## **COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **REPORT AND CONSOLIDATED FINANCIAL STATEMENTS**
**31st MARCH 2024**
**Company Number: 02050929 Charity number: 295263**
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Contents**
|||Page|
|---|---|---|
|Charity Information||1|
|……………………………………………………………………………………….|||
|Trustees' Report||2 – 7|
|…………………………………………………………………..……………………|||
|Independent Auditors' Report|8 – 11||
|…………………………………………………...……………..………………….…|||
|Consolidated (and Parent) Statement of Financial Activities||12|
|……………………………………………………………………………………….|||
|Consolidated Balance Sheet|13 – 14||
|……………………………………………………………………………………….|||
|Consolidated Cash Flow Statement||15|
|……………………………………………………………………………………….|||
|Notes to the Consolidated Financial Statements…………………………………….….|16 – 31||
## **Community Connex Limited Financial Year Ended 31[st] March 2024 Charitable Company Information**
## **Directors:**
A Verma Chair H Paterson (Ms) Vice Chair B Pritchard Treasurer R Amin (Ms) A Dawson (Left 24 October 2023) D House S Mukne A Robinson (Ms) R Tailor
## **Key Management Personnel:**
D. Pillay Chief Executive and Company Secretary A Davies (Ms) Deputy Chief Executive H A Chilemba Director of Finance & Resources (Interim) – to 30 June 2023 C Kamaray Director of Finance – from 3 July 2023
## **Reference and Administrative Details:**
Charity Commission Registration Number: 0295263 Companies House Registration Number: 02050929
## **Registered Office:**
3 Jardine House, Harrovian Business Village, Bessborough Road, Harrow HA1 3EX.
## **Auditors:**
Calculus Assurance Services, 5 Priory Road, Loughton, IG10 1AF.
## **Bankers:**
Lloyds Bank Plc, 286 - 288, Station Road, Harrow, HA1 2EB. NatWest Bank, 81 Uxbridge Road, Hatch End, Pinner, HA5 4JN.
## **Lenders:**
Charity Bank, Fosse House, 182 Hight Street, Tonbridge, TN9 1BE.
## **Solicitors:**
Walter Wilson Richmond, 360B Station Road, Harrow, HA1 2DE.
Page 1
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
**Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
## **INTRODUCTION**
## **Financial statements**
The Trustees (who are also the directors for the purposes of company law) present their report (which incorporates the Directors’ Report as required by company law) and the audited financial statements of the charity for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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).
## **ACHIEVEMENTS AND PERFORMANCE**
## **Key Priorities and achievements:**
The activities and deliverables in our 3-year Business Plan 2022-2025 were focussed on consolidation; maintaining the range and quality of our services; investing in our workforce, developing our management teams and capacity; investing in our governance and support infrastructure, including: HR, IT and more agile systems to effectively manage our developing business. Recurring themes of leadership, empowerment, personalized services, investment in change and growth run throughout the priorities
The direction and actions we have taken were set with the purpose of continuing to build a stronger, resilient and sustainable organisation that is able to respond proactively to the current challenges and opportunities ahead.
Our key priorities are:
- Consolidating then growing our services and community presence
- Robust governance and effective financial management
- An empowered people resource
## **Consolidating then growing our services and community presence**
- During this financial year, we have continued to extend our children and young people services in Hillingdon and Harrow by providing a range of breaks and activities during school holidays and weekends through the Holiday, Activities and Food (HAF) programme. This programme is funded by the Department of Education, to offer eligible children and young people access to holiday activities and a nutritious meal during the Easter, Summer, and Christmas School Holidays.
- Our People Connex Service, which runs inclusive activity programmes to prevent loneliness and social isolation, has extended its reach to South Hillingdon and West Hertfordshire.
- We have retained our existing care and support services, with some growth in the number of clients and hours of support provided.
- The Engagement Team has grown with the addition of a new initiative ‘My Community’, an initiative designed to support people with learning disabilities to engage more in their community.
Page 2
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
**Robust governance and effective financial management**
- We have embedded the process of reviewing our Trustee skills requirements; and implemented key areas for their development.
- We have completed the consolidation of our key processes and systems. Invested in greater digitisation of the service transforming some key functions of the business bringing greater accountability and improved quality.
- We have implemented a revised and enhanced management structure across Finance, administration and HR teams.
## **An empowered people resource**
- We are proud that our staff team represents the rich diversity and make-up of our client base.
- We have fully implemented and embedded our HR structure, which included investment in qualified HR professionals.
- We have seen improvements in our recruitment and retention of staff.
- We have implemented an enhanced benefits package for employees, including Health Cash Plan, Blue Light Discount package, and salary sacrifice opportunities.
- We have invested and delivered a Management and Leadership Programme for 15 operational managers improving their capability and skill set.
- We have invested in IT (information technology) improvements (replacement of laptops, and a new server system), improved data capability.
- We continue to invest in mandatory and sector specific training for our front-line staff.
- The external review of our Advocacy services by National Development Team for Inclusion (NDTi) led to us retaining our Quality Performance Mark for a further 3 years.
- We are now an accredited ‘sponsoring employer’ for health and social care visas to attract international talents.
Campaigning and ensuring the voices of the people we serve are heard is at the heart of our organisation.
We continue to work to influence the local and regional agenda through our active participation in key strategic forums and groups.
We have ensured that individuals voices are heard as members of the Learning Disability and Autism Strategic Focus Group.
## **Our key priorities moving forward will continue to build on our work to date, including:**
- We have grown our Advocacy services by securing in April 2024 two new contracts in Luton and Oxfordshire. Our priority is to establish and develop these services over the coming year.
- To retain existing contracts and services whilst broadening our client base and geographical reach.
- We have further extended our Children’s and Young People’s services and been awarded a contract as part of a Dynamic Procurement Framework to deliver services in Ealing. This year we will be focused on setting up and delivering after school clubs, weekend and holiday activities and establishing our community presence in Ealing.
- Further review of our engagement and campaigning strategies.
- Engagement and development of our staff so they continue to play key role in delivering our services and achieving growth.
Page 3
**COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
## **FINANCIAL REVIEW**
The group’s total income for the year was £2.43m compared to £3.00m in the previous year, a decrease of 19%. Overall expenditure was £2.70m compared to £2.75m the previous year, a slight decrease of 2%. Consequently, the overall results for the year are a deficit of £0.27m compared to a surplus of £0.24m in the previous year.
The decrease of 19% in income is mainly from a significant drop in donations and legacies of £0.23m or 45% and a drop of £0.39m or 17% in income from our core services.
The parent company’s fundraising activities cost £94K (2023: £81K) (Note 8b) and brought in income from events £149K (2023: £200K) (Note 6).
## **RESERVES**
## **Unrestricted Funds**
The Directors’ policy is to aim to build up uncommitted reserves to a level equivalent to 6 months current running costs. This is to safeguard and underwrite Community Connex Limited’s continuing activities and meet its contractual obligations in the event of a reduction or cut in our income. At the year-end, the total funds were £2.099m with £1.383m designated to meet our current obligations, including our existing freehold and leasehold obligations to our Jardine House office and our Pinner Green centres. However restricted funds were overdrawn by £89K and a transfer of this sum has had to be made from unrestricted reserves. Designated funds amounting to £1,383K, represent approximately six months operating expenses.
## **Restricted Funds**
These funds are given for specific projects and cannot be utilised to fund shortfalls in the general charity income. Any surpluses remaining after a project has finished are required to be returned to the funding body.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
Community Connex Limited was incorporated 29 August 1986 as a company limited by guarantee and not having any share capital. The company is also registered as a charity with the Charity Commission. The charity's objects, powers, board and membership details are contained within the company's Memorandum and Articles of Association, as revised on 28 March 2018, which is the governing document. Community Connex Limited changed its name from Harrow Mencap by Special Resolution of the members on 16 March 2021 and the change of name was registered with Companies House on 16 April 2021.
## **Objects**
Community Connex Limited's objects as set out in its Memorandum and Articles of Association are:
The Objects of the Charity are, for the public benefit:
- In particular to relieve the need of those with a learning disability but also for the relief of persons with a need arising from age, disability or other disadvantage giving rise to a charitable need by the provision of help and support for them and for their families, dependents and carers; and
Page 4
**COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
**Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
- To provide or assist in the provision of facilities for the recreation or other leisure time occupation, in particular for those with a learning disability but also for people who have need thereof arising from age, disability or other disadvantage giving rise to a charitable need, with the object of improving their conditions of life.
## **Public Benefit**
We have set out in this report the main activities undertaken by the organisation in order to carry out the charity’s aims for the public benefit as set out in its Memorandum. In doing so, we have had due regard to the public benefit guidance published by the Charity Commission.
## **Custodian Trustee arrangements**
The Board is a corporate trustee of a trust initially established to fund care for an ex-client of the organisation.
## **Management**
The charity is managed by the Executive team following delegated authorities set out in standing orders and financial regulations approved by the board. The standing orders contain board member rules, staff appointments, procedures for board and committees, financial control procedures. The financial regulations contain detailed rules on the financial management and control of the charity.
The Chief Executive and the Executive Team manage the charity’s operations. The charity currently has three senior leaders as set out on page 1 ‘Charitable Company Information’.
The remuneration of the Chief Executive is set by the board, taking into consideration the organisation’s financial position and other factors including comparative salaries in the sector and advice from specialist recruitment consultants working in the charity sector. Amounts paid in the year are included in Note 11.
Recruitment of Directors/Trustees
- Potential candidates meet with the Chair & the Chief Executive/Company Secretary
- Skills and qualities of potential directors are matched with the job description & person specification
- Successful candidates have a Disclosure Barring Service (DBS) check, sign a declaration of eligibility and disqualification, code of conduct, become a member of Community Connex Ltd., attend a Board meeting to be formally elected with full voting rights.
- Identify training, support needs and review sessions and send an appointment form to Companies House.
## **Directors'/Trustees’ responsibilities in relation to the financial statements**
The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, the trustees are required to:
Page 5
**COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP 2019 (FRS 102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Compliance with laws and regulations**
The trustees have established policies and procedures designed to ensure that it complies with all material laws and regulations in relation to the charitable company's operations and activities. The trustees after enquiring of staff are not aware of any significant non-compliance with laws and regulations.
## **Risk Management**
The major risks to the charity include government policies around budget cuts, reliance on short term funding and risks associated with the organisational structure. The Senior Leadership Team with input from operational staff continuously conduct reviews of the risks to which the charity is exposed and produce systems and procedures to manage those risks, and report on newly identified and significant risks to the board during the year.
## **Volunteers**
Community Connex Limited has always valued and used volunteers in carrying out various activities. In the year just ended, we made a significant use of volunteers in charitable income generating activities. However, we have not included volunteer time as a gift in kind in the accounts.
## **Related Parties and connected charities**
Community Connex Limited is affiliated to the national Mencap charity but is constituted as a separate independent charity. All trustees and senior staff complete a declaration of interests form at the time of appointment which is updated annually for any changes. From these declarations potential related parties can be identified. Transactions with related parties are detailed in Note 24.
## **Fundraising Standards Information**
Community Connex Limited employs one full time community fundraising manager and two part time community fundraising officers (equivalent to a 1.80 FTE post). These community fundraisers specialize in tin collections at local supermarkets and organizing community events and activities for donations from attendees. We also work with external bid writers in applying for trusts & foundations grants, lottery funds and government commissioning contracts.
Page 6
**COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Report of the Trustees (including the Directors’ Report) for the Year Ended 31st March 2024**
Community Connex Limited complies with the Fundraising Code of Practice regulations that came into effect in October 2019 and conducts our fundraising efforts accordingly. There were no reported incidents of regulation breach or complaints made about any of our fundraisers.
In line with our GDPR and safeguarding policies, we only make direct fundraising appeals to attendees of our community events and activities who have freely given us consent. An unsubscribe button was available on every email appeal to allow for easy and instant termination of messages at the recipient’s request. Our social media-based campaigns are of non-financial option to support our work through spreading the word or volunteering, so the community is made aware of other valuable ways to get involved. Social media users can easily un-follow or temporarily mute such campaign posts from our charity.
Donations are received from members of the public and attendees to our community events either via cash collecting tins or via an envelope to the administration office/community fundraising manager. Community Connex Limited seeks to protect vulnerable people by not directing fundraising to specific individuals, monitoring amounts received from individuals and refusing excessive donations from vulnerable individuals. Where staff receiving or monitoring donations from individuals are concerned that the level of giving is disproportionate to their circumstances, they will refer this to the safeguarding team to review.
## **Statement of disclosure of information to auditors**
We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:
- There is no relevant audit information of which the charitable company’s auditor is unaware; and
- We have taken all steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Appointment of auditors**
The trustees approved a resolution in January 2024 proposing that Calculus Assurance Services be re-appointed as external auditor of the charity for the financial year 2023-24. The trustees had initially, after a tender process, appointed Calculus Audit Services (which changed its name in March 2022 to Calculus Assurance Services) as external auditor for three years commencing with the year ended 31 March 2019. Thereafter, a resolution proposing re-appointment of Calculus Assurance Services was put to the Board every year until another tender process is carried out.
## **Small company exemptions**
The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.
This report was approved by the Board of Trustees on 24 October 2024 and signed on its behalf, by:
………………………………………..
> **A Verma, Chair**
Page 7
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Independent Auditor’s Report to the Trustees of Community Connex for the Year Ended 31 March 2024**
## **Opinion**
We have audited the financial statements of Community Connex Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the consolidated and parent company statement of financial activities, consolidated and parent company balance sheet and the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group and parent charitable company’s affairs as at 31 March 2024, 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, the Charities Act 2011 and the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008.
## **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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have undertaken the audit in accordance with the requirements of the FRC Ethical Standards including FRC Ethical Standard section 6 – Provisions Available for Audits of Small Entities, in the circumstances set out in Note 9) to the financial statements.
## **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 and 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.
## **Other information**
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover
Page 8
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Independent Auditor’s Report to the Trustees of Community Connex for the Year Ended 31 March 2024**
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.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the trustees’ report is inconsistent in any material respect with the financial statements: or
- sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ 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 directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 5 to 6 the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor responsibilities for the audit of the financial statements**
We have been appointed auditor under section 151 of the Charities Act 2011 and report in accordance with this Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
Page 9
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Independent Auditor’s Report to the Trustees of Community Connex for the Year Ended 31 March 2024**
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:
- Obtaining an understanding of the laws and regulations that have a direct effect on the charity in carrying out its operations or have an impact on the financial statements. The key laws and regulations we identified included the Charities Act 2011, the Companies Act 2006, the Care Act 2014 (and regulations made under these Acts), safeguarding (in respect of children and vulnerable adults), health and safety legislation and employment legislation. This assessment has informed our sample testing of transactions and balances.
- Understanding the system of internal control (established by the trustees) in place to prevent and detect fraud.
- Enquiring of management and those charged with governance if there have been any breaches or non-compliance with laws and regulations and their knowledge of any potential litigation or claims against the charity and any suspected or actual incidents of fraud and where applicable an estimate of the financial impact.
- Reviewing the minutes of the Trustee Board meetings for evidence of non-compliance with laws and regulations and suspected or actual fraud.
- Reviewing the financial statement disclosures and checking supporting documentation to assess compliance with applicable laws and regulations.
- Carried out audit testing of journal entries and other adjustments and the rationale supporting significant judgemental areas in the financial statements and accounting estimates for evidence of management bias or override of controls.
Due to 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of
Page 10
## **COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Independent Auditor’s Report to the Trustees of Community Connex for the Year Ended 31 March 2024**
the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
_5 Priory Road Loughton_ …………………………………. _IG10 1AF Calculus Assurance Services, Statutory Auditor Date: …………………….._
_Calculus Assurance Services is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006_
Page 11
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2024**
||**2024**
**2023**|
|---|---|
||**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**Total**
**funds**
**Total**
**funds**
**Total**
**funds**|
|**Note**
**Income**
Donations and legacies
4
Charitable activities
5
Other - activities for generating funds
6
Investments
6
**Total income**
**Expenditure**
Charitable activities
7-9
Cost of generating funds
7-9
Governance costs
7-9
**Total expenditure**
Realised gains / (losses) on investments
Unrealised gains / (losses) on investments
**Net income / (expenditure)**
10
Transfers between funds
**Other recognised gains / (losses):**
Gains / (losses) on revaluation of fixed
assets
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
Revaluation Reserve
Restricted fund arising on
consolidation
**Total funds carried forward**|**Group**
**Parent**
**Group**
**Parent**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
238
40
278
271
504
476
1,898
0
1,898
1,898
2,289
2,289
232
0
232
232
200
200
18
0
18
18
3
3|
||**2,386**
**40**
**2,426**
**2,419**
**2,996**
**2,968**|
||2,457
129
2,586
2,586
2,638
2,638
101
0
101
94
107
81
8
0
8
8
8
7|
||**2,566**
**129**
**2,695**
**2,688**
**2,753**
**2,726**|
||0
0
0
0
0
0
0
0
0
0
0
0
**(180)**
**(89)**
**(269)**
**(268)**
**243**
**242**
(89)
89
0
0
0
0
0
0
0
0
0
0|
||**(269)**
**0**
**(269)**
**(268)**
**243**
**242**|
||2,000
0
2,000
1,990
1,757
1,748|
||1,731
0
1,731
1,722
2,000
1,990
340
0
340
340
0
0
0
28
28
0
28
0|
||**2,071**
**28**
**2,099**
**2,062**
**2,028**
**1,990**|
The notes on pages 16 to 31 form an integral part of these financial statements.
Page 12
## **COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Balance Sheet/Statement of Financial Position as at 31 March 2024**
Company Number: 02050929
|**Note**
**Fixed assets**
Tangible assets
14
Investments
**Total fixed assets**
**Current assets**
Debtors
15
Cash at bank
**Total current assets**
**Liabilities**
Creditors falling due within one year
16
**Net current assets**
**Total assets less current liabilities**
Creditors falling due after more than one
year
18
**Net assets**
**The funds of the charity:**
19
Restricted income funds
19a
Other restricted funds
19a
Designated funds
19b
Unrestricted funds
19b
Revaluation Reserve
19b
Other group funds
19b
**Total charity funds**|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
953
952
644
643
0
0
0
0|
|---|---|
||**953**
**952**
**644**
**643**|
||314
333
379
403
1,230
1,173
1,484
1,420|
||**1,544**
**1,506**
**1,863**
**1,823**|
||(257)
(255)
(229)
(226)|
||**1,287**
**1,251**
**1,634**
**1,597**|
||**2,240**
**2,203**
**2,278**
**2,240**
(141)
(141)
(250)
(250)|
||**2,099**
**2,062**
**2,028**
**1,990**|
||0
0
0
0
28
0
28
0
1,383
1,383
1,138
1,138
339
339
852
852
340
340
0
0
9
0
10
0|
||**2,099**
**2,062**
**2,028**
**1,990**|
For the year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006;
Directors' responsibilities:
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 Section 1A and the Charities SORP (FRS 102).
Page 13
## **COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee) COMPANY NUMBER: 02050929**
## **Balance Sheet/Statement of Financial Position as at 31 March 2024**
These financial statements set out on pages 12 to 31 were approved and authorised for issue by the Trustees on 24 October 2024 and signed on their behalf by:
………………………………………….
## **A Verma, Chair**
The notes on pages 16 to 31 form an integral part of these financial statements.
Page 14
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Consolidated Cash Flow Statement for the Year Ended 31 March 2024**
||**Note**|**2024**|**2023**|
|---|---|---|---|
|||**£' 000**|**£' 000**|
|**Cash flows from operating activities**||||
|Net cash provided by (used in) operating activities|i|(136)|328|
|||**(136)**|**328**|
|**Cash flows from investing activities:**||||
|Dividends and interest from investments||18|3|
|Proceeds on sale of vehicles||17|0|
|Purchase of property, plant and equipment||(21)|(1)|
|**Net cash provided by (used in) investing activities**||**14**|**2**|
|**Cash flows from financing activities:**||||
|Loan interest paid||(18)|(16)|
|Repayments of borrowing||(114)|(18)|
|**Net cash provided by (used in) financing activities**||**(132)**|**(34)**|
|||||
|**Change in cash & cash equivalents in the reporting period**||**(254)**|**296**|
|Cash and cash equivalents at start of the reporting period||1,484|1,188|
|**Cash and cash equivalents at end of the reporting period**||**1,230**|**1,484**|
|**Note i**||||
|Net movement in funds||(269)|243|
|Depreciation||16|43|
|Dividends and interest from investments||(18)|(3)|
|Interest payable||18|16|
|Net Loss/(Gain) on disposal of non-current assets||18|0|
|Decrease /(increase) in debtors||66|92|
|Increase / (decrease) in creditors||33|(63)|
|Net cash inflow from operating activities||**(136)**|**328**|
The notes on pages 16 to 31 form an integral part of these financial statements.
Page 15
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **1. Accounting Policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **Basis of preparation**
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 the Small Companies and Groups (Accounts and Directors Reports) Regulation 2008 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000.
The Charity has availed itself of paragraph 3(3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities.
## **Basis of Consolidation**
The consolidated financial statements have been prepared using the acquisition method of accounting where the results of subsidiary undertakings are included from the date of acquisition (when the parent obtains control) and inter group transactions are eliminated on consolidation.
## **Going concern**
The charity is dependent upon grant funding and purchase of personal support services. While these sources of income are highly likely to continue for the foreseeable future, there is a risk that some grants will not be renewed beyond their current term. Taking all factors into consideration the trustees have concluded that the charity remains a going concern, and no material uncertainties exist.
## **Income**
Membership subscriptions, donations and fundraising income are accounted for when received by the company.
Other income is accounted for on an accruals basis as far as is prudent to do so. Income included any income tax recoverable thereon. It is the charity's policy to show income before deduction of expenses except where otherwise stated.
## **Government Grants**
Grants income received from the Department of Health, the London Borough of Harrow and others are detailed in notes 4 and 5. These are accounted for on a performance basis, unless they are related to a specific time period, when the grant is accounted for on an accrual basis.
## **Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
## **Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects.
Page 16
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs of delivering services & other activities together with their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support the charity's activities. These costs have been allocated to expenditure on charitable activities. The bases on which support costs have been allocated are set out in Note 8.
## **Operating leases**
The charity classifies lease agreements for premises and printing and other equipment as operating leases; the title to the equipment remains with the lessor and the equipment is replaced before the end of its economic life. Rental charges are charged on a straight-line basis over the term of the lease.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
- Freehold buildings: Depreciated over 50 years, straight line method
- Other property, plant and equipment: 20% on cost
- No depreciation is provided on freehold land.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and cash 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.
## **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Financial instruments**
The charity 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.
## **Goodwill**
Goodwill purchased during the year is classified as an asset and amortised on a straight-line basis over its useful economic life, which is based on the financial forecast used to justify the acquisition, or written off against reserves.
Page 17
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **Pensions**
Employees are automatically enrolled into a defined contributions pension scheme operated by The Peoples Pension. Employees can subsequently opt out. Employees joining the scheme, contract directly with the pension company. Pre-existing pension arrangements for the chief executive with St James' Place continue alongside The Peoples Pension, other staff arrangements with Clerical Medical and Aviva were transferred to the Peoples Pension.
The charity makes a matching contribution of 1% of qualifying earnings to this pension scheme and acts as agent in collecting and paying over employee pension contributions. The contributions made for the accounting period are treated as an expense and were £67,170 (2023: £65,187).
## **2. Legal status of the charity**
Community Connex Limited is a charitable private company limited by guarantee incorporated in England under the Companies Act 2006. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are to promote care, treatment and education for children and adults with a learning disability and to secure provisions and services commensurate with their needs.
## **3. Key Judgement Areas**
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
Where income is received for specific projects that income is recognised when the project is delivered unless the income is specific to certain expenditure for example salary costs or purchase of equipment, in which case the income is recognised when the expenditure is incurred.
All financial instruments are basic instruments.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Useful economic lives of fixed assets have been compared to past experience or in relation to buildings and significant components therein, on recommended life cycle replacement period.
Bad debt provisions are based on past experience for personal debtors while amounts receivable from local authorities and health authorities are regarded as recoverable in full unless a specific query has been lodged which is provided against in full.
Page 18
## **COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **4. Income from donations and legacies**
|**Note**
Gifts and donations
Grants (see below)
**A**
Subscriptions
Gift
Aid donation
from
subsidiary
Grants receivable
**A**
- Restricted
- Unrestricted|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
13
13
116
116
265
258
388
360
0
0
0
0
0
0
0
0|
|---|---|
||**278**
**271**
**504**
**476**|
||40
40
44
44
225
218
344
316|
||**265**
**258**
**388**
**360**|
All income from donations and legacies were unrestricted (2023 - all unrestricted).
## **5. Income from charitable activities**
|Contractual receipts:
Access & Advocacy Services
Care Act Services
Together (Day Care) Services
Children & Youth Services
Others
All unrestricted
**6. Other Income**
Fundraising events
Other Income
Interest
Gain on Disposals
All unrestricted|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
310
310
487
487
433
433
664
664
998
998
929
929
157
157
209
209
0
0
0
0|
|---|---|
||1,898
1,898
2,289
2,289|
||**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
149
149
200
200
83
83
0
0|
||232
232
200
200
18
18
3
3
0
0
0
0|
||250
250
203
203|
Within Fundraising and events, the Fundraising Target was £102,000 (2023: £50,000).
Page 19
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **7. Analysis of expenditure**
|**Current year**|**Note**|**Charitable**
**activities**|**Costs of**
**generating**
**funds**|**Governance**
**costs**|**Total**
**Group**|**2024**
**Parent**|
|---|---|---|---|---|---|---|
|||**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|
|Staffing costs|11|1,908|75|0|1,983|1,983|
|Administration||678|19|0|697|697|
|Other Costs||0|7|0|7|0|
|||**2,586**|**101**|**0**|**2,687**|
**2,680**|
|Governance|9|0|0|8|8|8|
|||**2,586**|**101**|**8**|**2,695**|
**2,688**|
|**Analysis between**|**restricted and unrestricted expenditure:**||||||
|Restricted||129|0|0|129|129|
|Unrestricted||2,457|101|8|2,566|2,559|
|||**2,586**|**101**|**8**|**2,695**|
**2,688**|
|**Prior year**|**Note**|**Charitable**|**Costs of**|**Governance**||**2023**|
|||**activities**|**generating**|**costs**|**Total**|**Parent**|
||||**funds**||**Group**||
|||**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|
|Staffing costs|11|2,086|67|0|2,153|2,153|
|Administration||552|14|0|566|566|
|Other Costs||0|26|0|26|0|
|||**2,638**|**107**|**0**|**2,745**|
**2,719**|
|Governance|9|0|0|8|8|7|
|||**2,638**|**107**|**8**|**2,753**|
**2,726**|
|**Analysis between**|**restricted and unrestricted expenditure:**||||||
|Restricted||320|0|0|320|320|
|Unrestricted||2,318|107|8|2,433|2,406|
|||**2,638**|**107**|**8**|**2,753**|
**2,726**|
Expenditure on charitable activities was £2.586m (2023: £2.638m) of which £2.457m was unrestricted (2023: £2.318m) and £0.129m was restricted (2023: £0.320m).
Page 20
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **8 a) Summary analysis of expenditure and related income for charitable activities (group and parent company)**
This table shows the cost of the four core charitable services plus general services
|**Current year**|**Access &**
**Advocacy**
**Services**|**Care Act**
**Services**|**Together**
**(Day**
**Care)**
**Services**|**Children**
**& Youth**
**Services**|**Support**
**Services**|**Total**
**2024**|**Total**
**2023**|
|---|---|---|---|---|---|---|---|
||**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|
|Staffing costs|281|449|439|122|617|1,908|2,086|
|Other direct costs|10|4|211|8|
445|678|552|
|Allocation of||||||||
|Support Services|173|243|558|88|
(1,062)|0|0|
|**Total Expenditure**||||||||
|**on Charitable**|**464**|**696**|**1,208**|**218**|**0**|
**2,586**|
**2,638**|
|**Activities**||||||||
|**Prior year**|**Access &**
**Advocacy**
**Services**|**Care Act**
**Services**|**Together**
**(Day**
**Care)**
**Services**|**Children**
**& Youth**
**Services**|**Support**
**Services**|**Total**
**2023**|**Total**
**2022**|
||**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|**£' 000**|
|Staffing costs|438|591|360|114|583|2,086|2,108|
|Other direct costs|33|4|192|5|
318|552|529|
|Allocation of||||||||
|Support Services|191|261|366|83|
(901)|0|0|
|**Total Expenditure**||||||||
|**on Charitable**|**662**|**856**|**918**|**202**|**0**|
**2,638**|
**2,637**|
|**Activities**||||||||
## **8 b) Summary analysis of cost of generating funds (group and parent company)**
|**Current year**
Staffing costs
Administration
Other Costs|**Raising**
**Funds**
**Other**
**General**
**Support**
**2024**
**2023**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
75
0
75
67
19
0
19
14
0
7
7
26|
|---|---|
||**94**
**7**
**101**
**107**|
Page 21
**COMMUNITY CONNEX LIMITED (A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
|**Prior year**
Staffing costs
Administration
Other Costs|**Raising**
**Funds**
**Other**
**General**
**Support**
**2023**
**2022**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
67
0
67
47
14
0
14
0
0
26
26
2|
|---|---|
||**81**
**26**
**107**
**49**|
## **9 Analysis of governance costs**
|Auditors' remuneration including
expenses and benefits in kind:
- Audit Services|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
8
8
8
7|
|---|---|
||**8**
**8**
**8**
**7**|
In common with many entities of similar size and organisation, we use our auditors to assist with preparing the annual financial statements.
## **10. Net income/(expenditure) for the year**
|**Net income/(expenditure) for the**
**year**
**This is stated after charging:**
Operating leases
Depreciation
Loss on disposal of fixed assets
Mortgage interest payable
Audit fees - Current Year
- Other services
Exceptional item: purchase of
goodwill|**2024**
**Group**
**Parent**
**£' 000**
**£' 000**
**(269)**
**(268)**
145
145
16
16
18
18
18
18
8
8
0
0
0
0|**2023**
**Group**
**Parent**
**£' 000**
**£' 000**
**243**
**242**|
|---|---|---|
|||145
145
43
43
0
0
16
16
7
7
1
0
0
0|
||**205**
**205**|**212**
**211**|
Page 22
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
**Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **11. Analysis of staffing costs, trustee remuneration and expenses, and the cost of key management personnel**
|Salaries and wages
Social security costs
Pension costs
Other staffing costs|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£' 000**
**£' 000**
**£' 000**
**£' 000**
1,703
1,703
1,863
1,863
136
136
153
153
67
67
65
65
77
77
72
72
**1,983**
**1,983**
**2,153**
**2,153**|
|---|---|
Employees who had pay and benefits in excess of £60,000 are detailed below. Pension costs are allocated to activities in proportion to the related staffing costs incurred.
|||**2024**||||**2023**|||
|---|---|---|---|---|---|---|---|---|
||**Group**||**Parent**||**Group**||**Parent**||
|Between £60,000 and £70,000||||||1||1|
|Between £90,000 and £100,000|||||||||
|Between £100,000 and £110,000||||||1||1|
|Between £110,000 and £120,000||1||1|||||
The charity trustees were neither paid nor received any other benefits from employment with the charity or its subsidiary in the year (2023: £nil) neither were they reimbursed expenses during the year (2023: £nil).
The key management personnel of the charity comprise the trustees and the Chief Executive Officer and senior management team. The total employee benefits (including employer pension contribution but excluding employer national insurance) of the key management personnel of the charity were £296,378 (2023: £223,624).
## **12. Staff numbers**
The average monthly head count was 98 staff (2023: 114 staff) and the average monthly number of full-time equivalent employees (including casual and part-time staff) during the year were as follows:
|Community care services
Management and administration
**Full time equivalent**|**2024**
**Group**
**Parent**
**Number**
**Number**
75
73
23
22
**98**
**95**
**70**
**70**|**2023**
**Group**
**Parent**
**Number**
**Number**
88
86
26
25|
|---|---|---|
|||**114**
**111**|
|||**82**
**82**|
## **13. Corporate taxation**
Page 23
**COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Page 24
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **14. Tangible fixed assets**
|**Group and Parent**
**Company**
**Cost/Valuation**
Balance as at 1.4.23
Additions
Disposals
Revaluation Adjustment
**Balance as at 31.3.24**
**Depreciation**
Balance as at 1.4.23
Charged for year
Disposals
Revaluation Adjustment
**Balance as at 31.3.24**
**Net book value 31.3.24**
**Net book value 31.3.23**
**Parent Company**
**Cost/Valuation**
Balance as at 1.4.23
Additions
Disposals
Revaluation Adjustment
**Balance as at 31.3.24**
**Depreciation**
Balance as at 1.4.23
Charged for year
Disposals
Revaluation Adjustment
**Balance as at 31.3.24**
**Net book value 31.3.24**
**Net book value 31.3.23**||**Freehold**
**Freehold**
**Computer**
**Fixtures**
**Motor**
**Total**
**Land**
**Buildings**
**& IT**
**& Fittings**
**Vehicles**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
255
616
272
246
115
1,504
0
0
10
11
0
21
0
0
(249)
(136)
(84)
(469)
85
(21)
0
0
0
64
**340**
**595**
**33**
**121**
**31**
**1,120**
0
264
249
235
113
860
0
12
2
2
0
16
0
0
(226)
(125)
(83)
(434)
0
(276)
0
0
0
(276)
**0**
**0**
**25**
**112**
**30**
**167**
**340**
**595**
**8**
**9**
**1**
**953**
**255**
**352**
**23**
**11**
**2**
**644**
**Freehold**
**Freehold**
**Computer**
**Fixtures**
**Motor**
**Total**
**Land**
**Buildings**
**& IT**
**& Fittings**
**Vehicles**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
255
616
271
246
115
1,503
0
0
10
11
0
21
0
0
(249)
(136)
(84)
(469)
85
(21)
0
0
0
64|
|---|---|---|
||||
||||
||||
||||
||||
||||
|||**340**
**595**
**32**
**121**
**31**
**1,119**|
|||0
264
249
235
113
860
0
12
2
2
0
16
0
0
(226)
(125)
(83)
(434)
0
(276)
0
0
0
(276)|
|||**0**
**0**
**25**
**112**
**30**
**167**|
|||**340**
**595**
**7**
**9**
**1**
**952**|
|||**255**
**352**
**22**
**11**
**2**
**643**|
The freehold office at 3 Jardine House is pledged as security for a long-term loan from Charity Bank. Revaluation - The freehold office (Land and building) held at current value was revalued on 19 August 2024, reflecting the revised carrying book value of £935,000 (freehold land £340,000 and freehold building £595,000) at 31 March 2024. The valuation was carried out externally and independently by Sneller Commercial (Chartered Surveyors) of Teddington, Middlesex to reflect the freehold interest of the property for financial reporting purposes, in accordance with UK GAAP - FRS 102 ‘Fair Value’ valuation, and in accordance with the methodologies and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors (RICS) Valuation - Global Standards (effective 31st January 2022). ‘Fair Value’ is consistent with the definition of Market Value. Revaluations will be carried out generally every five years, except where there has been significant work on the property, with the freehold building value depreciated over its remaining useful life – no depreciation on freehold land.
Investments in subsidiary companies are detailed in Note 27.
Page 25
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **15. Debtors**
|**Amounts falling due within one year**
Trade debtors
Bad debt Provision
Amount owed by group undertaking
Prepayments and accrued income
Other Debtors
Legacy
**16. Creditors**
**Amounts falling due within one year**
Loan due within one year
Trade creditors
Amount owed to group undertaking
Accruals and deferred income
Pension contributions
Tax and social security
Other creditors|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
259
253
361
359
(3)
(3)
(13)
(13)
0
25
0
26
55
55
28
28
3
3
3
3
0
0
0
0|
|---|---|
||**314**
**333**
**379**
**403**|
||**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
11
11
16
16
71
69
58
55
0
0
0
0
133
133
107
107
7
7
9
9
32
32
35
35
3
3
4
4|
||**257**
**255**
**229**
**226**|
## **17. Deferred income**
Deferred income comprises amounts received from grant and funding bodies that relate to income awarded relating to the following financial year.
|Balance at 1.4.23
Amount released to income earned
from charitable activities
Amount deferred in year|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
30
30
57
57
(30)
(30)
(57)
(57)
125
125
30
30|
|---|---|
||**125**
**125**
**30**
**30**|
Page 26
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **18. Creditors: amounts falling due after more than one year**
The mortgage is secured on the charity's office. The mortgage is repayable over 25 years at an initial variable interest rate of 6.4%. The mortgage interest rate was reduced in October 2023 from 9.00% to 8.22%
||||**2024**||**2023**|||
|---|---|---|---|---|---|---|---|
||||**Group**|**Parent**|**Group**
**Parent**|||
||||**£'000**|**£'000**|**£'000**
**£'000**|||
|Bank loans|||141|141|250|250||
|**Total secured liabilities**|||**152**|**152**|**266**|**266**||
|**19. Analysis of Charitable funds**||||||||
|**19a) Analysis of**|**movements in restricted**||**funds:**|||||
|**Current year**|**Note**|**Balance**|**Incoming**|**Resources**|**Transfers**|**Investment**|**Funds**|
|||**1.4.23**|**Resources**|**Expended**|**to/from**|**gain/(loss)**|**31.3.24**|
||||||**restricted**|||
||||||**funds**|||
|**Restricted funds:**||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|Restricted income fund||0|40|(129)|89|
0|0|
|Other: arising on consolidation||28|0|0|0|
0|28|
|Restricted funds||**28**|**40**|**(129)**|**89**|
**0**|**28**|
|**Unrestricted funds:**||||||||
|General reserve|19(b)|2,000|2,386|(2,566)|(89)|0|1,731|
|Revaluation Reserve||0|0|0|0|
340|340|
|Total funds||**2,028**|**2,426**|**(2,695)**|**(0)**|**340**|**2,099**|
|**Prior year**||**Balance**|**Incoming**|**Resources**|**Transfers**|**Investment**|**Funds**|
|||**1.4.22**|**Resources**|**Expended**|**to/from**|**gain/(loss)**|**31.3.23**|
||||||**restricted**|||
||||||**funds**|||
|**Restricted funds:**||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|Restricted income fund||50|109|(320)|161|
0|0|
|Other: arising on consolidation||28|0|(0)|0|
0|28|
|Restricted funds||**78**|**109**|**(320)**|**161**|
**0**|**28**|
|**Unrestricted funds:**||||||||
|General reserve|19(b)|1,707|2,885|(2,431)|(161)|0|2,000|
|Revaluation Reserve||0|0|0|0|
0|0|
|||**1,785**|**2,994**|**(2,751)**|**0**|
**0**|**2,028**|
The designated funds are being released over the term of the lease, loan and useful economic life of the asset.
Page 27
## **COMMUNITY CONNEX LIMITED**
## **(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **19b) Analysis of movements in Unrestricted funds:**
|**Current year**
**Parent company**
General fund
Revaluation Reserve
**Designated funds:**
Freehold land/property
Research & Development
Asset Replacement
Operating Reserve
Stakeholder
engagement
Lease Reserve
Software Development
**Other group**
**company**
**Prior year**
**Parent company**
General fund
Revaluation Reserve
**Designated funds:**
Freehold land/property
Research & Development
Asset Replacement
Operating Reserve
Stakeholder
engagement
Lease reserve
Software Development
**Other group**
**company**|**Balance**
**Incoming**
**Resources**
**Transfers**
**Investment**
**Funds**
**1.4.23**
**Resources**
**Expended**
**to/from**
**gain/(loss)**
**31.3.24**
**funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
852
2,321
(2,386)
(448)
0
339
0
0
0
0
340
340
341
0
(114)
(75)
0
152
30
0
0
(30)
0
0
52
0
0
111
0
163
525
0
0
0
0
525
25
0
0
0
0
25
90
0
0
353
0
443
75
0
0
0
0
75|
|---|---|
||**1,138**
**0**
**(114)**
**359**
**0**
**1,383**|
||10
65
(66)
0
0
9|
||**2,000**
**2,386**
**(2,566)**
**(89)**
**340**
**2,071**|
||**Balance**
**Incoming**
**Resources**
**Transfers Investment**
**Funds**
**1.4.22**
**Resources**
**Expended**
**to/from**
**gain/(loss)**
**31.3.23**
**funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
569
2,859
(2,406)
(170)
0
852
0
0
0
0
0
0
332
0
0
9
0
341
30
0
0
0
0
30
52
0
0
0
0
52
525
0
0
0
0
525
25
0
0
0
0
25
90
0
0
0
0
90
75
0
0
0
0
75|
||**1,129**
**0**
**0**
**9**
**0**
**1,138**|
||9
26
(25)
0
0
10|
Page 28
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
|**Notes to the Consolidated Financial**|**Statements**|**for the Year**|**Ended 31 March 2024**||
|---|---|---|---|---|
|**1,707**|**2,885**|**(2,431)**|**(161)**
**0**|**2,000**|
## **Funds Definitions**
**Name of designated fund Description, nature and purposes of the fund:** Freehold premises This fund represents the charity's outstanding loan balance for its freehold offices at 3 Jardine House, which is therefore not available to fund charitable activities. Research and development fund This fund represents amounts designated to research opportunities to further the charity's objects. This fund represents amounts designated to replace equipment and IT Asset replacement fund across the charity. Operating reserve fund This fund represents amounts designated to support operating cash flow in the event of changes in funding. Stakeholder engagement fund This fund represents amounts designated to further engage with our stakeholders in meeting the charity's objects. Lease reserve fund This fund represents the unexpired lease commitment in respect of the Pinner Green centres, CEDARS and the Scout Hub. Software development fund This fund represents amounts designated to fund software development to improve operating efficiencies, compliance with care quality standards and maintaining client privacy.
## **20. Analysis of Group Net Assets between funds**
|**Current year**
Tangible fixed assets
Cash at bank and in hand
Other net current
assets/(liabilities)
Creditors of more than one year
**Net Assets**
**Prior year**
Tangible fixed assets
Cash at bank and in hand
Other net current
assets/(liabilities)
Creditors of more than one year
**Net Assets**|**Unrestricted Unrestricted**
**Restricted**
**Total**
**Funds**
**Designated**
**Funds**
**Funds**
**2024**
**£'000**
**£'000**
**£'000**
**£'000**
725
228
0
953
47
1,156
28
1,230
57
0
0
57
(141)
0
0
(141)|
|---|---|
||**688**
**1,383**
**28**
**2,099**|
||**Unrestricted Unrestricted**
**Restricted**
**Total**
**Funds**
**Designated**
**Funds**
**Funds**
**2023**
**£'000**
**£'000**
**£'000**
**£'000**
228
416
0
644
734
722
28
1,484
150
(0)
0
150
(250)
(0)
0
(250)|
||**862**
**1,138**
**28**
**2,028**|
Page 29
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
**Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **21. Financial Instruments**
Financial instruments measured at amortised cost comprise the mortgage provided by Charity Bank Limited to the charity secured on the freehold land and buildings at 3 Jardine House, Harrovian Business Village, Bessborough Road, Harrow, HA1 3EX which had a revalued carrying value at 31 March 2024 of £935,000 (cost - £607,079 at 31 March 2023). The initial mortgage of £450,000 (issued in May 2008) is repayable over 25 years. The interest rate was reduced in October 2023 from 9.00% to 8.22%.
|Mortgage repayable - less than 1 year
Mortgage repayable - within 1 to 2 years
Mortgage repayable - within 2 to 5 years
Mortgage repayable in over 5 years
**Financial Assets**
**Financial assets**
**measured at**
**amortised cost**
Trade debtors (net of bad debts provision)
Other debtors
Cash and cash equivalents
**Total financial assets**
**Financial Liabilities**
**Financial liabilities**
**measured at**
**amortised cost**
Trade creditors
Other creditors
Mortgage payable
**Total financial liabilities**|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
11
11
16
16
18
18
17
17
59
59
59
59
64
64
174
174|
|---|---|
||**152**
**152**
**266**
**266**|
||**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
256
250
348
346
58
83
31
57
1,230
1,173
1,484
1,420|
||**1,544**
**1,506**
**1,863**
**1,823**|
||**2024**
**2023**
**Group**
**Group**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
71
69
58
55
175
175
155
155
152
152
266
266|
||**397**
**396**
**479**
**476**|
Page 30
**(A Company Limited by Guarantee)**
## **COMMUNITY CONNEX LIMITED**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **22. Operating leases**
|Land and buildings which expire:
Within one year
Between 1 and 2 years
Between 2 and 5 years
More than 5 years
Other Equipment which expire:
Within one year
Between 1 and 2 years
Between 2 and 5 years
More than 5 years|**2024**
**2023**
**Group**
**Parent**
**Group**
**Parent**
**£'000**
**£'000**
**£'000**
**£'000**
91
91
51
51
93
93
51
51
259
259
41
41
0
0
0
0|
|---|---|
||**443**
**443**
**143**
**143**|
||68
68
42
42
55
55
30
30
40
40
18
18
0
0
0
0|
||**163**
**163**
**90**
**90**|
The totals above represent the total future minimum lease payments under non-cancellable operating leases.
## **23. Capital Commitments – Group and Parent Company**
|**3. Capital Commitments – Group and Parent Company**|||||
|---|---|---|---|---|
||**2024**||**2023**||
||**£'000**||**£'000**||
|Capital expenditure that has been contracted for but has not||0||0|
|been provided for in the financial statements|||||
|Capital expenditure that has been authorised by the Board||0||0|
|but has not yet been contracted for|||||
## **24. Related Party Transactions**
Avis Robinson (Ms) is the controlling director of KCL Communications Limited (KCL) a PR and communications agency and also a trustee of Community Connex Limited. Community Connex Limited has an arrangement with KCL to provide her with desk space at 3 Jardine House in exchange for public relations and communications services. KCL pays for incidental services such as telephone, use of the photocopier and printer. From Community Connex Limited’s perspective the desk space is surplus to requirements so there is no cost associated with providing it, and the benefit of “free” press release drafting etc. far outweighs the cost of providing the desk space.
## **25. Ultimate controlling party**
The charity is controlled by its trustees meeting together.
Page 31
**COMMUNITY CONNEX LIMITED**
**(A Company Limited by Guarantee)**
## **Notes to the Consolidated Financial Statements for the Year Ended 31 March 2024**
## **26. Subsequent events**
The trustees were not aware of any other post balance sheet events at the date of approval of the financial statements and accordingly there are no related provisions.
## **27. Investments in subsidiary companies**
**Name Type** Enterprise Wellness Limited Limited by guarantee (Company Registration Number: 01689903)
## **Control**
Exercised by appointment of directors
## **Year ended 31 March 2024:**
|**Balance Sheet**
Assets
Liabilities
**Net assets**
**Shareholders' Funds**|**Profit & Loss Account**
**£'000**
**£'000**
63
Turnover
65
(27)
Expenditure
(66)
**36**
**36**
**Profit/(Loss) for**
**the Year**
**(1)**|**Profit & Loss Account**
**£'000**
**£'000**
63
Turnover
65
(27)
Expenditure
(66)
**36**
**36**
**Profit/(Loss) for**
**the Year**
**(1)**|
|---|---|---|
||||
|||**(1)**|
## **Year ended 31 March 2023:**
|**Balance Sheet**
Assets
Liabilities
**Net assets**
**Shareholders' Funds**|**Profit & Loss Account**
**£'000**
**£'000**
66
Turnover
70
(29)
Expenditure
(69)
**37**
**37**
**Profit/(Loss) for**
**the Year**
**1**|**Profit & Loss Account**
**£'000**
**£'000**
66
Turnover
70
(29)
Expenditure
(69)
**37**
**37**
**Profit/(Loss) for**
**the Year**
**1**|
|---|---|---|
||||
|||**1**|
Page 32