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2023-12-31-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 2023

WHERE NEXT ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees' Ms J Edmondson
Ms M Raine
Mr R Read (Treasurer)
Mr T D Twynam (Chairman)
Mr J Williams
Ms P Wheatcroft
Mr I Chavasse (Deputy Chairman)
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
Trustees' report 2 - 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 27

WHERE NEXT ASSOCIATION

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2023

Another very positive and rewarding year for Where Next. Our number of clients is at a record high and this along with the very positive feedback from clients, parents, carers and all our other key stakeholders is very rewarding to the staff, full-time and volunteer), and our Trustees Board who put in so much hard work.

I am writing this in early July 2024 just after our superb celebration day on Friday 21st June 2024 celebrating Where Next’s 40th Birthday - but more about that later!

But it is correct that I should review 2023 in this statement; 2023 was another year in our journey of change but at the same time one of consolidation and preparation for the future! Such is the nature of our Charity as we react to the changing needs of our clients and their families, but also the financial pressures on our business model. That we have managed this so well is a great credit to the senior management team and the oversight of the Trustee Board - thank you to them all.

Total income was £729,996 very similar to the previous year (£739,813) but expenditure increased to £770,191 from £718,587 - but the resulting operating deficit of £40,195 was significantly mitigated by an unrealised gain on our investments of £28,670 resulting in a deficit for 2023 of £11,525 (previous year £4.641).

Against the economic background that we faced in 2023, this is a good result. General inflation increased significantly, with energy costs being a major factor. The inflationary pressures impacted Where Next but equally hit our staff and we endeavoured to be as fair as possible with the salary increases.

The inflationary environment as well as hitting the charity equally impacted our sources of income. On behalf of the Board, I would like to record our sincere thanks to all the organisations and individuals, big and small, who so generously make grants and donations to us -without you we could not operate the charitable model that we do. I would equally like to express our sincere thanks to Worcester County Council and Redditch Borough Council for their fundamental and core support of Where Next.

“Overhanging“ Where Next throughout the year was the potential move from our third site Millsborough House - where our landlord had informed us that he would like us to vacate our part of the building as he repurposed and redeveloped the building for residential use. Timing on our vacating the building, finding a new location, and managing our client welfare associated with the move “hung“ over the team for the whole year. The move of clients, the associated operations, and staff finally happened in mid-year 2024 and we consolidated onto our main site at Easemore Road. This went ahead with the minimum of disruption to clients and is a great credit to the staff and their planning. Today in 2024 we now operate on two sites rather than 3 in 2023 -but more about that in next years report!

2023 was therefore, in part, a year of transition and preparation not only for the move but also the excitement of our 40th Birthday celebration. Where Next was established in May 1984 and we wanted to mark our 40 years appropriately in 2024. Planning for several 40th events was initiated in 2023 with the main one being a “village fete“ style one on the main site on 21st June 2024. It was a beautiful day with a large number of clients, parents and carers; an entertainer; a fantastic BBQ and a lot of fun and speeches!

We were honoured with the presence of the Lord Lieutenant of Worcestershire (who opened the event); our patron the Lord Bishop of Worcester; the local MP; Redditch Town Counsellors; representatives of Worcester County Council; representatives of our donors and very many ladies and gentlemen! A great time was had by all.

In my speech on the day, I individually thanked a great number of people. It would not be appropriate to repeat this here in my statement for 2023. But Where Next is all about people, in the past, today, and in the future who have in their own way helped to make Where Next what it is today - thank you to you all.

Mr Timothy Twynam (Chairman) Chairman

Date: 28 August 2024

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report together with the examined financial statements of Where Next Association for the year ended 31 December 2023.

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) 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

Our vision is for everyone to have lifelong achievement and inclusion.

Our Mission is to create opportunities for people with a learning disability to have a fulfilling and engaging life.

We provide services and support to enable people with learning disabilities to live a safe, healthy, and happy life filled with our core values of purpose, achievement, opportunity, and friendship.

Our services and support are provided with respect for each individual and their needs, valuing their strengths.

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 2023

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 to provide work-based activities Continuing the development of The Hub and its services. Continuing to invest in the charity's facilities, staff and client services. Continuing of the Advocacy and Support initiative.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Summary of main activities:

Where Next has weathered the storms of the last few years well and 2023 was no exception. The spiralling cost of energy and all goods has meant that there has been a focus on both controlling costs and generating funds to keep up with the hike in prices. This has meant that we’ve needed to pull together as much as we had through the pandemic years.

The pandemic also continued to cast its shadow over the year. Even though the vast majority of society is effectively back to normal, the nature of social care means that an added level of vigilance needs to be observed, and although the vast number of restrictions and rules have now been lifted, there are still a number that impact on the charity’s operations.

Changes to benefits assessments have also meant that benefit recipients are finding it increasingly difficult to navigate the system, but also obtain the resources that they are entitled to. Where Next’s staff have undertaken additional training to understand these complexities and to offer some support to individuals and their parent/carers.

In this period we also rekindled relationships with schools and colleges, offering sessions to pupils and students to get a good understanding of what life is like after leaving school. This activity had been paused during the pandemic and so it was encouraging that we were able to start it up again.

Work experience and training have continued to be provided through our business units at both our garden centres/ nurseries, and our industries site. These give our clients experience in horticulture, carpentry, small assembly, retail, 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.

The number of people we are supporting has continued to increase beyond pre-pandemic levels, and currently sits at the highest level that the charity has ever had.

The contribution of volunteers:

· We have fourteen volunteers who work alongside employed staff and provide valuable additional support. We also have a committed volunteer board of seven trustees.

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 previous activities were continued throughout the year, with no significant changes made. The Hub however adopted a peripatetic approach of moving between locations. This has enabled more clients, both internal and external, to access this service almost doubling the number of engaging participants. In addition, more Hub in the Community activities were undertaken with numbers now back to pre-pandemic levels.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 greatly increased. Since 2020 Where Next has considerably enhanced its grant fundraising and although these figures have dropped in 2023 they are still considerably higher than in 2019.

In addition to this there have been increasing numbers of individuals accessing our services and/or adding regular additional sessions to their weeks. This has increased the amount generated from paid placements to its highest level ever.

The support of our donors is essential to the continuing success of the work of the charity 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:

Alvechurch Crafty Ladies Redditch Invitation Pool League The Henry Smith Charity The National Lottery Community Fund The Julia and Hans Rausing Trust AT&T CLA CT Umbreck Charity Alveston Villagers’ Association Guineapigs The Band W.E.D charitable Trust William A Cadbury Trust Hedley Trust B&Q Foundation Oliver Ford Foundation Turner Trust Core costs grant Boshier Hinton Foundation St john Parish Church, Feckham J.H.Lines & Sons Ltd Zurich Insurance Group Tesco PLC Redditch Rotary Club

Employment of disabled persons

During the year the charity provided vocational and life skills activities for 150 (last year: 141) people with disabilities. We employ four people with disabilities.

Factors relevant to achieving objectives

The cost-of-living crisis continues to impact negatively on the charity. This can be born out in our total premises costs (including utilities) rising from £96,313 in 2022 to £123,194 in 2023, a rise of nearly 28% in a year. However, we have continued to take both a proactive and a reactive approach to the way we have functioned through this period and are adapting and becoming more resilient to change.

We continue to engage with all stakeholders 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 2023

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 £593,357 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 2023 this amounted to £472,958 (2022: £446,322).

Our businesses generated a trading income of £39,548 (2022: £47,735) in the year which these financial statements cover.

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.

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Plans for 2024

After the COVID-19 pandemic and the increasing cost of living, we can now look forward to celebrating Where Next's 40[th] anniversary in 2024. This milestone will mark four decades of providing crucial support for a significant number of individuals with learning disabilities. We are currently planning various events and activities to commemorate this significant occasion.

Another big change is that after 25 years we will be leaving Millsborough House, our site that has housed our Industries department and more recently The Hub. The landlord of the building has decided to redevelop the whole site into apartments, and shops and so all existing tenants are leaving. We see this as an exciting opportunity as the Hub will be working peripatetically across the other two sites, and Industries will be permanently relocating to our main site at Easemore Rd, Redditch. This will mean that our existing clients will be given more flexibility to experience different units, but all on the same site, therefore enhancing their experience and developing their skills further.

In 2024, we will adjust our activities to meet the evolving needs of our clients and strengthen our charity to withstand the unpredictable world we live in. We plan to increase our energy efficiency to reduce our environmental impact and save costs.

We will increase our fundraising and income generation opportunities on all sites by maximizing grant fundraising, commercial sales, and paid placements.

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 focuses 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.

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 £729,996 (2022: £739,813) with resources expended of £770,191 (2022: £718,587). This gave rise to an operating deficit of £40,195 (2022: surplus of £21,226) before an unrealised gain on investment of £28,670 (2022: loss of £25,867). The deficit for the year therefore was £11,525 (2022: deficit of £4,641).

Total reserves at the year-end stood at £605,857 (2022: £617,382) of which £591,787 (2022 £614,511) was unrestricted (with some designation).

WHERE NEXT ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 (Resigned 31 October 2023) Ms J Edmondson Ms M Raine Mr R Read (Treasurer) Mr T D Twynam (Chairman) Mr J Williams Ms P Wheatcroft Mr I Chavasse (Deputy Chairman)

Recruitment and appointment of trustees

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 through senior management and 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 2023

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, Senior Management Team and Unit Managers, 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 following 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 (Chairman)

28 August 2024

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 2023.

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 Chartered 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

Richard Alan Horton (FCCA) Chartered Certified Accountants

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

Dated: .........................

WHERE NEXT ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
193,597
21,484
Charitable activities
4
512,506
-
Investments
5
2,409
-
Total income
708,512
21,484
Expenditure on:
Charitable activities
6
754,277
13,553
Other expenditure
11
2,361
-
Total expenditure
756,638
13,553
Net gains/(losses) on
investments
12
28,670
-
Net income/(expenditure)
(19,456)
7,931
Transfers between
funds
(26,882)
26,882
Net movement in
funds
8
(46,338)
34,813
Reconciliation of funds:
Fund balances at 1 January
2023
614,511
2,871
Fund balances at 31
December 2023
568,173
37,684		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
215,081
174,711
69,660
512,506
494,057
-
2,409
1,385
-
729,996
670,153
69,660
767,830
586,167
132,420
2,361
-
-
770,191
586,167
132,420
28,670
(25,867)
-
(11,525)
58,119
(62,760)
-
-
-
(11,525)
58,119
(62,760)
617,382
556,392
65,631
605,857
614,511
2,871		 Total
2022
£
244,371
494,057
1,385
739,813
718,587
-
718,587
(25,867)
(4,641)
-
(4,641)
622,023
617,382

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

WHERE NEXT ASSOCIATION

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
The funds of the charitable company
Restricted income funds
21
Unrestricted funds		 2023
£
16,146
41,098
239,102
296,346
(23,244)		 £
36,181
296,574
332,755
273,102
605,857
605,857
37,684
568,173
605,857		 2022
£
12,947
34,119
326,598
373,664
(62,592)		 £
38,406
267,904
306,310
311,072
617,382
617,382
2,871
614,511
617,382

WHERE NEXT ASSOCIATION

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2023

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 2023.

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 28 August 2024

Mr R Read (Treasurer)

Company registration number 01816907 (England and Wales)

WHERE NEXT ASSOCIATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
26
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Purchase of investments
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(12,050)
5,833
-
2,409		 £
(83,688)
(3,808)
-
(87,496)
326,598
239,102		 2022
£
£
(56,799)
-
-
(50,000)
1,385
(48,615)
-
(105,414)
432,012
326,598

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2023

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 2023

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 2023

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 2023

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 193,597 21,484 215,081 174,711 69,660 244,371

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Services to trainees
Paid placements 472,958 446,322
Charitable trading
Sales and industry assembly 39,548 47,735
512,506 494,057
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 2,409 1,385

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6 Expenditure on charitable activities

Services to
trainees
Charitable
trading
2023
2023
£
£
Direct costs
Staff costs
371,607
32,718
Charitable activities spent
22,946
-
Client and staff expenses
15,546
-
Repairs
-
13,291
Cost of goods sold
-
10,661
Tools
-
626
Travel and vehicle costs
-
8,625
410,099
65,921
Share of support and governance costs (see note 7)
Support
264,517
22,843
Governance
4,094
356
678,710
89,120
Analysis by fund
Unrestricted funds
665,157
89,120
Restricted funds
13,553
-
678,710
89,120		 Total
Services to
trainees
Charitable
trading
2023
2022
2022
£
£
£
404,325
292,664
50,247
22,946
43,047
-
15,546
3,001
-
13,291
-
22,903
10,661
-
38,170
626
-
968
8,625
-
13,086
476,020
338,712
125,374
287,360
211,047
39,254
4,450
3,360
840
767,830
553,119
165,468
754,277
420,699
165,468
13,553
132,420
-
767,830
553,119
165,468		 Total
2022
£
342,911
43,047
3,001
22,903
38,170
968
13,086
464,086
250,301
4,200
718,587
586,167
132,420
718,587

7 Support costs allocated to activities

Staff costs
Depreciation
Telephone and office
Premises costs
Sundry expenses
Publicity and marketing
Legal and professional fees
Governance costs
Analysed between:
Services to trainees
Charitable trading		 2023
£
111,872
6,083
25,770
123,194
8,717
5,222
6,504
4,448
291,810
268,611
23,199
291,810		 2022
£
100,123
9,332
28,558
96,313
6,829
2,312
6,834
4,200
254,501
214,407
40,094
254,501

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Support costs allocated to activities

(Continued)

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

8 Net movement in funds 2023 2022
£ £
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets 6,083 9,332
Loss on disposal of tangible fixed assets 2,361 -

9 Trustees'

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

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
22
2023
£
467,479
37,104
11,614
516,197		 2022
Number
23
2022
£
401,886
30,727
10,421
443,034

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

11 Other expenditure

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Net loss on disposal of tangible fixed assets 2,361 -

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Revaluation of investments 28,670 (25,867)

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14 Tangible fixed assets

Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Buildings
Leasehold
improvements
Plant and
equipment
£
£
£
68,871
26,191
204,257
-
-
-
-
-
-
68,871
26,191
204,257
40,126
26,191
203,432
3,444
-
584
-
-
-
43,570
26,191
204,016
25,301
-
241
28,744
-
825		 Motor
vehicles
£
61,211
12,050
(14,250)
59,011
52,373
2,055
(6,056)
48,372
10,639
8,837		 Total
£
360,530
12,050
(14,250)
358,330
322,122
6,083
(6,056)
322,149
36,181
38,406

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

15 Fixed asset investments

Cost or valuation
At 1 January 2023
Valuation changes
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
16
Stocks
Finished goods and goods for resale
17
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
19
Trade creditors
Other creditors
Accruals and deferred income		 Managed
funds
£
267,904
28,670
296,574
296,574
267,904
2023
2022
£
£
16,146
12,947
2023
2022
£
£
21,310
17,912
13,156
6,071
6,632
10,136
41,098
34,119
2023
2022
£
£
10,186
6,917
-
37,125
3,251
13,008
771
-
9,036
5,542
23,244
62,592

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

19 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 2023
Released from previous periods
Resources deferred in the year
Deferred income at 31 December 2023		 2023
2022
£
£
-
37,125
2023
2022
£
£
-
37,125
37,125
106,245
(37,125)
(106,245
-
37,125
-
37,125		 2022
£
37,125
2022
£
37,125
37,125

Deferred income relate to grant payments received from The National Lottery Community Fund. The grants received will contribute to staff, core and running costs across the organisation from January 2023 to December 2023.

20 Retirement benefit schemes

Retirement benefit schemes
2023 2022
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 11,614 10,421

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1
Nurseries
Old Lodge
Seeds, Bulbs, Compost
Nurseries Solar Panel
National Lottery
Previous year:
At 1
Shades of Green
Clients Spernal
Industries
Nurseries
Old Lodge
Potting Area
Insulation
LED Lighting
Redditch Car Park
Seeds, Bulbs, Compost
Young People
Work Placements
Julia and Hans Trust
Covid
Spernal Office
Nurseries Solar Panel
Green House Project		 January
2023
Incoming
resources
Resources
expended
Transfers
At 31
December
2023
£
£
£
£
£
-
2,500
-
-
2,500
-
10,000
-
-
10,000
856
8,984
(9,840)
-
-
2,015
-
(3,713)
1,698
-
37,125
68,720
(80,661)
-
25,184
2,871
21,484
(13,553)
26,882
37,684
January
2022
Incoming
resources
Resources
expended
Transfers
At 31
December
2022
£
£
£
£
£
83
-
(83)
-
-
915
296
(1,211)
-
-
631
-
(631)
-
-
217
15
(232)
-
-
153
-
(153)
-
-
1,361
-
(1,361)
-
-
3,000
-
(3,000)
-
-
176
-
(176)
-
-
5,275
-
-
(5,275)
-
6,631
-
(5,775)
-
856
2,000
-
(2,000)
-
-
-
49,350
(49,350)
-
-
26,644
-
(26,644)
-
-
15,720
-
(15,720)
-
-
810
-
-
(810)
-
2,015
-
-
-
2,015
-
20,000
(20,000)
-
-
65,631
69,661
(126,336)
(6,085)
2,871

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 2023

22 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
Closure fund
Motor vehicle
fund
Business
development
and capacity
building
General funds
Previous year:
At 1
Closure fund
Motor vehicle
fund
Business
development
and capacity
building
General funds		 January
2023
Incoming
resources
Resources
expended
Transfers
Gains and
losses
At 31
December
2023
£
£
£
£
£
£
139,349
-
-
8,960
-
148,309
43,572
-
-
-
-
43,572
355,275
-
-
-
-
355,275
76,315
708,512
(756,638)
(35,842)
28,670
21,017
614,511
708,512
(756,638)
(26,882)
28,670
568,173
January
2022
Incoming
resources
Resources
expended
Transfers
Gains and
losses
At 31
December
2022
£
£
£
£
£
£
113,638
25,711
-
-
-
139,349
43,572
-
-
-
-
43,572
350,000
-
-
5,275
-
355,275
49,182
644,442
(586,167)
(5,275)
(25,867)
76,315
556,392
670,153
(586,167)
-
(25,867)
614,511

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.

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

23 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 December 2023:
Tangible assets
36,181
-
Investments
296,574
-
Current assets/(liabilities)
235,418
37,684
568,173
37,684
Unrestricted
Restricted
funds
funds
2022
2022
£
£
At 31 December 2022:
Tangible assets
38,406
-
Investments
267,904
-
Current assets/(liabilities)
308,201
2,871
614,511
2,871		 Total
2023
£
36,181
296,574
273,102
605,857
Total
2022
£
38,406
267,904
311,072
617,382

24 Operating lease commitments

Lessee

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		 2023
£
23,300
49,976
-
73,276		 2022
£
28,930
73,276
8,204
110,410

25 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

WHERE NEXT ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

26 Cash generated from operations 2023 2022
£ £
Deficit for the year (11,525) (4,641)
Adjustments for:
Investment income recognised in statement of financial activities (2,409) (1,385)
Loss on disposal of tangible fixed assets 2,361 -
Fair value gains and losses on investments (28,670) 25,867
Depreciation and impairment of tangible fixed assets 6,083 9,332
Movements in working capital:
(Increase)/decrease in stocks (3,201) 9,085
(Increase) in debtors (6,979) (4,187)
(Decrease) in creditors (2,223) (21,750)
(Decrease) in deferred income (37,125) (69,120)
Cash absorbed by operations (83,688) (56,799)

27 Analysis of changes in net funds

The charitable company had no material debt during the year.