OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

2022/23

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

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 12 Sustainable development
Page 14 Plans for the future
Page 17 Financial performance
Page 20 Risks and uncertaintes
Page 21 Trustees’ responsibilites
Page 23 Independent auditor’s report
Page 28 Statement of fnancial actvites
Page 29 Charity balance sheet
Page 30 Cash fow statement
Page 31 Notes forming part of the fnancial statements
Page 52 Advisers
Page 53 The Board of Trustees

Annual Report and Financial Statements 2023/23

ABOUT GROUNDWORK UK

About Groundwork UK

Groundwork supports practical action to create a fair and green future in which people, places and nature thrive.

We believe that working with local communities and businesses to help them build their capacity and resilience is vital if we are to tackle hardship, achieve a just transition to net-zero and help nature recover in a way that reduces inequality and leads to better work and healthier, happier lives.

What this means in practice is: helping people get jobs and supporting the growth of the green economy; reducing the waste of energy, food and water; creating and maintaining biodiverse, accessible green spaces; supporting businesses to be more successful and responsible; and empowering communities to take action to improve their health and wellbeing and the local and global environment.

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 and funders, managing programmes and contracts delivered by Groundwork Trusts and others and furthering Groundwork’s mission by distributing grants to other charities and community groups 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 at www.groundwork.org.uk.

CHAIR’S STATEMENT

Chair’s Statement

We’re living through a time of enormous instability. Global conflict and the beginnings of climate breakdown are disrupting our lives and exacerbating other challenges - from migration to the cost of basic commodities. In the UK our politics have been volatile to say the least and economic turbulence has left many people not just ‘feeling the pinch’ but facing destitution.

As is always the case, national and international crises impact first and worst on those in our society with least choice and least protection, and many communities are bearing the brunt of decisions and circumstances over which they feel they have no control.

For any charity supporting the most vulnerable and trying to find positive routes for people to take action this has been a challenging time. The need for Groundwork’s projects and services has increased significantly, whether we’re trying to help people manage rising utility bills, supporting people with long-term health conditions to find work or funding community groups to maintain green spaces and clean up rivers or make sure children are fed.

I’m really pleased that, over the last 12 months, Groundwork UK – and the wider Groundwork federation of which it is part – has been a point of stability, maintaining and growing its range of programmes to help those who need it most.

The grant programmes we run with our longstanding partners – Tesco, Comic Relief, HS2 and a number of government departments – have continued to provide funds to organisations delivering vital work in local communities. Thanks to Cadent and the Cadent Foundation we have been able to grow the level of support we offer to people in fuel poverty when it matters most. We have supplemented this with innovative programmes such as New to Nature, helping young people get jobs and helping the environmental sector ensure its vital work is more accessible to a wider range of audiences.

Our new five-year strategic plan sets out how we’ll continue to innovate and to challenge ourselves to do as much as we can to ensure a transition to a fair and green future in which people, places and nature thrive. It’s an exciting vision at a time of real possibility – to help those who need it find work in a green economy, to support communities through the cost of living crisis and to help prepare and adapt our homes, communities and local environments for the challenges we know climate change will bring.

I continue to be immensely proud of the work this organisation delivers and I’d like to thank my fellow trustees from across the federation for their enormous commitment and support over the last year. Groundwork is thriving and has the resilience and resources to help communities thrive whatever the future has in store.

Graham Hartley, Chair - 19 September 2023

GOVERNANCE

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 and cybersecurity, 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 & Remuneration Committee – overseeing our audit process, reviewing our Annual Report and Financial Statements and helping to make decisions on pay and reward.

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, including selection of the Federation Chair.

GOVERNANCE

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, partnerships and fundraising, policy and communications and delivery and learning. 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 and to a set of common standards. Groundwork Trusts make their own decisions about the project work they develop and deliver, but our collectively agreed federation strategy identifies areas of delivery or management that will be the focus for collaborative activity – ensuring the ‘Groundwork whole’ is greater than the sum of the parts.

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 the rest of the federation, with each Groundwork Trust a company member. A federation membership agreement 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.

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.

GOVERNANCE

Our federation strategy sets out the principles which underpin all of our work.

The Groundwork UK staff team has agreed a set of values to inform the way we work and behave. We are environmentally aware and focused on communities in need . We are 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 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 pays particular regard to its duties as a programme and grant manager, ensuring safeguarding, EDI and sustainability considerations are embedded in due diligence, monitoring and feedback processes.

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

Objectives and Public Benefit

Groundwork UK is a public benefit entity, whose primary objective is to provide goods or services for the general public or social benefit and where any risk capital has been provided with a view to supporting that primary objective rather than with a view to a financial return to its members

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.

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 2022/23 can be found on the following pages

STRATEGIC REPORT FOR THE YEAR ENDED 31ST MARCH 2023

Strategic Report for the Year Ended 31st March 2023

The Board of Trustees presents its report for the year ended 31 March 2023. This includes:

1. Performance overview

Despite the political and economic turbulence of the last year, Groundwork UK – in common with the wider Groundwork federation – has had a successful year, both operationally and financially, with growth in both our programme base and staffing levels, enabling us to extend our impact and support more people and communities in need.

Our work has helped the federation generate more than £100m in 2022/23 to deliver a wide range of projects, programmes and services that help people improve their prospects, create better places and protect the planet.

This has included supporting nearly 8,000 community organisations, 2,000 schools and 1,000 local businesses, in the process improving 1,100 public spaces, helping 19,000 households improve their energy and water efficiency, supporting 7,800 people into education, training or work, planting 31,000 trees and avoiding 2,450 tonnes of CO2.

Groundwork UK has supported this work by building Groundwork’s visibility and credibility, facilitating collaboration and learning within the federation and managing programmes that help deliver our collective mission

STRATEGIC REPORT

  2. Our portfolio of grant management programmes has continued to expand and diversify with existing relationships with Tesco, HS2, Comic Relief and the Department of Levelling Up, Housing and Communities supplemented by new programmes with the Home Office and Department for Culture, Media and Sport. We have also grown our activity to support enterprise development in the environmental sector through partnerships with Access, the Social Investment Business and Hatch. During the last year we distributed grants totalling some £19m to more than 7,500 charities and community groups. We also marked the milestone of distributing £100m to communities through our six-year partnership with Tesco.

  3. We have continued to enjoy success in developing local delivery programmes linked to core priorities within the federation – green jobs, supporting young people and tackling fuel poverty. With funding from the Cadent Foundation and the Energy Redress Fund, we have helped Groundwork expand and develop its work to help people struggling to pay their energy bills and keep warm. We brought to a successful conclusion our Progress programme, which helped more than 1,700 young people in the West Midlands overcome a range of barriers to finding work, and launched our New to Nature programme, funded by the National Lottery Heritage Fund, which is helping 95 young people from diverse backgrounds get their first experience of work in the environmental sector.

  4. Our roster of business partnerships continues to grow with major companies including Grosvenor, Balfour Beatty, Veolia, Segro, Firethorn and One Stop supporting us with funds during the year, and many more helping us extend our support for communities through volunteering events.

  5. Our communications work has achieved significant results in terms of online engagement and specialist press coverage linked to our programmes and policy reports. A highlight of the year was the programme of events and publications to mark our 40th anniversary as a network, offering a chance to thank our partners, re-connect with those who have been part of our journey and look to the future through the eyes of some of our younger employees and supporters.

  6. We have continued to represent Groundwork in an expanding range of policy networks linked to green jobs, energy efficiency, education, access to nature and social prescribing and built new alliances with organisations focused on ensuring a ‘just transition’, joining up social and environmental outcomes, for example through our work with New Philanthropy Capital on their Everyone’s Environment programme.

STRATEGIC REPORT

  2. Financially we have generated an operating surplus which has allowed us to maintain our level of unrestricted reserves in line with our reserves policy, help our staff cope with the rising cost of living and invest in the systems and infrastructure we need to ensure efficient and effective operation.

  3. Our people management metrics remain positive with high levels of commitment and satisfaction within the staff team and low levels of absence and staff turnover. During the year we have prioritised a number of actions designed to improve our organisation and ensure it continues to be a great place to work.

  4. We have maintained a flexible approach to employment, allowing team members to benefit from home working while promoting regular interaction within and between teams in our Birmingham office.

  5. We have agreed increased staffing levels in all areas of the team, ensuring we have sufficient capacity to maintain manageable workloads given our growing portfolio of programmes.

  6. We have invested in the establishment and development of an Operational Management Team able to work with the Senior Management Team to provide consistency and clarity on all aspects of Groundwork UK’s business management.

  7. We have initiated a process to transfer our data into the Microsoft cloud, which will improve cybersecurity and enable us to make better use of the full capabilities of Office365.

  8. We have recruited additional members to the Groundwork UK Committee bringing greater levels of expertise and diversity to our governance.

  9. We have progressed key aspects of our EDI action plan, and undertaken a self-assessment to help inform future priorities.

We are committed to 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.

Performance against our business plan KPIs to the end of March 2023 is given below.

----- Start of picture text -----
Measure Target Performance
----- End of picture text -----

Measure Target Performance
KPI1 New programme contribution secured £250k £302k
KPI2 Unrestricted income secured £150k £173k
KPI3 Grant programme performance 90% of KPIs low risk 96%
KPI4 Delivery programme performance 75% of KPIs low risk 85%
KPI5 Stakeholder satisfaction 90% 96%

STRATEGIC REPORT

2. Sustainable Development Report

Protecting and improving the environment is central to our mission and a core value for our staff team. We recognise the need to make improvements to our own performance in order that we can be seen as an environmental exemplar.

Our staff-led ‘Sustainable Living under Groundwork’ team continues to deliver awareness-raising campaigns to promote behaviour change, focussing this year on energy saving, food waste and digital behaviours.

We have embedded Carbon Literacy across our staff team, investing in an in-house training team who are supporting colleagues to obtain a Carbon Literacy certificate and generate pledges that will inform our Climate Action Plan for the year ahead.

We have updated our investment strategy and appointed new investment managers who will help us divest from fossil fuels. We have also helped colleagues explore opportunities to amend their pension portfolio to include more sustainable options.

As part of the Groundwork federation carbon reduction commitment, we have continued to measure our carbon footprint year on year, with our most recent footprint in 2022 calculated at 9.9 tonnes of CO2 equivalent, down from the baseline carbon footprint of 70.6 tonnes of CO2 equivalent. This change has largely been driven by our move to smaller, more modern premises and greater home working, though work will continue to develop more sophisticated ways of understanding the true carbon impact of 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 supported an increasing number of Green Doctor visits, helping 4,500 households to save energy, including installing 29,000 energy saving measures. Our environmental improvement projects are helping to address the loss of biodiversity in urban areas, whilst enthusing local people about the importance of nature. For example, our Veolia Orchard programme has supported 100 schools across the country to plant 500 fruit trees and install 100 bird boxes. Each orchard will become a learning resource for pupils, building environmental awareness and action from an early age.

Our next priority is to create a carbon reduction ‘pathway’, identifying year on year opportunities to reduce our carbon outputs, which will be agreed by our Board and worked into annual business planning exercises, further demonstrating our commitment to improving our environmental performance and altering our business practices to mitigate our impact.

STRATEGIC REPORT

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. Groundwork UK’s EDI working group continues to deliver a programme of activities informed by team-wide surveys and a self-assessment process.

With support from the consultancy Mission Diverse we have progressed our team training programme with sessions on deaf awareness and micro-aggressions and started to develop a calendar of awareness-raising events for the team.

We participated in the pilot of the RACE Report in 2022/23, a programme to measure and improve the racial diversity of the environmental sector, and as a result of this have improved data capture within the organisation so that we are better placed to analyse diversity trends and issues.

We have also initiated work to explore what more could be done to embed our EDI commitments in the way we implement and manage our programmes, including working with Disability Rights UK to assess the accessibility of our grant programmes.

Looking to the future we will be seeking to embed in our management processes learning being generated by our New to Nature programme, which is helping to identify the employment barriers faced by people with disabilities or from low income or minority ethnic backgrounds.

Groundwork UK’s gender pay gap stands at 28% (2022: 19%). With the highest earner removed the pay gap is 17%. We continue to address this by providing flexible working arrangements and prioritising internal development opportunities. 54% 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:

STRATEGIC REPORT

4. Our plans for the future

As we look to the future we recognise that our plans will be influenced and informed by a number of trends impacting on the policy and funding landscape.

STRATEGIC REPORT

Groundwork UK’s priorities and plans are also shaped by the ongoing evolution of the Groundwork federation.

In order to ensure Groundwork UK’s activities are fully aligned with the needs and expectations of the federation, our business plan is clearly and explicitly driven by Groundwork’s collectively agreed strategy. The strategy commits the whole of Groundwork to working collaboratively to achieve the following aims:

The Groundwork federation strategy is being reviewed and a refreshed vision and plan will be launched in the autumn of 2023. This will lead to new opportunities and expectations for Groundwork to facilitate internal collaboration and build the external relationships we need to deliver our collective goals.

STRATEGIC REPORT

Groundwork UK’s strategy and priorities

As the central body of the federation, Groundwork UK’s purpose is to build the resilience and environmental sustainability of communities facing hardship and injustice, supporting and working in . partnership with Groundwork Trusts in a strong and connected federation

In order to achieve this purpose our own strategic objectives are to:

Achieving this will require us to:

We will invest time and resources in a number of priority pieces of work, tracking progress on a quarterly basis.

STRATEGIC REPORT

5. Financial performance

Our long-term financial strategy has three clear and linked strands:

Achieving this will require us to:

Net incoming resources for 2022/23 totalled £22.5 million (2022: £21.7 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 £127k (2022: £414k), compared to a budget of break even. This outturn is after allowing for a decrease in the value of our investments of £161k caused by turbulence on global financial markets.

This positive outcome has further strengthened our balance sheet and we continue to meet our long-term target for holding reserves. We have designated £200k of our reserves to strengthen our fundraising capabilities in the next two years, giving us a stronger platform for diversifying our income base and delivering even greater impact.

In addition to this income, we received funds and distributed grants totalling £6.8 million, funds for which we are responsible but which are not included in our stated turnover.

5.1 Reserves

In line with our financial strategy, our trustees have agreed that we should aim to hold 12 months operating costs (c£2.8 million) in liquid reserves. We believe this is appropriate for the following reasons:

STRATEGIC REPORT

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 2022/23 is £2.7 million.

Our restricted funds - advance payments from funders pending completion of project work – stand at £2.4 million (2022: £2.9 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 2023/24. 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.

5.2 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 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. We invest these funds in a managed fund arrangement with the aim of guarding against the eroding effects of inflation. In the last year, our investments made a loss of £161k, but delivered dividend income of £64k. All of these funds can be converted into cash without notice or penalty, should there be an immediate need for liquid funds.

During the year we undertook a review of our investment arrangements and our trustees have subsequently agreed to transfer our funds to the Cazenove Responsible Multi-Asset Fund, which is better aligned to our environmental commitments.

5.3 Grant making policy

Groundwork UK delivers its mission primarily by distributing funds to Groundwork Trusts, other delivery partners and to community groups. Grant awards are accounted for as soon as grant panel decisions are made. If an offer is conditional upon events outside the Charity’s control and it is possible but not probable that an outflow of economic benefits will arise, such amounts are recognised as contingent liabilities until the grant conditions are fulfilled.

STRATEGIC REPORT

5.4 Principal funding sources

Our major sources of funding during the last year are set out below.

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.

5.5 Expenditure on charitable objectives

Our expenditure in the year was directed towards the following charitable activities.

The cost of generating resources to support local delivery through campaigns, communications and bidding activities.

STRATEGIC REPORT

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. Given our role as a distributor of small grants to community organisations we are particularly conscious of the risk of fraud and undertake regular reviews of our due diligence and monitoring processes.

Our ability to deliver our mission continues to be heavily influenced by the policies and priorities of public bodies and by the investment decisions of businesses, which in turn are driven by regulation and the wider public policy backdrop.

We see risks ahead in terms of continuing global instability, the impact of this on Government priorities and spending decisions and the likelihood of further spending delays and increasingly polarised political debate in the lead up to a general election. We also see technological risks given the increasing reliance on online systems to support all areas of our work which leaves us vulnerable to supplier failure, cost increases and cyber threats.

The most significant specific risks for which we have active mitigation strategies in place are as follows:

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

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:

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.

STRATEGIC REPORT

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 19 September 2023

INDEPENDENT AUDITOR’S REPORT

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 2023, 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:

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.

INDEPENDENT AUDITOR’S REPORT

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.

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:

INDEPENDENT AUDITOR’S REPORT

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 21 , 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.

INDEPENDENT AUDITOR’S REPORT

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.

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.

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.

INDEPENDENT AUDITOR’S REPORT

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.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of 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, 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.

Kerry Brown (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: 20 December 2023

STATEMENT OF FINANCIAL ACTIVITIES

Statement of Financial Activities

FOR THE YEAR ENDED 31 MARCH 2023

INCOME FROM
Donatons and legacies
Charitable actvites
Other trading actvites
Investments
Total
EXPENDITURE ON
Raising funds
Charitable actvites
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
£
76,061
3,611,582
135,756
128,330
3,951,729
34,770
3,628,410
3,663,180
-161,520
127,029
-241,800
-114,771
2,413,978
2,299,207
Designated
£
–
–
–
–
–
–
123,974
123,974
–
-123,974
241,800
117,826
293,479
411,305
2023
Unrestricted
funds		 £
-
18,812,390
–
–
18,812,390
181,116
19,005,244
19,186,360
–
-373,970
–
-373,970
2,901,014
2,527,044
2023
Restricted
funds		 £
76,061
22,423,972
135,756
128,330
22,764,119
215,886
22,757,628
22,973,514
-161,520
-370,915
–
-370,970
5,608,471
5,237,556
2023
Total		 £
207,792
21,284,679
135,000
46,083
2022
Total
21,673,554
185,583
21,461,169
21,646,752
57,492
84,294
–
84,294
5,524,177
5,608,471

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 31 to 51 form part of these financial statements.

CHARITY BALANCE SHEET

29

Charity Balance Sheet

AT 31 MARCH 2023

AT 31 MARCH 2023
Company registraton number
01900511 Note 2023 2022
£ £ £ £
FIXED ASSETS
Tangible assets 9 20,116 37,629
Investments 11 1,951,534 2,113,044
Investments in subsidiaries 10 3 3
CURRENT ASSETS
Debtors		 12 12,765,351 1,971,643 13,373,961 2,150,676
Cash at bank 5,294,696 8,827,189
18,060,047 22,201,150
Creditors:amounts falling due within one year 13 -14,784,134 -18,733,354
Net Current Assets 3,275,913 3,467,796
Total assets less current liabilites 5,247,556 5,618,471
Creditors:amounts falling due afer one year 18 -10,000 –10,000
NET ASSETS 5,237,556 5,608,471
RESERVES
Unrestricted - General 16 2,299,207 2,413,978
Designated 16 411,305 293,479
Restricted 16 2,527,044 2,901,014
5,237,556 5,608,471

These finance statements were approved by the Board of Trustees and authorised for issue on 19 September 2023 and signed on its behalf by:

The notes on pages 31 to 51 form part of these financial statements.

Graham Hartley, Chair 19 September 2023

CASH FLOW STATEMENT

Cash Flow Statement

FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023
Note 2022/23 2021/22
£ £
CASH FLOW FROM OPERATING ACTIVITIES
Net cash provided by operatng actvites 21 (3,660,823) 885,855
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments 128,330 46,083
Purchase of investments – (510,000)
NET CASH PROVIDED BY INVESTMENT ACTIVITIES (3,532,493) 421,938
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing – -
Change in cash and cash equivalents in the reportng period (3,532,493) 421,938
Cash and cash equivalents at the beginning of the reportng period 8,827,189 8,405,251
Cash and cash equivalents at the end of the reportng period 5,294,696 8,287,189

Movement in Net Debt

Movement in Net Debt
At
Cash at bank and in hand
Debt due within 1 year
Debt due over 1 year
1 April 2022
£
8,827,189
–
–
8,827,189		 Cash fows
£
(3,532,493)
–
–
(3,532,493)
31 March 2023
£
5,294,696
–
–
5,294,696
5,294,696

The notes on pages 31 to 51 form part of these financial statements.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Notes forming part of the financial statements

FOR THE YEAR ENDED 31 MARCH 2023

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

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

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.

k) Key judgements

Grant awards are recognised as soon as awards are made at grant panels.

l) Public Benefit Entity

The company is a public benefit entity, whose primary objective is to provide goods or services for the general public or social benefit and where any risk capital has been provided with a view to supporting that primary objective rather than with a view to a financial return to its members.

Charity registration no. 291558 Company registration no. 01900511

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

2. Incoming resources from generated funds

VOLUNTARY INCOME
Donatons and gifs
OTHER TRADING ACTIVITIES
Membership Fee
Car Parking
INVESTMENT INCOME
Dividends
Bank interest

VOLUNTARY INCOME
Donatons and gifs
OTHER TRADING ACTIVITIES
Membership Fee
INVESTMENT INCOME
Dividends
Bank interest		 £
76,061
76,061
135,000
756
135,756
64,071
64,259
128,330
2023
Unrestricted
£
191,499
191,499
135,000
135,000
45,679
404
46,083
2022
Unrestricted		 £
–
–
–
–
–
–
–
2023
Designated
£
–
–
–
–
–
–
–
2022
Designated		 £
-
-
–
–
–
–
–
2023
Restricted
£
5,445
5,445
–
–
–
–
–
2022
Restricted		 £
76,061
2023
Total
76,061
135,000
756
135,756
64,071
64,259
128,330
£
19,335
2022
Total
19,335
102,500
106,742
45,679
404
46,083

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

3. Incoming resources from charitable activities

Income for project delivery was secured
from the following sources:
Central government
Local authorites
Public agencies
Private sector
Natonal Lotery and charitable foundatons
£
385,892
31,922
554,883
2,135,177
503,708
3,611,582
2023
Unrestricted		 £
–
–
–
–
–
–
2023
Designated		 £
590,674
-
3,817,166
9,779,146
4,625,404
18,812,390
2023
Restricted		 £
976,566
31,922
4,372,049
11,914,323
5,129,112
2023
Total
22,423,972
Income was allocated to:
Grant distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 2,572,627
649,768
211,744
50,077
63,345
64,021
3,611,582
–
–
–
–
–
–
–		 13,400,572
3,384,581
1,102,955
260,845
329,958
333,478
18,812,390		 15,973,199
4,034,351
1,314,700
310,921
393,303
397,499
22,423,972

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Incoming resources from charitable activities (continued)

Income for project delivery was secured
from the following sources:
Central government
Local authorites
Public agencies
Private sector
Natonal Lotery and charitable foundatons		 £
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 distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
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

For definitions of the above categories, see section 5.5 of the strategic report

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

4. Cost of raising funds

Staf costs
Other costs
£
26,160
8,610
34,770
2023
Unrestricted
£
–
–
–
2023
Designated
Staf costs
Other costs
£
21,739
4,332
26,071
2022
Unrestricted
£
–
–
–
2022
Designated		 £
136,266
44,850
181,116
2023
Restricted
£
133,007
26,505
159,512
2022
Restricted		 £
162,426
53,460
2023
Total
215,886
£
154,746
30,837
2022
Total
185,583

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

5. Charitable activities

Expenditure on projects related to the
following actvites:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
£
2,584,614
652,796
212,731
50,310
63,640
64,319
3,628,410
2023
Unrestricted
Expenditure on projects comprised:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
£
13,626,050
3,420,621
1,114,700
263, 622
333,472
337,029
19,095,494
2023
Grants
payable		 £
88,310
22,305
7,268
1,719
2,174
2,198
123,974
2023
Designated
£
1,930,597
487,611
158,901
37,579
47,536
48,044
2,710,268
2023
Other direct
costs of
actvites		 £
13,561,762
3,404,384
1,109,409
262,371
331,889
335,429
19,005,244
2023
Restricted
£
678,039
171,253
55,807
13,199
16,695
16,873
951,866
2023
Support
costs		 £
16,234,686
4,079,485
1,329,408
314,400
397,703
401,946
2023
Total
22,757,628
£
16,234,686
4,079,485
1,329,408
314,400
397,703
401,946
2023
Total
22,757,628

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Charitable activities (continued)

Expenditure on projects related to the
following actvites:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
Expenditure on projects comprised:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 £
1,957,590
711,801
179,518
41,414
53,103
36,394
2,979,820
2022
Unrestricted
£
11,663,112
4,240,836
1,069,548
246,737
316,384
216,831
17,753,448
2022
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
2022
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
2022
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

Charitable activities (continued)

Charitable actvites (contnued)
Analysis of grants
Creatng beter places
Improving peoples prospects
Promotng greener living and working
Analysis of grants
Creatng beter places
Improving peoples prospects
Promotng greener living and working		 £
6,669,517
8,358,181
4,067,796
19,095,494
Grants to
insttutons
£
–
–
–
–
Grants to
individuals
£
5,167,908
8,063,231
4,522,309
17,753,448
Grants to
insttutons
£
–
–
–
–
Grants to
individuals		 £
333,908
414,305
203,653
951,866
Grant
support
costs
£
255,891
399,254
223,924
879,069
Grant
support
costs		 £
7,003,425
8,772,486
4,271,449
2023
Total
20,047,360
£
5,423,799
8,462,485
4,746,233
2022
Total
18,632,517
Support costs are analysed as follows:
Staf costs
Temporary staf and recruitment
Legal and professional
Travel and subsistence
Training and meetngs
IT support
Other costs		 £
687,912
2,524
33,380
8,761
17,594
94,283
107,412
951,866
2023		 £
645,372
3,043
27,399
2,723
16,709
109,549
74,274
2022
879,069

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

6. Employees

The average monthly number of employees during the year was as follows:
Programme management
Management and administraton
Fundraising and communicatons
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
4
10
51
2023
£
1,600,363
164,562
248,940
2,013,865
2023
£
2
1
3
2023		 £
37
6
8
2022
51
£
1,527,145
143,675
229,847
2022
1,900,667
£
2
1
2022
3

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 2023 of £375,691 (2022 - £363,756) Total contributions under defined contribution schemes on behalf of these higher paid employees in 2023 were £23,617 (2022 - £22,868)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

7. Transactions with trustees

During the year ending 31st March 2023 5 trustees were reimbursed for travel costs amounting to £388 (2022 - 0 trustees £0 travel costs). No Trustees received any remuneration during the year.

8. Net incoming resources

8. Net incoming resources
2023 2022
£ £
Net incoming resources for the year is stated afer charging:
Auditor’s remuneration:
Audit – company 16,400 14,400
Depreciaton 17,513 22,646

Premiums in 2023 £659 (2022: £670) were paid on a professional indemnity policy to protect the charity and trustees from loss arising from neglect or defaults of trustees.

9. Tangible assets

COST OR VALUATION
At 1 April 2022
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charged for the year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 £
71,215
71,215
33,586
17,513
51,099
20,116
37,629
Ofce
equipment		 £
71,215
Total
71,215
33,586
17,513
51,099
21,116
37,629

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

10. Investments held as fixed assets

Shares in subsidiary undertakings
£
COST
At 1 April 2022 3
Disposals –
At 31 March 2023 3
NAME
Groundwork Trade Associaton Ltd
Groundwork Enterprises Ltd
Groundwork UK Ltd
Dormant
Dormant
Dormant
Nature of business
registraton
SUBSIDIARY UNDERTAKING
Groundwork Trade Associaton Ltd
Groundwork Enterprises Ltd
Groundwork UK Ltd		 England
England
England
Country of
registraton		 Ordinary
Ordinary
Ordinary
Class of
shares held
£
4,000
25,002
1
2023		 100%
100%
100%
Proporton
£
4,000
25,002
1
2022

11. Fixed asset investments

COST
At 1 April 2022
Investments
Net loss on revaluaton
At 31 March 2023		 £
2,113,044
-
-161,520
1,951,524

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

12. Debtors

12. Debtors
2022 2021
£ £
Grants receivable 5,930,069 6,098,612
Other debtors - 40,000
Prepayments and accrued income 6,835,283 7,235,349
12,765,352 13,373,961
13. Creditors
2023 2022
£ £
Grants due and payable 11,312,641 9,451,765
Agency creditor 1,663,104 5,932,240
Social security and other taxes 62,914 60,633
Other creditors 260,538 183,111
Accruals 662,839 2,680,016
Deferred income (note 14) 822,098 425,588
14,784,134 18,733,353
Balance at Amount paid Amount Balance at 31
1 April 2022 in year accrued in the March 2023
year
£ £ £ £
Grants due and payable 9,451,765 3,631,112 5,491,988 11,312,641
Agency creditor 5,932,240 6,831,748 2,562,612 1,663,104
Balance at Amount paid Amount Balance at 31
1 April 2021 in year accrued in the March 2022
year
£ £ £ £
Grants due and payable 5,032,035 6,177,825 10,597,555 9,451,765
Agency creditor 4,786,779 11,785,065 12,930,526 5,932,240

13. Creditors

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

14. Deferred income

14. Deferred income
Movements in deferred income during
the year were as follows:
Community projects
£
425,587
425,587
£
425,587
425,587
Amount
released to
incoming
resources
Balance at 1 April
2022
£
172,627
172,627
Balance at
1 April 2021
£
172,627
172,627
Amount released
to incoming
resources
Community projects		 £
822,098
822,098
Amount
deferred
in the year
£
425,587
425,587
Amount
deferred
in the year		 £
822,098
Balance at
31 March
2023
822,098
£
425,587
Balance at
31 March
2022
425,587

Income is deferred where it is linked to milestones in future periods.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

15. Analysis of net assets

16. Statement of funds
Tangible fxed assets
Investments
Net current assets
Provision for liabilites
£
20,116
1,951,527
748,869
-10,000
2,710,512
Unrestricted
funds
Tangible fxed assets
Investments
Net current assets
Provision for liabilites
£
37,629
2,113,047
566,781
-10,000
2,707,457
Unrestricted
funds
UNRESTRICTED FUNDS
At 1 April 2022
Incoming resources
Resources expended
Transfers
Loss on investment
At 31 March 2023
£
293,479
-
-123,974
241,800
-
411,305
Designated
fund		 £
-
-
2,527,044
-
2,527,044
Restricted
funds
£
-
-
2,901,014
-
2,901,014
Restricted
funds
£
2,413,978
3,951,729
-3,663,180
-241,800
-161,520
2,299,207
General
fund		 £
20,116
1,951,527
3,275,913
-10,000
Total
2023
5,237,556
£
37,629
2,113,047
3,467,795
-10,000
Total
2021
5,608,471
£
2,707,457
3,951,729
-3,787,154
-
-161,520
Total
2,710,512

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Statement of Funds (continued)

Statement of Funds (contnued)
UNRESTRICTED FUNDS
At 1 April 2021
Incoming resources
Resources expended
Transfers
Surplus on investments
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

Designated funds include £200k to support a new fundraising strategy,£110k to support collaboration, across the Groundwork federation, £35k to support energy efficiency programmes and £18k to fund core staff training

Restricted funds comprise performance
related grants as follows:
RESTRICTED FUNDS
Tesco Community Grants
HS2 Grants
Comic Relief
ESF Community Grants
Cadent Foundaton
Home Ofce
Firethorn Trust
Onestop Carriers for Causes
The Natonal Lotery Community Fund
The Natonal Lotery Heritage Fund
Other Programmes
£
-
-
864,000
29,645
815,578
-
-
138,034
46,067
8,082
999,608
2,901,014
Balance at
1 April 2022		 £
-8,727,550
-2,335,165
-1,574,077
-1,481,300
-875,113
-202,616
-226,953
-365,490
-1,308,689
-8,082
-2,081,325
-19,186,360
Resources
expended
£
-
-
841,923
6,118
478,073
174,697
135,547
65,544
17,415
0
807,727
2,527,044
Balance at 31
March 2023
£
8,727,550
2,335,165
1,552,000
1,457,773
537,608
377,313
362,500
293,000
1,280,037
-
1,889,444
18,812,390
Incoming
resources		 £
-8,727,550
-2,335,165
-1,574,077
-1,481,300
-875,113
-202,616
-226,953
-365,490
-1,308,689
-8,082
-2,081,325
-19,186,360
Resources
expended
£
-
-
841,923
6,118
478,073
174,697
135,547
65,544
17,415
0
807,727
2,527,044
Balance at 31
March 2023
£
8,727,550
2,335,165
1,552,000
1,457,773
537,608
377,313
362,500
293,000
1,280,037
-
1,889,444
18,812,390
Incoming
resources
2,527,044

Large programmes include:

Tesco Community Grants Grants to fund local community projects, voted for by Tesco customers.
HS2 Grants Grants to organisatons to mitgate the disrupton of HS2 constructon.
Comic Relief Grant funding to community led organisatons to support capacity
building and project delivery.
Cadent Foundaton Funding for energy efciency advice and measures to vulnerable
households, delivered by Groundwork ‘Green Doctors’.
The Natonal Lotery Community Fund Coaching for young people who are furthest away from the labour market.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

RESTRICTED FUNDS
Tesco Community Grants
HS2 Grants
Comic Relief
ESF Community Grants
Cadent Foundaton
Home Ofce
Firethorn Trust
Onestop Carriers for Causes
The Natonal Lotery Community Fund
The Natonal Lotery Heritage Fund
Other Programmes		 £
-
-
-
6,455
491,304
24,524
-
-
2,062
2,585,947
3,110,290
Balance at 1
April 2021		 £
-7,910,852
-1,945,971
-1,537,667
-1,150,723
-673,112
-953,868
-
-505,992
-450,491
-3,391,413
-18,520,090
Resources
expended
£
-
-
-301,905
22,625
815,578
46,068
864,000
-
7,021
1,447,628
2,901,014
Balance at 31
March 2022
£
7,910,852
1,945,971
1,235,762
1,166,894
997,386
975,412
864,000
505,992
455,450
2,253,095
18,310,814
Incoming
resources		 £
-7,910,852
-1,945,971
-1,537,667
-1,150,723
-673,112
-953,868
-
-505,992
-450,491
-3,391,413
-18,520,090
Resources
expended
£
-
-
-301,905
22,625
815,578
46,068
864,000
-
7,021
1,447,628
2,901,014
Balance at 31
March 2022
£
7,910,852
1,945,971
1,235,762
1,166,894
997,386
975,412
864,000
505,992
455,450
2,253,095
18,310,814
Incoming
resources
2,901,014

Programme funds are only available for expenditure in accordance with the funders’ directions.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

17. Commitments under operating leases

As at 31 March, 2023, the charity had total commitments under a non-cancellable lease for premises as set out below.

Within 1 Year
1-2 Years
2-5 Years		 £
53,704
53,704
46,032
153,440
2023		 £
57,204
49,532
-
2022
106,736

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 2023 Groundwork UK paid contributions into a defined contribution scheme. The total charge to the defined contribution scheme amounted to £248,940 (2022: £229,847). 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 (2022: £4,000) was owed to Groundwork Trade Association Limited, a wholly owned subsidiary of the company. There are no other related party transactions.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

21. Reconciliation of net income to net cash flow from operating activities

Net income for the reportng period (as per the SOFA)
ADJUSTED FOR:
Losses /(gains) on investments
Depreciaton charge
Investment income
(Increase) /decrease in debtors
Increase /decrease in creditors
Increase /decrease in provisions
Net cash provided by (used in) operatng actvites		 £
-370,915
161,520
17,513
-128,330
608,610
-3,949,221
-
-3,660,823
2023		 £
84,294
-57,492
22,646
-46,083
-1,723,879
2,596,369
10,000
2022
885,855

22. Grants payable

All grants payable relate to institutional grants paid to Groundwork Trusts, delivery partners and community groups, mainly to small community based not -for- profit organisations addressing local needs The detailed breakdown of all grant payments is available on request from the charity’s principal address. No single grants were awarded that are considered to be material to these financial statements.

23. Financial Instruments

23. Financial Instruments
2023 2022
Groundwork UK’s fnancial instruments may be analysed as follows: £ £
FINANCIAL ASSETS
Financial assets measured at fair value through proft and loss:
Investments 1,951,524 2,113,044

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

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 Foundaton for Social Investment £135,162
Avison Young £84,502
Balfour Beaty £34,051
Boost £20,000
Cadent Foundaton £746,305
Cadent Gas Limited £169,302
CAF £69,644
Centrica £161,310
City & Guilds £95,000
Comic Relief Community Fund (England) £1,880,600
Coop Foundaton £34,995
Central England Coop £24,994
Department for Digital, Cultural, Media & Sport £112,915
Department for Work & Pensions £226,417
Educaton & Skills Funding Agency £1,794,444
Energy Saving Trust £190,443
Firethorn Trust £362,500
Greater London Authority £32,171
Grosvenor £99,650
Hatch Enterprise £54,000
Havas Worldwide London Ltd £55,000
Home Ofce £432,286
HS2 Limited £2,876,200
Impax Asset Management £80,698
Jones Lang Lasalle Limited £14,401
KPMG LLP £62,423
Locality £12,708
Department for Levelling up, Housing & Communites £89,234
UK Year CIC £252,553
NHS Property Services £21,327
Northern Gas Network £69,827
One Stop Stores £354,198
Royal Society of Wildlife Trusts £24,228
Segro £148,568
Schroders £49,723
Tesco PLC £10,229,629
The Natonal Lotery Community Fund £1,280,037
The Natonal Lotery Heritage Fund £878,127
Veolia £29,034
Way of Life £11,440

ADVISERS

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

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 Katrina Cunliffe March 2023 Wendy Golland September 2014 AGM 2020 Jeff Greenidge March 2019 AGM 2019 Patrick Hughes September 2021 AGM 2021 Margot Madin September 2022 AGM 2022 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 Nov 2022

Resigned Sept 2022

Co-opted trustees First appointed Faiza Amin September 2019 AGM 2019 Karen Balmer September 2022 AGM 2022 Kate Culverhouse December 2013 AGM 2020 Graham Hartley (Chair) August 2015 AGM 2021 Claire Marshall December 2021 AGM 2022 Mike Ormerod June 2018 AGM 2018 Jack White September 2019 AGM 2019

Last appointed

Retired/resigned

Resigned Sept 2022

Resigned June 2022

Company Secretary

Paul Viles

THE BOARD OF TRUSTEES

Commitees of the Board
Chairs’ Commitee Chair Graham Hartley
Federaton Executve Team Chair Graham Parry
Groundwork UK Commitee Chair Claire Marshall
Audit & Remuneraton Commitee 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 December 2023

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