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2024-03-31-accounts

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

Company number: 01944186 Charity number: 293141

GROUNDWORK EAST

(A Company Limited by Guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company 1
Trustees’ Report 2 – 12
Independent Auditor’s Report 13 – 16
Statement of Financial Activities 17
Balance Sheet 18
Statement of Cash Flows 19
Notes to the Financial Statements 20 - 33

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY FOR THE YEAR ENDED 31 MARCH 2024

Trustees

Patrick Hughes, Chair Phillip Bibby Richard Powell Julie Smith Mark Hubbocks Lisa Goldsmith Temi Awofala Peter Duffy Ruth Thomson Elisabeth George John Chesters Company Registered Number 01944186 Charity Registered Number 293141 Registered Office Mill Green, Hatfield, Hertfordshire, AL9 5PE Company Secretary Mark Hubbocks Chief Executive Carolyn Reid Independent Auditors Mercer & Hole, 72 London Road, St Albans, Hertfordshire, AL1 1NS Bankers National Westminster Bank Plc, 104 Fore Street, Hertford, Hertfordshire, SG14 1YY

Aldermore Bank Plc, 1[st] Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ

The Charity Bank Ltd, Fosse House, 182 High Street, Tonbridge, TN9 1BE

CCLA Fund Managers Ltd, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Nationwide Building Society, Nationwide House, Pipers Way, Swindon, SN38 1NW

Solicitors

Mishcon de Reya, 4 Station Square, Cambridge, CB1 2GE

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Groundwork East (the company) for the year ended 31 MARCH 2024. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2023).

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

OBJECTIVES AND ACTIVITIES

Mission

Groundwork East is a registered charity (no. 293141) and a company limited by guarantee (no. 1944186). It is an independent organisation governed by a Board of Trustees and is a member of the national Federation of Groundwork Trusts.

Our mission is to create a fair and green future in which people, places and nature thrive. In order that we can achieve a ‘just transition’ to net-zero and help nature recover in a way that tackles inequality and provides a springboard for better work and healthier, happier lives we focus on delivering impact for:

We operate across the 6 counties of the East of England (Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk), partnering with residents, the public and private sectors and other nonprofits to deliver wide ranging projects and services.

Established in 1985 our original approach still holds true today: to respond to local needs by putting the right tools in people’s hands, engaging with all stakeholders and addressing multiple issues with the same investment.

Organisational history

The first Groundwork initiative was established in St Helens on the edge of Merseyside in 1982 as a radical experiment to bring together communities, businesses and government in a joint effort to improve the quality of life and promote sustainable development in places that had become run-down and neglected.

Since then Groundwork has grown into a national network covering England, Wales, Northern Ireland, and working through partners in Scotland. The Federation of Groundwork Trusts currently comprises 17 independent trusts which collectively deliver projects and programmes to the value of around £65 million per year.

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GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

Groundwork East is one of the longest established Groundwork trusts, established in 1985 as The Hertfordshire Groundwork Trust and gradually expanding to cover the whole East of England but remaining committed to local delivery through teams operating in Hertfordshire, Bedfordshire, Cambridgeshire, Essex, Suffolk and Norfolk. In 2015 the Trust changed its legal name to Groundwork East to reflect its wider geography, however it also continues to operate under local brands.

The original vision for Groundwork – start local, put the right tools in people’s hands, engage with everyone who has a stake in a place and address as many issues as possible with the same investment – holds true today. Groundwork remains committed to changing places changing lives : practical action to build stronger communities with better local environments, to tackle climate change and combat fuel poverty, to improve skills and get people back into work, and to inspire the next generation of community champions and green leaders.

We achieve our vision by working together with passionate individuals, proactive public services and innovative parts of the private sector.

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.

We are committed to the principles of sustainable development and the Groundwork Federation aims to halve its collective carbon footprint by 2035 and achieve net zero carbon emissions before 2050.

The way we go about our work is informed by our commitment to ‘the Groundwork approach’:

Activities for achieving objectives

Groundwork is a federation of independent charities, called Groundwork Trusts, working under a shared federation strategy. Groundwork East benefits from the national network through the Federation’s ability to build partnerships, fundraise, raise the profile of the Groundwork movement and advocate for change/our beneficiaries with central Government.

Groundwork has worked as a federation this year to establish and implement a new impact and activity measurement framework. As a result, some of the outcomes are collected and reported differently and in certain instances previous years data is not available for comparison.

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GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

The national Groundwork federation 2028 strategy sets out to help;

Groundwork East aims to achieve the following:

Groundwork East’s achievements in 2023/24 include:

Main activities undertaken to further the Charity's purposes for public benefit

Groundwork East operates within the Objects described within the Memorandum and Articles of Association, which outline in detail the type of public benefit sought. Public benefit has been achieved in all thematic areas described within the activity review for the current year. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.

Volunteers

The Trust has worked alongside 135 volunteers. This is the number of people that give their time freely to support Groundwork East’s activities as a volunteer. The Directors would like to record their thanks to the many volunteers who supported / engaged with Trust activities during the year.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE

Review of Activities

Groundwork East is a successful, highly regarded and mature Trust which was established in 1985. Every Groundwork Trust is rooted in the area it serves. Each Trust’s programmes and services are tailored to the needs of partners and communities in their locality. When all that local activity is added together, it becomes a major national force for change. Groundwork Hertfordshire, Groundwork Luton & Bedfordshire, Groundwork Cambridgeshire & Peterborough, Groundwork Essex, Groundwork Suffolk and Groundwork Norfolk are Groundwork East’s locally branded operations in those areas. The year 2023/24 once again saw the Trust's inspirational team deliver a programme of impactful, high profile projects across its operational area.

Project delivery in detail

Impact people - Improved prospects, increased wellbeing and more equal opportunity, to choose greener ways of living

Our training and skills programmes have flourished through our Green Recovery delivery within Huntingdonshire. This project enables the upskilling of adults in green sector skills while also supporting nature recovery in parks and open spaces. These programmes support people in to work while also supporting people with their health and well-being. Support from local authorities, colleges, housing associations and the private sector is ensuring expansion of delivery and ever-improving outcomes for those involved.

Delivery of adult community learning continues to be a large proportion of community and education engagement work the Trust undertakes. Courses range from learning to grow and cook food, be active outdoors and protect the environment, being outdoors and enjoying wild play, to becoming Carbon Literate. These contracts enable the Trust to reach lots of communities across a large geographical area and has helped engage with a large number of individuals, families and businesses.

This year we co-developed an exciting new project with Whipsnade Zoo called Uplifting Potential. The project provides young people aged 14-18 (up to 25 with additional needs) with an opportunity to engage in positive activities, to increase aspirations, life and work readiness, nature connectedness and emotional understanding. UP aids the development of young people’s confidence and self-esteem as well as helping prepare them for independent living, returning or engaging in formal education, future educational and training opportunities and volunteering.

We continue to deliver our 5-year youth services contract with Central Bedfordshire Council; providing a range of youth activities to support the needs of young people in each locality within the authority, which also includes the Independent Visitors service for those in care.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

Impact place - Stronger communities, more responsible business, better social and green infrastructure, improved biodiversity

Our large rivers-focussed partnership project with Watford Borough Council called Rediscovering the River Colne is continuing. Groundwork East are project managing the full programme split across the 4 workstreams of: 1. Environmental Improvement (Habitat and in river improvements); 2. Landscape and access improvements; 3. Environmental monitoring; and 4. Community engagement; the aim is to improve the river corridor for the benefit of wildlife and the general public.

Delivery of our innovative home-based growing programme ‘homegrown’ has enabled residents across the East of England to take part in a healthy living focussed food programme within their own homes. This has grown year on year reaching hundreds of households across the region.

The trust has delivered successful school-based food growing clubs and festival in the form of the project ‘VegFest’ within Hertfordshire. The reach of this project has now grown into Cambridgeshire with delivery in the current growing season.

Impact planet - More people taking environmental action, reduced waste and carbon, increased biodiversity

The Trust's long-standing partnership with North Herts Council to deliver a range of exciting outside space improvement projects across the local authority continued this year. Our Landscape team have designed two skate parks for King George V park, Hitchin and Newmarket Road recreation ground, Royston, Redesigned the Bancroft play area, Hitchin and two outdoor gyms which have now been installed in King George V park, Hitchin and Baldock Road recreation ground, Letchworth Garden City.

Our Sustainable Business Services carbon management offering has continued to grow and develop during this period. In particular, we have seen growth in our independent and impartial net zero support and expanded our team as result. We have also continued to deliver certified Carbon Literacy training to SMEs, colleges and local authorities across the region and supported emissions reductions from householders by delivering energy efficiency advice.

To further embed messages about water efficiency, Groundwork is working with Northumbrian Water and Waterwise to develop an accredited Water Literacy programme, modelled on experience of delivering carbon literacy training. The initiative, funded by Ofwat’s Water Breakthrough Challenge, aims to help 2,000 people become ‘water literate’ through learning about water scarcity, the value of water as a resource and the link with climate change. Learners will be encouraged to make changes in their own lives and supported to pass on messages at home, at work and in their wider community.

Strategic objectives

The Groundwork UK Strategy up to 2024 has been delivered and a new overarching strategy for the Federation aimed at supporting local communities and businesses to build capacity and resilience in order 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. Groundwork East has developed, and is in the process of embedding, a Strategic Framework for the Trust, aligning outcomes and impact to the work of the Federation, setting our local priorities for the future and establishing longer term impact measurements.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

The Trust set out the following strategic objectives in its Business Plans:

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

FINANCIAL REVIEW

Review of financial activities

The result for the year is shown in the statement of financial activities on page 17 as a net income of £(15,369) (2022/23 £404,198). We consider this to be a satisfactory outcome.

Reserves Policy

The Trustees have agreed a reserves policy whereby the charity should aim to hold sufficient reserves (unrestricted funds not represented by fixed assets or designated funds held to cover future planned expenditure) to meet estimated closure costs. This is currently calculated at £426,154.

Actual total reserves were £966,757, of which £361,439 were restricted reserves not available for the general purposes of the Trust. Of the remaining £605,318 unrestricted reserves, £13,197 has been designated by the Trustees for specific purposes. The unrestricted general funds were therefore £592,121, of which £83,674 is represented by fixed assets.

The Trust’s available reserves were therefore £508,447 which is in line with this policy. The Trust has remained in this stable position in recent years and any small excess or shortage in available reserves has only been short term.

The Board has reviewed the designated funds and is satisfied that they are consistent with the needs of the Trust. This policy is reviewed annually by the Board through the Finance sub-committee.

Investment Policy and Performance

The Trustee’s policy is to retain any short-term surplus funds, including designated and restricted funds, in interest-bearing bank accounts. The Trust is mindful of the Financial Services Compensation Scheme limit when investing outside of our core banking relationship. Investment performance was satisfactory.

Fundraising

Groundwork East has not traditionally engaged in public fundraising. During 2023/24 the Trust did not engage any external, professional fundraisers. Projects are funded through formal bids, tenders and contracts. Donations totalled £24,493 in 2023/24 which included a gift in kind of £24,000 by way of waived rent.

Funding sources

The Directors would like to thank the many organisations who have supported the Trust’s work. Groundwork East received funding for projects from Groundwork UK, other charities, local authorities, central government, private sector companies, housing associations, town and parish councils and schools throughout the East of England.

We are thankful to all of our funders and partners that made 2023/24 so successful. A selection of these are as follows: London Luton Airport / Luton Rising (via BLCF), Cambridgeshire and Peterborough Healthier Futures Fund (via CCF), Huntingdonshire District Council, Central Bedfordshire Council, North Norfolk District Council, Evelyn Trust, Garfield Weston Foundation, University of Hertfordshire; and various other Community Foundations, local authorities, charitable trusts and corporate organisations.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

PLANS FOR FUTURE PERIODS

As an organisation delivering in local communities but with regional / national scale and strategic stake-holder links, Groundwork is well placed for further delivery of its charitable mission. In order to respond to future opportunities Groundwork East will be required to change and improve in three ways:

Summary

2023/24 was a successful year for Groundwork East. Efforts to diversify our work are continuing to show success and we are looking forward to benefitting from Groundwork UK’s work to improve fundraising and impact measurement across the Federation.

From February 2024, the new Chief Executive of Groundwork East, Carolyn Reid, has led the development of a Strategic Framework for the Trust, aligning it to the work of the Federation, setting our local priorities for the future and establishing longer term impact measurements.

There is robust governance in place, and a sound framework of rules, policies and practices that guide decision-making, ensure accountability and promote transparency.

The East of England has diverse landscapes and faces environmental challenges such as coastal erosion, water scarcity and drought and, conversely, flooding. It has vibrant cities with renowned universities and technology sectors along with strong agricultural industry. However, economic disparities and social challenges persist, exasperated by the cost of living crisis. Overall, the area offers natural beauty, economic opportunities and social complexities. As such, our plans for the future are based on continuing to strengthen our relationships in the public sector, while also looking more actively for opportunities within the private sector. By exploring new avenues and collaborations, we are looking to open up opportunities to build more sustainable communities and support a just transition to Net Zero.

We have been a valued community asset since 1985 and are redoubling our efforts in 2023/24 to meet increasing needs from all sections of society.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The company is registered as a charitable company limited by guarantee. The company is constituted under a Memorandum of Association and is a registered charity (number 293141).

Reference and administrative details for the Charity are provided on page 1 of the financial statements.

Method of Appointment and Election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Trustees are recruited by advertisement and contacts with partner organisations.

The Directors, who are also Trustees of the charity, who served during the year, were:

Patrick Hughes Philip Bibby Rebecca Britton (Resigned 13 July 2023) John Barrington Chevallier Guild (Resigned 13 July 2023) Richard Powell Julie Smith Mark Hubbocks Lisa Goldsmith Temi Awofala Peter Duffy Ruth Thomson Elisabeth George John Chesters Patrick McGeough (Resigned 12 November 2023) Carolyn Reid (Appointed 5 January 2024) (Director only)

Trustees serve for a period of three years from the date of their appointment. On expiration of their term of office they will be eligible for reappointment for a further three-year term (up to a maximum of three consecutive terms) by majority decision of the remaining Trustees. If a Trustee has served three consecutive terms they must retire from office at the end of their third term of office and will only be eligible for reappointment if at least one year has elapsed since their retirement. The Trustees have the power by a 75 per cent majority of those present and entitled to vote at the meeting to extend a Trustee’s period of office (and shall in their absolute discretion decide the period of extension) and to waive the requirement for one year to elapse before a Trustee may be eligible for reappointment.

New directors are provided with structured induction training at the Trust offices. Other training needs are identified on an ongoing basis.

Professional Indemnity insurance is purchased at a cost to the charity to protect the charity and its Trustees.

All Trustees give of their time freely and no director received remuneration in the year. Details of Trustees' expenses are disclosed in note 11 to the accounts.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

Organisational Structure and Decision Making

The Directors meet up to four times per year to review strategy and performance and to set operating plans and budgets. Two sub-committees also meet regularly to deal with functions delegated by the Board of Directors: the Finance, Audit and Risk sub-committee; and the Business Development sub-committee.

The day to day running of the Trust is managed by the Chief Executive, supported by the Finance Director and Operations & Development Director, who refer to the Board for guidance as and when required.

The Trust operates a salary scale. The pay of all staff is reviewed annually. The Finance, Audit and Risk sub-committee agrees the terms of the review on behalf of the Board. The Chief Executive’s pay is reviewed by the Chair in liaison with a pay review committee. The pay of the other members of the Leadership Team (Finance Director, Operations & Development Directors and HR Manager) is agreed by the Finance, Audit and Risk sub-committee following recommendations from the Chief Executive.

Employees are consulted in a variety of ways through the following structures: a Staff Consultation group, monthly one to one meetings, regular team meetings, an annual staff survey and an annual staff conference. Through these structures, consultation around Trust development and policy changes is undertaken allowing all staff an active role in formulating the Trust's future. The compilation of the Trust business plans are contributed to by a wide range of staff.

Related Party Relationships

Details of related party transactions are given in note 22 in the financial statements.

Risk Management

The Finance, Audit and Risk sub-committee reviews a formal risk register at each meeting as a standard agenda item. Risks are scored from 1 to 5 in terms of “likelihood” and from 1 to 5 in terms of “impact”. The two scores are then multiplied to achieve an overall score. The Finance, Audit and Risk sub-committee reviews progress against agreed actions, monitors changes in internal / external circumstances and is vigilant in terms of new risks. The Chair of the sub-committee reports any significant risk issues at Board meetings. The other sub-committee and any working groups provide input on the risks relevant to them.

Risk assessment of projects takes place under the management of leadership team, led by the Operations & Development Managers. A project risk register captures project risks and mitigating actions. A formal checklist is used on site for all projects and risk assessments accompany all tenders. Projects considered to be higher risk are referred to the Leadership Team and reported to the Finance, Audit and Risk sub-committee under a standing agenda item.

The Chief Executive is expected to report to the Board on any significant new or increased risk that falls outside the parameters of these processes. The Board is satisfied that systems are in place to manage the Trust’s exposure to risk.

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

Risk Management (continued)

The key risks to the Trust and the actions being taken to mitigate those risks are:

Trustees' responsibilities statement

The Trustees (who are also directors of Groundwork East for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

17/9/2024

This report was approved by the Trustees on and signed on their behalf by:

Patrick Hughes, Chair

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GROUNDWORK EAST FOR THE YEAR ENDED 31 MARCH 2024

Opinion

We have audited the financial statements of Groundwork East (the 'charitable company') for the year ended 31 MARCH 2024 which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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GROUNDWORK EAST (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GROUNDWORK EAST (continued) FOR THE YEAR ENDED 31 MARCH 2024

Other information

The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our Auditor’s Report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

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GROUNDWORK EAST (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GROUNDWORK EAST (continued) FOR THE YEAR ENDED 31 MARCH 2024

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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

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GROUNDWORK EAST (A Company Limited by Guarantee)

as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GROUNDWORK EAST (continued) FOR THE YEAR ENDED 31 MARCH 2024

Auditor’s responsibilities for the audit of the financial statements (continued)

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jolene Upshall (Senior Statutory Auditor) 11/10/2024

for and on behalf of

Mercer & Hole 72 London Road St Albans Hertfordshire AL1 1NS

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GROUNDWORK EAST

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2024

Note
INCOME FROM:
Donations and legacies
2
Investments
3
Charitable activities
4
Other income
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
6,7
TOTAL EXPENDITURE
NET INCOME / (EXPENDITURE)
BEFORE TRANSFERS
Transfers between Funds
16
NET INCOME / (EXPENDITURE)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forwards
TOTAL FUNDS CARRIED FORWARD		 Restricted
funds
Unrestricted
funds
Total
Funds
Total
funds
2024
2024
2024
2023
£
£
£
£
-
29,493
29,493
475,220
-
8,185
8,185
4,321
611,105
1,908,715
2,519,820
2,451.654
-
2,000
2,000
18,696
611,105
1,948,393
2,559,498
2,949,891
630,878
1,943,989
2,574,867
2,545,693
630,878
1,943,989
2,574,867
2,545,693
(19,773)
4,404
(15,369)
404,198
(5,350)
5,350
-
-
(25,123)
9,754
(15,369)
404,198
(25,123)
9,754
(15,369)
404,198
.
386,563
595,562
982,125
577,927
361,440
605,316
966,756
982,125

The notes on pages 20 to 33 form part of these financial statements.

17

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

BALANCE SHEET AS AT 31 MARCH 2024

Note
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Provisions for Liabilities
15
NET ASSETS
CHARITY FUNDS
Restricted funds
16
Unrestricted funds
16
TOTAL FUNDS		 2024
£
£
434,697
651,141
608,722
1,259,864
(702,804)
557,060
991,756
(25,000)
966,756
361,440
605,316
966,756		 2024
£
£
434,697
651,141
608,722
1,259,864
(702,804)
557,060
991,756
(25,000)
966,756
361,440
605,316
966,756		 2023
£
£
419,554
607,179
599,604
1,206,783
(619,212)
587,571
1,007,125
(25,000)
982,125
386,563
595,562
982,125		 2023
£
£
419,554
607,179
599,604
1,206,783
(619,212)
587,571
1,007,125
(25,000)
982,125
386,563
595,562
982,125
1,259,864
(702,804)		 1,206,783
(619,212)
991,756
(25,000)		 1,007,125
(25,000)
966,756 982,125
361,440
605,316		 386,563
595,562
966,756 982,125

The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on and signed on 17/9/2024 their behalf by:

Patrick Hughes, Chair

The notes on pages 20 to 33 form part of these financial statements.

18

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by / (used in) operating activities
18
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends and interest
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
NET CASH USED IN INVESTING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN YEAR
Cash and cash equivalents brought forward
CASH AND CASH EQUIVALENTS CARRIED FORWARD
19		 2024
2023
£
£
65,023
335,953
8,185
4,321
2,000
-
(66,090)
(394,942)
(55,905)
(390,621)
9,118
(54,668)
599,604
654,272
608,722
599,604

The notes on pages 20 to 33 form part of these financial statements.

19

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2023) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Groundwork East meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 COMPANY STATUS

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

1.3 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.4 GOING CONCERN

The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis.

20

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

1 ACCOUNTING POLICIES (continued)

1.5 INCOME

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised and refer to the Trustees' Report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Project funding which is received in the form of grants is recognised as restricted income in the period in which it is received, unless it is subject to conditions in which case it is deferred until the conditions are met.

Project funding which is received in the form of contracts is recognised as unrestricted income. Where contract income has been received but the related services have not been performed by the year end, the balance is carried forward as deferred income.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

1.6 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

21

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

1.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

All assets costing more than £1,000 are capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold building over the term of the lease Motor vehicles 25.0% straight line Fixtures and fittings 20.0% straight line Computer equipment 33.3% straight line

1.8 OPERATING LEASES

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

1.9 FINANCIAL INSTRUMENTS

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.10 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.11 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

22

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

1 ACCOUNTING POLICIES (continued)

1.12 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.13 PENSIONS

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The key estimates and assumptions made in these accounts are: depreciation is calculated on a straight-line basis, based on management’s best estimate of the useful economic lives of assets on policies that can be seen above; and income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably on policies that can be seen above.

23

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

2 INCOME FROM DONATIONS AND LEGACIES

Donations
Grants
Total 2024
Total 2023		 Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2024
2024
2024
2023
£
£
£
£
-
24,493
24,493
26,220
-
-
-
449,000
-
24,493
24,493
475,220
449,000
26,220
475,220

Donations include a gift in kind of £24,000 (2023 - £24,000) by way of rent waived during the year.

3 INVESTMENT INCOME

INVESTMENT INCOME
Restricted Unrestricted Total Total
funds funds Funds funds
2024 2024 2024 2023
£ £ £ £
Bank interest 2024 - 8,185 8,185 4,321
Total 2023 - 4,321 4,321
INCOME FROM CHARITABLE ACTIVITIES
Restricted Unrestricted Total Total
funds funds funds funds
2024 2024 2024 2023
£ £ £ £
Central Government 17,476 181,008 198,484 153,841
Local Authorities 226,322 1,129,550 1,355,872 1,179,072
Education and Skills Funding Agency - 104,221 104,221 67,110
Charitable Trusts and Foundations 95,871 138,296 234,167 325,334
Private Sector 44,967 180,322 225,289 263,655
Housing Associations 523 14,532 15,055 42,815
Groundwork UK 220,226 160,786 381,012 412,717
Landfill Communities Fund - - - -
National Lottery 5,720 - 5,720 7,110
Total 2024 611,105 1,908,715 2,519,820 2,451,654
Total 2023 746,770 1,704,884 2,451,654

24

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

5 OTHER INCOME

OTHER INCOME
Restricted Unrestricted Total Total
funds funds funds funds
2024 2024 2024 2023
£ £ £ £
Profit on disposal of tangible fixed assets - 2,000 2,000 -
Sundry income - 5,049 5,049 18,696
Total 2024 - 7,049 7,049 18,696
Total 2023 - 18,696 18,696
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Restricted Unrestricted Total Total
funds funds funds funds
2024 2024 2024 2023
£ £ £ £
Core projects 630,880 1,943,989 2,574,869 2,545,693
Total 2024 630,880 1,943,989 2,574,869 2,545,693
Total 2023 828,250 1,717,443 2,545,693
ANALYSIS OF EXPENDITURE BY ACTIVITIES
Activities Support and Total Total
undertaken governance
directly costs
2024 2024 2024 2023
£ £ £ £
Core projects 1,542,382 1,032,487 2,574,869 2,545,693
Total 2024 1,542,382 1,032,487 2,574,869 2,545,693
Total 2023 1,530,606 1,015,087 2,545,693

6 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

25

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

8 DIRECT COSTS

8
DIRECT COSTS
Core
Projects
Total
Total
2024
2024
2023
£
£
£
Project costs
357,816
357,816
451,632
Wages and salaries
1,045,631
1,045,631
943,663
National insurance
80,340
80,340
76,998
Pension cost
58,595
58,595
58,313
Total 2024
1,542,382
1,542,382
1,530,606
Total 2023
1,530,606
1,530,606
9
SUPPORT COSTS
Governance
Other
Total
Total
2024
2024
2024
2023
£
£
£
£
Rent and rates
-
90,682
90,682
85,784
Communications
-
10,070
10,070
12,609
IT expenses
-
77,644
77,644
84,156
Training and recruitment
-
26,334
26,334
35,533
Marketing, publicity and advertising
-
13,894
13,894
29,454
Sundries
-
63,873
63,873
72,398
Insurances
-
30,380
30,380
26,942
Motor vehicle costs and mileage
-
25,610
25,610
21,343
Professional fees
8,978
55,392
64,370
27,267
Board expenses
1,077
-
1,077
1,655
Wages and salaries
9,039
517,036
526,075
507,669
National insurance
694
39,726
40,420
41,422
Pension cost
506
28,974
29,480
31,372
Depreciation
-
32,578
32,578
37,483
Loss on disposal of fixed asset
investment
-
-
-
-
Total 2024
20,245
1,012,193
1,032,487
1,015,087
Total 2023
25,936
989,151
1,015,087
10
NET INCOME
2024
2023
£
£
This is stated after charging:
Depreciation of tangible fixed assets owned by the charity
50,946
37,483
Auditor’s remuneration – audit
8,978
7,750
Auditor’s remuneration – other services
-
-		 Governance
2024
£
-
-
-
-
-
-
-
-
8,978
1,077
9,039
694
506
-
-		 Core
Projects
Total
Total
2024
2024
2023
£
£
£
357,816
357,816
451,632
1,045,631
1,045,631
943,663
80,340
80,340
76,998
58,595
58,595
58,313
1,542,382
1,542,382
1,530,606
1,530,606
1,530,606
Other
Total
Total
2024
2024
2023
£
£
£
90,682
90,682
85,784
10,070
10,070
12,609
77,644
77,644
84,156
26,334
26,334
35,533
13,894
13,894
29,454
63,873
63,873
72,398
30,380
30,380
26,942
25,610
25,610
21,343
55,392
64,370
27,267
-
1,077
1,655
517,036
526,075
507,669
39,726
40,420
41,422
28,974
29,480
31,372
32,578
32,578
37,483
-
-
-
20,245 1,012,193
1,032,487
1,015,087

26

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

EXPENSES
Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2024
2023
£
£
1571,706
1,451,332
120,760
118,420
88,075
89,685
1,780,541
1,659,437

The average number of persons employed by the company during the year was 58 (2023 – 56) and the average monthly number of employees during the year expressed as full time equivalents was as follows:

follows:
Direct charitable
Marketing and communications
Governance
The number of higher paid employees was:
In the band £70,001 - £80,000
In the band £80,001 - £90,000		 2024
2023
No.
No.
48
44
1
1
1
1
50
46
2024
2023
No.
No.
0
1
1
0

The key management personnel of the charity comprise the Trustees, the Chief Executive, Finance Director and Operations & Development Directors. No Trustee received any remuneration or benefits in kind from the charity (2023 - £nil). The total employment benefits including employer pension contributions and employer national insurance contributions of key management personnel were £235,687 (2023 - £254,725).

During the year 2 Trustee (2023 - 1) received £283 reimbursement of expenses (2023 - £397).

27

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

12 TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
COST
At 1 April 2023
Additions
Disposals
At 31 MARCH 2024
DEPRECIATION
At 1 April 2023
Charge for the year
On disposals
At 31 MARCH 2024
NET BOOK VALUE
At 31 MARCH 2024
At 31 March 2023
DEBTORS
Trade debtors
Other debtors and prepayments
Accrued income		 Land and
buildings
Motor
vehicles
£
£
372,297
161,391
-
27,440
-
(22,010)		 Furniture,
fittings and
equipment
Total
£
£
111,533
645,221
38,650
66,090
(3,613)
(25,623)
372,297
166,821		 146,570
685,688
10,637
139,300
10,637
15,690
-
(22,010)		 75,729
225,666
24,619
50,946
(3,611)
(25,621)
21,274
132,980		 96,737
250,991
351,023
33,841		 49,833
434,697
361,660
22,091		 35,803
419,554
2024
2023
£
£
485,053
348,429
50,902
74,501
115,186
184,249
651,141
607,179

13 DEBTORS

28

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation and social security
Deferred income
Other creditors
Accruals
DEFERRED INCOME: PROJECT INCOME
Deferred income at 1 April 2023
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 MARCH 2024
15
PROVISIONS
At 1 April 2023 and 31 MARCH 2024		 2024
£
153,247
210,253
280,336
-
58,968		 2023
£
65,969
155,600
336,858
3,677
57,108
702,804 619,212
2024
£
25,000		 £
336,858
280,336
(336,858)
280,336
2023
£
25,000

A lease is held by Thames Water Utilities Limited and Groundwork East for the land and premises at Mill Green Sewage Treatment Works. A condition of the lease is that the site must be returned to its original state at the end of the lease remains in place and therefore a provision is in place for the costs of the works required.

29

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

16 STATEMENT OF FUNDS – CURRENT YEAR STATEMENT OF FUNDS – CURRENT YEAR
Balance at Income Expenditure Transfers Balance at
1 April in / (out) 31 MARCH
2023 2024
£ £ £ £ £
DESIGNATED FUNDS
-
Carbon reduction 15,900 - (2,703) - 13,197
GENERAL FUNDS
General funds 579,662 1,948,392 (1,941,285) 5,350 592,119
Total unrestricted funds 595,562
 1,948,392 (1,943,988) 5,350 605,316
RESTRICTED FUNDS
New building 386,563 (25,123) - 361,440
Projects 611,103 (605,753) (5,350) -
Total restricted funds 386,563 611,103 (630,876) (5,350) 361,440
Total of funds 982,125 2,559,495 (2,574,864) - 966,756

The designated fund for carbon reduction represents amounts set aside by the Trustees to explore initiatives for the charity to reduce its carbon footprint. During 2022/23, EV Chargers and Solar Panels were purchased for total of £ 15,900. The EV Charges and Solar panels are being depreciated at 20% straight-line over 5 years.

The restricted fund for the new building represents funds received as grants for the construction of a new building at Mill Green, Hatfield. The building is being depreciated at straight line over 35 years. Additionally, during the year further clearance costs were identified and charged to the reserve of £9,459

30

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

16 STATEMENT OF FUNDS (continued)

STATEMENT OF FUNDS – PRIOR YEAR STATEMENT OF FUNDS – PRIOR YEAR
Balance at Income Expenditure Transfers Balance at
1 April in / (out) 31 March
2022 2023
£ £ £ £ £
DESIGNATED FUNDS
Future projects 10,000 - - (10,000) -
Carbon reduction 10,000 5,900 15,900
GENERAL FUNDS
General funds 530,808 1,754,121 (1,717,443) 12,176 579,662
Total unrestricted funds 550,808 1,754,121 (1,717,443) 8,076 595,562
RESTRICTED FUNDS 27,119 449,000 (45,128) (44,428) 386,563
New building - 746,770 (783,122) 36,352 -
Project monies
27,119 1,195,770 (828,250) (8,076) 386,563
Total restricted funds
577,927 2,949,891 (2,545,693) - 982,125

31

Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

17 ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR

Restricted Unrestricted Total
funds funds funds
£ £ £
Tangible fixed assets 351,051 83,646 434,697
Current assets 0 1,259,864 1,259,864
Creditors due within one year - (702,804) (702,804)
Provisions for liabilities and charges - (25,000) (25,000)
351,051 615,706 966,757
ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR
Restricted Unrestricted Total
funds funds funds
£ £ £
Tangible fixed assets 379,770 39,784 419,554
Current assets 6,793 1,199,990 1,206,783
Creditors due within one year - (619,212) (619,212)
Provisions for liabilities and charges - (25,000) (25,000)
386,563 595,562 982,125
18 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
ACTIVITIES 2024 2023
£ £
Net income / (expenditure) for the year
(as per Statement of Financial Activities) (15,369) 404,198
Adjustment for:
Depreciation charges 50,946 37,483
Dividends, interest and rents from investments (8,185) (4,321)
(Profit) on the sale of tangible fixed (2,000) -
assets
(Increase) in debtors (49,463) (115,897)
Increase / (Decrease) in creditors 89,094 14,490
Net cash provided by / (used in) operating activities 65,023 335,953
19 ANALYSIS OF CASH AND CASH EQUIVALENTS
2024 2023
£ £
Cash in hand 608,722 599,604

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Docusign Envelope ID: 59D5AF22-3F39-4253-8D34-EB03F219B9F0

GROUNDWORK EAST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024

20 PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £88,075 (2023 - £89,685). Contributions totalling £12,585 (2023 - £12,460) were payable to the fund at the balance sheet date and are included in creditors.

21 OPERATING LEASE COMMITMENTS

At 31 MARCH 2024 the total of the Charity’s future minimum lease payments under non-cancellable operating leases was:

operating leases was:
Amounts payable:
Within 1 year
Between 1 and 5 years		 2024
2023
£
£
4,227
38,589
-
1,435
4,227
40,024

22 RELATED PARTY TRANSACTIONS

Some of the Directors of the Trust are also Directors of other companies, trustees of other organisations, employees of other companies or members of Local Authorities with which the Trust has material transactions. However, none of these Directors has a controlling interest or a material beneficial interest in these entities. In the Directors' opinion therefore, they do not fall within the definition of related parties given in the Charities SORP (FRS102) and no separate disclosure of the transactions between the Trust and these entities, which were carried out under normal commercial terms, is required. If one of these Directors has a significant influence in these entities, then transactions between the Trust and these entities are disclosed. During the year, Groundwork East received £nil (2023 - £3,566) from Ealing Community Transport, a charity in which a Director of Groundwork East has significant influence, for project work on carbon reduction for Ealing Community Transport.

The Trust is related to Groundwork UK, a national umbrella organisation. During the year, Groundwork East received £381,012 (2023 - £417,897) from Groundwork UK as funding for projects and paid £12,546 (2023 – £10,115) to Groundwork UK in membership fees and shared email services. As at 31 MARCH 2024, £48,993 was due from Groundwork UK, included in trade debtors (31 March 2023 - £40,088), £nil was due to Groundwork UK, included in trade creditors (31 March 2023 - £38).

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