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2021-12-31-accounts

Charity registration number 0517248

Company registration number 01816907 (England and Wales)

WHERE NEXT ASSOCIATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

WHERE NEXT ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees' Ms P Brook
Ms J Edmondson
Ms M Raine
Mr R Read (Treasurer)
Mr T D Twynam
Mr J Williams
Ms L Sandford
Ms P Wheatcroft
Secretary Mr M Gilbert (CEO)
Charity number 0517248
Company number 01816907
Registered office Wellesbourne Close
Easemore Road
Redditch
B98 8ER
Independent examiner Jerroms
Lumaneri House
Blythe Gate
Blythe Valley Park
Solihull
West Midlands
B90 8AH
Solicitors Harris Cooper Browning
10 Market Place
Redditch
Worcestershire
B98 9AA

WHERE NEXT ASSOCIATION

CONTENTS

Page
Chairman's statement 1 - 3
Trustees' report 4 - 9
Independent examiner's report 10
Statement of financial activities 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

WHERE NEXT ASSOCIATION

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

Another eventful year has passed at Where Next – the very happy faces of our clients, the grateful and supporting words of parents and careers plus our super team of staff and volunteers make it all very worthwhile. Without the superb support of Donors, Worcestershire County Council and Redditch Borough Council and all our other equally valuable stakeholders it would not be possible. Thank you to you all.

As I write this in the summer of 2022 in some respects it is very similar to 2020 and 2021. We continue to operate under the Governments Health and Social Care Covid rules and guidelines. We continue today, much as we did throughout 2021, to operate in “bubbles”, with staff being tested for Covid twice a week. This operates like a welloiled machine which is an enormous credit to the management, all the staff and our internal processes and procedures. As society emerged from the Covid restrictions during 2021 we inevitably had several individual outbreaks of Covid in staff and clients. But in every case our procedures worked, the specific “bubbles” were closed for short periods and the infection did not spread in Where Next.

Throughout 2020 and 2021 Where Next operated under the constraints of the Covid pandemic and at no time did we have to close Where Next. The Trustees would like to put on record our sincere thanks to Mathew and the whole Team for achieving this.

The Hub continued to grow and flourish with what is now our established hybrid model which was initiated because of the pandemic. It is now a key part of our service reaching out to a much broader client base, many of whom do not attend our day sessions.

Volunteers are now a very important part of the Team. Many of these are in the 16 to 21 age bracket and join us on a part time / seasonal basis. The clients interact with them very well and respond to the kindness, confidence and maturity of the” younger” people. I must also mention the “older “volunteers who do an absolutely first-class job as well! Many thanks to them all.

Finance

Financially we had another strong year, with total income at £771,909 significantly down on 2020 (£992,335). However, 2020 was a record year and reflected the very generous donations we received through the pandemic. Our donors were equally very generous through 2021 and we are extremely grateful for their support.

Our charitable activities increased in the year at £730,087 (£ 719,886 in 2020) and reflects the increase in the number of clients (net 7 new clients).

Our balance sheet strengthened to £622,023 compared to the previous year of £550,101.

We have worked hard throughout the last 3 years to strengthen our balance sheet; this has positioned us well to make the investment in infrastructure and services for our clients during 2021. Equally as we make changes and improvements to our main site, that we anticipate will happen in 2023, our strengthened balance sheet (along with further fundraising) will allow us to plan and execute with confidence.

WHERE NEXT ASSOCIATION

CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Continuous Improvement

One of our great strengths, under the leadership of Mathew and his Senior Management team, has been the continuous improvement, updating and upgrading of our facilities, systems and processes – not only in physical infrastructure but also in the training of staff -all aimed at growing the services we offer our clients.

2021 was a very good example of this, in no particular order: -

Infrastructure

Environment

Staff

The pandemic, supervising and caring for adults with learning difficulties alongside the stresses and strains of home life in today’s economic and social environment all puts pressure on our staff.

We launched 2 key elements of support for staff and their families

In addition to this we have provided extensive support for staff with personal issues and provided regular and ongoing training as appropriate.

Our loyal, superb staff do a super job, sometimes under quite challenging circumstances and on behalf of the Trustees a great big thank you to them.

It is with great sadness that we lost Tom Stanley during the year. Tom was one of our longest attending clients having joined us in the 1980’s, a real character and missed by us all.

WHERE NEXT ASSOCIATION

CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Looking Forward

The immediate future, namely 2022 and 2023, look very exciting and in some areas challenging for Where Next, but I am very confident that the Team, under Mathew’s leadership, with the support of the Trustees and all our stakeholders will rise to the opportunities with confidence, innovation, commitment and hard work!

One of the key issues facing us is that we may well have to vacate one of our main sites relatively soon; the new landlord has other plans for the large multi occupancy building that we have one corner of. We have called it home for over 35 years so it will be a major wrench for clients and staff to leave -however we are developing some very robust plans to ensure the minimum upheaval and continuity for clients.

At the time of writing this statement these plans are confidential and not in the public domain and so I will refrain from adding much more detail here.

Our plans for the future will, in the medium term, involve some new buildings. This will give us a unique opportunity to increase the activities we can offer. The funding for this will come partially from our reserves and partially form new fundraising.

We will keep all stakeholders updated and hopefully (!) involved in these exciting next steps in the evolution and growth of Where Next.

Very many thanks to all our stakeholders, supporters and all those involved with the charity.

Mr Timothy Twynam Chairman

Date: 14 September 2022

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report together with the examined financial statements of Where Next Association for the year ended 31 December 2021.

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

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's [governing document], the Companies Act 2006 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).

Objectives and activities

The objects for which the Association is established are to advance the educational training and relieve need among unemployed persons, particularly young unemployed persons, resident in Worcestershire and Warwickshire who have learning difficulties as a result of being mentally or physically disabled or socially deprived or disadvantaged (hereinafter referred to as "the beneficiaries") by providing:

(i) employment under sheltered conditions for such of the beneficiaries who by reason of physical or mental disability are incapable of, or restricted from obtaining 'normal' employment, and

(ii) suitable opportunities for work experience for the remainder of such beneficiaries and teaching them skills and crafts and by offering advice and guidance to such persons so that they may in due course obtain employment

Ensuring delivery of the charity's aims

The Trustees review the aims, objectives and activities on a regular basis and have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives, and in planning future activities. We consider that we meet these public benefit requirements and that they are reflected in this report and the examined financial statements. In particular, Trustees consider how planned activities will meet the main objectives of the Association

The charity's aims including the changes or differences it seeks to make through its activities:

To improve the life skills and employment prospects of our beneficiaries.

An explanation of the charity's main objectives for 2021

To ensure the charity's ongoing sustainability, for the benefit of our clients. To adapt to the changing nature of funding and the needs of our clients. To continue to invest in the development of staff, management and volunteers.

An explanation of the charity's strategies for achieving its stated objectives

To achieve the above with minimum negative impact on all stakeholders, in particular our beneficiaries, by direct consultation and communication.

Details of significant activities (including its main programmes, projects, or services provided) that contribute to the achievements of the stated objectives

Continuing the development of The Hub and its services. Continuing to invest in the charity's facilities, staff and client services. Commencement of new Advocacy and Support initiative.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Summary of main activities:

As with the previous year 2021 was dominated by the Covid-19 pandemic. After shutdowns in 2020 Where Next responded strongly and stayed open throughout the year, offering full, new and complimentary services to all client service users. The adaptations made to the services greatly enhanced the ability of the charity to support the client service users.

The charity responded proactively by:

Work experience and training has continued to be provided through our business units at both our garden centres/ nurseries, our industries site and our gardening services unit. These give our clients experience in horticulture, carpentry, small assembly, retail, garden maintenance and training, which all help to build their capacities, skills and confidence. Modifications were made to all operations, with a full spectrum of services available to all.

We have now completed the full five-year Big Lottery (now called The National Lottery Community Fund) funded project to support our work at The Hub. The final report was highly, complementary and we have now been granted an additional three years of funding from the National Lottery Community Fund to develop the service further. This continued support will allow us to develop further into engaging ways to enhance the lives of the people we support.

The Advocacy and Support service, which was piloted in 2018, has grown, with an increasing number of people and has had to be adapted to support individuals through benefits related enquires through the pandemic

The contribution of volunteers:

Achievements and performance

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.

Review of activities

All activities for our beneficiaries were continued throughout the year, despite the pandemic. We adapted to include all aspects of infection control and new health and safety regulations. We developed an adaptable way of working, so that any changes to regulations could easily be integrated into the daily operations of the charity.

For our efforts, the charity won Prestige Garden Centre of the Year, for the Central region of England. This is the first time a charity has won this award.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Fundraising activities/lncome generation

There is an ongoing necessity to generate funds from grants and donations as there has not been an increase in day service fees from the local authority since 2011, whilst costs have increased. During the pandemic, Where Next increased its grant fundraising taking the opportunity to apply for and receive emergency Covid-19 grant funding.

The support of our donors is essential to the continuing success of the work of the Association and we value it greatly. A large number of individuals support us through their ongoing donations. Amongst the organisations who supported us through the year are:

29th May Charitable Trust Baily Thomas Charitable Fund Masonic Charitable Foundation Henry Smith Charity Eveson Charitable Trust The National Lottery Community Fund -Awards for All The National Lottery Community Fund – Reaching Communities Social Enterprise Support Fund Clothworkers Foundation Frank Russon Trust Redditch Borough Council Zurich Community Trust Asda Foundation Hedley Foundation Rosehill Flower Arrangements Society AT&T Roger & Douglas Turner CT WA Cadbury Charitable Trust

Employment of disabled persons

During the year the charity provided work experience for 124 (last year: 104) people with disabilities. We employ four people with disabilities.

Factors relevant to achieving objectives

During this second year of the pandemic although many organisations have shown great resilience it has been difficult for many in the sector to operate. We have taken both a proactive and a reactive approach to the way we have functioned through this period. It has been challenging, but as we have a strong stakeholder network and good resilience the charity has fared well.

We continue to engage with all stakeholders so-as-to appropriately inform our ongoing development and commitment to the welfare of the people who we support

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves are maintained:

All these areas are properly researched and re-examined at least annually. These are incorporated into the Association's dedicated funds which at year-end totalled £407,210 which are held as both current and noncurrent assets.

Principal funding

A principal source of funds continues to be payment for daytime support services. For 2021 this amounted to £401,546 (2020: £405,990).

Our businesses generated a trading income of £57,942 (2020: £59,295) in the year which these financial statements cover.

In addition, we also are continuing to receive funding from the Big Lottery, through a new three-year grant, to fund the development of the work that we undertake at The Hub

We continue to be supported by Redditch Borough Council by way of grant. Other funds come from donors for specific projects. All expenditure is kept under close control in order to maximise the benefits to the clients. Overall, we consider the Charity to be in a satisfactory financial state for the future. As always, there are challenges ahead but we think we are in a good position to meet them.

Plans for 2022

Although it appears that covid-19 is something that we are learning to live with the repercussion of the pandemic will be felt for many years to come. Coupled with rising inflation and the cost-of-living crisis this will mean that there is continued uncertainty globally, nationally, and locally. Where Next has developed resilience and adaptation plans for 2022 onwards to work towards a more sustainable and robust organisation.

This planning includes infrastructure, capital, operational and financial analysis and development. Wrapped up in this is also the drive to become a charity with a smaller eco footprint with many of our initiatives working towards reducing energy consumption and where possible providing modes of generating our own electricity and heating.

Our fundraising and income generation will be developed further in this period to ensure that the full costs of operating the charity and our operations are addressed and funded. This will include recognising and supporting the development of new income streams by employing new ways to collaborate with and report back to stakeholders.

Information on fundraising practices

The core fundraising practices that we undertook in this period were:

There were no relationships with professional fundraisers or commercial participators during the year. An internal fundraiser is employed by the Association who focusses on grant fundraising and community engagement, and we also work with strategic development consultants to provide support to our various areas of income generations.

Fundraising efforts are directed at individuals and organisations, who have consented, and their information is not passed onto third parties. The association has not registered with the Fundraising Regulator and no complaints were received by the Association during the year.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

The Trustees consider the financial performance by the charity during the year has been within expectations considering the economic background.

The statement of financial activities shows incoming resources for the year of £771,909 (2020: £992,355) with resources expended of £730,087 (2020: £719,886). This gave rise to an operating surplus of £41,822 (2020: surplus of £272,469) before an unrealised investment gain of £30,100 (2020: £12,045). The overall surplus for the year therefore was £71,922 (2020: surplus of £284,514).

Total reserves at the year-end stood at £622,023 (2020: £550,101) of which £556,392 (2020: £412,958) was unrestricted (with some designation).

Structure, governance and management Constitution

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 16 May 1984. The company is constituted under a Memorandum of Association dated 16 May 1984 and is a registered charity number 0517248.

The principal object of the company is to provide educational training for unemployed persons in the area who are suffering from learning difficulties or are socially deprived or disadvantaged.

Ms P Brook Ms J Edmondson Ms M Raine Mr R Read (Treasurer) Mr T D Twynam Mr J Williams Ms L Sandford Ms P Wheatcroft

Method of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association, The Trustees serving during the year are listed on page 1.

Policies adopted for the induction and training of Trustees

We recruit through word of mouth and by direct approach to people who have skills that we require. In accordance with our Memorandum and Articles of Association Trustees are nominated and elected at our AGM each year. We can also co opt Trustees throughout the year. No other person or body is entitled to appoint Trustees to the charity. All of the Trustees act in a voluntary capacity and do not receive any benefits from the charity.

Organisational structure and decision making

Policy decisions are made by the Trustees. The day to day operation is managed by the CEO under the delegated authority of the Trustees and through his unit managers. The Trustees maintain a watching brief and hold regular meetings of the Finance Committee and the Board of Trustees, to which the CEO reports.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Related party relationships

As a leading provider of services in Worcestershire, Where Next takes an active part in the County Council's Partnership Board and other committees which seek to influence and direct services for people with learning difficulties in the area. Where Next is also active in the various local and national networks in the wider charitable sector as well as those specifically for organisations working with people with learning difficulties. We are continuing to develop such local links in Warwickshire. With the change in funding environment the charity is increasingly working with parents, carers and funders.

Risk management

The Board, and Senior Management Team, conducts the charity's own review of the major risks to which the charity is exposed and systems which have been established to mitigate those risks. The major risk to which the charity is exposed is the ongoing reduction in the level of funding available to Councils for the provision of Personal Budgets. The second major risk is the continued slowdown in the general economy which could affect charitable donations. In addition, the current political uncertainty surrounding Brexit has caused destabilisation, which could have short medium and long term implications. Internal risks are minimised by procedures for authorisation of all transactions and projects and to ensure consistent quality.

The trustees' report was approved by the Board of Trustees'.

Mr T D Twynam Trustee

14 September 2022

WHERE NEXT ASSOCIATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES' OF WHERE NEXT ASSOCIATION

I report to the trustees' on my examination of the financial statements of Where Next Association (the charitable company) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees' of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Jerroms

Neill Currie ACA Chartered Certified Accountants

Lumaneri House Blythe Gate Blythe Valley Park Solihull West Midlands B90 8AH

Dated: 14 September 2022

WHERE NEXT ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
82,477
226,837
Charitable activities
4
461,565
-
Investments
5
30
-
Other income
6
1,000
-
Total income
545,072
226,837
Expenditure on:
Raising funds
7
28,480
-
Charitable activities
8
378,952
322,655
Total expenditure
407,432
322,655
Net gains/(losses) on
investments
12
30,100
-
Gross transfers between
funds
-
-
Net movement in funds
167,740
(95,818)
Fund balances at 1 January
2021
388,652
161,449
Fund balances at 31
December 2021
556,392
65,631		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
309,314
167,514
326,593
461,565
497,570
-
30
128
-
1,000
550
-
771,909
665,762
326,593
28,480
19,972
-
701,607
512,004
187,910
730,087
531,976
187,910
30,100
12,045
-
-
13,079
(13,079)
71,922
158,910
125,604
550,101
229,742
35,845
622,023
388,652
161,449		 Total
2020
£
494,107
497,570
128
550
992,355
19,972
699,914
719,886
12,045
-
284,514
265,587
550,101

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

WHERE NEXT ASSOCIATION

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021
Notes
£
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
22,032
Debtors
16
29,932
Cash at bank and in hand
432,012
483,976
Creditors: amounts falling due within
one year
17
(153,462)
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds
Designated funds
20
507,210
General unrestricted funds
49,182		 £
47,738
243,771
291,509
330,514
622,023
65,631
556,392
622,023		 2020
£
12,284
40,170
338,439
390,893
(62,299)
154,116
234,536		 £
57,835
163,672
221,507
328,594
550,101
161,449
388,652
550,101

WHERE NEXT ASSOCIATION

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The trustees' acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees' on 14 September 2022

Mr R Read (Treasurer)

Trustee

Company registration number 01816907

WHERE NEXT ASSOCIATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Purchase of investments
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(17,241)
1,000
(50,000)
29		 £
159,785
(66,212)
-
93,573
338,439
432,012		 2020
£
(14,850)
550
(55,000)
128		 £
303,296
(69,172)
-
234,124
104,315
338,439

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Where Next Association is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Articles of Association, the Charities Act 2011 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)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the trustees' have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees' continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

Designated funds comprise of unrestricted funds that have been set aside by the trustees' for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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

1.4 Income

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

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

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

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

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

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

1.5 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 are allocated on the portion of the asset’s use.

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.

Costs of generating funds are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in the support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management.

Cost of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

All assets costing more than £500 are capitalised.

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

Buildings 5% Straight Line Leasehold improvements Over the term of the lease Plant and equipment 20% Straight Line Motor vehicles 20% Straight Line

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in other recognised gains and losses except to the extent that a gain reverses a loss previously recognised in net income expenditure, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.

1.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Costs includes all direct costs.

1.9 Cash and cash equivalents

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.

1.10 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the companies balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the companies contractual obligations expire or are discharged or cancelled.

1.11 Taxation

As a registered charity, Where Next Association is exempt from income and corporation tax to the extent that its income and gains are applicable to charity purposes only. Value added tax is not fully recoverable by the company and is therefore included in the relevant costs in the statement of financial activities.

1.12 Retirement benefits

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

1.13 Taxation

As a registered charity, Where Next Association is exempt from income and corporation tax to the extent that its income and gains are applicable to charity purposes only. Value added tax is not fully recoverable by the company and is therefore included in the relevant costs in the statement of financial activities.

2 Critical accounting estimates and judgements

Estimates and judgements 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.

There are no areas within the accounting policies where judgements or estimates are made which could impact significantly on the amounts recognised in the financial statements.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
81,136
226,837
Legacies receivable
1,341
-
82,477
226,837		 Total
Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
307,973
166,826
326,593
1,341
688
-
309,314
167,514
326,593		 Total
2020
£
493,419
688
494,107

4 Charitable activities

Services for
trainees
Charitable
trading
2021
2021
£
£
Services for trainees
401,546
-
Charitable trading
-
57,942
Other income
2,077
-
403,623
57,942
Investments
Interest receivable
Other income
Net gain on disposal of tangible fixed assets		 Total
2021
Services for
trainees
Charitable
trading
Total
2020
2020
2020
£
£
£
£
401,546
405,990
-
405,990
57,942
-
59,295
59,295
2,077
32,285
-
32,285
461,565
438,275
59,295
497,570
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
30
128
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
1,000
550		 Total
2020
£
405,990
59,295
32,285
497,570

5 Investments

6 Other income

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Raising funds

Support costs
Charitable activities
Services to
trainees
Charitable
trading
2021
2021
£
£
Staff costs
341,614
29,006
Charitable activities spent
66,864
-
Client and staff expenses
9,950
-
Repairs
-
32,006
Cost of goods sold
-
2,981
Tools
-
7,203
Travel and vehicle costs
-
17,605
Covid-19 related
expenditure
-
1,708
418,428
90,509
Share of support costs (see
note 9)
43,514
145,156
Share of governance costs
(see note 9)
2,000
2,000
463,942
237,665
Analysis by fund
Unrestricted funds
141,287
237,665
Restricted funds
322,655
-
463,942
237,665		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
28,480
19,972
28,480
19,972
Total
2021
Services to
trainees
Charitable
trading
Total
2020
2020
2020
£
£
£
£
370,620
263,749
74,499
338,248
66,864
65,743
-
65,743
9,950
459
-
459
32,006
-
18,991
18,991
2,981
5,427
5,786
11,213
7,203
-
2,775
2,775
17,605
-
17,647
17,647
1,708
-
44,849
44,849
508,937
335,378
164,547
499,925
188,670
94,195
101,794
195,989
4,000
2,000
2,000
4,000
701,607
431,573
268,341
699,914
378,952
243,663
268,341
512,004
322,655
187,910
-
187,910
701,607
431,573
268,341
699,914		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
28,480
19,972
28,480
19,972
Total
2021
Services to
trainees
Charitable
trading
Total
2020
2020
2020
£
£
£
£
370,620
263,749
74,499
338,248
66,864
65,743
-
65,743
9,950
459
-
459
32,006
-
18,991
18,991
2,981
5,427
5,786
11,213
7,203
-
2,775
2,775
17,605
-
17,647
17,647
1,708
-
44,849
44,849
508,937
335,378
164,547
499,925
188,670
94,195
101,794
195,989
4,000
2,000
2,000
4,000
701,607
431,573
268,341
699,914
378,952
243,663
268,341
512,004
322,655
187,910
-
187,910
701,607
431,573
268,341
699,914
19,972
Total
2020
£
338,248
65,743
459
18,991
11,213
2,775
17,647
44,849
499,925
195,989
4,000
699,914
512,004
187,910
699,914

8 Charitable activities

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Support costs

Staff costs
Depreciation
Telephone and office
Premises costs
Sundry expenses
Publicity and marketing
Legal and professional fees
Examiners remuneration
Analysed between
Trading
Charitable activities		 Support
costs
Governance
costs
£
£
51,094
-
12,339
-
31,005
-
81,270
-
25,513
-
4,075
-
11,854
-
-
4,000
217,150
4,000
28,480
-
188,670
4,000
217,150
4,000		 2021Support costs Governance
costs
£
£
£
51,094
70,189
-
12,339
13,894
-
31,005
12,530
-
81,270
75,541
-
25,513
25,981
-
4,075
855
-
11,854
16,971
-
4,000
-
4,000
221,150
215,961
4,000
28,480
19,972
-
192,670
195,989
4,000
221,150
215,961
4,000		 2020
Basis of allocation
£
70,189
CA1 50% CA2 15% Support Costs 35%
13,894
12,530
75,541
25,981
855
16,971
4,000
CA1 50% CA2 50% Support Costs 100%
219,961
19,972
199,989
219,961

Support costs are allocated on the basis of the estimated proportion of usage of resources.

Governance costs of £4,000 (2020 - £4,000) are included in support costs being examiners remuneration.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Trustees'

None of the trustees' (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
27
2021
£
389,850
22,058
9,806
421,714		 2020
Number
26
2020
£
372,733
24,919
10,785
408,437

There were no employees whose annual remuneration was more than £60,000.

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 30,100 12,045

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Tangible fixed assets
Cost
At 1 January 2021
Additions
Disposals
Grant received
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020		 Buildings
Leasehold
improvements
Plant and
equipment
Motor vehicles
£
£
£
£
68,871
26,191
204,257
91,610
-
-
-
17,241
-
-
-
(32,640)
-
-
-
(15,000)
68,871
26,191
204,257
61,211
33,239
26,191
195,947
77,716
3,444
-
5,246
3,649
-
-
-
(32,640)
36,683
26,191
201,193
48,725
32,188
-
3,064
12,486
35,631
-
8,310
13,894		 Total
£
390,929
17,241
(32,640)
(15,000)
360,530
333,093
12,339
(32,640)
312,792
47,738
57,835

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Fixed asset investments

Managed
funds
Other
investments
£
Cost or valuation
At 1 January 2021
163,671
1
Additions
50,000
-
Valuation changes
30,099
-
Disposals
-
(1)
At 31 December 2021
243,770
-
Carrying amount
At 31 December 2021
243,770
-
At 31 December 2020
163,671
1		 Total
£
163,672
50,000
30,099
(1)
243,770
243,770
163,672
Other investment relates to share holding in Where Next Housing Limited which was dissolved on 4
2022.
2021
Other investments comprise:
Notes
£
Investments in subsidiaries
-
15
Stocks
2021
£
Finished goods and goods for resale
22,032
16
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
17,406
Other debtors
-
Prepayments and accrued income
12,526
29,932		 January
2020
£
1
2020
£
12,284
2020
£
26,960
1,398
11,812
40,170

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Deferred income
18
Trade creditors
Other creditors
Accruals and deferred income
Deferred income
Arising from Deferred Income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 January 2021
Resources deferred in the year
Deferred income at 31 December 2021		 2021
£
7,012
106,245
8,423
1,831
29,951
153,462
2021
£
106,245
2021
£
106,245
39,700
66,545
106,245		 2020
£
6,530
39,700
13,742
-
2,327
62,299
2020
£
39,700
2020
£
39,700
13,079
26,621
39,700

18 Deferred income

Deferred income relate to grant payments received from The National Lottery Community Fund and The Bailey Thomas Charitable Fund. The grants received will contribute to staff, core and running costs across the organisation from January 2022 to December 2022.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January
2020
r
£
Shades of Green
73
Spernal
262
Industries
18,770
Nurseries
19
Old Lodge
-
Potting Area
13,079
Insulation
153
LED Lighting
176
Redditch Car Park
1,138
Seeds, Bulbs, Compost
175
Young People
2,000
SOG Machinery
-
Work Placements
-
Overheads
-
Covid
-
Spernal Office
-
Nurseries Solar Panel
-
The Cloth Workers Foundation
-
35,845		 Movement in funds
Incoming
esources
Resources
expended
£
£
10
-
200
(95)
-
(18,139)
310
(136)
-
-
-
-
-
-
-
-
-
-
12,014
(12,189)
-
-
5,499
(5,499)
158,429
(77,948)
53,290
(26,645)
92,301
(45,069)
3,000
(2,190)
1,540
-
-
-
326,593
(187,910)		 Transfers
Balance at
1 January
2021
r
£
£
-
83
-
368
-
631
-
193
-
153
(13,079)
-
-
-
-
176
-
1,138
-
-
-
2,000
-
-
-
80,481
-
26,644
-
47,232
-
810
-
1,540
-
-
(13,079)
161,449		 Movement in funds
Incoming
esources
Resources
expended
£
£
-
-
547
-
-
-
24
-
-
-
9,444
(8,083)
3,000
-
-
-
5,501
(1,364)
12,389
(5,758)
-
-
650
(650)
198,957
(259,438)
-
-
850
(32,362)
-
-
475
-
15,000
(15,000)
246,837
(322,655)		 Deferred
Balance at
31
December
2021
£
£
-
83
-
915
-
631
-
217
-
153
-
1,361
-
3,000
-
176
-
5,275
-
6,631
-
2,000
-
-
(20,000)
-
-
26,644
-
15,720
-
810
-
2,015
-
-
(20,000)
65,631		 Deferred
Balance at
31
December
2021
£
£
-
83
-
915
-
631
-
217
-
153
-
1,361
-
3,000
-
176
-
5,275
-
6,631
-
2,000
-
-
(20,000)
-
-
26,644
-
15,720
-
810
-
2,015
-
-
(20,000)
65,631
65,631

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

(Continued)

The purposes of the funds recognised are as follows

Restricted funds : these are funds received specifically for use in different areas of the charity's current operations as the title of each fund indicates.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January
2020
£
Closure fund
167,667
Motor vehicle fund
43,572
Business development and
capacity building
8,500
219,739		 Transfers
Balance at
1 January
2021
Resources
expended
£
£
£
(51,502)
116,165
(2,527)
(14,121)
29,451
(18,329)
-
8,500
-
(65,623)
154,116
(20,856)		 Transfers
Balance at
31
December
2021
£
£
-
113,638
32,450
43,572
341,500
350,000
373,950
507,210		 Transfers
Balance at
31
December
2021
£
£
-
113,638
32,450
43,572
341,500
350,000
373,950
507,210
507,210

The purposes of the funds recognised are as follows

Closure fund : earmarked to ensure that costs of closure could be fully met in the event of this being considered necessary.

Motor vehicle fund : earmarked to ensure that funds are available to cover the cost of replacement of the vehicles if necessary.

Business development and management development fund : funds earmarked from a legacy to allow the development of the organisation to ensure ongoing sustainability and capacity as the external funding and social environments change.

Other projects : smaller projects where funds have been earmarked.

21
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
47,738
-
Investments
243,771
-
Current assets/(liabilities)
264,883
65,631
556,392
65,631		 Total
Unrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
47,738
57,835
-
243,771
163,672
-
330,514
167,145
161,449
622,023
388,652
161,449		 Total
2020
£
57,835
163,672
328,594
550,101

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

22 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2021
£
17,173
66,311
24,613
108,097		 2020
£
17,349
67,427
24,613
109,389

23 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

24
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss/(gain) on disposal of tangible fixed assets
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stocks
Decrease in debtors
Increase/(decrease) in creditors
Increase in deferred income
Cash generated from operations		 2021
£
71,921
(30)
14,002
(30,100)
12,339
(9,748)
10,238
24,618
66,545
159,785		 2020
£
284,514
(128)
(550)
(12,045)
13,894
592
2,031
(11,633)
26,621
303,296

25 Analysis of changes in net funds

The charitable company had no debt during the year.