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2024-03-31-accounts

2023/24

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 13 Equity, diversity and inclusion
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 2023/24

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 www.groundwork.org.uk.

CHAIR’S STATEMENT

Chair’s Statement

This is my final contribution to Groundwork UK’s annual report as I step down at the end of three terms as Chair. It has been a privilege to lead the Board and support the Chief Executive and his team through a period that has been unprecedented in our history – political turmoil, a global pandemic and shocks to the national and global economy.

I’m delighted to say that I leave the organisation in good health. Groundwork UK has grown steadily over the last decade and sits at the heart of a federation that continues to buzz with ideas, energy and innovation. We have remained responsive, developing solutions that meet the emerging and evolving needs of communities: our work to help people reduce their bills and escape fuel poverty has grown considerably; we are at the forefront of activity to help people get jobs in the green economy; and we are finding new ways of ensuring people of all ages and backgrounds are able to connect with nature to improve their health and wellbeing.

Along the way we have built and sustained important relationships, working with central and local government, lottery funders and businesses who share our values and know the benefits of investing in communities. I want to say a particular thank you to the National Lottery Heritage Fund, for their vision in helping to create the New to Nature programme, giving young people from diverse backgrounds their first job in the sector. I also want to pay tribute to Tesco for their ongoing support which has seen more than £100m invested in communities and, this year, the launch of a new Stronger Starts strategy ensuring children and young people stay fit, fed and focused. Thank you also to the Cadent Foundation, who have doubled their support for our Green Doctor service and who are helping us grow our workforce to meet increased demand. We have worked with many other partners and funders during the last year, whose generous support has enabled us to provide grants and support to thousands of communities around the country.

Groundwork is in safe hands and has the resilience and flexibility to respond to the challenges and opportunities presented by changing circumstances and a new political reality. The support and services we provide will never be more needed as the impacts of climate change are felt more significantly by those who are most vulnerable. Finding solutions that don’t disadvantage people further and that, instead, demonstrate the positive social benefits of more sustainable choices is going to be the defining challenge of the next 10 years.

I would like to thank my fellow trustees, who give their time so generously to support our organisation, and Groundwork’s employees around the country who continue to inspire through their commitment and creativity. The greatest strength of any organisation is its people and I know Groundwork will remain committed to giving people the opportunity to build exciting, fulfilling careers while helping those who need it most to improve their prospects.

Graham Hartley, Chair (retired 19 September 2024)

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. Although no formal Trustee training programme is in place, Trustees receive an informal induction overseen by the Chief Executive.

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.

Audit & Remuneration Committee – overseeing Groundwork UK’s 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 and ensuring that Groundwork UK is working in the best interests of the whole federation.

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, grant management 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.

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.

The Groundwork UK staff team has agreed a set of values to inform the way it works and behaves. We are collaborative, responsive, focused on impact and fairness. These values are tested in our recruitment processes and embedded in our arrangements for performance management and reward and recognition.

GOVERNANCE

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 reduce our own carbon footprint.

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. We can confirm that there were no complaints concerning our fundraising activities during the year. We do not engage directly with the public, other than on our website, in our fundraising activities.

More information about our approach and commitments can be found here - Our approach and commitments - Groundwork

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. Our 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.

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. 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.

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.

STRATEGIC REPORT FOR THE YEAR ENDED 31ST MARCH 2024

Strategic Report for the year ended 31 March 2024

The Board of Trustees presents its report for the year ended 31 March 2024. This includes:

1. Performance overview

Against a backdrop of political, economic, social and environmental turbulence, Groundwork UK has had a successful year, both operationally and financially, with continued 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 wider Groundwork federation generate £101m to deliver projects, programmes and services that help people improve their prospects, create better places and protect the planet.

This has included:

STRATEGIC REPORT

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.

Our portfolio of grant management programmes has continued to expand and diversify. Our relationship with Tesco remains strong and this year has moved into a new phase with the launch of the Stronger Starts strategy, which has seen us focus grant-giving on schools and other organisations supporting young people. The last year also saw us design, develop and launch the VCSE Energy Efficiency Scheme on behalf of DCMS. This high volume, short timescale programme got off to a good start in 2023/24, but will require significant resources to deliver successfully in the current year. We have worked closely with colleagues at HS2 to ensure distribution of their community and business funds continues smoothly despite changes to the construction programme, and have successfully concluded our work as an intermediary grant manager for Comic Relief. New and repeat grant programmes have been launched with the BUPA Foundation, Rowntree and the Home Office.

We have enjoyed considerable success in securing funding to support local delivery of Groundwork’s Green Doctor service during the year. A new three-year £6m relationship with the Cadent Foundation will see delivery expanded into new areas of need and help us engage a new cohort of Green Doctor trainees. This will be complemented by our growing relationship with British Gas and by an increasing number of businesses and charitable foundations keen to support this vital service.

A highlight of the year has been delivery of the New to Nature programme, an initiative to help 95 young people get their first job in the environmental sector backed by funding from the National Lottery Heritage Fund. This has galvanised employers in the sector, enabling them to expand their reach while providing life-changing opportunities for young people struggling to get their foot on the first rung of the career ladder.

Our roster of business partnerships has expanded over the year and we have been supported by companies as diverse as Grosvenor, PwC and Veolia, either through fundraising efforts or volunteering activity. During 2023 we worked with 17 businesses to enable more than 4,000 volunteers to give 22,000 hours of time to support local community organisations.

2023/24 saw the culmination of our Enterprise Development programme, working alongside the Access Foundation and Social Investment Business (SIB). Over the course of the last three years we have supported 43 environmental organisations to develop new trading or enterprise activities through a programme of expert workshops, peer support and grant funding. This has helped us build our own capacity and expertise and we are now helping organisations grow their business by facilitating access to blended finance through SIB’s Thrive partnership and REACH Fund.

STRATEGIC REPORT

Our policy and communications work has continued to strengthen through a focus on coordinated positioning activities, such as our Force of Nature campaign which generated pledges from a significant number of organisations to make green jobs more accessible. We have continued to represent Groundwork nationally in an expanding range of policy networks linked to green jobs, energy efficiency, green infrastructure, access to nature and social prescribing and will continue to use these networks to build visibility, credibility and partnership links. This includes supporting the Everyone’s Environment campaign, led by New Philanthropy Capital, which is helping social charities and funders to understand the impact of climate change on their beneficiaries.

Our work to facilitate collaboration and quality within the federation has become more structured and effective with the potential to make a step change in the way information is shared and practitioners are networked through the use of new systems. We have supported the implementation and testing of a new impact framework for Groundwork and made strides in developing a new professional development framework for Groundwork’s community practitioners. We have also continued to support the sustainability and effectiveness of Groundwork Trusts by leading national business development and fundraising activities, coordinating peer support and providing financial assistance.

Financially we have generated an operating surplus which allows us to maintain our level of unrestricted reserves despite rising costs, and invest further in helping the federation improve its practice and collaborate to drive quality and impact.

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. Our People Plan is focused on ensuring we are pro-actively supporting our colleagues to develop and progress in their roles and identifying ways to help teams cope with increasingly challenging workloads.

STRATEGIC REPORT

2. Sustainable Development Report

Protecting and improving the environment is central to our charitable mission and our federation strategy commits us to being an environmental ‘exemplar’, demonstrating we practice what we preach.

Our carbon footprint for 2023/24 is estimated at 15 tonnes of CO2 equivalent, which is higher than the previous year. This is accounted for by an increase in travel as face-to-face activities have resumed since the pandemic, and an overall increase in staff numbers. A significant element of our footprint is related to energy costs in our Walker Building premises and we have begun active engagement with our landlords in order to try and influence their choice of energy provider. We will now be working with experts from within the federation to develop a more robust carbon reduction plan containing year on year targets.

Our staff-led ‘Sustainable Living under Groundwork’ group continues to deliver awareness-raising campaigns to promote behaviour change, focussing this year on plastic waste and meat-free diets, and organises practical activities with the wider team including ‘swap shops’ and litter-picking sessions. We have also introduced a new salary sacrifice scheme to help with the purchase of electric vehicles.

During the year an in-house team delivered Carbon Literacy training to our whole staff team, an exercise which also generated a number of pledges and ideas that will feed directly into our carbon reduction plan.

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 more than 5,300 households identify savings equivalent to 360 tonnes of CO2, installing 43,000 energy saving measures. Through our management of the DCMS VCSE Energy Efficiency Scheme we have helped 1,100 organisations benefit from an independent energy assessment of their premises, which will now enable some to secure funds for the installation of measures such as double glazing, solar panels and heat pumps. We also run a number of programmes providing funds to improve the local environment, tackling the loss of biodiversity and helping nature recover. Our SEGRO Greener Communities programme improved 15,000 m2 of land across 10 sites and, with support from the Firethorn Trust, we have improved community gardens, planted trees and bulbs and trained young people in horticulture skills.

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.

We have continued to provide training for team members, including last year sessions on disability awareness and micro-aggressions, and maintain our support for the RACE Report, ensuring there is transparency around racial diversity in the environmental sector.

We have also developed our approach to sharing internal learning and demonstrating external support in relation to social issues, for example highlighting the challenges young women and people from the LGBTQ+ community feel in using outdoor spaces in their community to coincide with International Women’s Day and Pride Month.

In line with our strategic priorities, we are focused on building equity, diversity and inclusion into the programmes and campaigns that we run. New to Nature has helped 95 young people get their first job in the environmental sector, with 86% recruited from one of our target groups – people with disabilities or from an ethnic minority or low income background. This programme, and our lead role in the Everyone’s Environment coalition, have seen us establish strong relationships with organisations such as Disability Rights UK and the Race Equality Foundation, which we will build on to develop new programmes.

Groundwork UK’s gender pay gap stands at 24% (2023: 28%). With the highest earner removed the pay gap is 14%. We continue to address this by providing flexible working arrangements and prioritising internal development opportunities. 44% of all posts recruited over the last three years were filled by an internal candidate progressing into a higher paid role and last year five out of seven team members benefiting from our reward and recognition process were female.

Analysis of all recruitment exercises undertaken in the last three years shows that:

STRATEGIC REPORT

4. Our plans for the future

Groundwork UK’s future plans are influenced and informed by a number of trends impacting on the policy and funding landscape within which we operate.

STRATEGIC REPORT

Our priorities and plans are also shaped by the ongoing development 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 for 2028.

Our strategy defines our high-level purpose - supporting practical action to create a fair and green future in which people, places and nature thrive - and commits the whole of Groundwork to delivering this in three ways:

STRATEGIC REPORT

Groundwork UK’s strategy and priorities

As the central body of the federation, Groundwork UK has defined its own purpose as supporting and working in partnership with Groundwork Trusts in a strong and connected federation to build the . resilience and environmental sustainability of communities facing hardship and injustice

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

We track core sets of data to help us manage our organisation and ensure we are meeting the needs of our internal and external stakeholders, including:

In order to meet the objectives in our plan we are focusing time and resources on a number of priority pieces of work, reporting progress on a quarterly basis.

STRATEGIC REPORT

5. Financial performance

Our long-term financial strategy is unchanged. We aim to maximise the resources available for local delivery (by minimising our costs and generating income), while maintaining the capacity we need to operate effectively and safely. Achieving a surplus position at the end of the year ensures we maintain sufficient reserves to sustain our charitable operations while being able to invest in activities that benefit the federation.

Incoming resources for 2023/24 totalled £21.3 million (2023: £22.8 million). Our organisational turnover is heavily influenced by the volume of grants we distribute on behalf of other funders. This 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 £84k (2023: £127k), compared to a budget of break even. The final reported outturn includes a £119k increase in the value of our investments.

In addition to this income, we received funds and distributed grants totalling £2.9 million, funds for which we are responsible as agent for the funders 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£3 million) in liquid reserves. These reserves help us to:

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 2023/24 is £2.9million (2023: £2.7m).

Our restricted funds - advance payments from funders pending completion of project work – stand at £1.2 million (2023: £2.5 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 2024/25.

STRATEGIC REPORT

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 grew by £119k, and delivered dividend income of £65k. All of these funds can be converted into cash without notice or penalty, should there be an immediate need for liquid funds.

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 on events outside the grantee’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.

5.4 Principal funding sources

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

A Private sector - £12.3 million (2023: £11.9 million) This includes funds provided by businesses and private foundations, most notably £6.3 million provided by Tesco to support schools and local community organisations through grants.

A Public sector - £3.5million (2023: £5.4 million)

This relates to funding secured from government departments and other public bodies to deliver programmes and services. In particular in 2023/24 this included funds to the value of £726k to distribute as grants on behalf of Government departments.

A Lottery and charitable foundations - £5.1 million (2023: £5.1 million) This includes funds distributed to community groups on behalf of Comic Relief of £391k, £1.8 million received from the National Lottery Heritage Fund to support delivery of the New to Nature programme and £1.7 million from the Cadent Foundation to support the delivery of Green Doctor programmes.

STRATEGIC REPORT

5.5 Expenditure on charitable objectives

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

Distributing funds on behalf of third parties to enable schools, community groups and local charities to deliver projects that improve local areas and provide support to those who are vulnerable.

Providing resources to support local delivery by Groundwork Trusts and other partner organisations through funded programmes to address fuel poverty, create green jobs and improve community facilities.

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.

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

Providing systems and support to enable Groundwork Trusts to communicate, share knowledge and collaborate to achieve greater impact.

Ensuring Groundwork UK operates safely and efficiently with appropriate systems, quality standards and premises.

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. The controls we have in place to prevent and mitigate fraud more generally are discussed with our trustees and tested by external auditors.

The most significant ongoing 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

Signed on behalf of the Board of Trustees

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Oona Muirhead, Chair
19 September 2024
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INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Members of The Federation of Groundwork Trusts

Opinion

We have audited the financial statements of The Federation of Groundwork Trusts for the year ended 31 March 2024, 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 . This on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities 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.

Helen Blundell LLB FCA FCIE DChA (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: 17 December 2024

STATEMENT OF FINANCIAL ACTIVITIES

Statement of Financial Activities

FOR THE YEAR ENDED 31 MARCH 2024

INCOME FROM
Donatons and legacies
Charitable actvites
Other trading actvites
Investments
Total
EXPENDITURE ON
Raising funds
Charitable actvites
Total
Surplus / (Defcit) on Trading
Net gains / (losses) 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
£
24,396
5,492,082
150,928
210,049
5,877,456
75,877
5,718,027
5,793,904
83,552
119,276
202,828
-121,615
81,213
2,299,207
2,380,420
Designated
£
–
–
–
–
–
–
50,190
50,190
-50,190
–
-50,190
121,615
71,425
411,305
482,730
2024
Unrestricted
funds		 £
-
15,429,538
–
–
15,429,538
213,169
16,567,747
16,780,916
-1,351,378
–
-1,351,378
–
-1,351,378
2,527,044
1,175,666
2024
Restricted
funds		 £
24,397
20,921,620
150,928
210,049
21,306,994
289,046
22,335,964
22,625,010
-1,318,016
119,276
-1,198,740
–
-1,198,740
5,237,556
4,038,816
2024
Total		 £
76,061
22,423,972
135,756
128,330
2023
Total
22,764,119
215,886
22,757,628
22,973,514
-209,395
-161,520
-370,915
–
-370,915
5,608,471
5,237,556

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 2024

AT 31 MARCH 2024
Company registraton number
01900511 Note 2024 2023
£ £ £ £
FIXED ASSETS
Tangible assets 9 10,969 20,116
Investments 11 2,070,800 1,951,524
Investments in subsidiaries 10 3 3
CURRENT ASSETS
Debtors		 12 9,288,605 2,081,772 12,765,351 1,971,643
Cash at bank 4,231,497 5,294,696
13,520,102 18,060,047
Creditors:amounts falling due within one year 13 -11,553,058 --14,784,134
Net Current Assets 1,967,044 3,275,913
Total assets less current liabilites 4,048,816 5,247,556
Creditors:amounts falling due afer one year 18 -10,000 –10,000
NET ASSETS 4,038,816 5,237,556
RESERVES
Unrestricted - General 16 2,380,420 2,299,207
Designated 16 482,730 411,305
Restricted 16 1,175,666 2,527,044
4,038,816 5,237,556

These financial statements were approved by the Board of Trustees and authorised for issue on 19th September 2024 and signed on its behalf by:

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

Oona Muirhead, Chair 19 September 2024

CASH FLOW STATEMENT

Cash Flow Statement

FOR THE YEAR ENDED 31 MARCH 2024

FOR THE YEAR ENDED 31 MARCH 2024
Note 2024 2023
£ £
CASH FLOW FROM OPERATING ACTIVITIES
Net cash provided by operatng actvites 21 (1,266,014) (3,660,823)
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments 210,049 128,330
Purchase of fxed assets (7,235) -
NET CASH PROVIDED BY INVESTMENT ACTIVITIES (1,063,199) (3,532,493)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing – -
Change in cash and cash equivalents in the reportng period (1,063,199) (3,532,493)
Cash and cash equivalents at the beginning of the reportng period 5,294,696 8,827,189
Cash and cash equivalents at the end of the reportng period 4,231,497 5,294,696

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 2023
£
5,294,696
–
–
5,294,696		 Cash fows
£
(1,063,199)
–
–
(1,063,199)
31 March 2024
£
4,231,497
–
–
4,231,497
4,231,497

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 2024

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:

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.

291558 Charity registration no. 01900511 Company registration no.

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
Car Parking
INVESTMENT INCOME
Dividends
Bank interest		 £
24,397
24,397
150,000
928
150,928
65,113
144,936
210,049
2024
Unrestricted
£
76,061
76,061
135,000
756
135,756
64,071
64,259
128,330
2023
Unrestricted		 £
–
–
–
–
–
–
–
2024
Designated
£
–
–
–
–
–
–
–
–
2023
Designated		 £
–
–
–
–
–
–
–
2024
Restricted
£
–
–
–
–
–
–
–
–
2023
Restricted		 £
24,397
2024
Total
24,397
150,000
928
150,928
65,113
144,936
210,049
£
76,061
2023
Total
76,061
135,000
756
135,756
64,071
64,259
128,330

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
£
587,851
28,071
441,362
3,939,983
494,815
5,492,082
2024
Unrestricted		 £
–
–
–
–
–
–
2024
Designated		 £
138,485
17,613
2,286,895
8,399,635
4,586,910
15,429,538
2024
Restricted		 £
726,336
45,684
2,728,257
12,339,618
5,081,725
2024
Total
20,921,620
Income was allocated to:
Grant distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 3,500,101
1,408,775
338,724
68,869
98,729
76,884
5,492,082
–
–
–
–
–
–
–		 9,833,237
3,957,835
951,617
193,480
277,372
215,997
15,429,538		 13,333,338
5,366,610
1,290,341
262,349
376,101
292,881
20,921,620

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		 £
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
3,384,582
1,102,955
260,845
329,958
333,478
18,812,390		 15,973,199
4,034,350
1,314,699
310,922
393,303
397,499
22,423,972

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
£
65,658
10,219
75,877
2024
Unrestricted
Staf costs
Other costs
£
26,160
8,610
34,770
2023
Unrestricted		 £
–
–
–
2024
Designated
£
–
–
–
2023
Designated		 £
184,459
28,710
213,169
2024
Restricted
£
136,266
44,850
181,116
2023
Restricted		 £
250,117
38,929
2024
Total
289,046
£
162,426
53,460
2023
Total
215,886

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
£
3,644,095
1,466,732
352,659
71,702
102,791
80,048
5,718,027
2024
Unrestricted
Expenditure on projects comprised:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
£
11,157,306
4,490,767
1,079,755
219,533
314,720
245,083
17,507,164
2024
Grants
payable		 £
31,986
12,874
3,095
629
902
704
50,190
2024
Designated
£
2,453,016
987,328
237,392
48,266
69,194
53,884
3,849,080
2024
Other direct
costs of
actvites		 £
10,558,617
4,249,797
1,021,816
207,753
297,833
231,931
16,567,747
2024
Restricted
£
624,376
251,308
60,424
12,285
17,612
13,715
979,720
2024
Support
costs		 £
14,234,698
5,729,403
1,377,570
280,084
401,526
312,683
2024
Total
22,335,964
£
14,234,698
5,729,403
1,377,571
280,084
401,526
312,682
2024
Total
22,335,964

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		 £
2,584,614
652,796
212,731
50,310
63,640
64,319
3,628,410
2023
Unrestricted
£
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)

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		 £
4,920,481
7,236,708
5,349,975
17,507,164
Grants to
insttutons
£
–
–
–
–
Grants to
individuals
£
6,669,517
8,358,181
4,067,796
19,095,494
Grants to
insttutons
£
–
–
–
–
Grants to
individuals		 £
275,356
404,974
299,390
979,720
Grant
support
costs
£
333,908
414,305
203,653
951,866
Grant
support
costs		 £
5,195,837
7,641,682
5,649,365
2024
Total
18,486,884
£
7,003,425
8,772,486
4,271,449
2023
Total
20,047,360
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		 £
709,810
3,071
33,062
8,650
17,783
90,800
116,544
979,720
2024		 £
687,912
2,524
33,380
8,761
17,594
94,283
107,412
2023
951,866

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
5
12
54
2024
£
1,758,417
177,050
289,556
2,225,023
2024
£
2
1
3
2024		 £
37
4
10
2023
51
£
1,600,363
164,562
248,940
2023
2,013,865
£
2
1
2023
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 2024 of £369,717 (2023 - £350,061)

Total contributions under defined contribution schemes on behalf of these higher paid employees in 2024 were £24,780 (2024 - £23,485)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

7. Transactions with trustees

During the year ending 31st March 2024 2 trustees were reimbursed for travel costs amounting to £825 (2023 - 5 trustees £388 travel costs).

No Trustees received any remuneration during the year.

8. Net incoming resources

8. Net incoming resources
2024 2023
£ £
Net incoming resources for the year is stated afer charging:
Auditor’s remuneraton:
Audit – company 17,385 16,400
Depreciaton 16,381 17,513

Premiums in 2024 £699 (2023: £659) 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 2023
Additons
At 31 March 2024
DEPRECIATION
At 1 April 2023
Charged for the year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023		 £
71,215
7,235
78,450
51,100
16,381
67,481
10,969
20,115
Ofce
equipment		 £
71,215
7,235
Total
78,450
51,099
16,381
67,480
10,969
20,115

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

10. Investments held as fixed assets

Shares in subsidiary undertakings
£
COST
At 1 April 2023 3
Disposals –
At 31 March 2024 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
2024		 100%
100%
100%
Proporton
£
4,000
25,002
1
2023

11. Fixed asset investments

COST
At 1 April 2023
Investments
Net loss on revaluaton
At 31 March 2024		 £
1,951,524
-
119,276
2,070,800

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
2024 2023
£ £
Grants receivable 2,142,454 5,930,069
Other debtors 335 –
Prepayments and accrued income 7,145,816 6,835,282
9,288,605 12,765,351
13. Creditors
2024 2023
£ £
Grants due and payable 8,690,487 11,312,641
Agency creditor 768,065 1,663,104
Social security and other taxes 43,803 62,914
Other creditors 117,802 260,538
Accruals 1,237,793 662,839
Deferred income (note 14) 695,108 822,098
11,553,058 14,784,134
Balance at Amount paid Amount Balance at 31
1 April 2023 in year accrued in the March 2024
year
£ £ £ £
Grants due and payable 11,312,641 8,487,412 5,865,258 8,690,487
Agency creditor 1,663,104 2,947,789 2,052,750 768,065
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

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
£
822,098
822,098
£
822,098
822,098
Amount
released to
incoming
resources
Balance at 1 April
2023
£
425,587
425,587
Balance at
1 April 2022
£
425,587
425,587
Amount released
to incoming
resources
Community projects		 £
695,108
695,108
Amount
deferred
in the year
£
822,098
822,098
Amount
deferred
in the year		 £
695,108
Balance at
31 March
2024
695,108
£
822,098
Balance at
31 March
2023
822,098

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
£
10,969
2,070,803
791,378
-10,000
2,863,150
Unrestricted
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
UNRESTRICTED FUNDS
At 1st April 2023
Incoming resources
Resources expended
Transfers
Loss on investment
At 31 March 2024
£
411,305
-
-50,190
121,615
-
482,730
Designated
fund		 £
-
-
1,175,666
-
1,175,666
Restricted
funds
£
-
-
2,527,044
-
2,527,044
Restricted
funds
£
2,299,207
5,877,456
-5,793,904
-121,615
119,276
2,380,420
General
fund		 £
10,969
2,070,803
1,967,044
-10,000
Total
2024
4,038,816
£
20,116
1,951,527
3,275,913
-10,000
Total
2023
5,237,556
£
2,710,512
5,877,456
-5,844,094
-
119,276
Total
2,863,150

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Statement of Funds (continued)

Statement of Funds (contnued)
UNRESTRICTED FUNDS
At 1 April 2022
Incoming resources
Resources expended
Transfers
Surplus on investments
At 31 March 2023
 £
293,479
-
-123,974
-
241,800
411,305
Designated
fund		 £
2,413,978
3,951,729
-3,663,180
-161,520
-241,800
2,299,207
General
fund		 £
2,707,457
3,951,729
-3,787,154
-161,520
-
Total
2,710,512

Designated funds include £200k to support a new fundraising strategy, £126k to support collaboration across the Groundwork federation and £159k to promote programmes alligned to our strategic priorities.

Restricted funds comprise performance
related grants as follows:
RESTRICTED FUNDS
Bupa
Tesco Community Grants
HS2 Grants
Comic Relief
Cadent Foundaton
DCMS - Energy Efciency Scheme
Home Ofce
Firethorn Trust
Onestop Carriers for Causes
Redress - Energy Efciency Scheme
The Natonal Lotery Community Fund
The Natonal Lotery Heritage Fund
Other Programmes
£
-
-
-
841,923
693,507
-
174,697
135,547
65,544
-
17,415
-
598,411
2,527,044
Balance at
1 April 2023		 £
-556,577
-6,281,569
-2,272,090
-1,193,443
-1,882,613
-688,846
-221,665
-135,547
-27,800
-445,947
-1,271
-1,736,767
-1,336,781
-16,780,916
Resources
expended
£
58,890
-
-
39,855
469,198
-
91,517
-
72,744
-24,019
30,912
18,533
418,036
1,175,666
Balance at 31
March 2024
£
615,467
6,281,569
2,272,090
391,375
1,658,304
688,846
138,485
-
35,000
421,928
14,768
1,755,300
1,156,406
15,429,538
Incoming
resources		 £
-556,577
-6,281,569
-2,272,090
-1,193,443
-1,882,613
-688,846
-221,665
-135,547
-27,800
-445,947
-1,271
-1,736,767
-1,336,781
-16,780,916
Resources
expended
£
58,890
-
-
39,855
469,198
-
91,517
-
72,744
-24,019
30,912
18,533
418,036
1,175,666
Balance at 31
March 2024
£
615,467
6,281,569
2,272,090
391,375
1,658,304
688,846
138,485
-
35,000
421,928
14,768
1,755,300
1,156,406
15,429,538
Incoming
resources
1,175,666

Large programmes include:

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’.
DCMS - Energy Efciency Scheme Grants to Community organisatons to improve energy efciency
Redress - Energy Efciency Scheme Support to vulnerable customers to reduce energy bills
The Natonal Lotery Community Fund Coaching for young people who are furthest away from the labour market
The Natonal Lotery Heritage Fund Work placements in the green job sector aimed at partcipants from diverse
backgrounds

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		 £
-
-
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
–
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
18,310,814
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
–
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
18,310,814
Incoming
resources
2,527,044

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 31st March 2024, 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
46,032
–
99,736
2024		 £
53,704
53,704
46,032
2023
153,440

£53,704 was expensed during the year (2023: £57,204)

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 2024 Groundwork UK paid contributions into a defined contribution scheme. The total charge to the defined contribution scheme amounted to £289,556 (2023: £248,940). Contributions outstanding at the year-end amounted to £24,420 (2023 £22,351).

20. Related party transactions

At the year-end a balance of £4,000 (2023: £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
Net cash provided by (used in) operatng actvites		 £
-1,198,740
-119,276
16,381
-210,049
3,476,746
-3,231,076
-1,266,014
2024		 £
-370,915
161,520
17,513
-128,330
608,610
-3,949,221
2023
-3,660,823

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

Groundwork UK’s fnancial instruments may be analysed as follows:
FINANCIAL ASSETS
Financial assets measured at fair value through proft and loss:
Investments		 £
2,070,800
2,070,800
2024		 £
1,951,524
2023
1,951,524

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 143,431
Balfour Beaty 21,451
Bupa Foundaton 627,927
Cadent Foundaton 1,561,807
Cadent Gas Limited 647,083
CAF 90,338
Capgemini 3,200
Centrica 308,437
City & Guilds 181,107
Comic Relief Community Fund (England) 486,213
Central England Coop 160,501
Deloite 12,900
Department for Digital, Cultural, Media & Sport 808,281
Encirc 131,000
Energy Saving Trust 498,823
Grosvenor 143,395
GVA 14,977
Hatch Enterprise 187,076
Home Ofce 171,396
HS2 Limited 3,143,971
Jones Lang Lasalle Limited 33,514
KPMG LLP 19,440
Lacka Foods 133,128
Long Harbour 12,000
Department for Levelling up, Housing & Communites 2,183,264
UK Year CIC 45,750
NPC - Everyone's Environment 17,613
NHS Property Services 142,736
Northern Gas Network 320,871
One Stop Stores 175,515
Price Waterhouse Coopers 42,782
Segro 205,581
Educaton & Skills Funding Agency 16,285
Sopra Steria 25,000
Swire Charitable Trust 50,000
Teacheractve Limited 10,000
Tesco PLC 10,631,693
Thrive 30,812
The Natonal Lotery Community Fund 14,768
The Natonal Lotery Heritage Fund 1,311,844
Veolia 46,508
Way of Life 5,437
WWF- UK 16,593

These figures are based on invoiced amounts during the financial year.

ADVISERS

Advisers

Auditors

Investment Managers

Crowe U.K. LLP

Black Country House Rounds Green Road Oldbury B69 2DG

Cazenove Capital 1 London Wall Place London EC2Y 5AU

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 Last appointed Stuart Bonham December 2019 AGM 2023 Katrina Cunliffe March 2023 AGM 2023 Jeff Greenidge March 2019 AGM 2022 Patrick Hughes September 2021 AGM 2021 Margot Madin September 2022 AGM 2022 Antony Nelson March 2019 AGM 2022 James Parkin June 2024 Nigel Reader July 2021 AGM 2021 Paul Roots March 2019 AGM 2022 Anne-Marie Simpson AGM 2023 AGM 2023 Alan Smith June 2014 AGM 2020 Andrew Thurston January 2021 AGM 2021

Retired/resigned

Resigned June 2024

Resigned September 2023

Co-opted trustees First appointed Faiza Amin September 2019 AGM 2022 Karen Balmer September 2022 AGM 2022 Graham Hartley (Chair) August 2015 AGM 2021 Claire Marshall December 2021 AGM 2022 Oona Muirhead June 2024 Graham Parry September 2022 AGM 2022 Jack White September 2019 AGM 2022

Last appointed

Retired/resigned

Retired September 2024

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 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 2024

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