is the operating name of The Federation of Groundwork Trusts, a charity and a company limited by guarantee. The governing documents are its Memorandum and Articles of Association, which were last amended by written resolution on 6 December 2018.
Membership of Groundwork UK comprises Groundwork Trusts. Groundwork Trusts are registered charities and companies limited by guarantee with similar objects to Groundwork UK but delivering in local areas across the UK. A membership agreement sets out our internal roles, relationships and behaviours and the whole of Groundwork operates to a collectively agreed federation strategy, which is overseen by our Board of Trustees.
The Board of Trustees comprises the trustees of Groundwork UK in accordance with the Charities Act 2011, who are also the directors of the company in accordance with the Companies Act 2006. The majority of our trustees are appointed from the boards of our member Groundwork Trusts. A number of independent trustees, including our Chair, are co-opted by the Board on account of their skills, experience or networks.
Our trustees are responsible for ensuring Groundwork UK is managed effectively and efficiently with appropriate systems, processes and policies governing our fundraising and financial management, our assets and investments and our responsibilities to our staff, volunteers and beneficiaries. Trustees pay particular attention to our responsibilities in respect of health and safety, safeguarding, data protection and information security, and we also have trustee champions overseeing our work to reduce our carbon footprint and promote equity, diversity and inclusion across our organisation.
The work of the Board is supported by four sub-committees:
Groundwork UK Committee - overseeing the development and management of our programmes and services, ensuring risks are managed and supporting the operational and financial performance of our organisation.
Groundwork UK Audit Committee – overseeing our audit process and reviewing our Annual Report and Financial Statements independently of the Groundwork UK Committee.
Federation Executive Team – executives from each Groundwork Trust supporting the Board with the formulation of strategy and policy for the whole of Groundwork.
Chairs’ Committee – comprising the Chairs of the three committees above and assisting with appointments to the Board, selection of the Federation Chair and appointment of senior staff at Groundwork UK.
GOVERNANCE
6.
As a charity supporting young people to play an active role in their communities, we want to ensure that our strategic decision-making and operational plans are informed by the views of young people. Our Youth Advisory Board acts as a sounding board for our internal teams and provides a platform for building and supporting a wider network of young people to improve their own lives and neighbourhoods. We also seek regular feedback from community groups we support through our grant programmes, and from other partners and stakeholders to ensure our plans respond to the needs of those they’re designed to benefit.
Groundwork UK’s Management Team is led by the Chief Executive and includes senior staff members responsible for financial management and corporate services, fundraising, communications and programme delivery. This team operates through delegated powers outlined in our financial regulations and provides regular reports on financial and operational performance and risk management.
## Relationships within Groundwork
Groundwork is a federation of independent charities, each working under a common brand to a common strategy. This strategy sets the direction, milestones and targets, which underpin operational decision-making across all parts of Groundwork. Within this strategic framework Groundwork Trusts make their own decisions about the project work they develop and deliver.
Groundwork UK delivers services and activities to support Groundwork Trusts and the delivery of Groundwork’s mission and strategy. Groundwork UK is held to account for its performance by its members. Each Groundwork Trust signs a membership agreement, which sets out the commitments made by all parts of Groundwork in relation to quality, governance and ways of working and defines the functions Groundwork UK will deliver on behalf of the federation.
The appointed trustees of Groundwork UK are also trustees of Groundwork Trusts but are not considered to be related parties under the definition of the SORP and transactions between Groundwork UK and Groundwork Trusts do not require separate disclosure. Groundwork UK has considered the other disclosure requirements of the SORP and believes that there are no other related party transactions except for those between itself and its wholly owned subsidiary companies, as listed on page 56 .
GOVERNANCE
7.
## Our commitments
The Board is committed to the principles of good governance set out in the Charity Commission Governance Code and all boards within Groundwork regularly review their performance against this standard.
Our federation strategy sets out the principles which underpin all of our work.
- We will invest in the places and people that need us most – prioritising our resources to bring about lasting change by building skills and capacity within the local communities where we can make most difference.
- We will work with local leaders and listen to local voices – ensuring our work is shaped by those it is designed to benefit and adds value to the assets that exist in local areas.
- We will grow a culture of equity and inclusion – operating transparently and with integrity and seeking out a diversity of viewpoints, both in the work we do and the people we employ.
- We will be committed to collaboration – forging strong partnerships, contributing to a thriving community sector and helping others lead where this will achieve greater impact.
- We will act as environmental exemplars – championing practical action to combat the climate and nature emergency and measuring and reducing our own environmental impact.
The Groundwork UK staff team has agreed a set of values to inform the way we work and behave. We will be environmentally aware and focused on communities in need. We will be collaborative, show integrity and strive for quality in everything we do.
Our decisions, actions and operations are guided by our sustainable development policy, which sets out how we will contribute to creating a strong and just society living within environmental limits, and how we will work towards ‘net zero’ carbon emissions.
As a charity dedicated to supporting people who may be vulnerable we are committed to ensuring our operations are delivered safely and that our staff, volunteers and service users are able to speak freely about any concerns they have. We have a Groundwork-wide commitment to effective safeguarding – including e-safety - and comprehensive complaints and whistleblowing procedures.
Our work is designed to address the needs of all sections of the community and we provide equal access to our services regardless of people’s backgrounds, circumstances or characteristics. We monitor levels of diversity within our staff team to ensure it reflects the communities of which we are a part and regularly gather feedback from colleagues about our culture, recruitment processes and employment practices to ensure they are inclusive.
Groundwork UK is registered with the Fundraising Regulator and complies with all relevant codes of practice. All of our fundraising is managed internally and we do not employ commercial participators or professional third-party fundraisers.
More information about our approach and commitments can be found here - Our approach and commitments - Groundwork
OBJECTIVES AND PUBLIC BENEFIT
8.
## Objectives and Public Benefit
Groundwork UK’s charitable objectives are set down in its Memorandum of Association and date from the interpretation of charitable activities when they were drafted in 1985, as amended at annual general meetings and by written resolution. They commit Groundwork UK to delivering and promoting regeneration and sustainable development as follows.
- To conserve, protect and improve the physical and natural environment anywhere in the United Kingdom and Republic of Ireland.
- To improve quality of life by providing welfare, recreation or leisure facilities.
- To advance public education in environmental matters .
- To promote urban or rural regeneration in areas of social and economic deprivation through:
1. The relief of poverty and unemployment.
2. Providing education, training or work experience for people who are unemployed.
3. Delivering financial assistance, technical assistance, business advice or consultancy in order to help people get back to work.
4. Creating training and employment opportunities by providing work space, buildings and land.
5. Maintaining or improving public amenities such as footpaths and cycle ways.
6. The preservation of buildings or sites of historic or architectural importance.
7. Reclaiming derelict land for use as open space.
8. Providing public health facilities and schemes to promote healthier living.
9. Alleviating anti-social behaviour and supporting crime prevention.
- To promote sustainable development for the benefit of the public by:
1. Preserving, conserving and protecting the environment
2. Promoting the prudent use of natural resources
3. Improving quality of life in socially and economically disadvantaged communities
4. Promoting sustainable means of achieving economic and social growth and regeneration
5. Educating the public in how to protect and improve the environment.
- To promote the efficiency and effectiveness of charities in helping them deliver their objectives by providing information, advice and assistance.
Groundwork UK’s trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the organisation’s objectives and planning future activities. In particular, the trustees consider how planned activities will contribute to the charitable objectives set out above. Further details about the impact of Groundwork UK’s activities during 2021/22 can be found on the following pages.
STRATEGIC REPORT FOR THE YEAR ENDED 31ST MARCH 2022
9.
## Strategic Report for the Year Ended 31st March 2022
The Board of Trustees presents its report for the year ended 31 March 2022. This includes:
Page 3 An introduction to our organisation Page 5-8 Our governance and objectives Page 9-27 Our financial and operational review for the year Page 20 Our plans for the future
Page 55-57 Details of our trustees, senior staff and advisers
## 1. Performance overview
The current Groundwork federation strategy was agreed by our Board of Trustees in June 2020, having been developed with input from employees, partners and other stakeholders over the previous six months. The strategy acts as the foundation for all planning in Groundwork, setting out targets and priority actions agreed by the whole federation.
When the strategy was agreed it was acknowledged that the course of the pandemic (which was then in its first phase) was difficult to predict and might present barriers to delivering all the activities planned or necessitate an early revision. However, a review in summer 2021 concluded that the core elements of the strategy remained relevant to the unfolding political, social and funding context and that Groundwork should continue to monitor progress towards the objectives originally set.
The strategy re-stated Groundwork’s mission with a commitment to ‘mobilise practical community action on poverty and the environment’. It placed a sharper focus on activity to address climate change – a strong driver for our staff and partners - and the work we do to tackle inequality on the basis of our conviction that ‘no-one should be held back by their background or circumstances’.
It became clear during the first year of the strategy that Covid both highlighted and exacerbated social and health inequalities, exposing the fragility of many people’s employment conditions (especially young people) and the vastly differing ability of people to cope with the experience of lockdown, whether in relation to the costs of being at home, the isolating effect of digital exclusion or the inability to access open spaces to support physical health and mental wellbeing.
STRATEGIC REPORT
10.
Once the initial emergency had abated, governments and local authorities began to focus on the need and opportunity to deliver a ‘green recovery’, re-setting the economy and regenerating communities so that we lock in some of the sustainability upsides the pandemic brought while also creating new economic opportunities that take us towards our targets for net zero. Long in the planning, the UK Government launched its Levelling Up white paper, a framework for reducing inequality within and between local areas, with new funds available to compensate for the loss of EU income post Brexit.
Despite these good intentions the strategy is now being delivered against a backdrop of more crisis management, this time prompted by price rises (in particular energy) and the global impacts of Russia’s war in Ukraine. This makes the work Groundwork does to alleviate poverty (fuel poverty, food poverty, worklessness) all the more important and creates a platform for demonstrating how a ‘just transition’ to a low carbon society can improve living standards as well as protect the environment.
Across Groundwork we have seen innovative responses to these challenges and opportunities.
- There has been strong interest in our Green Doctor service and we have responded by developing a more consistent, and better marketed, national offer with a number of significant new programmes launched, including major pieces of work with Cadent.
- We have demonstrated our ability to provide high quality work experience placements for young people, using the Kickstart programme to transform the lives of those benefiting but also to provide valuable new capacity to deliver our wider programme of work in communities. Across Groundwork some 650 young people were given the opportunity to develop their career prospects through this initiative.
- We have cemented our position as one of the leading voluntary organisations delivering green skills and jobs in fields such as horticulture, landscaping, furniture recycling and energy efficiency, offering a practical demonstration of how to connect social, economic and environmental outcomes and feeding into a number of government and business conversations on the subject.
- We have increased the scale and reach of our community grant schemes, helping public and private partners ensure their funds reach the people and places where they can have most impact.
Financially we have navigated the pandemic successfully, accessing emergency support funds when needed, and in most parts of the federation we have secured major new programmes of work. Collective turnover is back to pre-pandemic levels (c. £90 million) and the last year has seen an uplift in financial performance for the majority of Trusts, helping to strengthen reserves.
STRATEGIC REPORT
11.
## Impact
The past year has seen strong performance across all three of our strategic priority areas:
- Better places – We have continued to deliver improvements to open spaces, helping to improve the social infrastructure of local communities, including through our growing network of community hubs, major programmes secured through the Government’s Green Recovery Challenge Fund and local commissions through ‘town deals’ and Levelling Up funds.
- Improved prospects – We have been at the forefront of activity to support young people into work through the Kickstart scheme and in some areas have been delivering major government programmes such as Restart, Building Better Opportunities and National Citizen Service. This work is increasingly focused on improving the health and wellbeing of those we support.
- Greener choices – Despite the challenges presented by lockdowns, we have grown the support we offer people to manage their utility bills through our Green Doctor service and have expanded our work to help people connect with nature, through programmes such as Wellies in the Woods, Nature Friendly Schools and our management of multiple country parks.
In developing our federation strategy we set ourselves a number of collective three-year delivery targets. Performance against those targets is set out below.
**----- Start of picture text -----**
Target Progress
By 2023 we will have: Years 1 and 2
**----- End of picture text -----**
|Target
By 2023 we will have:|Progress
Years 1 and 2|
|---|---|
|||
|Mobilised 75,000 days of voluntary action|58,160 volunteer days|
|Improved the wellbeing of 50,000 people|17,968 young people experiencing a positive
personal outcome
103,065 people supported to adopt greener
behaviours|
|Helped 20,000 people improve their life
chances by accessing learning and work|10,388 people supported into education,
training or work|
A review of our federation performance measures at the end of the year highlights a number of trends as follows.
- The majority of measures show an increase on 2020/21 levels and over-performance in relation to the targets set at the start of the year. This reflects the ‘bounce-back’ in activity levels following the pandemic and the success achieved in securing new programmes of work.
- The number of Green Doctor visits delivered has been well above anticipated levels (by a factor of 32%), reflecting the growth in this service area – with the potential to save 6 million kgs of CO2 and 600 million litres of water, and saving households £2.4 million on their utility bills.
STRATEGIC REPORT
12.
- Youth and employment-related outcomes are up across the board reflecting the priority given to this area of work by funders in the wake of the pandemic and the delivery of large programmes in some parts of our federation.
- 50% more land has been improved than forecast (7.3 million m2) but spread across a lower than anticipated number of public spaces, reflecting the development of larger-scale land management programmes (e.g. managing country parks on behalf of the Land Trust).
- The number of community groups supported continues to rise (7,000), and is well above target for a second year running (by a factor of 33%), demonstrating the continued growth of our community development and grant programmes.
STRATEGIC REPORT
13.
## Building a Better Groundwork
Our strategy contains a number of actions designed to strengthen our organisational resilience and grow our collective impact. A summary of progress against these actions is provided below.
Action Progress Improve our communications and fundraising capabilities and drive innovation in income generation to diversify our range of revenue sources
We have made strong progress in communications with an active network of specialists developing coordinated campaigns and testing new approaches to service marketing. We are investing in new forms of income generation, including corporate fundraising, retail ventures and other enterprises.
Develop new business models to enable our specialist teams to offer commercial services across larger areas of the country
Specialist groups are active in all areas of service delivery with significant collaborative work on delivery models and marketing in respect of Green Doctor and Sustainable Business Services.
Improve our ability to capture data that demonstrates the impact of our work and helps us prioritise the actions that contribute most to achieving our mission
A project has been agreed to develop a new impact framework for the federation ready for 2023/24 with a dedicated Federation Impact Coordinator recruited to lead delivery.
Embed a new set of quality standards and harmonised systems to ensure that all parts of Groundwork are operating efficiently and effectively
We continue to develop the Groundwork Quality Standards with annual self-assessment to review compliance and identify support needs. New standards have been agreed in relation to reporting progress on EDI actions and the impact of our carbon reduction plans. Alongside this we are developing a more integrated ICT strategy to support a switch to the Microsoft 365 cloud.
Undertake governance reviews across our federation to improve practice in line with the Charity Commission’s governance code
Reviews have been undertaken in all Trusts with resulting actions being progressed and governance a major focus of our federation EDI plan (see below).
STRATEGIC REPORT
14.
Drive a federation-wide initiative to improve the way we promote equity, diversity and inclusion
A federation commitment and action plan have been agreed, with reporting built into our Quality Standards. A federation-wide survey generated consistent baseline data and EDI groups are active in a number of Trusts. Increased diversity is evident on the majority of boards across Groundwork.
Seek opportunities to consolidate structures and share services so that all parts of the country are served by a strong and high-performing Groundwork organisation
Mergers have been completed in Greater Manchester and Yorkshire and there is strong, ongoing collaboration in the North of England. This complements the integrated management of Groundwork delivery across London and South with increasing levels of collaborative activity between Trusts in the Midlands and East and in Wales and NI.
## Groundwork UK
In common with other parts of the federation, Groundwork UK has weathered the impact of the pandemic and enjoyed another successful year of operational and financial performance.
- We have a significant portfolio of grant management programmes with an expert team underpinned by good systems but with work to do to ensure consistency, quality and continued development of our offer.
- We have secured extensions to our existing agreements with Tesco, HS2, Comic Relief and the Department for Levelling Up, Housing and Communities, and in 2021/22 we distributed £14m in grants to more than 6,000 organisations across the UK.
- Our prioritisation of corporate engagement over previous years is delivering results and we have expanded our roster of business partners to include Grosvenor, Firethorn Trust, Segro, John Lewis Partnership, Balfour Beatty and Veolia.
- We have successfully completed a number of major delivery programmes during the year including Future Footprints (connecting young people with Friends Groups to support the management of open spaces), Natural Neighbourhoods (supporting community-led action on nature recovery) and Energising Communities (providing targeted support for people in fuel poverty). We have secured new national programmes to continue supporting vulnerable people and to promote green skills and jobs within the environmental sector.
- We have supported our first cohort of environmental charities seeking to develop their trading activity through management of the Access Foundation’s Enterprise Development Programme, learning a lot in the process and building valuable links with other programme partners.
STRATEGIC REPORT
15.
- Our communications work is achieving excellent results in terms of audience development and we have tested a range of ways to broaden engagement through our social media channels including the creation of original video content, LinkedIn live events and youth ‘takeovers’. We are putting the systems in place to capitalise on this increased visibility in terms of new relationships and income.
- We are experiencing a growing demand from our federation for Groundwork UK to drive activity around networking, collaboration and quality and we are increasingly drawing on this to generate good practice reports for sharing with policymakers.
- Having achieved financial surpluses in previous years our reserves policy has been met and our balance sheet is strong, giving us a platform for investing in new ways of working. Strengthening our fundraising capacity is a priority.
- Our staff team is engaged and committed – and keen to go further in ensuring that we are demonstrably living up to our values in the way the organisation is run and resourced.
Performance against each of the business plan KPIs to the end of March 2022 is given below.
**----- Start of picture text -----**
Indicator Target Performance
Visibility and credibility
1 - Positive media coverage in broadcast 10 pieces of coverage 41 in all media
and consumer press
2 - Social media followers actively engaging 120,000 new positive 306,000
with content engagements
3 - Policy and public affairs 10 projects completed 14 completed
Grant management
4 - Grant programme performance 90% of indicators on track 89% on track
5 - Applicant/grantee satisfaction 90% (very)/satisfied 92.5%
6 - Level of core costs funded by grant pro- 65% of core costs 89%
grammes
Local delivery
8 - Funds distributed to Groundwork Trusts At least £2 million £3.8 million
to support local delivery
9 - Delivery programme performance 75% of indicators on track 93% on track
**----- End of picture text -----**
STRATEGIC REPORT
16.
Areas for improvement or further development identified by the team during the year include the following:
- Gaining a better understanding of our programme beneficiaries and using our data more effectively to ensure we are demonstrably meeting need
- Working more closely with groups of practitioners within the federation so that we’re developing programmes that align with local priorities and the skills and capacity within Trusts
- Developing a stronger organisational voice on priority issues to support our positioning work and provide a platform for our beneficiaries to be heard
- Promoting more cross-team working so that we are maximising opportunities to grow relationships and providing consistency, in particular in our dealings with Trusts
- Delivering on our organisational commitments to carbon reduction and equity, diversity and inclusion
- Improving internal communications so that we keep our whole team engaged in a hybrid working environment.
In addressing these priorities, we continue to ensure we are meeting the business management standards agreed by the federation and acting in a way which is consistent with the terms of the Groundwork Membership Agreement, which prioritises good governance, consistent quality, collaboration and inclusion.
STRATEGIC REPORT
17.
## 2. Sustainable Development Report
Supporting practical environmental action is core to our mission as a charity, and our strategy commits us to act as ‘environmental exemplars’. We continue to focus on three priorities:
- Inspiring our staff to adopt more sustainable behaviours in the workplace and in the home.
- Reducing the carbon footprint of our operations as we work towards ‘net zero’.
- Designing and managing programmes that deliver social and environmental benefits.
Our staff-led ‘Sustainable Living under Groundwork’ team continue to deliver awareness-raising campaigns to promote behaviour change – from providing meat-free meal advice to measuring plastic waste generated in the workplace. We have also trained our first cohort of staff in carbon literacy with the intention of rolling this out to all colleagues over the coming months. In common with the rest of the Groundwork federation we have now established a baseline carbon footprint for our operations of 70.6 tonnes of CO2 equivalent. Our action plan to reduce this focuses on maintaining low levels of transport-related emissions by making best use of technology and promoting sustainable travel and supporting staff to embed sustainability in new hybrid working arrangements.
We recognise that, as a small staff team, the greatest contribution we can make to sustainable development is through the programmes we develop and deliver. During the year we have completed delivery of our Natural Neighbourhoods programme, which has delivered enhancements to 105 green spaces including planting nearly 40,000 trees and shrubs. We also completed our Energising Communities programme through which Groundwork’s Green Doctors installed 3,751 energy-saving measures in people’s home including LED lightbulbs, radiator panels and draughtproofing strips. These programmes contributed to the Groundwork federation identifying more than 6 million kg of CO2 equivalent that could be saved by domestic households and improving more than 7 million square metres of green space.
STRATEGIC REPORT
18.
## 3. Equity, diversity and inclusion
As a federation, Groundwork has committed to ensuring it embeds good practice in relation to equity, diversity and inclusion in the way it manages its people and delivers its projects, programmes and services. To advance these discussions within Groundwork UK we have brought together an EDI working group to develop an action plan and lead wider colleague engagement and sought external support from the consultancy Mission Diverse.
Our plan focuses on five themes: culture and communication; recruitment of staff, volunteers and beneficiaries; policy and standards; training and awareness; celebrating diversity. Actions progressed during the year include creating a style and language guide and ensuring EDI considerations are built into our employee handbook. We have delivered training programmes on unconscious bias and deaf awareness and initiated conversations to ensure we are operating as inclusively as possible in the management of our grants programmes and developing a stronger rationale for the way we comment publicly on equalities-related issues. We have committed to participating in the RACE Report and will measure the racial diversity of our staff team on an annual basis.
In common with Trusts across the federation we undertook two surveys during 2021/22 intended to capture data about the diversity of our staff team and to generate views and feedback about the degree to which they view Groundwork UK as an inclusive employer.
This showed that:
- The majority of Groundwork UK’s staff are women (66%) but women are under-represented at manager and director level
- 34% of Groundwork UK’s female employees work part time compared to 7% of male employees
- 16% of respondents identified as an ethnic or national identity other than white British (this compares to 19.5% for the whole of England and Wales and 21% for the West Midlands[1] )
- 18% of respondents reported having a disability or health condition. The most prevalent condition was a diagnosed mental health condition (by comparison the charity Scope reports that 19% of working age adults in the UK have a disability[2] )
- 95% of respondents felt that Groundwork UK is a welcoming and supportive place to work or volunteer
- 10% of respondents said they had experienced or witnessed discrimination or harassment.
- 1 Figures from 2011 Census reported in 2020 - Regional ethnic diversity - GOV.UK Ethnicity facts and figures (ethnicity-facts-figures.service.gov.uk)
- 2 Disability facts and figures | Disability charity Scope UK
STRATEGIC REPORT
19.
Groundwork UK’s gender pay gap stands at 19% (2021: 24%). With the highest earner removed the pay gap is 9%. We continue to address this by providing flexible working arrangements and prioritising internal development opportunities. 42% of all posts recruited over the last three years were filled by an internal candidate progressing into a higher paid role.
Analysis of all recruitment exercises undertaken in the last three years shows that:
- 78% of applicants for posts offered by Groundwork UK were women and 78% of those recruited were women
- 30% of applicants for posts identified as non-white British with 28% of those recruited identifying as non-white British.
This gives us confidence that recruitment processes are fair.
STRATEGIC REPORT
20.
## 4. Our plans for the future
Groundwork’s collective delivery goals are that by 2023 we will have:
- mobilised 75,000 days of voluntary action to combat the climate and nature emergency
- improved the wellbeing of 50,000 people by connecting them with their community and with nature
- helped 20,000 people improve their life chances by accessing learning and work.
In order to deliver these goals, we will continue improving our own capability and resilience to ensure we are putting maximum resource into our delivery capacity and investing in the right skills to improve the quality of our services and management.
Our aims in this respect are to ensure we have:
- expert services operating at bigger scale to help more people in more places
- delivery everywhere supported by stronger systems and more diverse income streams
- more consistent quality in our delivery so that we maximise our impact.
Groundwork UK’s business plan sets out what we will do over the next year to help the federation work towards these strategic goals and aims.
In 2022/23 we will focus on the following objectives.
- Supporting local Groundwork delivery – by providing opportunities for federation practitioners to connect and collaborate in order to unlock income and drive quality and impact.
- Supporting communities and the sector through grants – by continuing to grow our scale and expertise in providing grants, enterprise support and capacity building.
- Building Groundwork’s visibility and credibility – by maintaining a policy-led approach to communications, building our priority audiences through social media and maximising the PR benefit of our programmes and local delivery.
- Growing our corporate partnerships and fundraising – by investing in the capacity and skills we need to convert our audience into a network of committed supporters and maximising the benefit from our corporate relationships.
- Supporting our people – by ensuring we have the right systems to be effective and supporting the wellbeing and development of our team.
- Delivering on our EDI and carbon reduction commitments – by ensuring Groundwork UK is an inclusive place to work, has a clear plan to cut carbon emissions and that these values are reflected in the partnerships and programmes we develop.
- Promoting quality within Groundwork UK and across the federation – by generating and sharing learning across teams and improving our approach to impact measurement to ensure our programmes are delivering maximum benefit in communities.
STRATEGIC REPORT
21.
Groundwork UK has a responsibility to lead political influencing and public positioning work on behalf of the federation. We will continue to do this through a programme of policy-focused communications campaigns. These will use the 40th anniversary of Groundwork’s establishment as a backdrop and focus on a series of connected themes including supporting children and young people, creating green jobs, protecting green infrastructure, promoting community action and improving health and wellbeing.
STRATEGIC REPORT
22.
## 5. Financial performance
Our long-term financial strategy has three clear and linked strands as follows:
- to keep our overhead costs low to ensure discretionary spending is focused on supporting local delivery and generating more income, while maintaining the capacity we need to operate effectively and safely
- to achieve at least a break-even position at the end of the year so that we maintain sufficient reserves to sustain our charitable operations, manage the risks attached to outcome-based funding arrangements and invest sufficiently in quality management and income generation
- to use our financial resources to support the whole of Groundwork to increase its resilience, diversify its income streams and maximise its impact in communities.
Net incoming resources for 2021/22 totalled £22 million (2021: £24 million). Our organisational turnover is heavily dependent on the volume of grants we distribute, which fluctuates from year to year, and is not considered to be the determining factor in our assessment of financial health. Our underlying trading performance resulted in an unrestricted surplus of £355k (2021: £387k), compared to a budget of break even. The surplus includes an increase in the value of our investments of £57k (2021: £181k) which is what we had budgeted for. Cost savings related to reduced travel and office overheads have continued post-pandemic as more meetings are held online and we have adopted a hybrid home/office working arrangement for all staff.
This positive outcome has further strengthened our balance sheet and we have now met our longterm target for holding reserves.
In addition to this income, we received funds and distributed grants totalling c. £12 million, funds for which we are responsible but which are not included in our stated turnover.
## Reserves
In line with our financial strategy, our trustees have agreed that we should aim to hold 12 months operating costs (c£2.4 million) in liquid reserves. We believe this is appropriate for the following reasons:
- to absorb short term setbacks such as loss or delays in funding
- to provide the working capital required to finance retrospective programme funding, which can result in considerable timing differences between expenditure and receipt of funds
- to cover the cost of investing in staff training and development to help us deliver our objects and better support our federation members
- to cover the cost of developing new services, such as improved communications, research and quality and business information systems
- to set aside funds for capital assets such as ICT equipment
- to provide funding to cover any unforeseen downturn in activity and the associated impact on our staff team.
STRATEGIC REPORT
23.
Our reserves policy recognises the need to operate as a responsible charity, maintaining trust with our partners and the public by not generating surpluses for which there is no future requirement or that are used for purposes which are not directly connected to our charitable aims.
Our level of free liquid reserves at the end of 2021/22 is £2.7 million.
Restricted funds - advance payments from funders pending completion of project work by Groundwork Trusts and other delivery partners – stand at £2.1 million (2021: £3.1 million). These restricted funds can only be used in accordance with agreements reached with funders and do not form part of the general reserves that are under the control of the trustees. These funds will all be distributed during 2022/23. Movements in restricted funds reflect the long-term nature of Groundwork UK’s programme activity and this in no way reflects on the organisation’s financial efficiency or performance.
## Investments
The majority of the funds obtained by Groundwork UK are for the delivery of specified projects and are therefore restricted. These funds are mainly distributed to Groundwork Trusts and other delivery partners operating under contract or to third party organisations in the form of grants to support local community projects. Any funds that are built up in advance of expenditure are kept as liquid as possible, whilst making every effort to maximise investment returns.
Cash that is unrestricted in nature and is not required in the short term (regarded as six months) is considered for long-term investment. Since 2010 we have invested these funds in a managed fund arrangement with a current target to deliver an annual return of between 3% and 4% above the Consumer Prices Index. In the last year, our investments made a surplus of £57k, which, together with dividend income of £46k, achieved our budgeted expectation. All of these funds can be converted into cash without notice or penalty, should there be an immediate need for liquid funds.
## Grant making policy
Groundwork UK delivers its mission primarily by distributing funds to Groundwork Trusts, other delivery partners and to community groups. These funds are considered to be performance-related grants and are recognised in these financial statements to the extent that the projects which they are funding have been completed. All grant programmes have specific guidelines, criteria and priorities with a formal process of approval.
STRATEGIC REPORT
24.
## Principal funding sources
Our major sources of funding during the last year are set out below.
- Private sector - £10.3 million (2021: £10.5 million) - This includes funds provided by businesses and private foundations, most notably £8.5 million provided by Tesco to support community groups through the Community Grants programme.
- Public sector - £5.4 million (2021: £8.5 million) - This relates to funding secured from government departments and other public bodies to deliver programmes and services. In particular in 2021/22 this included the Department for Levelling Up, Housing and Communities and the Education and Skills Funding Agency.
- Lottery and charitable foundations - £5.6 million (2021: £4.7 million) - These include grants secured from the National Lottery Heritage Fund and Community Fund to support local delivery and funds distributed to community groups on behalf of Comic Relief.
## Expenditure on charitable objectives
Our expenditure in the year was directed towards the following charitable activities.
- Community grants - £14.1 million (2021: £18.8 million) - Providing funds to enable community groups and local charities to deliver projects that improve neighbourhoods and provide support to those who are vulnerable.
- Programme delivery - £5.1 million (2021: £2.4 million) - Providing resources to support local delivery by Groundwork Trusts and other partner organisations as part of commissioned services or funded programmes.
- Programme management - £1.3 million (2021: £1.0 million) - The costs of managing grant distribution and local delivery programmes, including reporting impact and generating learning from our delivery to improve practice and influence future policy.
- Fundraising and Communication - £400k (2021: £396k) - The cost of generating resources to support local delivery through campaigns, communications and bidding activities.
- Supporting our federation - £300k (2021: £300k) - Providing systems and support services to enable Groundwork Trusts to communicate effectively, share knowledge and collaborate to achieve greater impact.
- Running our organisation – £262k (2021: £353k) - Ensuring Groundwork UK operates safely and efficiently with appropriate systems, quality standards and premises.
STRATEGIC REPORT
25.
## 6. Risks and uncertainties
Our trustees understand their responsibilities for ensuring that the major risks to which the charity is exposed are identified and reviewed, and that there are systems in place to mitigate them.
Trustees regularly review our risk management process and receive quarterly updates on actions put in place to mitigate the most significant ongoing risks. Risks are identified by our staff teams and reviewed on a regular basis by our management team. All of Groundwork UK’s major programmes are managed on a risk basis with individual risk registers used both as management and reporting tools. We have a comprehensive business continuity plan in place which is designed to ensure our operations can continue safely in the event of a crisis or disaster situation. This was fully tested by the Covid pandemic.
Our ability to deliver our mission continues to be heavily influenced by the policies and priorities of national and local government and by the investment decisions of businesses, which in turn are driven by regulation and the wider public policy backdrop.
There are likely to be a number of underlying themes or long-term trends that will influence the policy and funding environment within which Groundwork UK is operating.
- The climate and nature crises will deepen, leading to further pressure on governments and businesses to demonstrate leadership and support practical action.
- The long tail of the Covid pandemic will continue to cause disruption and put pressure on public finances requiring ongoing flexibility and the need to operate within tight national and local spending plans.
- The future policy direction of the UK government is unclear and the political climate is likely to remain volatile up to the next general election.
- The gap between the plans and priorities of the UK government and devolved administrations and mayors is likely to remain, and possibly grow, requiring a multi-faceted response to political positioning.
- The transition from EU Structural Funds to a new UK Shared Prosperity Fund is likely to lead to gaps in provision, but also new opportunities for more joined-up programmes of social and economic regeneration.
STRATEGIC REPORT
26.
The major areas of potential risk, for which we have active mitigation strategies in place, are as follows:
- an ICT failure, cybersecurity incident or data breach that leads to loss of capability, financial penalties and/or reputational damage – a risk that remains high due to the switch to hybrid working arrangements and our reliance on online systems to deliver our major programmes
- a serious safeguarding, health and safety or fraud incident occurring on a programme managed by Groundwork UK and the impact this could have both on those involved and to our reputation
- the unexpected withdrawal or clawback of funding from a major partner arising from a failure to meet targets or comply with funding requirements or simply due to changed priorities.
## Financial instruments
Groundwork UK’s financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks. Our policy is to finance fixed assets and working capital through retained reserves.
STRATEGIC REPORT
27.
## 7. Statement of trustees’ responsibilities
Our trustees are responsible for preparing Groundwork UK’s Annual Report and Financial Statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure of the charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently
- make judgements and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
Our trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of 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 charity and taking reasonable steps to prevent and detect fraud and other irregularities.
These financial statements are published on our website in accordance with UK legislation governing the preparation and dissemination of financial statements. The maintenance and integrity of the website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements published.
## Events after the year end
There have been no material events after the year end to report.
## Disclosure of information by the trustees to the auditor
Each of the trustees has confirmed that, so far as they are aware, there is no relevant audit information of which Groundwork UK’s auditor is unaware, and that they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that Groundwork UK’s auditor is aware of that information.
Signed on behalf of the Board of Trustees Graham Hartley, Chair 20 September 2022
INDEPENDENT AUDITOR’S REPORT
28.
## Independent Auditor’s Report to the Members of The Federation of Groundwork Trusts (Operating as Groundwork UK)
## Opinion
We have audited the financial statements of The Federation of Groundwork Trusts for the year ended 31 March 2022, which comprise statement of financial activities, balance sheet, 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## 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’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.
INDEPENDENT AUDITOR’S REPORT
29.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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 our audit:
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been
- prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
INDEPENDENT AUDITOR’S REPORT
30.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 27 , the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
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 auditor’s report.
INDEPENDENT AUDITOR’S REPORT
31.
## Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. forms part of our auditor’s report.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and Safety and Employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
INDEPENDENT AUDITOR’S REPORT
32.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of grant and contract income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing procedures over income, reviewing accounting estimates for biases, designing audit procedures over income, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
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 (irregularities) 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 irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## 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 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, for our audit work, for this report, or for the opinions we have formed.
Helen Drew (Senior Statutory Auditor) For and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG
Date: 22 December 2022
STATEMENT OF FINANCIAL ACTIVITIES
33.
## Statement of Financial Activities
## FOR THE YEAR ENDED 31 MARCH 2022
|INCOME FROM
Donations and legacies
Charitable activities
Other trading activities
Investments
Total
EXPENDITURE ON
Raising funds
Charitable activities
Total
Net gains on investment
Net income
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Fund balances brought forward
Fund balances carried forward
Note
2
3
2
2
4
5
11
16
16|General
£
191,499
2,990,157
135,000
46,083
3,362,739
26,071
2,979,820
3,005,891
57,492
414,340
(59,460)
354,880
2,059,098
2,413,978
Designated
£
–
–
–
–
–
–
120,771
120,771
–
(120,771)
59,460
(61,311)
354,789
293,478
2022
Unrestricted
funds|£
16,293
18,294,522
–
–
18,310,815
159,512
18,360,578
18,520,090
–
(209,275)
–
(209,275)
3,110,290
2,901,015
2022
Restricted
funds|£
207,792
21,284,679
135,000
46,083
21,673,554
185,583
21,461,169
21,646,752
57,492
84,294
–
84,294
5,524,177
5,608,471
2022
Total|_£_
_19,335_
_24,199,790_
_106,742_
_30,289_
_2021_
_Total_|
|---|---|---|---|---|
|||||_24,356,156_|
|||||_134,345_
_22,297,975_|
|||||_22,432,320_|
|||||_180,946_|
|||||_2,104,782_|
|||||_–_|
|||||_2,104,782_
_3,419,395_|
|||||_5,524,177_|
Incoming resources and resources expended derive from continuing operations. The company has no other recognised gains or losses other than those passing through the statement of financial activities. The notes pages 36 to 54 form part of these financial statements.
CHARITY BALANCE SHEET
34.
## Charity Balance Sheet
## AT 31 MARCH 2022
|AT 31 MARCH 2022|||||||
|---|---|---|---|---|---|---|
|Company registraton number|||||||
|01900511|Note|2022|||2021||
|||£|£|£||£|
|FIXED ASSETS|||||||
|Tangible assets|9||37,629|||60,275|
|Investments|11||2,113,044|||1,545,552|
|Investments in subsidiaries|10||3|||3|
|CURRENT ASSETS
Debtors|12|13,373,960|2,150,676|11,650,081||1,605,830|
|Cash at bank||8,827,189||8,405,251|||
|||22,201,149||20,055,332|||
|Creditors:amounts falling due within one year|13|(18,733,354)||(16,136,985)|||
|Net Current Assets|||3,467,795|||3,918,347|
|Total assets less current liabilites|||5,618,471|||5,524,177|
|Creditors:amounts falling due after one year|18||(10,000)|||–|
|NET ASSETS|||5,608,471|||5,524,177|
|RESERVES|||||||
|Unrestricted - General|16||2,413,978|||2,059,098|
|Designated|16||293,478|||354,789|
|Restricted|16||2,901,015|||3,110,290|
||||5,608,471|||5,524,177|
These finance statements were approved by the Board of Trustees and authorised for issue on 20 September 2022 and signed on its behalf by:
## Graham Hartley, Chair
The notes on pages 36 to 54 form part of these financial statements.
20 September 2022
CASH FLOW STATEMENT
35.
## Cash Flow Statement
## FOR THE YEAR ENDED 31 MARCH 2022
|FOR THE YEAR ENDED 31 MARCH 2022||||||
|---|---|---|---|---|---|
|||Note|2021/22||2020/21|
|||||£|£|
|CASH FLOW FROM OPERATING ACTIVITIES||||||
|Net cash provided by operating activities||21||885,855|1,622,445|
|CASH FLOWS FROM INVESTING ACTIVITIES||||||
|Dividends, interest and rents from investments||||46,083|30,289|
|Purchase of property, plant and equipment||||–|(59,051)|
|Purchase of investments|||(510,000)||(490,000)|
|Disposal of property||||–|2,220,000|
|NET CASH PROVIDED BY INVESTMENT ACTIVITIES||||421,938|3,323,683|
|CASH FLOWS FROM FINANCING ACTIVITIES||||||
|Repayments of borrowing||||–|(323,821)|
|Change in cash and cash equivalents in the reporting period||||421,938|2,999,862|
|Cash and cash equivalents at the beginning of the|||8,405,251||5,405,389|
|reportng period||||||
|Cash and cash equivalents at the end of the reportng|||8,827,189||8,405,251|
|period||||||
|Movement in Net Debt||||||
|1|April 2021|Cash|fows|At 31 March 2022||
|At|£||£||£|
|Cash at bank and in hand|8,405,251|421,938|||8,827,189|
|Debt due within 1 year|–||–||–|
|Debt due over 1 year|–||–||–|
||8,405,251|421,938|||8,827,189|
The notes on pages 36 to 54 form part of these financial statements.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
36.
## Notes forming part of the financial statements
FOR THE YEAR ENDED 31 MARCH 2022
## **1. Accounting policies**
The following accounting policies have been applied consistently in dealing with items, which are considered material in relation to the financial statements.
## **a) Basis of preparation**
The financial statements have been prepared under the historical cost convention and comply with the Companies Act 2006. The financial statements have been prepared in accordance with applicable Accounting Standards and comply with the requirements of the Statement of Recommended Practice, “Charities SORP (FRS 102)”.
The trustees and senior management consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
The results of acquisitions are accounted for from the relevant date of acquisition under the acquisition method of accounting.
Accounting policies are supplemented by estimation techniques where judgement is required in measuring the value of income and expenditure and of assets and liabilities.
## **b) Grants and other income**
Revenue and capital-based grants are credited to the statement of financial activities in the year in which they are received or become receivable under the terms of a grant agreement.
Where grants are considered to be performance related, income is recognised to the extent that the services outlined in the funding agreement had been performed by the year end. Where income has been received but the related services had not been performed by the year-end, the balance is carried forward as deferred income.
Donations are accounted for on a cash received basis. Rental income is recognised in the period to which it relates.
Incoming resources have been allocated between the key strategic areas of activity on a basis consistent with the allocation of expenditure (note 1(d)).
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
37.
## **c) Grants payable**
Grants offered to Groundwork Trusts and other organisations are typically paid in stages, with stage payments dependent upon the submission of claims detailing the work that has been completed. Claims which fall due within the year, which relate to work completed before the year-end, have been accrued for if they had not been paid during the year.
## **d) Expenditure**
All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity. Where costs cannot be directly allocated, they have been allocated to activities on a basis consistent with the use of resources.
Costs of raising funds relate to the cost of external promotion and publicity to raise the profile of the charity and its objectives and costs associated with bids for funding.
Direct costs of charitable activities are those costs, which have been expended on delivery programmes. Support costs have been allocated to the key strategic areas of activity on the basis of the percentage of staff time spent on each of these areas.
## **e) Funds**
Unrestricted funds are those which are available for use at the discretion of the Board of Trustees in furtherance of the general objectives of the charity. The Board may, at its discretion, set aside unrestricted funds for specific future purposes and these are referred to as designated funds. Where such funds are no longer required for the intended purposes they are released back to general unrestricted reserves.
Restricted funds are those which can only be used for purposes specified by the donor, or which have been raised under the terms of a specific bid. Expenditure under the terms of the grant agreement is shown as restricted expenditure.
## **f) Depreciation**
Tangible fixed assets are stated at cost less provision for depreciation. Depreciation is calculated so as to write off the cost less the estimated residual value of tangible fixed assets by equal annual instalments over their estimated useful economic lives as follows:
Leasehold buildings: 50 years Office equipment: 4 years Computer equipment: 3 years
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
38.
## **g) Pensions**
The company contributes to two defined contribution schemes. Contributions are charged to the statement of financial activities as they become payable.
## **h) Operating leases**
Rentals paid under operating leases are charged to the statement of financial activities on a straightline basis over the life of the asset.
## **i) Provisions**
Provisions for future liabilities are recognised when the charity has a legal or constructive obligation that can be reliably estimated and for which there is an expectation that payment will be made.
## **j) Fixed asset investments**
Investments held are valued at market value. Unrealised gains and losses on the revaluation of investments are recognised in the statement of financial activities.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
39.
## **2. Incoming resources from generated funds**
|VOLUNTARY INCOME
Donations and gifts
OTHER TRADING ACTIVITIES
Membership Fee
INVESTMENT INCOME
Rental income
Dividends
Bank interest
_VOLUNTARY INCOME_
_Donations and gifts_
_OTHER TRADING ACTIVITIES_
_Rental income_
_Membership Fee_
_INVESTMENT INCOME_
_Rental income_
_Dividends_
_Bank interest_|£
191,499
191,499
135,000
135,000
–
45,679
404
46,083
2022
Unrestricted
_£_
_13,890_
_13,890_
_4,242_
_102,500_
_106,742_
_–_
_26,860_
_3,429_
_30,289_
_2021_
_Unrestricted_|£
–
–
–
–
–
–
–
–
2022
Designated
_£_
_–_
_–_
_–_
_–_
_–_
_–_
_–_
_–_
_–_
_2021_
_Designated_||£
16,293
16,293
–
–
–
–
–
–
2022
Restricted
_£_
_5,445_
_5,445_
_–_
_–_
_–_
_–_
_–_
_–_
_–_
_2021_
_Restricted_|£
207,792
2022
Total|
|---|---|---|---|---|---|
||||||207,792|
||||||135,000|
||||||135,000|
||||||–
45,679
404|
||||||46,083|
||||||_£_
_19,335_
_2021_
_Total_|
||||||_19,335_|
||||||_4,242_
_102,500_|
||||||_106,742_|
||||||_–_
_26,860_
_3,429_|
||||||_30,289_|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
40.
## **3. Incoming resources from charitable activities**
|Income for project delivery was secured
from the following sources:
Central government
Local authorities
Public agencies
Private sector
National Lottery and charitable foundations
£
296,175
5,503
724,752
1,653,936
309,791
2,990,157
2022
Unrestricted|£
–
–
–
–
–
–
2022
Designated|£
-
202,271
4,141,719
8,625,304
5,325,228
18,294,522
2022
Restricted|£
296,175
207,774
4,866,471
10,279,240
5,635,019
2022
Total|
|---|---|---|---|
||||21,284,679|
|Income was allocated to:
Grant distribution
Programme delivery
Programme management
Federation support
Fundraising and communications
Running Groundwork UK|1,964,381
714,271
180,140
41,557
53,288
36,520
2,990,157
–
–
–
–
–
–
–|12,018,570
4,370,084
1,102,145
254,257
326,027
223,439
18,294,522|13,982,951
5,084,355
1,282,285
295,814
379,315
259,959|
|---|---|---|---|
||||21,284,679|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
41.
## Incoming resources from charitable activities (continued)
|_Income for project delivery was secured_
_from the following sources:_
_Central government_
_Local authorities_
_Public agencies_
_Private sector_
_National Lottery and charitable foundations_|_£_
_251,158_
_234,226_
_722,964_
_1,588,439_
_483,997_
_3,280,784_
_2021_
_Unrestricted_|_£_
_–_
_–_
_–_
_–_
_–_
_–_
_2021_
_Designated_|_£_
_–_
_3,058,978_
_4,238,281_
_8,897,082_
_4,724,665_
_20,919,006_
_2021_
_Restricted_|_£_
_251,158_
_3,293,204_
_4,961,245_
_10,485,521_
_5,208,662_
_2021_
_Total_|
|---|---|---|---|---|
|||||_24,199,790_|
|_Income was allocated to:_
_Programme delivery_
_Programme management_
_Federation support_
_Running Groundwork UK_|_2,999,237_
_144,330_
_44,107_
_93,110_
_3,280,784_|_–_
_–_
_–_
_–_
_–_|_19,123,798_
_920,277_
_281,239_
_593,692_
_20,919,006_|_22,123,035_
_1,064,607_
_325,346_
_686,802_|
|---|---|---|---|---|
|||||_24,199,790_|
For definitions of the above categories, see section 5.4 of the strategic report
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
42.
## **4. Cost of raising funds**
|Staff costs
Other costs
£
21,739
4,332
26,071
2022
Unrestricted
£
–
–
–
2022
Designated
Staff costs
Other costs
_£_
_17,341_
_872_
_18,213_
_2021_
_Unrestricted_
_£_
_–_
_–_
_–_
_2021_
_Designated_|£
133,007
26,505
159,512
2022
Restricted
_£_
_110,571_
_5,561_
_116,132_
_2021_
_Restricted_|£
154,746
30,837
2022
Total|
|---|---|---|
|||185,583|
|||_£_
_127,912_
_6,433_
_2021_
_Total_|
|||_134,345_|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
43.
## **5. Charitable activities**
|Expenditure on projects related to the
following actvites:
Community grants
Programme delivery
Programme management
Federation support
Fundraising and communications
Running Groundwork UK
£
1,957,590
711,801
179,518
41,414
53,103
36,394
2,979,820
2022
Unrestricted
Expenditure on projects comprised:
Community grants
Programme delivery
Programme management
Federation support
Fundraising and communications
Running Groundwork UK
£
11,663,112
4,240,836
1,069,548
246,737
316,384
216,831
17,753,448
Grants
payable|£
79,341
28,849
7,276
1,678
2,152
1,475
120,771
2022
Designated
£
1,858,280
675,691
170,411
39,313
50,409
34,548
2,828,652
Other direct
costs of
actvites|£
12,061,965
4,385,864
1,106,124
255,175
327,204
224,246
18,360,578
2022
Restricted
£
577,504
209,987
52,959
12,217
15,666
10,736
879,069
Support
costs|£
14,098,896
5,126,514
1,292,918
298,267
382,459
262,115
2022
Total|
|---|---|---|---|
||||21,461,169|
||||£
14,098,896
5,126,514
1,292,918
298,267
382,459
262,115
2022
Total|
||||21,461,169|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
44.
## Charitable activities (continued)
|_Expenditure on projects related to the_
_following actvites:_
_Programme delivery_
_Programme management_
_Federation support_
_Running Groundwork UK_
_Expenditure on projects comprised:_
_Programme delivery_
_Programme management_
_Federation support_
_Running Groundwork UK_|_£_
_2,932,475_
_141,117_
_43,126_
_91,038_
_3,207,756_
_2021_
_Unrestricted_
_£_
_17,167,404_
_826,131_
_252,468_
_532,956_
_18,778,959_
_Grants_
_payable_|_£_
_165,084_
_7,944_
_2,428_
_5,125_
_180,581_
_2021_
_Designated_
_£_
_2,363,451_
_113,734_
_34,757_
_73,373_
_2,585,315_
_Other direct_
_costs of_
_activities_|_£_
_17,286,869_
_831,880_
_254,224_
_536,665_
_18,909,638_
_2021_
_Restricted_
_£_
_853,573_
_41,076_
_12,553_
_26,499_
_933,701_
_Support_
_costs_|_£_
_20,384,428_
_980,941_
_299,778_
_632,828_
_2021_
_Total_|
|---|---|---|---|---|
|||||_22,297,975_|
|||||_£_
_20,384,428_
_980,941_
_299,778_
_632,828_
_2021_
_Total_|
|||||_22,297,975_|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
45.
## Charitable activities (continued)
|Charitable activities (continued)|||
|---|---|---|
|Analysis of grants
Better places
Improving prospects
Greener behaviours
_Analysis of grants_
_Better places_
_Improving prospects_
_Greener behaviours_|£
5,167,908
8,063,231
4,522,309
17,753,448
Grants to
insttutons
£
–
–
–
–
Grants to
individuals
£
255,891
399,254
223,924
879,069
Grant
support
costs
_£_
_8,354,547_
_5,937,758_
_4,486,654_
_18,778,959_
_Grants to_
_institutions_
_£_
_–_
_–_
_–_
_–_
_Grants to_
_individuals_
_£_
_415,393_
_295,229_
_223,079_
_933,701_
_Grant support_
_costs_|£
5,423,799
8,462,485
4,746,233
2022
Total|
|||18,632,517|
|||_£_
_8,769,940_
_6,232,987_
_4,709,733_
_2021_
_Total_|
|||_19,712,660_|
|Support costs are analysed as follows:
Staff costs
Temporary staff and recruitment
Legal and professional
Travel and subsistence
Training and meetings
IT support
Other costs|£
645,372
3,043
27,399
2,723
16,709
109,549
74,274
879,069
2022|_£_
_683,226_
_6,817_
_22,949_
_5,685_
_9,888_
_108,857_
_96,279_
_2021_|
|---|---|---|
|||_933,701_|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
46.
## **6. Employees**
|The average monthly number of employees during the year was as follows:
Programme management
Management and administration
Fundraising and communications
The aggregated cost of these persons was as follows:
Wages and salaries
Social security costs
Pension costs (see note 19)
The emoluments of employees (excluding pension contributons) over
£60,000 per annum are disclosed in £10,000 bands as follows:
£60,000 - £70,000
£80,000 - £90,000|£
37
6
8
51
2022
£
1,527,146
143,675
229,846
1,900,667
2022
£
2
1
2022|_£_
_32_
_4_
_7_
_2021_|
|---|---|---|
|||_43_|
|||_£_
_1,340,815_
_131,583_
_209,023_
_2021_|
|||_1,681,421_|
|||_£_
_2_
_1_
_2021_|
The key senior management personnel of the charity are the Chief Executive Officer, Director of Finance and Corporate Services, Director of Partnerships and Programmes, Head of Contracts and Communications Manager with a total cost in 2022 of £368,407 (2021: £362,712). Total contributions under defined contribution schemes on behalf of these higher paid employees were £19,799 (2021: £15,961).
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
47.
## **7. Transactions with trustees**
During the year ended 31 March 2022 no trustee received reimbursed travel and subsistence expenses (2021: one trustee to the value of £206). No trustees received any remuneration during the year.
## **8. Net incoming resources**
|**8. Net incoming resources**|||
|---|---|---|
||2022|_2021_|
||£|_£_|
|Net incoming resources for the year is stated afer charging:|||
|Auditor’s remuneration:|||
|Audit – company|14,400|_14,000_|
|Depreciation|22,646|_7,965_|
Premiums of £670 (2021: £659) were paid on a professional indemnity policy to protect the charity and trustees from loss arising from the neglect or defaults of trustees.
## **9. Tangible assets**
|COST OR VALUATION
At 1 April 2021
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charged for the year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
£
71,215
71,215
10,940
22,646
33,586
37,629
60,275
Ofce and company
equipment|£
71,215
Total|
|---|---|
||71,215
10,940
22,646|
||33,586
37,629|
||60,275|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
48.
## **10. Investments held as fixed assets**
||Shares in subsidiary undertakings|
|---|---|
||£|
|COST||
|At 1 April 2021|3|
|Disposals|–|
|At 31 March 2022|3|
|NAME
Groundwork Trade Association Ltd
Groundwork Enterprises Ltd
Groundwork UK Ltd
Dormant
Dormant
Dormant
Nature of business
registraton
£
4,000
25,002
1
2022
SUBSIDIARY UNDERTAKING
Groundwork Trade Association Ltd
Groundwork Enterprises Ltd
Groundwork UK Ltd|England
England
England
Country of
registraton
_£_
_4,000_
_25,002_
_1_
_2021_|Ordinary
Ordinary
Ordinary
Class of
shares held
£
4**,**000
25,002
1
2022|100%
100%
100%
Proporton|
|---|---|---|---|
||||_£_
_4,000_
_25,002_
_1_
_2021_|
## **11. Fixed asset investments**
|COST
At 1 April 2021
Cash Investments
Unrecognised gain on revaluation
At 31 March 2022|£
1,545,552
510,000
57,492|
|---|---|
||2,113,044|
Investments are held in a managed mixed fund, which is designed to deliver a return of between 3% and 4% above the Consumer Price Index, over a rolling three-year period.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
49.
## **12. Debtors**
|**13. Creditors**
Grants receivable
Other debtors
Prepayments and accrued income
Grants due and payable
Social security and other taxes
Other creditors
Accruals
Deferred income (note 14)|£
6,098,611
40,000
7,235,349
13,373,960
2022
£
6,605,005
60,633
183,111
11,459,018
425,587
18,733,354
2022|_£_
_5,492,705_
_-_
_6,157,376_
_2021_|
|---|---|---|
|||_11,650,081_|
|||_£_
_5,032,035_
_54,927_
_35,546_
_10,841,850_
_172,627_
_2021_|
|||_16,136,985_|
## **13. Creditors**
## **14. Deferred income**
|Movements in deferred income during
the year were as follows:
Community projects
£
172,627
172,627
£
172,627
172,627
Amount
released to
incoming
resources
Balance at 1 April
2021
_£_
_68,472_
_68,472_
_Balance at_
_1 April 2020_
_£_
_68,472_
_68,472_
_Amount released_
_to incoming_
_resources_
_Community projects_|£
425,587
425,587
Amount
deferred
in the year
£
425,587
425,587
Balance at
31 March
2022
_£_
_172,627_
_172,627_
_Amount_
_deferred_
_in the year_
_£_
_172.627_
_172,627_
_Balance at 31_
_March 2021_|£
425,587
Balance at
31 March
2022|
|---|---|---|
|||425,587|
|||_172,627_|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
50.
## **15. Analysis of net assets**
|Tangible fxed assets
Investments
Net current assets
Provision for liabilities
£
37,629
2,113,047
566,781
(10,000)
2,707,457
Unrestricted
funds
_Tangible fxed assets_
_Investments_
_Net current assets_
_£_
_1,605,827_
_3_
_808,057_
_2,413,887_
_Unrestricted_
_funds_|£
-
-
2,901,014
-
2,901,014
Restricted
funds
_£_
_-_
_-_
_3,110,290_
_3,110,290_
_Restricted_
_funds_|£
37,629
2,113,047
3,467,795
(10,000)
Total
2022|
|---|---|---|
|||5,608,471|
|||_£_
_1,605,827_
_3_
_3,918,347_
_Total_
_2021_|
|||_5,524,177_|
## **16. Statement of funds**
|**16. Statement of funds**||||
|---|---|---|---|
|UNRESTRICTED FUNDS
At 1 April 2021
Incoming resources
Resources expended
Surplus on investment
Transfers
At 31 March 2022|£
354,789
-
(120,771)
-
59,460
293,478
Designated
fund|£
2,059,098
3,362,739
(3,005,891)
57,492
(59,460)
2,413,978
General
fund|£
2,413,887
3,362,739
(3,126,662)
57,492
-
Total|
||||2,707,456|
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
51.
Statement of Funds (continued)
|Statement of Funds (continued)|||||
|---|---|---|---|---|
|_UNRESTRICTED FUNDS_
_At 1 April 2020_
_Incoming resources_
_Resources expended_
_Property revaluation_
_Transfers_
_At 31 March 2021_|_£_
_485,370_
_–_
_(180,581)_
_–_
_50,000_
_354,789_
_Designated_
_fund_|_£_
_410,000_
_–_
_–_
_(410,000)_
_–_
_–_
_Revaluation_
_reserve_|_£_
_1,312,416_
_3,612,651_
_(3,225,969)_
_410,000_
_(50,000)_
_2,059,098_
_General_
_fund_|_£_
_2,207,786_
_3,612,651_
_(3,406,550)_
_–_
_–_
_Total_|
|||||_2,413,887_|
The designated fund represents funds allocated for the ‘Building a Better Groundwork’ project and £50,000 set aside for staff training and development over the next two years.
|Restricted funds comprise performance
related grants as follows:
RESTRICTED FUNDS
Tesco Community Grants
Other programmes
The National Lottery Community Fund
The National Lottery Heritage Fund
£
-
3,072,721
24,522
13,047
3,110,290
Balance at
1 April 2021
_RESTRICTED FUNDS_
Tesco Community Grants
Other programmes
The National Lottery Community Fund
The National Lottery Heritage Fund
_£_
_–_
_1,185,226_
_24,137_
_2,246_
_1,211,609_
_Balance at 1_
_April 2020_|£
(7,910,852)
(9,417,570)
(953,867)
(237,801)
(18,520,090)
Resources
expended
£
-
2,846,867
46,067
8,081
2,901,015
Balance at 31
March 2022
£
7,910,852
9,191,716
975,412
232,835
18,310,815
Incoming
resources
_£_
_(8,470,000)_
_(9,362,513)_
_(930,820)_
_(262,437)_
_(19,025,770)_
_Resources_
_expended_
_£_
_–_
_3,072,721_
_24,522_
_13,047_
_3,110,290_
_Balance at 31_
_March 2021_
_£_
_8,470,000_
_11,250,008_
_931,205_
_273,238_
_20,924,451_
_Incoming_
_resources_|£
(7,910,852)
(9,417,570)
(953,867)
(237,801)
(18,520,090)
Resources
expended
£
-
2,846,867
46,067
8,081
2,901,015
Balance at 31
March 2022
£
7,910,852
9,191,716
975,412
232,835
18,310,815
Incoming
resources
_£_
_(8,470,000)_
_(9,362,513)_
_(930,820)_
_(262,437)_
_(19,025,770)_
_Resources_
_expended_
_£_
_–_
_3,072,721_
_24,522_
_13,047_
_3,110,290_
_Balance at 31_
_March 2021_
_£_
_8,470,000_
_11,250,008_
_931,205_
_273,238_
_20,924,451_
_Incoming_
_resources_|
|---|---|---|
|||_3,110,290_|
Programme funds are only available for expenditure in accordance with the funders’ directions.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
52.
## **17. Commitments under operating leases**
As at 31 March, 2022, the charity had total commitments under a non-cancellable lease for premises as set out below.
|Year 1
Year 2
Year 3|£
57,204
49,532
-
106,736
2022|_£_
_26,516_
_57,204_
_49,532_
_2021_|
|---|---|---|
|||_133,252_|
## **18. Provision for dilapidation**
A provision of £10,000 has been included to cover the possible dilapidation costs associated with the lease of the Walker Building. This will be reviewed annually to ensure it is sufficient to cover future possible liabilities.
## **19. Pensions**
During the year ended 31 March 2022 Groundwork UK paid contributions into a defined contribution scheme. The total charge to the defined contribution scheme amounted to £229,847 (2021: £209,023). There were no contributions either pre-paid or outstanding at the year-end or the previous year-end.
## **20. Related party transactions**
At the year-end a balance of £4,000 (2021: £4,000) was owed to Groundwork Trade Association Limited, a wholly owned subsidiary of the company.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
53.
## **21. Reconciliation of net income to net cash flow from operating activities**
|Net income for the reporting period (as per the SOFA)
ADJUSTED FOR:
Net loss /(gains) on investments
Disposal of fxed asset investments
Depreciation charge
Investment income
(Increase) in debtors
Increase in creditors
Increase in provisions
Net cash provided by operating activities|£
84,294
(57,492)
–
22,646
(46,083)
(1,723,879)
2,596,369
10,000
885,855
2022|_£_
_2,104,783_
_(180,946)_
_–_
_7,965_
_(30,289)_
_1,809,127_
_(2,088,195)_
_–_
_2021_|
|---|---|---|
|||_1,622,445_|
## **22. Grants payable**
All grants payable relate to institutional grants paid to Groundwork Trusts, delivery partners and community groups. The detailed breakdown of all grant payments is available on request from the charity’s principal address.
## **23. Financial Instruments**
All grants payable relate to institutional grants paid to Groundwork Trusts, delivery partners and community groups. The detailed breakdown of all grant payments is available on request from the charity’s principal address.
||2022|_2021_|
|---|---|---|
|Groundwork UK’s fnancial instruments may be analysed as follows:|£|_£_|
|FINANCIAL ASSETS|||
|Financial assets measured at fair value through proft and loss:|||
|Investments|2,113,044|_1,545,552_|
Financial assets measured at fair value through profit or loss comprise fixed asset investments in a trading portfolio of listed company shares.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
54.
Groundwork UK would like to thank all its funders and partners. Our work to support communities has benefited significantly from funds provided by the following organisations.
||£|
|---|---|
|Access - The Foundation for Social Investment|£134,394|
|Avison Young|£99,565|
|Balfour Beatty|£80,444|
|Boost|£48,971|
|Cadent Foundation|£997,386|
|City & Guilds|£66,000|
|Comic Relief Community Fund (England)|£1,935,626|
|Coop Foundation|£96,757|
|Department for Work & Pensions|£601,699|
|Direct Line insurance Services|£20,000|
|Education & Skills Funding Agency|£1,726,390|
|Energy Saving Trust|£289,175|
|Greater London Authority|£258,241|
|Grosvenor|£40,000|
|HS2 Limited|£2,873,182|
|John Lewis|£150,000|
|Jones Lang Lasalle Limited|£4,620|
|Locality|£31,685|
|Department for Levelling up, Housing & Communities|£3,661,308|
|National Community Land Network|£3,666,770|
|NHS Property Services|£118,093|
|One Stop Stores|£308,755|
|Royal Society of Wildlife Trusts|£172,360|
|Segro|£50,000|
|Tesco PLC|£7,667,200|
|The Guinness Partnership|£17,161|
|The National Lottery Community Fund|£975,433|
|The National Lottery Heritage Fund|£1,231,194|
|Veolia|£11,052|
|Way of Life|£9,995|
|Yondr|£28,532|
ADVISERS
55.
## Advisers
## **Auditors**
## Investment Managers
Crowe U.K. LLP
Black Country House Rounds Green Road Oldbury B69 2DG
Rathbone Investment Management 8 Finsbury Circus London EC2M 7AZ
## Bankers
## Solicitors
The Co-operative Bank plc PO Box 82 118-120 Colmore Row Birmingham B3 3BA
Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES
HSBC 114 High Street Stourbridge DY8 1DZ
Scottish Widows Bank plc PO Box 12757 67 Morrison Street Edinburgh EH3 8YJ
THE BOARD OF TRUSTEES
56.
## The Board of Trustees
The trustees (who are the directors of the company in accordance with the Companies Act 2006) on the date of approval of this report, or who served as trustees at any time during the year reported on, are as follows.
Appointed trustees First appointed Tony Berry October 2019 AGM 2020 Stuart Bonham December 2019 AGM 2020 Wendy Golland September 2014 AGM 2020 Jeff Greenidge March 2019 AGM 2019 Patrick Hughes September 2021 AGM 2021 Mike Master September 2008 AGM 2020 Antony Nelson March 2019 AGM 2019 Nigel Reader July 2021 AGM 2021 Paul Roots March 2019 AGM 2019 Anne-Marie Simpson December 2019 AGM 2020 Alan Smith June 2014 AGM 2020 Andrew Thurston January 2021 AGM 2021
## Last appointed
Retired/resigned
Resigned Sept 2021
Co-opted trustees First appointed Faiza Amin September 2019 AGM 2019 Kate Culverhouse December 2013 AGM 2020 Graham Hartley (Chair) August 2015 AGM 2021 Geoff Howsego June 2012 AGM 2018 Claire Marshall December 2021 Mike Ormerod June 2018 AGM 2018 Jack White September 2019 AGM 2019
Last appointed
## Co-opted trustees
Retired/resigned
Resigned Sept 2022
Resigned Sept 2021
Resigned June 2022
Company Secretary
Paul Viles
COMMITTEES OF THE BOARD
57.
## Appointed trustees
Chairs’ Committee Chair – Graham Hartley Federation Executive Team Stuart Bonham Chair – Graham Parry Groundwork UK Committee Chair – Claire Marshall Audit Committee Chair – Stuart Bonham
Chief Executive Graham Duxbury
## **GROUNDWORK**
To find out more about Groundwork, please get in touch:
www.groundwork.org.uk
Groundwork UK Suite B2, The Walker Building 58 Oxford Street Birmingham, B5 5NR
0121 236 8565 info@groundwork.org.uk @groundworkUK /groundworkUK @Groundwork_uk Groundwork UK
## **Published October 2022**
Groundwork UK is the operating name of the Federation of Groundwork Trusts, a company limited by guarantee. Company Registration Number: 1900511. Charity Registration No: 291558