**Registered number: 2032715 Charity number: 295107**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Company, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3 - 13|
|**Trustees' responsibilities statement**|14|
|**Independent auditor's report on the financial statements**|15 - 18|
|**Consolidated statement of financial activities**|19|
|**Consolidated balance sheet**|20 - 21|
|**Company balance sheet**|22 - 23|
|**Consolidated statement of cash flows**|24|
|**Notes to the financial statements**|25 - 61|
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022**
|**Trustees**|Devdeep Ahuja|
|---|---|
||Lawrence Revill|
||Shaun Lee|
||Sean O’Reilly|
||Jason Sinclair|
||Jill Heaton|
||Christopher Shaw (resigned 19 May 2022)|
||Kate Chadwick (resigned 9 December 2021)|
||Shirley Jones|
||Carole Baume (deceased 23 April 2022)|
||Kurshida Mirza|
||Precious Lwanga|
||Paul Nolan|
||Steve Harris (resigned 23 April 2021)|
|**Company registered**||
|**number**|2032715|
|**Charity registered**||
|**number**|295107|
|**Registered office**|Acorn House|
||381 Midsummer Boulevard|
||Milton Keynes|
||MK9 3HP|
|**Senior Executive**|Chief Executive - Ian Revell|
||Director of Finance - Sarah Wilson|
||Director of Operations - Vanessa Bradley|
||Director of Philanthropy - June Oldroyd|
||Director of Philanthropy - Ranjit Singh|
|**Independent auditor**|Hillier Hopkins LLP|
||Chartered Accountants|
||249 Silbury Boulevard|
||Milton Keynes|
||Bucks|
||MK9 1NA|
Page 1
# **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Bankers**
Bank of Scotland 33 Old Broad Street London EC2N lHZ
HSBC 19 Midsummer Place Milton Keynes MK9 3GB
Handelsbanken AB 201 Silbury Boulevard Milton Keynes MK9 1LZ
Close Brothers 10 Crown Place London EC2A 4FT
**Solicitors** EMW Seebeck House 1 Seebeck Place Milton Keynes MKS 8FR
**Investment Managers** CCLA Senator House 85 Queen Victoria Street London EC4V 4ET **Property Manager** Hornbeam Limited 13 Furzton Lake Shlrwell Crescent Furzton Milton Keynes MK4 1GA
## **Property Manager**
Page 2
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees have pleasure in presenting their annual report and audited consolidated financial statements for the year ended 31 March 2022, which are also prepared to meet the requirements for a directors’ and strategic report and accounts for Companies Act purposes. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document, the Companies Act 2006, Charities Act 2011 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 (FRS102) (effective 1 January 2019).
The financial statements comprise the group accounts of Milton Keynes Community Foundation (the “Foundation”) and its wholly owned subsidiary, MK Community Properties Limited.
The accounts on pages 19 to 61 incorporate all the various funds within the Community Foundation. An analysis of the group income and expenditure between the various funds is provided in note 23.
Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The objects of the Community Foundation are defined in its Memorandum and Articles of Association, allowing the Trustees to make grants out of capital and income to voluntary groups, charities and individuals who support people within the Milton Keynes unitary authority area. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Community Foundation’s aims and objectives and in planning future activities and setting the grant making policy for the year. Fund holders have the opportunity to direct a small percentage of their funds outside the Milton Keynes Unitary Authority area.
The Community Foundation has a five-year strategic framework which seeks to increase the grants and support available to the Voluntary, Community and Culture Sectors (VCCS) across the Borough.
## **Our Strategic Plan States:**
**Our Vision** is for a thriving Milton Keynes where everyone is contributing to their community.
**Our Mission** is to connect people with resources, skills and ideas to enrich lives and create positive growth for Milton Keynes. The Foundation achieves our mission through three themes of:
- Supporting
To support the growth and development of our voluntary community and cultural sector;
- Inspiring To inspire giving to our communities through philanthropy and other social action;
- Leading
To take a lead in connecting and growing sustainable communities.
Our Strategic Goal over the next five years is to build a resilient, creative, inclusive and philanthropic community.
Page 3
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Objectives and activities (continued)**
The three main areas of philanthropic work during the year were:
- Diversify and grow our philanthropy programme
- Enable more impactful grant giving
- Work collaboratively across the organization to maximize philanthropy opportunities, ensure compliance & measure our impact
The delivery plan associated with our philanthropy work focuses on building philanthropy across our Borough, increasing the funding the Foundation has available and making sure the Foundation is supporting all our communities.
The three main focuses of our estate and property work during the year were:
- Provide and manage sustainable, suitable, high quality community spaces for VCCS
- Actively developing our community land and property assets
- Generating surplus from our commercial and social enterprise activities to increase grant making and support
The delivery plan associated with our estates and property work focuses on how the Foundation can better support the VCCS, invest in new buildings so that future sector needs are supported and to ensure that the income driven from our conference social enterprise and commercial tenants generates surpluses that can be ploughed back into supporting our communities. A new business plan was implemented from November 2019 to respond to the challenges faced as a result of the Covid 19 pandemic.
## **Achievements and performance**
## **a. Main achievements of the Company**
2021/22 covers the fourth year of our Strategic Plan. It was a year dominated by the aftermath of the Covid 19 Pandemic and a time when the Foundation continued to respond to the effects of the emergency. General grant giving started to return to normal, but we continued to support the sector by way of recovery grants as a result of the pandemic.
As part of our normal philanthropy activities the Foundation was able to attract 2 new corporate funds, 2 new endowment funds and 8 flow-through funds. Therefore, we now have 52 Endowment Funds, which are invested with CCLA and 52 flow-through funds which are spent within a specified time frame.
This year, thanks to the generosity of our supporters, the Foundation was able to give more than £2.2m in support of the Voluntary, Community and Cultural Sector (VCCS), supporting 198 organisations, impacting an estimated 1,321,223 beneficiaries.
In October 2021 we published our shortened edition of the annual Vital Signs report. This year, we reported on four areas:
- Diversity,
- Health & Wellbeing,
- Poverty and Disadvantage
- Crime and safety.
Whist the areas were selected before Covid 19 their relevance during the pandemic and lockdown became even more significant and has helped the Foundation focus its priorities for grant funding, development of strategic partnerships and how we apply our rent subsidies.
Page 4
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (continued)**
The Foundation’s wholly owned trading subsidiary company, MK Community Properties Limited, is a provider of meeting and conference facilities. In addition, the company also leases small business units on licence to both commercial and not for profit organisations. Its aim is to support the voluntary community and cultural sector, either through subsidised meeting and conference room hire or indirectly through surplus income, which contributes towards the Community Foundation’s grant making programme. MK Community Properties Limited also owns 22 community land sites and 11 strategic Community Foundation Land sites.
The Foundation continues to face a number of challenges in both the short and long term due to the impact of the pandemic and as a result of economic changes associated with the growth plans for Milton Keynes. Additionally, how the Foundation responds to the wider regional opportunities effecting Milton Keynes. The Foundation seeks to provide appropriate and adequate support for the changes in our communities’ diversity to deliver equity and inclusion across our Borough. Coupled with the impact on Council budgets as a result of Covid, the challenge for the Foundation is how we can ensure that ongoing support is available to vulnerable people, to the diverse urban communities and our rural communities.
## **b. Review of activities**
## **Grant Making**
The amount of £1,359,741 (2020/21 - £2,245,120) was awarded in grants by the Community Foundation during the year. The level of grant making achieved during the year means that the Foundation has now awarded in excess of £16,000,000 in grants since 1986 along with Rent subsidies estimated to be circa £19,000,000 in the same time period.
During the year to 31 March 2022 this level of grant making provided 127 grants to 109 local organisations in order to support community projects that covered a wide range of initiatives in Milton Keynes,
## **Grants awarded last year:**
59 Small Grants - £121,089 34 Community Grants - £288,857
5 Covid Recovery Grants - £53,558
- 2 Strategic Recovery Grants £20,000
7 Transformation Grants - £181,169
- 2 Large Strategic Grants £135,000
2 Partnership Grants - £43,600
5 Made by Sport Grants - £11,084
- 7 Emergency Response Grants £32,000
1 MK Food Support Grant - £3,000
5 Queens Platinum Jubilee Grants - £27,551
## **Estate & property portfolio management**
The report covers the second year of our new Property Strategy which has three themes as listed above.
During the year the Foundation has been negotiating with Homes England to enable a capital fund to be created from the proceeds of releasing 5 land sites for development of much needed affordable housing and one for a residential nursing care home. The Foundation has also completed a competitive bidding process from a number of social landlords and care home developers. Once completed this will provide a substantial capital development fund to enable the Foundation to bring forward five Community Hubs, mainly in the western expansion areas of the new city area of the Borough.
Page 5
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (continued)**
At the end of the financial year, the land relating to the Brooklands development was transferred to us. Once planning has been agreed the Foundation will look to build a new gymnastic and table tennis centre in partnership with a social housing organisation who will deliver affordable housing and small community office facility in the Eastern expansion area alongside the scheme.
The property estate includes 11 properties comprising 227,000 square feet of accommodation to be let to voluntary, community and cultural sector groups or to commercial tenants along with 16 let and 34 undeveloped Community Foundation Land (CFL) sites.
## **c. Fundraising activities and income generation**
The Community Foundation does not employ any person or companies to act on its behalf specifically to carry out any fundraising activities. The Community Foundation is registered with the Fundraising Regulator and the Gambling Commission and subscribes to the standards and regulations required under the registrations. The Community Foundation also subscribes to Be Gamble Aware. No fundraising complaints were received during the year.
During the year the Community Foundation reviewed our privacy notice:
The Privacy Notice in brief
- We collect information that is either personal data (such as names, addresses, and telephone numbers) or non-personal data (such as your Internet Protocol (IP) address, web pages accessed etc.)
- We collect information about our supporters, donors, fundraisers, volunteers and employees.
- We collect information to provide services or goods, to provide information, to fundraise, for administration, to assess and award grants, research, profiling, analysis, and for the prevention/detection of crime.
- We only collect the information that we need, or that would be useful to us in our aim to provide the best possible service.
- We do our very best to keep personal information secure, wherever we collect personal data online.
- We never sell your data, and we will never share it with another company or charity for marketing purposes.
- We only share data where we are required by law, or with carefully selected trusted suppliers who do work for us. All our suppliers are required by their contract to treat your data as carefully as we would, to only use it as instructed, and to allow us to check that they do this.
Our websites use cookies – for more information check https://www.mkcommunityfoundation.co.uk/cookiespolicy/
The full Privacy Notice which details what information is held, how the Foundation may use it, and what - individual’s rights are available on our website https://www.mkcommunityfoundation.co.uk/privacy policy/.
Page 6
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
Since 1994 it has been the policy of the charity to hold reserves in the Community Fund totalling at least £1 million which have not been committed or designated for any particular purpose. However, in accordance with the ethos of Community Foundations, the Trustees continue to build these invested funds over and above this minimum level in order to ensure that the investment income derived from these funds would protect future beneficiaries and operations of the charity from the effects of any unforeseen variations in its income streams and underwrite a continuation in the year-on-year growth in the grants budget. Currently, such funds stand at £2,421,970 (2021 - £2,365,448). In March 2012 the Foundation was successful in securing funds from the Office for Civil Society for the Community First Endowment Match Challenge. Since then, growth in the market means that the Community First Endowment is £13,345,756 at 31 March 2022. At 31 March 2022 the amount of unrestricted funds was £42,613,209 (2021 - £41,618,603) and the value of restricted funds was £19,101,369 (2021 - £17,717,111).
Within the unrestricted funds, and separate from the Community Fund, the Trustees have designated a Property Fund equal in value to the properties held by the group, less mortgages incurred to purchase properties, together with a reserve towards the cost of future property repairs and refurbishments. It is the intention of the Trustees that this fund will be maintained over a 10-year period at levels that will be sufficient to finance the repairs and refurbishment of the property portfolio required in order to ensure that the property portfolio remains in a ‘fit for purpose’ state.
The Trustees are satisfied that the charity’s assets attributable to each of its Funds are available and adequate to fulfil its obligations in relation to those funds.
The Covid 19 pandemic continues to have a significant impact on the Foundation. Whilst emergency funding has all been spent, the sector continues with its recovery, and it is anticipated that in the second half of 2022/23 there will be significant demand for our services as the impact of the pandemic and the cost-of-living crisis begins to take effect. We are confident that we will be able to continue to support the sector and at this stage the Foundation does not feel that its predicted funding levels will decline significantly during 2022/23. However, the organisation continues to monitor and reduce costs wherever possible.
Our investment portfolio continues to perform well, and the trustees have been re-assured that the level of return from listed investments will not drop significantly in the next 12-18 months. In terms of our property portfolio, the Foundation continues to monitor the situation carefully, and provides support to tenants where needed, making them aware of local and national government funding schemes to ensure that they continue to pay their rent and service charges in a timely manner. A number of tenants have had difficulties during the pandemic with several failing to survive. Far great scrutiny has been carried out during the year by the Executive and Trustees to ensure the best use of the vacated units. Detailed planning and scenario testing is being completed and updated regularly, so that the Trustees are able to make informed decisions regarding the best course of action to ensure that the organisation continues to be financially sound.
In spite of the pandemic, the Trustees are confident that the Community Foundation is able to continue to meet its liabilities as they fall due for the foreseeable future and that the accounts should be prepared on the going concern basis.
Page 7
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **c. Financial Review**
During the financial year ended 31 March 2022 the Community Foundation generated a net group surplus before investment gains and losses of £758,351 (2021 deficit of £27,400).
The total value of the Community Foundation’s endowment assets has increased to £61,714,578 (2021 - £59,335,714). This level of endowment funds continues to ensure sustainability and enables the Community Foundation to continue to support the growing local community in as many ways as possible
Our subsidiary company, MK Community Properties Limited, performed below expectations this year as the conferencing facilities struggled to recover as anticipated following the pandemic. All steps were taken to minimise this loss, and a new business plan was developed from November 2021, and a dedicated Business Development Manager was appointed from April 2022 to try and improve the use of this city centre facility. This plan sees the organisation return to a surplus in 2022/23, albeit a small surplus, with improved performance for 2023/24. The result for the year was an operating deficit of £150,442.
## Income
The Community Foundation’s income is primarily derived from four sources:
- Income from donations and legacies,
- income from other trading activities,
- investment income and
- the net income of MK Community Properties Limited.
Each of these sources of income is subject to different drivers.
The income received by the Community Foundation in the year ended 31 March 2022 totalled £5,798,052 (2021 - £4,358,402).
## Expenditure
Out of the 399 applications received by the Community Foundation; 127 grants were awarded (2021 - 314 grants awarded) totaling £1,359,741 (2021 - £2,245,120). Of these awards, £403,530 remained unpaid at the year-end (2021 - £533,282). £404,238 (2021 - £426,357) was distributed to local groups through the Local Giving Project and £38,595 (2021 - £84,535) was given out in funds to Big Local Coniburrow from their Local Trust Grant, which the Foundation administers.
The Group’s total operating costs continue to be closely monitored, and for the year ended 31 March 2022 amounted to £5,039,701 (2021 - £4,385,802). In common with other charitable organisations, changes in priorities year-on-year result in changes in cost allocations across the categories of expenditure.
## Freehold and Leasehold properties
The financial statements also include the valuation of the investment properties held by the Community Foundation and its trading subsidiary; MK Community Properties Limited. Any capital gain on revaluation of properties and these are subject to clawback of an average of 48% cannot be spent on grants unless properties are sold, and many are occupied by the voluntary or charitable sector. Similarly, any gain on the revaluation of investments can only be realized if the investments are sold which impacts on the future investment income.
Page 8
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **c. Financial Review (continued)**
The freehold and leasehold properties were valued in the year by external valuers Kirkby Diamond, in accordance with the Royal Institution of Chartered Surveyors Valuation – Global Standards (The Red Book), on the basis of Market Value. Whilst the Trustees are of the opinion that there has been no material movement in value of these properties between that date and 31 March 2022, they believe that valuation of the properties should be at Existing Use valuation to more appropriately reflect the Community Foundation’s policy of allowing Voluntary and Community Sector groups to apply for a rent subsidy of up to 75%. If this Existing Use valuation were to be used, our Land and Buildings would be valued at £41,454,750 (2021 - £40,516,666) an increase of £938,084.
## **d. Material investments policy**
## **Investments**
The group’s investments were valued at the year-end at £19,703,715 (2021 - £18,660,804). All of these investments were held by CCLA in their Charities Ethical Common Investment Fund. CCLA investment objective over the long term is to achieve an average annual total return of inflation plus 5%.
The Community Foundation’s investment policy was reviewed during the year but remains broadly unchanged. This provides guidance on the Community Foundation’s aim in investing its funds, including:
- its position on risk;
- an indication of the Community Foundation’s asset allocation strategy;
- the benchmarks and targets by which the performance of the manager will be judged;
- the Community Foundation’s stance on ethical investment;
- the balance between capital growth and income generation which is sought by the Community Foundation; and
- the scope of the investment powers.
The Trustees have discretion to invest as they think fit and the investments held by the Community Foundation have been acquired in accordance with these powers. The trustees have adopted an ethical investment approach, which looks to optimize the total return from the investment portfolio whilst mitigating risk, as far as possible.
Under the terms of the Community First Endowment Match Challenge all funds raised under this programme must be held at CCLA. Also, fifteen of the restricted donor funds and the Grassroots Endowment Challenge funds were all invested with CCLA.
## **e. Financial risk management objectives and policies**
The Trustees review annually the major risks to which the charity is exposed in order to ensure systems and processes have been established to mitigate those risks. Internal and external factors have been considered, and risks are classified as Governance, Operational, Financial, Environmental and External, Legal and Regulatory or Reputational.
The Risk Mitigation Plan, which focused on actions required to reduce risks affecting the organisation. The 2022 review of this plan identified 33 risks (2021 - 35). The key risks were:
- Economic impact of the pandemic, especially related to the Estates and Conferencing
- Global recession affecting investment income and philanthropy
- Meeting and conference room operations not returning to pre-pandemic levels
These risks are reviewed regularly by the Leadership team and any issues are reported back to Board.
Page 9
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management**
## **a. Constitution**
Milton Keynes Community Foundation Limited is a company limited by guarantee and a registered grant making charity. Milton Keynes Community Foundation was established in 1986 and is engaged principally in the promotion of any charitable purpose for the benefit of the community in the Milton Keynes unitary authority area. The Community Foundation also has a wholly owned trading subsidiary, MK Community Properties Limited. The subsidiary company operates as a provider of meeting and conference facilities. Its aim is to support the charitable objectives of its parent undertaking, the Community Foundation.
The Community Foundation is governed by its Memorandum and Articles of Association. The Articles of Association define those who sit on the Board of the Community Foundation as Trustees. The Articles of Association state that the Trustees have the power to admit members to the Community Foundation. As set out in the Articles of Association, the Board of Trustees shall comprise not less than five and not more than twenty members. At each Annual General Meeting one third of the Trustees retire by rotation but they are eligible for re-election for up to three terms each of three years provided that they are not otherwise disqualified under the conditions set out in the Articles of Association.
Anyone wanting to become a Trustee must apply in writing and is subject to the Community Foundation’s recruitment procedures before becoming eligible for election as a Trustee.
Trustees are sometimes Employees or Trustees of other Voluntary and Community Sector organisations. All such relationships are at normal commercial rates and are disclosed in note 14 and 34 to these accounts.
## **b. Trustee recruitment, induction and training**
The management of the Group and the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed.
As set out above, potential Trustees of the Community Foundation are either invited to apply to the Board or can be nominated by a member of the Community Foundation. Potential Trustees, who can demonstrate that they have the skills and knowledge required, will be Interviewed by a panel made up of Board members and which Involves the Chief Executive. Successful applicants are recommended to join the Board. All appointments as Trustees are confirmed at the Community Foundation's general meeting.
The Community Foundation needs an Informed, skilled and enthusiastic Board of Trustees, supportive of the work of the Community Foundation and able to carry out their duties of governance under Charity Law. The Community Foundation is working towards achieving this through:
- Induction - Introducing new Trustees to the ethos and working of the Community Foundation and to their duties In the governance of the organisation.
- Identifying and providing training - an ongoing process, assessing both current and future needs as the Community Foundation develops.
- Board Meetings - these are structured to encourage all Trustees to become more Informed on all aspects of the Community Foundation's activities and to be as fully engaged as possible.
- Strategic Away Days – which look at alternative ways of working.
Page 10
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management (continued)**
## **c. Organisational structure and decision-making policies**
The Community Foundation currently has 10 Trustees. The Trustees are responsible for ensuring the Community Foundation continues to meet its charitable objectives as set out in its Memorandum and Articles of Association.
A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Community Foundation. To facilitate effective operations, the Senior Leadership Team has delegated authority for operational matters within terms of delegation approved by the Trustees.
The Board meets a minimum of four times a year and there are sub-committees covering Property, Resources, Remuneration, Audit and Philanthropy and Grants; all meetings are attended by senior members of the Executive Team. As well as these, time-limited task groups for specific projects are set up as and when required.
Indemnity insurance has been taken out in respect of the Trustees as detailed in note 33 to the financial statements.
## **d. Pay policy for key management personnel**
The Board of Trustees considers that the key management personnel of the group is the Strategic Leadership Team who are in charge of directing, controlling, running and operating the group on a day-to-day basis. All Trustees give their time freely and no Trustee received remuneration in the year. Details of any Trustee’s expenses and related party transactions are shown in note 14 and 34 to the accounts.
The pay of the Strategic Leadership team is reviewed annually by the Remuneration Committee and normally increased in line with average earnings. In view of the nature of the charity, the Trustees benchmark against pay levels in other local voluntary sector organisations of a similar size and the UK Community Foundation network.
## **e. Related party relationships**
The Community Foundation and its wholly owned trading subsidiary MK Community Properties Limited provide services and support to other charities and organisations, including those that have Trustees in common with the Community Foundation. A full list of transactions with related parties in the year, along with the nature of the relationships, is shown in note 34 of these accounts.
## **Plans for future periods**
## Philanthropy
Central to our Strategic Plan is the focus on inspiring philanthropy in Milton Keynes. To that end we have a specific Philanthropy strategy and annual delivery Plan.
Key focuses in philanthropy delivery plan include:
- Diversify and grow our philanthropy programme
- Enable more impactful grant giving
- Build an effective marketing and communications offer
Page 11
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Plans for future periods (continued)**
As the Foundation plans for the year ahead, it knows the needs of the sector and its communities will continue to change. In particular the pandemic impact to the sector is not yet fully known, however the Foundation continues to conduct on-going surveys of the sector and supports the development of the Inter-cultural forum and the MK Ethnic Business Community Network so that the Foundation can continue to adapt and change its programmes in response. As the Foundation starts its 36th year as a charity, it will be launching a £1m Match Funding Programme which will hopefully encourage new and existing philanthropists in the City to begin and continue their journey with the Foundation.
Our Board of Trustees are fully aware of their responsibilities for fundraising activities and receive an annual Charity Commission C20 report. The Philanthropy & Grants Committee has delegated responsibility for continuous monitoring of any fundraising activities.
## Governance and Management
The Foundation continues to implement the changes identified in its last governance review this year. it has recruited new and more diverse trustees and appointed an equally diverse group of Vice- Presidents to its honorary structure. During the year the Board elected a new President, Fola Komolafe MBE DL.
The new committee structure has proven very effective. The changes we made during the pandemic in relation to departmental reporting and KPI packs for each committee and the Board, continue to be well received and enables greater scrutiny and improved performance monitoring.
The Trustees, having continued the implementation of their plan, consider the governance structures of the Community Foundation to be appropriate to enable the Foundation to be a success in its next stage of development. Also, in line with its continuing commitment to ascertain best value from its professional advisers, the Foundation regularly undertakes tendering processes for this type of service.
Milton Keynes Community Foundation is a member of the UK Community Foundations (UKCF), an umbrella body representing Community Foundations across the United Kingdom. A membership fee is paid annually. To retain membership of this organisation, the Community Foundation must comply with a number of criteria.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
## **Auditor**
The auditor, Hillier Hopkins LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Page 12
MILTON KEYNES COMMUNITY FOUNDATION LIMITED
IA company limlted by guarantee)
TRUSTEES, REPORT ICONTINUEDI
FOR THE YEAR ENDED 31 MARCH 2022
Approved by order of the members of the board of Trustees and signed on their behalf by..
Kurshlda Mirza
Trustee
Dale.. 17 November 2022
Page 13
MILTON KEYNES COMMUNITY FOUNDATION LIMITED
IA company limited by guarantee)
STATEMENTOF TRUSTEES, RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2022
The Trustees (who are also the directors of the Company lor the purposes of cormpany lawl are responsible for
preparing the Trustees. report anrj the financial statements in accordance with applicable law and United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel.
Company law requires the Trustees lo prepare financial slalemenls for each financial . Under company law, the
Trustees musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of
the slate of affairs of the Group and the Company and of their incoming resources and application of resources,
including their income and expenditure, for that period. In preparing these financial slalemenls, the Trustees are
required lo..
select suitable accounting policies and then apply them consislenlly.,
observe the methods and principles of the Charities SORP IFRS 1021.,
make judgments and accounting e51imales that are reasonable and prudent.,
slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material
departures disclosed and explained in the financial slalernenls.,
prepare the financial slalemenls on the going concern basis unless il is in8ppropriale lo presume that the
Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain
the Group and the Company's Iransaclions and disclose with reasonable accuracy al any lime the financial
position of the Gioup and the Company and enable them lo ensure that the financial slalemenls cornply with the
Companies Acl 2006. They are also responsible for safeguarding the assets of the Group and the Company and
hence for taking reasonable steps lor the prevention and detection of fraud and other irregularities.
Approved by order ofthe members of the board of Trustees and signed on ils behalf by..
Kurshida mIa
Trustee
Dale.. 17 November 2022
Page14
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **Opinion**
We have audited the financial statements of Milton Keynes Community Foundation Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **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 Group 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 Group's or the parent 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.
Page 15
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MILTON KEYNES COMMUNITY FOUNDATION LIMITED (CONTINUED)**
## **Other information**
The other information comprises the information included in the 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:
- the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our 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 Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
## **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.
Page 16
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MILTON KEYNES COMMUNITY FOUNDATION LIMITED (CONTINUED)**
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent 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 Group or the parent 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- we consider the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
- the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, Charities Act 2011 and relevant tax legislation.
Page 17
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MILTON KEYNES COMMUNITY FOUNDATION LIMITED (CONTINUED)**
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, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
## **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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Grant Franklin ACA (Senior statutory auditor)**
for and on behalf of **Hillier Hopkins LLP** Chartered Accountants Statutory Auditor 249 Silbury Boulevard Milton Keynes Bucks MK9 1NA
Date: 7 December 2022
Page 18
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITUREACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
**Total income**
**Expenditure on:**
Raising funds
8,9
Charitable activities
10
**Total expenditure**
**Net income/(expenditure) before net**
**gains/(losses) on investments**
Net gains/(losses) on investments
**Net income/(expenditure)**
Transfers between funds
23
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**Restricted**
**funds**
**2022**
**£**
**2,400,940**
**862,766**
**571,416**
**-**
**458,876**
**-**
**912,552**
**591,502**
**4,343,784**
**1,454,268**
**1,858,741**
**-**
**1,781,830**
**1,399,130**
**3,640,571**
**1,399,130**
**703,213**
**55,138**
**316,268**
**1,304,245**
**1,019,481**
**1,359,383**
**(24,875)**
**24,875**
**994,606**
**1,384,258**
**41,618,603**
**17,717,111**
**994,606**
**1,384,258**
**42,613,209**
**19,101,369**|**Total**
**funds**
**2022**
**£**
**3,263,706**
**571,416**
**458,876**
**1,504,054**
**5,798,052**
**1,858,741**
**3,180,960**
**5,039,701**
**758,351**
**1,620,513**
**2,378,864**
**-**
**2,378,864**
**59,335,714**
**2,378,864**
**61,714,578**|_Total_
_funds_
_2021_
_£_
_2,096,376_
_499,398_
_321,531_
_1,441,097_|
|---|---|---|---|
||||_4,358,402_|
||||_1,646,374_
_2,739,428_|
||||_4,385,802_|
||||_(27,400)_
_(8,716,384)_|
||||_(8,743,784)_
_-_|
||||_(8,743,784)_|
||||_68,079,498_
_(8,743,784)_|
||||_59,335,714_|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 25 to 61 form part of these financial statements.
Page 19
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 2032715**
## **CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**Fixed assets**
Intangible assets
15
Tangible assets
16
Investments
18
Social investments
19
Investment property
17
**Current assets**
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
22
**Total net assets**
**Charity funds**
Restricted funds
23
Unrestricted funds
Designated funds
23
General funds
23
Total unrestricted funds
23
**Total funds**|**797,917**
**1,582,724**|**2022**
**£**
**15,937**
**146,365**
**19,703,715**
**10,000**
**41,454,750**|_892,802_
_1,385,575_|_2021_
_£_
_-_
_197,933_
_18,650,804_
_10,000_
_40,516,666_|
|---|---|---|---|---|
|||**61,330,767**
**1,383,811**||_59,375,403_
_960,311_|
||**2,380,641**
**(996,830)**||_2,278,377_
_(1,318,066)_||
||**40,191,239**
**2,421,970**||_39,253,155_
_2,365,448_||
|||**62,714,578**
**(1,000,000)**||_60,335,714_
_(1,000,000)_|
|||**61,714,578**||_59,335,714_|
|||**19,101,369**
**42,613,209**||_17,717,111_
_41,618,603_|
||||||
|||**61,714,578**||_59,335,714_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 20
MILTON KEYNES COMMUNITY FOUNDATION LIMITED
IA company limited by guaranteel
REGISTERED NUMBER.. 2032715
CONSOLIDATED BALANCESHEETICONTINUEDI
ASAT 31 MARCH 2022
The financial slalemenls have been prepared in accordance with the provisions applicable to entities subject to
the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by..
Kurshida Mirza
Chair ofTrustees
Jill Heaton
Trustee
Dale.. 17 November 2022
The notes on pages 25 10 61 form part of these financial slalemenls.
Page 21
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 2032715**
## **COMPANY BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**Fixed assets**
Intangible assets
15
Tangible assets
16
Investments
18
Social investments
19
Investment property
17
**Current assets**
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
22
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
23
Unrestricted funds
Designated funds
23
General funds
23
Total unrestricted funds
23
**Total funds**|**1,057,732**
**1,310,343**|**2022**
**£**
**15,937**
**2,793**
**20,103,716**
**10,000**
**29,928,000**|_1,049,530_
_1,104,016_|_2021_
_£_
_-_
_5,671_
_19,050,805_
_10,000_
_28,989,916_|
|---|---|---|---|---|
|||**50,060,446**
**1,454,610**||_48,056,392_
_929,358_|
||**2,368,075**
**(913,465)**||_2,153,546_
_(1,224,188)_||
||**28,844,989**
**2,568,698**||_27,906,905_
_2,361,734_||
|||**51,515,056**
**(1,000,000)**||_48,985,750_
_(1,000,000)_|
|||**50,515,056**||_47,985,750_|
|||**50,515,056**||_47,985,750_|
|||**19,101,369**
**31,413,687**||_17,717,111_
_30,268,639_|
||||||
|||**50,515,056**||_47,985,750_|
The Company's net movement in funds for the year was _£_ 2,529,306 _(2021 - £(4,109,889))_ .
Page 22
MILTON KEYNESCOMMUNITY FOUNDATION LIMITED
IA company limited by guarant901
REGISTERED NUMBER: 2032715
COMPANY BALANCE SHEET ICONTINUEDI
ASAT31 MARCH 2022
The Trustees acknowledge their spOnSibl1111e3 for complying with the requirements of the Act with respect to
accounting records and preparation of financial stalemenls.
The financial slalements have boen prepared in accordan with the provisions applicable to entities subject to
the small companies regime.
The financial statements were approved and authorized for issue by the Trustee8 on 1T..N9.Y£mbfti.1022 and
signed on their behalf by-
Jill Heaton
(Trusleel
(Chair of Trustees)
cWE4Qo
The notes on pages 25 10 61 form part of these financial slatemenls.
Page 23
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of intangible assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
**Net cash provided by investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 25 to 61 form part of these financial statements|**2022**
**£**
_2021_
_£_
**(856,720)**
_3,429_|
|---|---|
||**595,759**
_625,842_
**(17,000)**
_-_
**(29,408)**
_(68,459)_
**595,893**
_-_
**(91,375)**
_(330,677)_|
||**1,053,869**
**226,706**|
|||
||**-**
**-**|
||**197,149**
**230,135**
**1,385,575**
_1,155,440_|
||**1,582,724**
_1,385,575_|
|||
Page 24
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1. General information**
Milton Keynes Community Foundation Limited ("the Community Foundation") is a private company incorporated and registered in England and Wales and limited by guarantee. The registered address is Acorn House, 381 Midsummer Boulevard, Central Milton Keynes, MK9 3HP.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Milton Keynes Community Foundation Limited 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.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
## **2.2 Going concern**
The Covid 19 pandemic has had a significant impact on the charity. At this stage we do not feel that our predicted funding levels will decline significantly during 2022/23 but the organisation is taking steps to ensure that costs are kept to a minimum. Our investment portfolio continues to perform well, and the trustees have been assured that the level of return from listed investments will not drop significantly in the next 12-18 months. In terms of our property portfolio, we are monitoring the situation carefully, and providing support where needed to tenants to ensure that they continue to pay their rent and service charges. A number of tenants will naturally not survive the pandemic, and the Trustees are continually monitoring the best use of these units. Detailed planning and scenario testing are being completed and updated regularly, so that the Trustees are able to make informed decisions regarding the best course of action to ensure that the organisation continues to be financially sound.
In spite of the current pandemic, the Trustees are satisfied that the group's assets attributable to each of its funds are available and adequate to fulfil its obligations in relation to those funds. The Trustees are confident that the Community Foundation is able to continue to meet its liabilities as they fall due for the foreseeable future and that the financial statements should be prepared on the going concern basis.
Page 25
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.3 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.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Donations relating to a specific period and donations by deed of covenant, or under gift aid, where the full amount has been deposited in advance are taken into income over the period to which they relate. Where possible, gifts in kind have been quantified and included in these financial statements, in accordance with the SORP criteria.
Any grants the Community Foundation receives towards its administration costs are included on a receivable basis.
Donated land is recognised at market value at date of receipt.
## **Property income**
Property income represents rents and service charges (net of VAT) receivable on a straight-line basis over the life of the lease. The assets for which rent is received are included in investment properties in fixed assets. Appropriately-apportioned gains or losses on property disposals are also included in property company income or expenditure.
Property income has been analysed between both investment income and income from charitable activities. That element treated as investment income relates to those properties that are let on full commercial rental basis and that reported as income from charitable activities relates to income from properties let at a subsidised rent to Voluntary and Community Sector tenants.
## **Subsidiary company income**
Property company income represents income from hire of meeting and conferencing facilities and rent from Small Business Units (net of VAT) receivable on a straight-line basis. Any surplus income generated by the subsidiary company is distributed to the MK Community Foundation as a gift aid payment within nine months of the end of the financial year.
Page 26
**(A company limited by guarantee)**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. THese incmoe costs incurred attracting voluntary income and investment management expenses, including management of investment properties.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. This includes the value of grants awarded. This also includes governance costs including those incurred in the governance of the Community Foundation and its assets. Expenditure that can be recognised as wholly attributable to governance costs, for example audit fees and Trustee expenses, are directly allocated. All other costs, including staffing costs, are apportioned on the basis of an estimate of the time spent by each member of staff on governance-related issues. Such costs are primarily associated with the strategic planning processes that contribute to the future development of the Community Foundation and its statutory requirements.
Grants payable are charged in the year when the offer is approved by the Trustees and accepted by the beneficiaries. The value of such grants unpaid at the year-end is accrued. Grants where the beneficiary has to meet certain conditions before the grant is released are not accrued. .
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 27
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.7 Taxation**
The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, no provision for corporation tax has been made in these financial statements because the Community Foundation, a registered charity, is exempt from taxation.
All expenditure is classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it is incurred.
## **2.8 Intangible assets and amortisation**
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
Amortisation is provided on the following basis:
Website
- 33 %
## **2.9 Tangible fixed assets and depreciation**
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Office equipment - 25 - 50%
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.
Page 28
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.10 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.11 Freehold and leasehold investment properties**
The investment properties are held for long-term investment and are included in the group balance sheet at their open market values.
The surpluses or deficits on the revaluation of such properties are transferred to the Designated Property Fund. Depreciation is not provided in respect of investment properties.
## **2.12 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.
## **2.13 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.
## **2.14 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 in the Consolidated statement of financial activities as a finance cost.
## **2.15 Financial instruments**
The Group 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.
Page 29
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.16 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
## **2.17 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.18 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 Group 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 Group 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.
Page 30
**(A company limited by guarantee)**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Group estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgment:
## **Property valuation**
There are estimates and assumptions made when the investment property portfolio is valued at their market value. These estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The key judgement relates to the classification of the property portfolio. The Trustees have considered whether the group's portfolio of properties should be accounted for as tangible fixed assets or as investment properties. Many of the properties are available on occasion to be rented to the charity's beneficiaries at subsidised rents. However, the Trustees consider that the properties are primarily held for long term investment with the objective of generating fin ancial income and/or proceeds from their sale to maximise a surplus which can be used to make grants or to support the voluntary and community sector through subsidised rent. Accordingly, the Trustees consider that the properties are investment properties and that any changes in their value should be recognised as gains or losses on investment properties. However, any rental income which is generated by properties let at subsidised rates is recognised as income from charitable activities rather than investment income to reflect the objectives of the charity.
## **4. Income from donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Donations|2,400,940|862,766|**3,263,706**|
Page 31
**(A company limited by guarantee)**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **4. Income from donations and legacies (continued)**
|Donations
Grants received for administration costs|_Unrestricted_
_funds_
_2021_
_£_
_254,731_
_3,029_
_257,760_|_Restricted_
_funds_
_2021_
_£_
_1,838,616_
_-_
_1,838,616_|_Total_
_funds_
_2021_
_£_
_2,093,347_
_3,029_|
|---|---|---|---|
||||_2,096,376_|
Donations received in kind are valued on the basis that such services were purchased as a commercial transaction on an arms length basis. All such donations have been included as unrestricted income and are analysed in the table below:
|Community Prize Draw
Land site
IT subscription
Away day costs|**Unrestricted**
**Total**
**2022**
**£**
**Unrestricted**
**Total**
**2021**
**£**
40,560
-
875,000
-
180
-
480
-|
|---|---|
||916,220
-|
## **5. Income from charitable activities**
||**Unrestricted**|**Total**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2022**|
||**£**|**£**|
|Property rental and service charge income|571,416|**571,416**|
Page 32
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **5. Income from charitable activities (continued)**
||_Unrestricted_|_Total_|
|---|---|---|
||_funds_|_funds_|
||_2021_|_2021_|
||_£_|_£_|
|Property rental and service charge income|_499,398_|_499,398_|
## **6. Income from other trading activities Income from non charitable trading activities**
|Trading income - MK Community Properties Ltd
Trading income - MK Community Properties Ltd
**Investment income**
Property investments
Listed investments
Interest receivable|**Unrestricted**
**funds**
**2022**
**£**
912,550
-
2
912,552|**Unrestricted**
**funds**
**2022**
**£**
458,876
_Unrestricted_
_funds_
_2021_
_£_
_321,531_
**Restricted**
**funds**
**2022**
**£**
-
591,502
-
591,502|**Total**
**funds**
**2022**
**£**
**458,876**|
|---|---|---|---|
||||_Total_
_funds_
_2021_
_£_
_321,531_|
||||**Total**
**funds**
**2022**
**£**
**912,550**
**591,502**
**2**|
||||**1,504,054**|
## **7. Investment income**
Page 33
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. Investment income (continued)**
|Property investments
Listed investments
Interest receivable|_Unrestricted_
_funds_
_2021_
_Restricted_
_funds_
_2021_
_Total_
_funds_
_2021_
_£_
_£_
_£_
_873,759_
_-_
_873,759_
_-_
_567,310_
_567,310_
_28_
_-_
_28_
_567,310_
_1,441,097_
_873,787_|
|---|---|
|**8.**|**Expenditure on raising funds**|
|---|---|
||**Costs of raising voluntary income**|
|Other costs
Apportioned costs
Wages and salaries|**Unrestricted**
**funds**
**2022**
**£**
58,965
58,709
194,646
312,320|**Total**
**funds**
**2022**
**£**
**58,965**
**58,709**
**194,646**|
|---|---|---|
|||**312,320**|
Page 34
**(A company limited by guarantee)**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. Expenditure on raising funds (continued)**
## **Costs of raising voluntary income (continued)**
|Other costs
Apportioned costs
Wages and salaries
**Fundraising trading expenses**
Apportioned costs
Wages and salaries|_Unrestricted_
_funds_
_2021_
_£_
_32,676_
_59,705_
_194,593_
_286,974_
**Unrestricted**
**funds**
**2022**
**£**
1,826
6,052
7,878|_Total_
_funds_
_2021_
_£_
_32,676_
_59,705_
_194,593_|
|---|---|---|
|||_286,974_|
|||**Total**
**funds**
**2022**
**£**
**1,826**
**6,052**|
|||**7,878**|
Page 35
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. Expenditure on raising funds (continued) Fundraising trading expenses (continued)**
|Apportioned costs
Wages and salaries
**Other trading expenses**
MK Community Properties Ltd trading expenses
MK Community Properties Ltd staff costs
MK Community Properties Ltd depreciation|_Unrestricted_
_funds_
_2021_
_£_
_1,843_
_6,007_
_7,850_
**Unrestricted**
**funds**
**2022**
**£**
435,728
95,494
78,098
609,320|_Total_
_funds_
_2021_
_£_
_1,843_
_6,007_|
|---|---|---|
|||_7,850_|
|||**Total**
**funds**
**2022**
**£**
**435,728**
**95,494**
**78,098**|
|||**609,320**|
## **Other trading expenses (continued)**
|MK Community Properties Ltd trading expenses
MK Community Properties Ltd staff costs
MK Community Properties Ltd depreciation|_Unrestricted_
_funds_
_2021_
_£_
_357,146_
_138,171_
_74,347_
_569,664_|_Total_
_funds_
_2021_
_£_
_357,146_
_138,171_
_74,347_|
|---|---|---|
|||_569,664_|
Page 36
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **9. Investment management costs**
|Property costs
Loan interest payable
Apportioned costs
Wages and salaries
Property costs
Loan interest payable
Apportioned costs
Wages and salaries|**Unrestricted**
**funds**
**2022**
**£**
890,324
36,549
545
1,806
929,224
_Unrestricted_
_funds_
_2021_
_£_
_742,849_
_36,700_
_549_
_1,788_
_781,886_|**Total**
**funds**
**2022**
**£**
**890,324**
**36,549**
**545**
**1,806**|
|---|---|---|
|||**929,224**|
|||_Total_
_funds_
_2021_
_£_
_742,849_
_36,700_
_549_
_1,788_|
|||_781,886_|
## **10. Analysis of expenditure on charitable activities Summary by fund type**
||**Unrestricted**|**Restricted**||
|---|---|---|---|
||**funds**|**funds**|**Total**|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Grants awarded|1,781,830|1,399,130|**3,180,960**|
Page 37
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **10. Analysis of expenditure on charitable activities (continued)**
## **Summary by fund type (continued)**
||_Unrestricted_|_Restricted_||
|---|---|---|---|
||_funds_|_funds_|_Total_|
||_2021_|_2021_|_2021_|
||_£_|_£_|_£_|
|Grants awarded|_558,734_|_2,180,694_|_2,739,428_|
## **11. Analysis of expenditure by activities**
|Grants awarded
Grants awarded
**Analysis of direct costs**
Staff costs
Other costs
Apportioned costs|**Activities**
**undertaken**
**directly**
**2022**
**£**
312,100
_Activities_
_undertaken_
_directly_
_2021_
_£_
_363,363_|**Grant**
**funding of**
**activities**
**2022**
**£**
2,619,398
_Grant_
_funding of_
_activities_
_2021_
_£_
_2,105,166_|**Support**
**costs**
**2022**
**£**
249,462
_Support_
_costs_
_2021_
_£_
_270,900_
**Grants**
**awarded**
**2022**
**£**
124,224
122,470
65,406
312,100|**Total**
**funds**
**2022**
**£**
**3,180,960**|
|---|---|---|---|---|
|||||_Total_
_funds_
_2021_
_£_
_2,739,429_|
|||||**Total funds**
**2022**
**£**
**124,224**
**122,470**
**65,406**|
|||||**312,100**|
Page 38
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **11. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs (continued)**
|Staff costs
Other costs
Apportioned costs|_Grants_
_awarded_
_2021_
_£_
_124,384_
_176,083_
_62,896_
_363,363_|_Total_
_funds_
_2021_
_£_
_124,384_
_176,083_
_62,896_|
|---|---|---|
|||_363,363_|
Property costs shown here represent the cost of managing and maintaining our extensive property portfolio.
Costs that can be recognised as wholly attributable to one of the above categories are directly allocated. All other costs, including staff costs, are apportioned on the basis of an estimate of the time spent by each member of staff within the category. The allocation of staff time across various projects changes from year to year depending on the factors Identified and agreed by the Board. Staff costs have been apportioned as follows:
|Role|Cost of|Property|Fundraising|Investment|Charitable|Governance|
|---|---|---|---|---|---|---|
||rising|costs|trading|management|activities|costs|
||funds|||costs|support||
||||||costs||
|Chief Executive|10%|33%|-|1%|26%|30%|
|Director of Finance|21%|30%|1%|1%|4%|43%|
|Philanthropy Directors|79%|5%|-|-|11%|5%|
|Executive Assistant|10%|15%|-|-|9%|66%|
|Financial Controller|21%|-|4%|1%|35%|39%|
|Philanthropy Managers|49%|49%|-|1%|50%|-|
|Marketing Staff|58%|5%|6%|-|29%|2%|
|Conferencing Staff|-|100%|-|-|-|-|
|Administrative Assistants|12%|-|-|-|10%|78%|
Page 39
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **11. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Depreciation
Governance costs
Staff costs
Depreciation
Governance costs|**Grants**
**awarded**
**2022**
**£**
64,949
3,941
180,573
249,463
_Grants_
_awarded_
_2021_
_£_
_61,356_
_4,903_
_204,641_
_270,900_|**Total**
**funds**
**2022**
**£**
**64,949**
**3,941**
**180,573**|
|---|---|---|
|||**249,463**|
|||_Total_
_funds_
_2021_
_£_
_61,356_
_4,903_
_204,641_|
|||_270,900_|
## **12. Auditor's remuneration**
||**2022**|_2021_|
|---|---|---|
||**£**|_£_|
|Fees payable to the Company's auditor for the audit of the Company's|||
|annual accounts|**13,000**|_13,250_|
|Fees payable to the Company's auditor in respect of:|||
|All taxation advisory services not included above|**1,575**|_1,500_|
|All non-audit services not included above|**899**|_3,640_|
Page 40
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **13. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2022**
**£**
**533,916**
**56,849**
**24,629**
**615,394**|_Group_
_2021_
_£_
_596,072_
_55,917_
_16,832_
_668,821_|**Company**
**2022**
**£**
**438,422**
**56,849**
**24,629**
**519,900**|_Company_
_2021_
_£_
_457,901_
_55,917_
_16,832_|
|---|---|---|---|---|
|||||_530,650_|
The average number of persons employed by the Company during the year was as follows:
|Marketing and Fund Development
Charitable activities
Operations
Finance and Governance|**Group**
**2022**
**No.**
**4.0**
**6.0**
**4.0**
**5.3**
**19.3**|_Group_
_2021_
_No._
_4.0_
_5.0_
_5.9_
_5.5_|
|---|---|---|
|||_20.4_|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|_Group_|
|---|---|---|---|
|||**2022**|_2021_|
|||**No.**|_No._|
|In the band £70,001|- £80,000|**1**|_1_|
The total key management personnel of the parent charity comprise the Trustees and the Senior Executive Team, as disclosed on page 3. The employee benefits of the key management personnel were £285,057 (2021 - £283,148), including employer's national insurance of £28,040 (2021 - £27,616). The key management personnel for the group are the same as for the charity.
## **14. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2020 - £nil _)_ .
During the year ended 31 March 2022, travel expenses totalling _£_ nil were reimbursed or paid directly to Trustees _(2021 - £nil to_ no _Trustee)_ .
Page 41
**(A company limited by guarantee)**
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **15. Intangible assets**
|**Group and Company**
**Cost**
At 1 April 2021
Additions
Disposals
At 31 March 2022
**Amortisation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Website**
**£**
**34,577**
**17,000**
**(34,577)**|
|---|---|
||**17,000**|
||**34,577**
**1,063**|
||**1,063**|
||**15,937**|
||_-_|
The amortisation charge for the year is apportioned between expenditure on raising funds, grants made and property activity.
Page 42
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
|**16.**
**Tangible fixed assets**
**Group**
**Cost or valuation**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Office**
**equipment**
**£**
**925,802**
**29,408**|
|---|---|
||**955,210**|
||**727,869**
**80,976**|
||**808,845**|
||**146,365**|
||_197,933_|
The depreciation charge for the year is apportioned between expenditure on raising funds, grants made and property activity.
Page 43
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. Tangible fixed assets (continued)**
|**Company**
**Cost or valuation**
At 1 April 2021
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Office**
**equipment**
**£**
**40,650**|
|---|---|
||**40,650**|
||**34,979**
**2,878**|
||**37,857**|
||**2,793**|
||_5,671_|
The depreciation charge for the year is apportioned between expenditure on raising funds, grants made and property activity.
## **17. Investment property**
## **Group**
|**Valuation**
At 1 April 2021
Additions
(Deficit)/surplus on revaluation
At 31 March 2022|**Freehold**
**investment**
**property**
**£**
**38,741,666**
**875,000**
**(294,916)**
**39,321,750**|**Long term**
**leasehold**
**investment**
**property**
**£**
**1,775,000**
**-**
**358,000**
**2,133,000**|**Total**
**£**
**40,516,666**
**875,000**
**63,084**|
|---|---|---|---|
||||**41,454,750**|
Page 44
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **17. Investment property (continued)**
## **Company**
|**Valuation**
At 1 April 2021
Additions
(Deficit)/surplus on revaluation
At 31 March 2022|**Freehold**
**investment**
**property**
**£**
**27,214,916**
**875,000**
**(294,916)**
**27,795,000**|**Long term**
**leasehold**
**investment**
**property**
**£**
**1,775,000**
**-**
**358,000**
**2,133,000**|**Total**
**£**
**28,989,916**
**875,000**
**63,084**|
|---|---|---|---|
||||**29,928,000**|
The investment properties were valued at 31 December 2021 by external valuers, Kirby and Diamond, Chartered Surveyors, on the basis of open market value in accordance with the appraisal and valuation manual of the Royal Institution of Chartered Surveyors. The valuation approach is as described in the RICS Information Paper "Comparable Evidence in Property Valuation". The Trustees are of the opinion that there has been no material movement in value of these properties between that date and 31 March 2022.
The historical cost of the properties is £2,994,979 (2021 - £2,994,979).
|**18.**
**Fixed asset investments**
**Group**
**Cost or valuation**
At 1 April 2021
Additions
Disposals
Revaluations
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Listed**
**investments**
**£**
**18,650,804**
**91,375**
**(595,893)**
**1,557,429**|
|---|---|
||**19,703,715**|
||**19,703,715**|
||_18,650,804_|
Page 45
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **18. Fixed asset investments (continued)**
The historical cost of investments held at 31 March 2022 was £13,005,390 (2020 - £13,296,896).
|**Company**
**Cost or valuation**
At 1 April 2021
Additions
Disposals
Revaluations
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Investments**
**in**
**subsidiary**
**companies**
**£**
**400,001**
**-**
**-**
**-**
**400,001**
**400,001**
_400,001_|**Listed**
**investments**
**£**
**18,650,804**
**91,375**
**(595,893)**
**1,557,429**
**19,703,715**
**19,703,715**
_18,650,804_|**Total**
**£**
**19,050,805**
**91,375**
**(595,893)**
**1,557,429**
**20,103,716**
**20,103,716**
_19,050,805_|
|---|---|---|---|
## **Principal subsidiaries**
The following were subsidiary undertakings of the Company:
|**Names**|**Company**|**Principal activity**|**Class of**|**Holding**|
|---|---|---|---|---|
||**number**||**shares**||
|MK Community Properties Limited|2650530|Provider of Meeting|Ordinary £1|100%|
|||and Conference|shares||
|||Facilities and Small|||
|||Business Units.|||
|MKCP Limited|9466716||Ordinary £1|100%|
|||Dormant|share||
Page 46
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **18. Fixed asset investments (continued)**
The financial results of the subsidiaries for the year were:
|**Names**
MK Community Properties Limited
MKCP Limited
**19.**
**Social investments**
**Group and Company**
**Cost or valuation**
At 1 April 2021
**Net book value**
At 31 March 2022
At 31 March 2021|**Income**
**£**
**Expenditure**
**£**
**Profit/(Loss)**
**/ Surplus/**
**(Deficit) for**
**the year**
**£**
**458,590**
**(609,032)**
**(150,442)**
**-**
**-**
**-**|**Net assets**
**£**
**11,599,530**
**1**
**Social**
**Enterprise**
**project**
**£**
**10,000**|
|---|---|---|
|||**10,000**|
|||**10,000**|
The Community Foundation still holds a direct equity holding of £10,000 in Future Wolverton to help fund a social enterprise project in the city.
|**20.**
**Debtors**
**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2022**
**£**
**185,358**
**-**
**110,838**
**501,721**
**797,917**|_Group_
_2021_
_£_
_77,567_
_-_
_211,867_
_603,368_
_892,802_|**Company**
**2022**
**£**
**131,489**
**395,866**
**110,839**
**419,538**
**1,057,735**|_Company_
_2021_
_£_
_66,824_
_235,004_
_211,867_
_535,835_|
|---|---|---|---|---|
|||||_1,049,530_|
Page 47
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **20. Debtors (continued)**
Included in debtors is £nil (2021 - £51,589) relating to sales proceeds of Community Foundation Land which is due in more than one year.
## **21. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Grants accrued|**Group**
_Group_
**Company**
_Company_
**2022**
**£**
_2021_
_£_
**2022**
**£**
_2021_
_£_
**16,240**
_29,476_
**7,303**
_16,917_
**46,243**
_65,938_
**46,243**
_65,938_
**103,899**
_174,244_
**72,845**
_114,512_
**426,918**
_515,126_
**383,544**
_493,539_
**403,530**
_533,282_
**403,530**
_533,282_|
|---|---|
||**996,830**
_1,318,066_
**913,465**
_1,224,188_|
|Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods|**Group**
**2022**
**£**
_Group_
_2021_
_£_
**Company**
**2022**
**£**
_Company_
_2021_
_£_
**273,615**
_112,066_
**253,535**
_93,243_
**250,239**
_273,615_
**207,989**
_253,535_
**(273,615)**
_(112,066)_
**(253,535)**
_(93,243)_|
|---|---|
||**250,239**
_273,615_
**207,989**
_253,535_|
Deferred income represents rent and service charge income received in advance.
Page 48
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **22. Creditors: Amounts falling due after more than one year**
||**_Group_**|_Group_|**Company**|_Company_|
|---|---|---|---|---|
||**_2022_**|_2021_|**2022**|_2021_|
||**_£_**|_£_|**£**|_£_|
|Bank loans|**1,000,000**|_1,000,000_|**1,000,000**|_1,000,000_|
Included within the above are amounts falling due as follows:
|**Between two and five years**|||||
|---|---|---|---|---|
|Bank loans|**1,000,000**|_1,000,000_|**1,000,000**|_1,000,000_|
On 31 March 2015, as part of the group re-organisation, a loan was taken out with Handelsbanken for £1.25M. The loan was fixed at 2.06% for three years followed by a variable rate of 2.35% over 3M Libor for a further two years. At 31 March 2018 there was a break clause enabling the Community Foundation to repay the fixed loan without penalty. On 3 April 2018 the loan was renewed. Under the new loan agreement there is a loan of £1,000,000 which is on a fixed rate of 3.65% until maturity at 6 April 2021 and a loan of £250,000 which is on a variable rate of 2.42% over LIBOR over three years. The loan has been renewed for another 3 years post year end. The loan is secured by a fixed charge over Margaret Powell House, Acorn House and the units in Burners Lane, Stacey Bushes. The carrying value of these properties is £11,400,000 (2021 - £11,200,000).
## **23. Statement of funds**
## **Statement of funds - current year**
|**Designated**
**funds**
Property
**General funds**
Community
**Total**
**Unrestricted**
**funds**|**Balance at**
**Balance at 1**
**Transfers**
**Gains/**
**31 March**
**April 2021**
**Income Expenditure**
**in/out**
**(Losses)**
**2022**
**£**
**£**
**£**
**£**
**£**
**£**
**39,253,155**
**875,000**
**-**
**-**
**63,084**
**40,191,239**
**2,365,448**
**3,468,784**
**(3,640,571)**
**(24,875)**
**253,184**
**2,421,970**|
|---|---|
||**41,618,603**
**4,343,784**
**(3,640,571)**
**(24,875)**
**316,268**
**42,613,209**|
Page 49
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **23. Statement of funds (continued)**
|||||||**Balance at**|
|---|---|---|---|---|---|---|
||**Balance at 1**|||**Transfers**|**Gains/**|**31 March**|
||**April 2021**|**Income**|**Expenditure**|**in/out**|**(Losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Arts Fund|**478,994**|17,352|(28,585)|-|42,111|**509,872**|
|Sports Relef Fund|**2,341**|-|(2,200)|-|-|**141**|
|Margaret Powell|||||||
|(Grants)|**356**|-|-|-|-|**356**|
|MK DASS Fund|**349,817**|10,255|-|-|26,683|**386,755**|
|RDSM Fund|**284**|225|-|-|-|**509**|
|Women’s Fund|**37,153**|1,445|(152)|-|2,531|**40,977**|
|thecentre:mk Fund|**3,300**|-|(1,073)|-|-|**2,227**|
|NiftyLift Fund|**49,396**|1,389|(1,540)|-|3,613|**52,858**|
|Family Funds|**225,744**|46,915|(6,506)|8,500|17,208|**291,861**|
|Kara Hurley Memorial|||||||
|Fund|**318,811**|10,523|(9,625)|500|25,636|**345,845**|
|Grassroots Endowment|||||||
|Fund|**1,039,847**|30,999|(39,355)|-|80,660|**1,112,151**|
|Shoosmiths Fund|**1,233**|47|-|-|-|**1,280**|
|Surviving Winter|**9,828**|7,617|(1,731)|-|-|**15,714**|
|Local Giving|**116,293**|404,238|(444,372)|-|-|**76,159**|
|New Communities|||||||
|Funds|**228,040**|-|(18,745)|-|-|**209,295**|
|Jubilee Sports Fund|**348**|150|(87)|-|-|**411**|
|Community First EMC|**13,849,416**|415,517|(399,287)|3,500|1,065,501|**14,934,647**|
|Hopkinson Music Fund|**79,707**|2,322|-|-|6,041|**88,070**|
|Coventry Building|||||||
|Society Fund|**1**|-|-|-|-|**1**|
|VW Fund|**10,002**|16,360|(7,929)|-|-|**18,433**|
|Music Centre Fund|**10,365**|-|-|-|-|**10,365**|
|Business Leaders Fund|**6,989**|50|(3,845)|-|-|**3,194**|
Page 50
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **23. Statement of funds (continued)**
|||||||**Balance at**|
|---|---|---|---|---|---|---|
||**Balance at 1**|||**Transfers**|**Gains/**|**31 March**|
||**April 2021**|**Income**|**Expenditure**|**in/out**|**(Losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Big Local Conniburrow|||||||
|Fund|**38,398**|38,595|(43,450)|-|-|**33,543**|
|Great Linford Waterslide|||||||
|Festival Fund|**43,850**|1,382|-|-|3,596|**48,828**|
|Prevention of Crime|||||||
|Fund|**182**|-|-|-|-|**182**|
|Rainscourt Fund|**15,693**|-|(13,200)|-|-|**2,493**|
|Tony Byrne Financial|||||||
|Services Fund|**45,744**|950|(16,500)|-|2,471|**32,665**|
|Youth Social Action|||||||
|Fund|**13,273**|-|2,496|-|-|**15,769**|
|Bramwell Fund|**13,291**|10,000|(10,450)|-|-|**12,841**|
|Chichley Fund|**47,541**|6,901|(3,850)|-|2,807|**53,399**|
|ICAEW Social Mobility|||||||
|Fund|**1**|-|110|-|-|**111**|
|New City Fund|**10,963**|9,230|(2,301)|-|-|**17,892**|
|Tampon Tax Fund|**2,047**|-|-|-|-|**2,047**|
|National Lottery Fund|**10,700**|30,000|(40,700)|-|-|**-**|
|Olney Education Trust|**6,501**|-|-|-|-|**6,501**|
|Beadle Fund|**55,189**|23,801|(4,386)|10,000|3,637|**88,241**|
|MK Council 2050 Fund -|||||||
|Flowthrough|**31,047**|50,000|(55,722)|-|-|**25,325**|
|MK Council 2050 Fund -|||||||
|Endowment|**101,434**|3,275|-|-|8,523|**113,232**|
|Watercare Fund|**6,615**|-|-|-|-|**6,615**|
|TVP - Violent Crime|||||||
|Reduction|**24,888**|-|(24,840)|-|-|**48**|
|Covid 19 Emergency|||||||
|Response|**79,546**|10,170|(37,496)|-|-|**52,220**|
|MK Christian Centre|||||||
|Fund|**21,435**|5,321|(15,495)|-|-|**11,261**|
|Norman Hawes|||||||
|Memorial Trust|||||||
|Endowment|**137,023**|3,975|-|-|10,343|**151,341**|
|Norman Hawes|||||||
|Memorial Trust|||||||
|Flowthrough|**8,386**|-|-|-|-|**8,386**|
|NET Emergency|||||||
|Appeal|**389**|-|-|-|-|**389**|
Page 51
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **23. Statement of funds (continued)**
|9 Eons Limited
Anglian Water
Positive Difference
LEAP Fund
Net DCMS Fund
Covid 19 Recovery
Fund
DCMS Community
Match
Sick Mans Friend
MBS Fund - MK
MBS Fund - Bucks
Boswell Mental
Health Fund
ECOS Active - MK
DD McPhail
Personal Assurance
Trust
Next Generation
Fund
National Hockey
Fund
Routeco Fund
Refugee Crisis
Appeal
Torrin AM Fund
Limb Family Fund
Great Linford Fund
Arts Council Queens
Platinum Jubilee
Thrive Homes
**Total restricted**
**funds**
**Total of funds**|**Balance at**
**Balance at 1**
**Transfers**
**Gains/**
**31 March**
**April 2021**
**Income**
**Expenditure**
**in/out**
**(Losses)**
**2022**
**£**
**£**
**£**
**£**
**£**
**£**
**2,852**
10,000
(2,475)
-
-
**10,377**
**6,100**
-
-
-
-
**6,100**
**3,419**
7,000
(8,910)
-
-
**1,509**
**3,079**
-
1,212
-
-
**4,291**
**109,226**
50,993
(57,348)
-
-
**102,871**
**(2,375)**
-
-
2,375
-
**-**
**9,624**
-
-
-
-
**9,624**
**23,880**
(1,038)
(22,842)
-
-
**-**
**18,905**
(14,540)
(4,365)
-
-
**0**
**10,000**
2,976
(76)
-
454
**13,354**
**-**
26,000
(5,157)
-
-
**20,843**
**-**
25,000
(24,750)
-
-
**250**
**-**
10,000
(5,500)
-
-
**4,500**
**-**
1,560
(31)
-
-
**1,529**
**-**
100,000
(4,950)
-
-
**95,050**
**-**
10,000
(3,300)
-
-
**6,700**
**-**
9,321
(67)
-
-
**9,254**
**-**
2,139
-
-
(108)
**2,031**
**-**
8,143
-
-
2,538
**10,681**
**-**
2,955
-
-
-
**2,955**
**-**
29,755
(29,755)
-
-
**0**
**-**
15,000
-
-
-
**15,000**|
|---|---|
||**17,717,111**
**1,454,268**
**(1,399,130)**
**24,875**
**1,304,245**
**19,101,369**|
||**59,335,714**
**5,798,052**
**(5,039,701)**
**-**
**1,620,513**
**61,714,578**|
Page 52
# **MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **23. Statement of funds (continued)**
Milton Keynes Community Foundation maintains a number of separate funds, the movements in which are detailed in this note and the net assets of which are analysed in note 25. Monies held in funds can be either flow-through (monies donated in one year are spent in the next along with any investment income earned) or endowment (monies are held in the fund until the fund reaches an agreed level at which time the annual income on the fund balance is spent).
Details of the funds are as follows:
## **Unrestricted fund**
This fund is the main fund of the Community Foundation into which the majority of donations are made. Most grants are paid out of this fund and the majority of the administration costs are borne by this fund. Interest and investment income is added to this fund as earned.
## **Designated funds**
This fund represents the net book value of the freehold and leasehold properties owned by the group, less mortgages raised to purchase properties, together with a reserve towards future property maintenance.
## **Restricted funds**
Details of the various restricted funds can be found on our website.
## **Statement of funds - prior year**
|**Designated**
**funds**
Property
**General funds**
Community
**Total**
**Unrestricted**
**funds**|_Balance at_
_1 April 2020_
_£_
_51,046,314_
_2,123,596_
_53,169,910_|_Income_
_£_
_-_
_1,952,476_
_1,952,476_|_Balance at_
_Transfers_
_Gains/_
_31 March_
_Expenditure_
_in/out_
_(Losses)_
_2021_
_£_
_£_
_£_
_£_
_-_
_-_
_(11,793,159)_
_39,253,155_
_(2,205,108)_
_(12,579)_
_507,063_
_2,365,448_|
|---|---|---|---|
||||_(2,205,108)_
_(12,579)_
_(11,286,096)_
_41,618,603_|
Page 53
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **23. Statement of funds (continued)**
|||||||**Balance at**|
|---|---|---|---|---|---|---|
||**Balance at 1**|||**Transfers**|**Gains/**|**31 March**|
||**April 2020**|**Income**|**Expenditure**|**in/out**|**(Losses)**|**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Arts Fund|388,190|19,209|(11,665)|-|83,259|**478,994**|
|Sport Relief Fund|2,341|-|-|-|-|**2,341**|
|Margaret
Powell|||||||
|(Grants)|356|-|-|-|-|**356**|
|MK DASS Fund|287,017|10,042|-|-|52,758|**349,817**|
|RSM Fund|1,013|281|(1,011)|-|-|**284**|
|Women's Fund|29,049|4,089|(990)|-|5,005|**37,153**|
|Thecentre:mk Fund|4,950|-|-|(1,651)|-|**3,300**|
|NiftyLift Fund|41,605|3,143|(2,200)|(297)|7,145|**49,396**|
|Family Funds|154,458|42,575|(7,581)|9,245|27,047|**225,744**|
|Kara Hurley|||||||
|Memorial Fund|262,416|10,879|(5,500)|500|50,516|**318,811**|
|Grassroots|||||||
|Endowment Fund|878,715|30,354|(22,083)|(6,616)|159,477|**1,039,847**|
|Shoosmiths Fund|1,429|43|(239)|-|-|**1,233**|
|Surviving Winter|28,065|7,760|(1,652)|(24,345)|-|**9,828**|
|Open University|||||||
|Fund|221|-|-|(221)|-|**-**|
|Local Giving|77,502|465,149|(426,357)|-|-|**116,293**|
|New Communities|||||||
|Funds|231,304|-|(3,264)|-|-|**228,040**|
|Jubilee Sports Fund|4,605|300|(4,557)|-|-|**348**|
|Community First|||||||
|EMC|11,603,162|490,963|(336,907)|(47,693)|2,139,890|**13,849,416**|
|Hopkinson Music|||||||
|Fund|65,492|2,273|-|-|11,942|**79,707**|
|Coventry Building|||||||
|Society Fund|1|-|-|-|-|**1**|
|VW Fund|11,391|10,000|(11,389)|-|-|**10,002**|
|Music Centre Fund|10,128|-|-|237|-|**10,365**|
|Business Leaders|||||||
|Fund|14,730|-|(7,741)|-|-|**6,989**|
|Big Local|||||||
|Conniburrow Fund|38,933|84,000|(84,535)|-|-|**38,398**|
|Great Linford|||||||
|Waterslide Festival|||||||
|Fund|38,065|1,353|-|(2,676)|7,108|**43,850**|
|Prevention of Crime|||||||
|Fund|4,441|-|(1,650)|(2,609)|-|**182**|
|Rainscourt Fund|8,443|6,250|1,000|-|-|**15,693**|
|Tony Byrne|||||||
|Financial Services|||||||
|Fund|34,151|8,383|(1,100)|-|4,310|**45,744**|
Page 54
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **23. Statement of funds (continued)**
|||||||**Balance at**|
|---|---|---|---|---|---|---|
||**Balance at 1**|||**Transfers**|**Gains/**|**31 March**|
||**April 2020**|**Income**|**Expenditure**|**in/out**|**(Losses)**|**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Youth Social|||||||
|Action Fund|13,273|-|-|-|-|**13,273**|
|Bramwell Fund|4,188|13,886|
(4,783)|-|-|**13,291**|
|Chichley Fund|38,522|6,862|
(3,328)|-|5,484|**47,541**|
|ICAEW Social|||||||
|Mobility Fund|21,106|-|(9,041)|(12,064)|-|**1**|
|Netherfield|||||||
|Children Centre|||||||
|Legacy Fund|1|-|-|(1)|-|**-**|
|New City Fund|5,821|5,210|
(68)|-|-|**10,963**|
|Tampon Tax Fund|2,015|32|-|-|-|**2,047**|
|National Lottery|||||||
|Fund|175,700|-|(165,000)|-|-|**10,700**|
|Olney Education|||||||
|Trust|6,501|-|-|-|-|**6,501**|
|Beadle Fund|45,764|1,704|
(1,231)|-|8,952|**55,189**|
|MK Council 2050|||||||
|Fund -|||||||
|Flowthrough|127,113|50,000|
(46,066)|(100,000)|-|**31,047**|
|MK Council 2050|||||||
|Fund -|||||||
|Endowment|-|772|-|100,000|662|**101,434**|
|Watercare Fund|6,615|-|-|-|-|**6,615**|
|TVP - Violent|||||||
|Crime Reduction|34,500|-|(9,612)|-|-|**24,888**|
|Covid 19|||||||
|Emergency|||||||
|Response|50,498|129,476|
(201,196)|100,768|-|**79,546**|
|MK Christian|||||||
|Centre Fund|28,795|-|(7,360)|-|-|**21,435**|
|Norman Hawes|||||||
|Memorial Trust|||||||
|Endowment|127,000|3,866|
-|-|6,157|**137,023**|
|Norman Hawes|||||||
|Memorial Trust|||||||
|Flowthrough|-|8,386|-|-|-|**8,386**|
|NET Emergency|||||||
|Appeal|-|325,088|
(324,699)|-|-|**389**|
|9 Eons Limited|-|10,000|(7,148)|-|-|**2,852**|
|Anglian Water|||||||
|Positive|||||||
|Difference|-|19,200|
(13,100)|-|-|**6,100**|
|LEAP Fund|-|39,999|(36,581)|-|-|**3,419**|
|Net DCMS Fund|-|145,489|(142,410)|-|-|**3,079**|
|Covid 19|||||||
|Recovery Fund|-|150,000|(40,774)|-|-|**109,226**|
|MK Food Support|-|157,000|(157,000)|-|-|**-**|
|DCMS|||||||
|Community Match|-|79,500|(81,875)|-|-|**(2,375)**|
Page 55
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **23. Statement of funds (continued)**
|Sick Mans Friend
MBS Fund - MK
MBS Fund -
Bucks
Boswell Mental
Health Fund
**Total restricted**
**funds**
**Total funds**|**Balance at**
**Balance at 1**
**Transfers**
**Gains/**
**31 March**
**April 2020**
**Income**
**Expenditure**
**in/out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
-
9,624
-
-
-
**9,624**
-
23,880
-
-
-
**23,880**
-
18,905
-
-
-
**18,905**
-
10,000
-
-
-
**10,000**|
|---|---|
||**14,909,588**
**2,405,926**
**(2,180,694)**
**12,579**
**2,569,712**
**17,717,111**|
||**68,079,498**
**4,358,402**
**(4,385,802)**
**-**
**(8,716,384)**
**59,335,714**|
## **23. Summary of funds**
## **Summary of funds – current year**
|**Designated**
**funds**
**General funds**
**Restricted**
**funds**||**Balance at 1**
**April 2021**
**£**
**39,253,155**
**2,365,448**
**17,717,111**|**Income**
**£**
**875,000**
**3,468,784**
**1,454,268**|**Expenditure**
**£**
**-**
**(3,640,571)**
**(1,399,130)**|**Transfers**
**in/out**
**£**
**-**
**(24,875)**
**24,875**|**Gains/**
**(Losses)**
**£**
**63,084**
**253,184**
**1,304,245**|**Balance at**
**31 March**
**2022**
**£**
**40,191,239**
**2,421,970**
**19,101,369**|
|---|---|---|---|---|---|---|---|
|||**59,335,714**|**5,798,052**|**(5,039,701)**|**-**|**1,620,513**|**61,714,578**|
## **Summary of funds – prior year**
|**Designated**
**funds**
**General funds**
**Restricted**
**funds**|**Balance at**
**Balance at 1**
**Transfers**
**Gains/**
**31 March**
**April 2020**
**Income**
**Expenditure**
**in/out**
**(Losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**51,046,314**
**-**
**-**
**-**
**(11,793,159)**
**39.253.155**
**2,123,596**
**1,952,476**
**(2,205,108)**
**(12,579)**
**507,063**
**2,365,448**
**14,909,588**
**2,405,926**
**(2,180,694)**
**12,579**
**2,569,712**
**17,717,111**|
|---|---|
||**68,079,498**
**4,358,402**
**(4,385,802)**
**-**
**(8,716,384)**
**59,335,714**|
Page 56
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **25. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Investment property
Social investments
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|**Unrestricted**
**Restricted**
**Total**
**funds**
**2022**
**£**
**funds**
**2022**
**£**
**funds**
**2022**
**£**
146,365
-
**146,365**
15,937
-
**15,937**
602,346
19,101,369
**19,703,715**
41,454,750
-
**41,454,750**
10,000
-
**10,000**
2,380,641
-
**2,380,641**
(996,830)
-
**(996,830)**
(1,000,000)
-
**(1,000,000)**|
|---|---|
||42,613,209
19,101,369
**61,714,578**|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Fixed asset investments
Investment property
Social investments
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|_Unrestricted_
_funds_
_2021_
_£_
_Restricted_
_funds_
_2021_
_£_
_Total_
_funds_
_2021_
_£_
_197,933_
_-_
_197,933_
_3,365,949_
_15,284,855_
_18,650,804_
_40,516,666_
_-_
_40,516,666_
_10,000_
_-_
_10,000_
_(153,879)_
_2,432,256_
_2,278,377_
_(1,318,066)_
_-_
_(1,318,066)_
_(1,000,000)_
_-_
_(1,000,000)_|
|---|---|
||_41,618,603_
_17,717,111_
_59,335,714_|
Page 57
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **26. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the year (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Amortisation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease in debtors
Increase/(decrease) in creditors
Donated land site
**Net cash provided by/(used in) operating activities**
**27.**
**Analysis of cash and cash equivalents**
Cash in hand
**28.**
**Analysis of changes in net debt**
Cash at bank and in hand
Debt due after 1 year|of Financial
**At 1 April**
**2021**
**£**
**1,385,575**
**(1,000,000)**
**385,575**|**Group**
**2022**
**£**
**2,378,864**
**80,976**
**1,063**
**(1,620,513)**
**(595,759)**
**94,885**
**(321,236)**
**(875,000)**|_Group_
_2021_
_£_
_(8,743,784)_
_113,712_
_-_
_8,716,384_
_(625,842)_
_171,902_
_371,057_
_-_|
|---|---|---|---|
|||**(856,720)**|_3,429_|
|||**Group**
**2022**
**£**
**1,582,724**
**Cash flows**
**£**
**197,149**
**-**
**197,149**|_Group_
_2021_
_£_
_1,385,575_
**At 31 March**
**2022**
**£**
**1,582,724**
**(1,000,000)**
**582,724**|
Page 58
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
|**29.**
**Grant commitments**
Analysis of grants made
Voluntary groups and
charities
Individuals
Total|Unrestricted
funds
Restricted
funds
Big Local
Conniborrow
Local Giving
Total
£
£
£
£
£
-
916,908
38,595
404,238
1,359,741
-
-
-
-
-|
|---|---|
||-
916,908
38,595
404,238
1,359,741|
A complete list of all grant recipients for the year can be found on our website.
## **Reconciliation of grants payable**
|Grants to Voluntary Groups and Charities
Grants through Local Giving
Big Local Conniburrow Project
Grants to Individuals
Commitments at 1 April
Commitments made in the year
Grants cancelled or recovered
Grants payable for the year
Grants paid during the year
Commitments at 31 March
Commitments at 31 March are payable as
follows:
Within one year
After one year|2022
£
916,908
404,238
38,595
-|£
1,359,741
533,282
1,359,741
(1,489,493)|2021
£
1,734,228
426,357
84,535
9,000|£
2,254,120
336,104
2,358,289
(2,161,111)|
|---|---|---|---|---|
||1,376,220
(16,479)||2,376,514
(18,225)||
||||||
|||403,530||533,282|
|||403,530
-||533,282
-|
|||403,530||533,282|
## **30. Pension commitments**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund managed by Royal London on behalf of the organisation. The pension cost charge represents contributions payable by the group to the fund and amounted to £24,629 (2021 - £16,832). There were no contributions payable to the fund at the balance sheet date (2021 - £nil).
Page 59
**MILTON KEYNES COMMUNITY FOUNDATION LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **31. Operating lease commitments**
At 31 March 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**Group**
**2022**
**£**
**16,470**
**7,841**
**24,311**|_Group_
_2021_
_£_
_71,652_
_28,354_
_100,006_|**Company**
**2022**
**£**
**7,057**
**7,057**
**14,114**|_Company_
_2021_
_£_
_38,185_
_7,057_|
|---|---|---|---|---|
|||||_45,242_|
## **32. Contingent liabilities**
Under the arrangements surrounding the transfer on 27 November 1992 of certain properties from English Partnerships, previously known as the Commission for the New Towns, the group is under a contractual obligation to repay amounts to English Partnerships ("clawback") in respect of the net capital gains arising on certain disposals or change of use in relation to either Community Related Assets (certain industrial units at Kiln Farm, Stacey Bushes and Number 56 Buckingham Street Wolverton) or Community Foundation Land sites (32 undeveloped and 1 developed).
Based on the open market value, as at 31 March 2022 the total potential liability for the clawback was £12,086,750 (2021 - £13,343,155). No provision has been made for deferred tax that may arise if the properties were sold in the future. It is the Trustees' opinion that no tax would arise on a future sale of the properties as any profits from such sale would be distributed via Gift Aid to the company's charitable parent Milton Keynes Community Foundation from its subsidiary company, MK Community Properties Limited. Milton Keynes Community Foundation is part of a VAT group with its subsidiary, MK Community Properties, and is therefore jointly liable for any VAT debts of MK Community Properties Limited.
## **33. Indemnity insurance**
The group has purchased insurance for the Trustees and staff of the charity and the directors of the subsidiary company, MK Community Properties Limited, against liability arising for wrongful acts in relation to the charity and its wholly owned subsidiary. The cost of this insurance amounts to £1,641 (2021 - £1,706).
Page 60
## **MILTON KEYNES COMMUNITY FOUNDATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **34. Related party transactions**
A number of Trustees, as well as being individual members of the Community Foundation, are associated with organisations that are corporate members of the Community Foundation. Total individual donations received from Trustees in the year amounted to £1,605 (2021 - £1,605). Neither the Trustees nor their associated organisations derive any benefit as a ressult of their membership of the Community Foundation.
Furthermore, as mentioned previously in this report, the Community Foundation is also able to support the not-for-profit sector in Milton Keynes through the provision of properties that are let on preferential terms. The amount of this subsidy, the difference between the full commercial rental and the subsidised rent paid by the not-for-profit sector tenants, is in excess of £1,260,000 per annum for the year to 31 March 2022 (2021 - £1,220,000).
During the year Milton Keynes Community Foundation Limited charged rent and service charges to MK Community Properties Limited in the sum of £266,772 (2021 - £261,798). Milton Keynes Community Foundation Limited purchased room hire and catering services from MK Community Properties Limited during the year amounting to £nil (2021 - £nil). These transactions have been removed on consolidation.
During the year, grants totalling £60,000 (2021 - £nil) were awarded to MK Gallery Enterprises (of which K Chadwick, a Trustee, is a director), grants totalling £nil (2021 - £110,000) were awarded to MK Gallery (of which C Baume, a Trustee, was a trustee), grants totalling £3,100 (2021 - £5,000) were awarded to Worktree (of which J Sinclair and P Zumbika-Lwanga, Trustees, are trustees) and grants totalling £nil (2021 - £8,250) were awarded to Trubys Garden Tea Rooms (of which Mrs K Mirza, a Trustee, is a Trustee). There was £60,000 outstanding owed to the related party at the year end (2021 - £80,000).
## **35. Financial instruments**
||Group|Group|Company|Company|
|---|---|---|---|---|
||2022|2021|2022|2021|
||£|£|£|£|
|Financial assets|||||
|Financial assets measured at fair value|1,582,724|18,660,804|1,310,343|18,660,804|
|through income and expenditure|||||
Financial assets measured at fair value through income and expenditure comprise of the listed and social investments.
Page 61