Charity registration number 702290 Company registration number 2420623 (England and Wales) CARTREFI CYMRU CO-OPERATIVE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
CARTREFI CYMRU CO-OPERATIVE LIMITED CONTENTS Page Trustees, report Statement of trustees, responsibilities 16 Independent auditorfs report 17-19 Statement of financial activities 20 Balance sheet 21 Statement of cash flows 22 Notes to the financial statements 23-35
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. 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 charity's goveming document, the Companies Act 2006 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities pparIng 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 Cartrefi Cymru's objectives as given in the Memorandum and Artides of Association are the relief of suffering by.. providing for the care. accommodats"on. training. education. tUre living, employment, occupation and sustenance of persons normally, but not exclusively. resident in Wales with a mental or physical disability or suffering from a mental illness in order to foster and encourage a sense of independen the provision of a holiday home for the rest and recreation of aged, infirm or poor persons and their families who are in need of the facilities of the Company by reason of their age, infirmity or social and economic circumstances (and for the avoidance of doubt "infirm" and "infimiity" shall indude suffering from a mental illness or mental or physical difficulty) The second objective relates to a period when Cartrefi Cymru owned and ran a registered care home providing holiday breaks. The home was sold in 2016 and the objective is no longer relevant. Trustees agreed in early 2022 that the objective should be removed from the Artides and this legal process is likely to be concluded during the financial year 2024-2025. The principal activity for the period under review was the promotion of health and welfare of people with special needs by the provision of accommodation and support to enable them to live in the community. To fulfil this activity, the charity is dependent on the continuing support of the Local Authorities Wth whom we trEve contracts and partnerships. It is the Local Authorities, responsibility to provide care and support to people with disabilities within their areas. This is delegated to Cartrefi Cymru through contracts. Cartrefi Cymru's vision is of a future where the people who need support, and their families, are enjoying good lives. Through our mission, Cartrefi Cymru is building a better fijture by focusing on people with leaming disabilities and their families in Wales. Being a great support provider for= the individuals and families that we support our employees our partners and funders the communities in which we work As a co-operative, we also embrace the follov4ing principles as agreed by the International Cokoperative Alliance: Voluntary and Open Membership Democratic Member Control Member Economic Participation Autonomy and Independence Education, Training and Information CcFoperation Among C¢>operatives Conrn for the Community
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Ensuring Our Work Delivers OurAims We review our aims, objectives, and activities each year. This review looks at what we achieved and the outcomes of our work in the previous twelve months. The review looks at the success of each key activity and the benefits delivered from our services. The review also helps us ensure our aims, objectives and &tivities remained focused on our stated objectives. In detemiining our work for each period we have regard to the Charity Commission's general guidance on public benefit We continued to apply a Framework for Planning and Action. the elements of which are as follows: The elements of the Framework Pthrtlples Wt rtport on rtK)ns•vJ ha5 i<t4ons pkn Ita Itarr5 core YDTrd4 term go5 and4rf pplnop ieAÈ In and Che(k as SMARV win y5 do ai tr5acti We IEgP fhe5e kn LAealt +•p ro¢lrk We usei1¥5 Mow¥Ae and th th p. FArf•e- tD4¥c•J eLr Pkn . Goal 4. t 4TrJ¢oth Public benefit statement Our main activities and who we try to help are described in this report. All our charitable activities focus on providing support to people suffering from a disability and are undertaken to further our charitable purposes for the public benefit. Our aims, objective and activities are centred around us as a charity, providing benefit to the people we support and our communities. Any Council of Members and Board decisions are made in the interest of the people we support and the benefft we provide to them. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit to ensure compliance with the CharitiesAct 2011. In 2023-2024 Cartrefi continued the strategy stakeholder consultation induding events with council of members, trustees, all colleagues, and people we support. The findings from the strategy consultations were incorporated into the vision, mission, values and strategic goals outlined below. Our Vision Our vision is to build a future where people vtho need support and their families are enjoying good lives as valued contributors to their communits'es. Our Mission Our mission is to build a better future by focusing on people with leaming disabilities and their families in Wales. We strive to be a great support provider for the individuals and families that we support, our employees. our partners and funders, and the communities in which we work. Our values Honesty Kindness Respect Wellbeing
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Our strategic goals We will be a well-run, sustainable and environmentally conscious organisation. We will have stable, skilled, and motivated people vtho embrace new ways of working and are appropriately rewarded and supported. We will develop innovative digital and cooperative social care delivery models to afford choice and control to those we support. We will be a widely recognised charitable cooperative valued for our work as a support provider and an advocate for people with leaming disabilities and their families. Strategic report The description under the headings "Achievements and perfomiance" and "Financial review. meet the company law requirements for the trustees to present a strategic report. Achievements and performance Summary Against the backdrop of continuing strong operational and financial performance, the organisation has encountered opportunities for growth and improvement, both externally and internally, throughout 2023-2024. Cartrefi embraced leadership changes on the Board and in the senior leadership team and the need to provide stability while changes took place. Cartrefi faced the macro and micro impact of the cost-of-living crisis induding sharing the downward pressure on funding due to the cost-of-living crisis faced by local authorities and the wider health and social care sector, as well as the impact on recruitment and personal financial challenges fad by each individual colleague. Cartrefi faced workload capacity and prioritisation challenges with the need to work in different ways, especially the development of a digital first approach and the aspiration to undertake multiple projects at once. Financial and operational perfomiance continued to progress in 2023-2024: We will be a well-run, sustainable and environmentalty conscious organisation. In 2023-2024 there were several achievements working towards being a well-run, sustainable and environmentally conscious organisation.. Strategy Stakeholder Engagement.. Strategy workshops were attended by Service Managers in May - June 2023 in Bangor, Brecon, Bridgend, Camiarthen, Llandrindod Wells, Penrhyn, Pontypool and Trealaw,. to share how what we want to do as an organisation was being developed, check in with SeNi Managers to get their feedback on the ideas so far and ask the Service Managers if there was anything else we should be doing Two strategy and business planning days took Pla in Cardiff in June 2023 and January 2024 with Operations managers and Central Support Teams attending and working collaboratively considering Cartrefi's values and business planning priorities. Five Cartrefi Chat sessions were held in September October 2023 across north, mid and south regions with fantastic attendance from the people we support. The people we support took part in an interactive exercise identifying what makes a great support worker. The people we support said they want their support workers to have empathy and understanding, be accepting, patient. respectful. and supportive. have a caring nature, as well as being calm, happy and positive. The people we support said their ideal support worker would be someone who is outgoing and encourages them to take part in new experiences. induding new opportunities, new hobbies and new friendships.
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In addition, the people we support said their ideal support worker would be organised with planning to fit in everyday tasks like attendance at medical appointments, money management, helping them cook and being able to drive them to where they need to be. The Annual Retreat took place over hvo days in November 2023, bringing together the organisations Board of Management. Council of Members and other key Cartrefi Leaders and people receiving support. The sessions covered a look back over what had been achieved over the year as well as future planning. IAfjth sessions centring around co-operative activities, the presentation and approval of accounts. and confirmation of Trustee and Council appointments. Quality Assurance Framework introduced.. During 2023 the Quality Assurance Framework was intrOdUd to evaluate, learn and improve our services to the people we support so thal they are fit for purpose and deliver what matters. The framework sets out all the organisab'ons, systems, processes, and goals to ensure we can be confident in delivering great support and outcomes for the people who use our services. It also serves as a vehide to document our checks and balances and how we use data to report on key perfomiance indicators, find opportunities to improve, celebrate and share good practice and support and develop our staff teams. The Quality Assurance Framework is led by the Govemance Team in conjunction with the Assistant Regional Director from North, Mid and South. The Quality Assurance Framework set out expectations and standards for managers, and business partners across Cartrefi.. Oudining expectations and standards for documenting interactions with the people we support and their families. such as tenant and forum meetings, care plans, support plans and risk assessments, induding the use of Nourish digitsl care planning and sutveys with the families of the people we support. Oudining expectations and stsndards for interactions with colleagues, such as supervisions and appraisals and the role of Cartrefi's Code of Conduct and Social Care Wales Code of Professional Practice. Oudining expectations and standards for routine quality Tnonitoring such as area manager visits, team meetings and dashboard reporting Compliance and the audit process. The audit team is made up of representstives from Operations and Central Support Teams and each audit visit comprises team members from both Operations and Central Support. During 202&2024 the service FiAG ratings dashboard was used to prioritise seNice audit visits. During the year 27 central and operational colleagues made up the audit team, and 20 service audits were completed. Managers have fed back that having the itemised list of recommendations following an audit has been helpful to assist wth prioritising their time and knowng which areas to focus on first. Auditors have been mindfvl around seeking permission from people to visit, and planning around what works best for the people who live at the services and consequently, people we support have enjoyed welcoming auditors into their homes and showng off their spaces, with lovely feedback being received around how well people feel supported. Cashflow and reseNes were managed through financial control systems implemented to manage both income and expenditure ensuring the financial security of the charity. We will have stable, skilled, and motivated people who embrace new ways of working and are appropriately rewarded and supported. In 2023-2024 there were several achievements working towards having stable, skilled, and motivated colleagues who embrace new ways of working and are appropriately rewarded and supported.. Leadership stability and development= Board changes.. We welcomed three new trustees during 2023.
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Following the departure in June 2023 of the rentlY appointed CEO, as it was not the right fit, Adrian Roper, who had retired from Cartrefi following 26 years of seNice as CEO in July 2022, rejoined Cartrefi on a part-time interim basis. to work wth the Senior Leadership Team. Adrian supported the Chair to appoint the new CEO, Geraint Jenkins. Geraint had already been part of the Cartrefi team for 12 years, working in several operational management roles and spending 3 years as Director of Operations as well overseeing the ICT team. As well knowledge and expertise spanning the whole organisation, Geraint brings a track record of relationship building with intemal and extemal stakeholders. Following the promotion of Geraint Jenkins to CEO. Cartrefi's Senior Leadership Team were pleased to be in a position to backfill the Director of Operations role internally by promoting the Assistant Director (South) to Director of Operations and in turn to backfill the ARD (South) role by promoting an Area Manager to the role ofARD (South). The Board were keen to introduce a new role, Director of People, to the Senior Leadership Team and the role was recruited in February 2024. Recruitment The recruitment team continued to work with recruiting managers across Operations and Central Teams to improve the recruitment and onboarding process and test innovative recruitment and onboarding approaches. Recruitment workshops Five recruitment workshops took place in September October 2023 in Bangor. Carmarthen, Llandrindod Wells, Pontypool and RCT to identify recruitment best practice and what makes a fantastic recruitment prOsS from the employee's perspective. Fantastic feedback was received from lleagUeS who attended with best practice findings across Cartrefi's brand and employer value proposits'on, adverts, interviews, use of technology and onboarding. Invested in teams to develop capacity= Increased the capacity of the HR team with new Business Partner roles Increased the capacity of the Central Support Projects Team from 1 to 3 full time employees Increased the capacity of the Marketing, Comms and Fundraising team from 4 to 6 full time employees Invested in Community Engagement Activity Coordinator roles across Cartrefi in RCT. Swansea, the Vale, Brecon, the North. A key theme for Cartrefi continued to be the efforts to improve pay and conditions for all colleagues. Cartrefi became a real living wage employer in April 2022 and despite lack of clarity around funding that would be awarded by each local authority, in line with Welsh Government aspirations, was again able to plan to increase frontline support worker pay and honour differential pay for frontline managers in April 2024 in line with the real living wage. In addition, in November 2023 all staff were paid £100 one off payment in recognition of the cost-of-living challenges being experienced. The roll out of Disc profiling tool continued throughout 202>24, enabling individual colleagues and teams to understand their own profiles and support relationship building. In 2023-24 a cohort of leamers from across Cartrefi started the ILM Level 5 Certificate in Effective Coaching course, enabling Cartrefi to offer personntred and tailored one-tone coaching support sessions to colleagues. Implementation of business partnering approaches in several teams and set up Regional Development Team Meetings for team business partners to attend which increased collaborative working. We will develop innovative digital and cooperative social Ca delivery models to afford choice and control to those we suppo In 2023-2024 there were several achievements working towards developing innovative digital and cooperative social care delivery models to afford choice and control to those we support: Nourish is now fully operational for the operations teams. Focus will shift to exploring how central teams can benefit from Nourish, with workshops planned in the coming months to identify opportunities.
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 New insights boards have been implemented to provide operational managers with improved oversight of service statistics. The system now includes tracking for incidents involving the people we support. staff incidents, and medication errors. The process for reporting these incidents is being transitioned from MS Forms to Nourish, ensuring all data is consolidated in one place for ease of use and accuracy. Increased team capacity has simplified the reporting of low-level infomiation, which can now be used to support the development of additional Bl dashboards for both high- and low-level reporting. Since the launch.. 818,699 interactions have been dosed. 62,580 handover notes have been utilised. 17,273 support plan reviews have been completed. Sona has been implemented across the organisation for rostering purposes. The HR system within Sona has been developed and is currently undergoing User Acceptance Testing (UAT) by the HR Team. Payroll parallel runs will commence in the coming weeks to verify accuracy and identify areas of improper usage. We are now positioned to begin exploring additional fvnctionaltties, particularly in reporting and dashboards, with the goal of streamlining processes. During the year we delivered supported living and residential care services in 131 settings, supporting 355 people (320 last year) providing 1.5Million hours of support across the year. We provided support across 16 Local Authority Areas and all 7 Health Board areas across Wales, working collaboratively with 102 different organisations across Wales. We have supported 11 people to repair relationships that are important to them and have supported 245 people to complete their goals or leam new skills throughout the year. We managed 5 short stay services providing 18 respite beds providing respite support for families and breaks for people with leaming disabilities. During the year we delivered short stay services to 91 people. We continue to provide sessional support setvices for people requiring short periods of support in their own home or in the community. During the year we delivered sessional support to 172 people mainly funded by local authority contracts but with some personal contribution. We established 9 new supported living seNIs, supporting 84 new people across supported living, respite and sessional services. We have delivered 16,342 hours of unfunded support in the community throughout the year which is a saving to the Welsh Social Care economy of approximately 376k. We have supported 17 people in decreasing the number of hours paid support they require. We supported 144 people to go on holiday to a wide range of destinations, from staycations across Wales, to Caribbean cruises. Through CIW inspections we have received 17 EXlIent ratings across the organisation, as well as 10 'Good' ralings. To provide these ServIS Cartrefi Cymru employed a total of 1,151 staff of which there were 66 posts fulfilling central management functions. The remaining staff provided managerial and direct support as follows.. 13 Area Managers vtho provide management, quality and budgetary support 56 Service Managers who manage the support staff and provide hands-on care and support 80 Assistant Service Managers who assist the Service Managers 927 Support Workers who provide direct care and support 9 Area Administrators who provide administrative services to the above managers
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 We will be a widely recognised charitable cooperative valued for our work as a support provider aNI an advocate for people with learning disabilities and their families. In 202>2024 there were several achievements working towards being a widely recognised charitable cooperative valued for our work as a support provider and an advocate for people with leaming disabilities and their families= Tenders: Successfully tendered for new business in Pembrokeshire. Carmarthenshire and Denbighshire as well as retaining services in RCT, Powys and Camiarthenshire. Having understood the importance of the Activity Coordinator role from developing the Community Hub models in Swansea, Brecon and Bangor, a focus through the year was development of the Activity Coordinator roles and an aspiration to have them in place everywhere. At the end of 202>24, there were five Activity Coordinators in pla in Brecon. Bridgend and the Vale, the North, RCT and Swansea and the intention to add Activity Coordinators in Camiarthen and Pembroke early in 2024-25. Arts and Business Award for partnership wth National Dance Company Wales In May 2023, Arts and Business Cymru awarded Cartrefi and National Dance Company Wales the Arts, Business and Employees 2023 award for the Moving Beyond Compliance pilot that had taken place in May 2022. Arts and Business Cymru noted they were impressed by how Cartrefi and National Dance Company Wales collaborated to achieve positive change through arts activity that developed colleagues. '.11 outu.b IXD CEO'S Foreword As I reflect on my first year as CEO of Cartrefi Cymru Cooperative, l am filled wth immense pride and gratitude for the incredible achievements and resilience displayed by our organisation over the past year. Since stepping into this role in February, I have been consistently inspired by the dedication of our workforce, tFE trust of our partners, and the amazing commitment to the people we support across Vvales. This has been a year of both SUCsseS and challenges. INe have successfully navigated a rapidly changing social care environment, responding to the cost-of-living crisis, recruitment challenges, and the need for new ways of working. Through it all. our cooperative spirit has shone brightly. enabling us to not only adapt but to continue building a fLrture where people with leaming disabilities can live fulfilling and independent lives. Our work together ensures that we remain a trusted, sustainable, and innovative organisation that consistently strives to provide choice and control for those we supporL One of our significant achievements this year has been our continued emphasis on delivering exceptional care. Through our new Quality Assurance Framework, our digital transformation projects, and our expanded services across Wales, we have enhanced both the quality and accessibility of our support. We have extended our reach, forged new partnerships, and continued to innovate in social care models that benefit our communities and empower our people. Looking to the future, l am optimistic about Cartrefi's ability to continue thriving in this CoMpX landscape. With a strong foundation built on our cooperative values. a dedicated and skilled workforce, and a clear commitment to the people we support and the communities we serve we are welkpositioned to embrace new opportunities. We will keep driving foard, focusing on innovation, expanding our workfor, and strengthening our cooperative social care models. Together, we will continue to advocate for and deliver a social care model that is inclusive, responsive, and genuinely focused on the people and communities of VkÈles. Thank you to our exceptional team and every person involved in our joumey. Your passion. resil1ee, and commitment make Cartrefi a remarkable place to be, and it is an honour to work alongside each of you. Together, let's look fOard to another year of positive impact and shared success. Thank youl Geraint Jenkins CEO, Cartrefi Cymru Co-operative
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ststement from Chair of Trustees As trustees of Cartrefi we are immensely proud of the achievements and commitment from all involved over the last 12 months. With a change of Leadership, we have seen the organisation grow from strength to strength with Geraint and his Senior Leadership team working relentlessly to deliver Cartrefi's vision and goals, and to make a significant impact in the wider social care environment across Wales. benefitting the people we support and their families, our colleagues, council of members and wider communities. During this period of change Cartrefi has continued to deliver core services exceptionally well, it is lovely to hear about the difference the organisation is making to people's lives. and the appreciation felt for our staff. Looking ahead, we remain committed to our mission and are detemiined to build on the successes of this year. We'd like lo acknowledge the ongoing commitment and support of the voluntary Trustees and we look fomard to building on Cartrefi's cooperative model in the coming year with the Senior Leadership Team and Council of Members. A big thank you to everyone for making Cartrefi Every Day Remarkable! Christine Brian Chair of the Board Imogen Brown- Vice Chair Financial review During the financial year 2023-24, Cartrefi eamt £38.5m of income from.. local authority related contracts (£37.6m), income reimbursing expenditure incurred on behalf of people supported {£0.75m), appointeeship management (£0.05m) and bank interest (£0.1m) Overall, Cartrefi eamt £1.8m more income than had been budgeted. This was due to £1 m more Operations income earnt than budget due to new services being acquired through tenders in Flintshire and Pembroke as well as ongoing work to clarify billing rates throughout the year. In addition, £0.7m unbudgeted iome billing people supported for expenditure incurred on their behalf. this nets off the expenditure incurred and £0.1 m bank interest earned. During the year, the sale of a property completed and a £6k profit on disposal was recognised in income. The property sold for £275k and the cash contributed to the growth of cash held by Cartrefi. The propety was a residential home leased to a housing association and in tum leased to people supported., a property with a different profile to Cartrefi's main propety portfolio. consisting of office buildings, and a set up agreed with the local authority and housing association several years ago as at the time neither of the other parties were in a position to purchase the property. Expenditure in the year totalled £37m induding salaries and other stsff Costs (£31.5m), housing benefit associated accommodation costs (£3m), organisab'on running costs (£2.4m). Overall, Cartrefi spent £0.7m more than had been budgeted. This was due to unbudgeted expenditure incurred on behalf of people supported which is netted off in Other Income with income billed to the people supported reimbursing the expenditure incurred on their behalf. There was significant underspend on salary costs netted off by the use of agency staff to fill vacancies which were significantly more expensive than salaries. The final year end position was positive., a surplus of £1.5m. whereas the original budget had been for a surplus of approx. £0.16m.
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Funds For the third year in a row. ndS grew during the year and the total funds balance at the end of the year was £11 m; an increase of £1.5m on the funds held at the end of the previous financial year, £9.5m. After removing fixed assets and designated funds, free reserves totalled £6.7m. The trustees reviewed and amended the designations in pla totalling £2.3m= Housing Benefit related designated reserve- £798k Salary increases mitigation fund- £650k Roger Mcmahon pilots and new idea implementation fund- £568k Strategy development fund - £200k Pandemic preparation fund- £100k Reserves In July 2024, the trustees carried out the annual review of the charity's reserves policy. The tnjstees agreed the lower threshold, the minimal level of free reserves required to wind the company up should that ever be required, should be increased from £1.255m to £1.363m to take account of the impact of inflation. In addition, the trustees agreed the upper threshold, available to mitigate the organisation's main risks, should be increased from £6m to £6.6m, to mitigate one of the main financial risks the charty holds= cashflow challenges around local authority payment of invoices. The free reserves held at the end of March 2024 were £6.7m. This is above the minimum threshold d in line with the upper threshold and is therefore in line wth the amount of reserves the charity requires. Financial f0CaSt 202&2025 and beyond and going concem The 2024-2025 budget was signed off by the trustees in April 2024 when most local authority contract rate increases had been received. The 2024-2025 budget was balanced wth income and expenditure of £40m. The 2024-2025 budget was focused on investing in our colleagues as organisational performance in 2023-2024 had been stsble, with some great outcomes for the people we support, but taxing on our colleagues. The operating environment remained challenging wth ongoing pressures to meet the needs of our colleagues by paying the real living wage and improving temis and conditions. This is in the context of a challenging funding environment with local authorities facing the macro cost of living crisis. Recruitment and retention remained difficult while demand for our services increased. Against this backdrop, the 2024-2025 budget included several areas of investment including investment to support recruitment and retention, induding colleague wellbeing, improvements to terms and conditions. investment in brand and an aim to reduce expenditure on expensve agency workers. Cartrefi had become a real living wage employer in April 2022 and although the real living wage increased again to £12 in November 2023 Cartrefi was able to continue to pay support workers the real living wage armj was a real living wage employer for the third year. To be considered a real living wage employer, the emFloyer must increase the rate of pay to the RLW within six months of the RLW increasing. In line wth this reqLirement, Cartrefi increased support workers. pay to the real living wage in April 2024. Any factors that are likely to affect the financial perforniance or position going forward Cartrefi's short term financial position is stable, largely due to eaming surpluses between 202(k2024, achieved by implementing innovative social care solutions across seventeen well-diversified local authorities, as well as continual process improvements transforming the central support departments to ensure efficiencies are made and Cartrefi is a well-run organisation. However, Cartrefi is still paying in year salaries from in year income eamed, and as a result, Cartrefi is still dependent on in year local authority uplifts to infomi pay increase decisions. The charity Still does not have enough free resetves to sustainably commit to long temi spending increases unless the local authority award the compensating income increases. The real living wage increase in October 2024 will again present the charity th a challenge, while welcoming the pay increase for employees, the commitment to implementing the increase without having confirmation from local authorities that they will honour increase through rate uplifts, is a precarious balancing act.
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 As one of the biggest charities and cooperative organisations in Wales, Cartrefi is well placed to r&design and deliver innovative social care services, and Cartrefi is committed to working with local authorities to identify, pilot and implement innovative social care approaches to support the statutory authorities to do more with less statutory funding in the future. Principal risks and uncertainties The charity operates a risk register aligned to the three main Board Committee agendas= Audit and Risk (including service delivery quality assurance, governan and digital). People and Engagement Iformaiy HR and Remuneration) and Finance. Health and Safety is in the process of being moved into its own committ remit. Risks are scored based on existing controls and mitigations and planned controls and mitigations are identified and the risks are given a further score following the planned controls and mitigations. Risks are considered and the four 't's are used to identify how the organisation should deal wth risk= treat, temiinate, tolerate or transfer. The following risks have been identified in the risk register as high or critical risks ie having the following characteristics.. a critical risk of an unwanted event happening,. risk requires immediate action,. prcKJuction activities are heavily affected therefore financial impact or reputational loss might occur., strategies should be developed to reduce, eliminate or transfer the risk of the unwanted event(s). The critical risks identified at the end of the 202>2024 financial year, some of which are the same as the previous year, were.. Audit and Risk= Several data management risks were identified including data protection, data loss, theft or corruption and failure to comply with legislation requirements To mitigate the data management risks, the following mitigation measures have been implemented.. Robust policy in place, regular meetings around data protection to monitor complian, confidentiality agreements in place, engagement of extemal review, appointment of an External Data Protection Officer, E learning Module in pla for all staff. Robust back up system in place. Audit and Risk= Two main risks were identified regarding implementation of a digital project induding resistance to change and failure to measure and track benefits To mitigate the project implemenlation risks, the following mitigation measures have been implemented.. Address colleagues, reluctance to change through training and clear communication of the benefits Measure changes in relation to.. implementation progress, user adoption rates, processing effiaency improvements. data accuracy. colleague satisfaction and cost savings In the longer temi, the following areas will be developed.. Involve stakeholders. develop a robust change management plan, pilot areas th feedback loops, dearly Communicate objectives and follow up with a phased roll out and celebreate susS Establish dear benefit metrics, utilise dashboards for real time tracking and monitoring, continue to engage wth stakeholders and use feedback mechanisms and regularly report and communicate status. People and Engagement: Several talent related risks were identified induding loss of key senior leaders and managers, failure to recruit and retain employees, absence management and employee shortages leading to burn out To mitigate the talent related risks, the following mitigation measures have been implemented.. Career progression opportunities. focus on pay, benefits and employee wellbeing 10-
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Regular workforce requirements review, clear job descriptions and person specifications, robust recruitment processes. investment in a recruitment team In the longer temi, the followng areas will be developed.. Succession planning, coaching and mentoring, delegated skills and responsibilities, shared knowledge, prOsS mapping, leadership development at all levels Investment in Employer Value Proposition and end to end employee experience induding onboarding, pay and benefits. training and development, access to professional qualificats'ons. exit interviews identifying trends Finance= The risk of fraud of theft affecting the people we support was identified To mitigate the risk of fraud or theft affecting the people supported, the followng mitigation measures have been implemented.. Embracing new technologies and finding solutions to move away from cash as much as possible In the longer temi, the followtng areas will be developed.. Training and raising awareness, regular credit scorelcredit report checking on behalf of the seprfice user to discover unusual behaviours The risk of climate change induding the loss of energy supply, travel disruption, property damage and flooding particularly for the people we support and employees. To mitigate the risk of dimate change. the charity is implementing an environmental policy and propety strategy. In the longer term, a Servi and Offi level environmental impact assessment will be developed. Plans for future periods The 2024-25 business plan objectives are.. We will be a well-run, sustainable and environmentally conscious organisation. Improve workplaces and ensure workplaces are fit for purpose meeting the needs of colleagues and people we support and invest in new roles to increase capacity and efficiency. Enhance risk management practices to mitigate potential operational and financial risks by developing a Decision-making Framework and a new Risk Management Framework that features like a golden thread through projects, business as usual and meetings. Develop govemance capacity with the Board and Council of Members, testing next strategic steps at a residential retreat. We will have stable, skilled, and motivated people who embrace new ways of working and are appropriately rewarded and supported. Develop a comprehensive people strategy focused on recruitment, retention, and well-being to address challenges such as high tumover and reliance on agency staff. We will develop innovative digital and Cooperative social Ca delivery models to afford choice and control to those we suppo Continue the development and implementation of digital tools like Sona and Nourish to streamline operations and improve service delivery. Develop the Activity Coordinators, Team to standardise the offering for people we support across Vkèles and improve and standardise systems and processes. Invest in a pilot Dysphasia Secondment Project to identify support needed across the organisation and piloting new ways of working. We will be a widely recognised charitable cooperative valued for our work as a support provider a1 an advocate for people with learning disabilities and their families. Invest in a brand refresh and enhance our employee value proposition to build loyalty and attract tslent. Invest in Hubspot to deliver a new website and support stewardship of all stakeholders 11
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Structure, governance and management Cartrefi Cymru cOperative Ltd is a charitable company limited by guarantee. The Trustees of the charity form the Board of Management and are directors of the company. During 2016117, the company's Articles of Association were revised in order to incorporate a commitment to the principles of Co-operation, and to enable the charity to function as a multi-stakeholder co-operative while retaining its status as a charity and company limited by guarantee. The Charity Commission approved all the changes, and the Finance Conduct Authority approved the use of the protected name "Crioperative". The principal objective of this change was to provide a better platfom) for achieving our charitable purpose by being able to offer= New opportunities for beneficiaries to have a strong Vol and real control, New opportunities for beneficiaries to experience equality and indusion through 'on&member-one-VOte° decision-making structures, New opportunities for beneficiaries and other stakeholders to form positive relationships by building stronger communities together. Members Cartrefi Cymru cOperative Limited was incorporated on 7th September 1989, is limited by guarant, and has no share capital. Following the adoption of new Memorandum and Artides of Association on 13th November 2016, the Board of Management has the power to admit individuals to membership in the following categories.. Individual Members Community Members Employee Members. Every member is liable to contribute a sum not exceeding £1 in the event of the company being wound up. The liability continues up to one year after membership aSes. Board of Management A Representative Body (known as the Council of Members} is in pla which reviews the composition of the Board of Management on an annual basis and may appoint. replace or re-appoint trustees ceasing to hold office. In accordance with standing orders, each year one third of the membership of the Board of Management, based on length of service, shall retire from offi. A retiring member of the Board is eligible for re-election. Open recruitment methods are utilised to reach potential trustees with desirable knowledge and skills. Trustees may only be Community Members or norFMembers who have the relevant skills and experience to perform the duties required of a Trustee. Historically. recruitment of Trustees was mainly by invitstion and introduction by members and senior managers due to contacts and working within the leaming disability and not for profit sector. Trustee training is delivered by both in-house staff and external trainers on an ad hoc basis followng specific requests from trustees or circularisation of trustee training courses. A trustee induction programme is in development. 12-
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Board of Management meetings are held at least eight times a year. The Trustees who served during the year C Brian l Brown N Grimes I Courtney- appointed 24 Odober 2023 A Pala - appointed 24 October 2023 L Wlliams- appointed 27 November 2023 RAhmed - Resigned 21 July 2023 S Pullen- Resigned 8 April 2023 C Wlliams- Resigned 21 April 2023 Board of Management delegates authority for the day to day running of the company to the Senior Management team. Arrangements relating to delegation are set out in the Financial Regulations and the Schedule of Delegated Authority. Both documents are reviewed regularly and amendments are submitted to the trustees for approval. All policies, budgets, purchase of office buildings, changes to staff structure and appointment of the Chief Executive are approved by the Trustees. In accordance with the Company's commitment to Co-operative principles, Trustees are required to share decision-making, as far as possible. with the Council of Members including delegating appropriate decisions. The objective is to enable the democratic decision-making amongst Members as far as possible to have ownership of the governance of the Company. Where it is not appropriate to share or delegate a decision to the Council of Members the Board must incorporate. as far as practically possible. the views of the Council of Members on the matter. Major risks have been reviewed and systems and procedures have been estsblished to manage those risks. With regards to the financial risks the Trustees have been monitoring major risks, and progress to mitigate these, at every Board meeting. Employment Policies The charity's policy is to give full and fair consideration to applications for employment made by disabled persons. having regard to their particular aptitudes and abilities. Disabled employees receive appropriate training to promote their career development within the charity. Employees who become disabled are retained in their existing posts where possible or retrained for suitable alternative posts. Regular meetings are held beeen senior management and employee representatives to discuss matters of concem. Employees are kept well-infomied about the progress and position of the charity by means of regular departmental meetings. Pay Policy for Senior Staff The board of directors, who are trustees, give their time freely and did not receive remuneration in the year. The Senior Management Team comprises the key management personnel of the charity and oversees the directing, controlling and running of the charity on a day to day basis. The pay of the Senior Management Team and other management grades was reviewed by an extemal consultant who carried out a salary review of management's remuneration using benchmarking within the sector and with similar providers of similar size in 2017. The results of the extemal consultant's report were submitted to the Board of Management and approved. 13-
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Refence and administrative details Charity Name Cartrefi Cymru C(Foperative Limited Charity Number 702290 Company Number 2420623 Registered OITice 5 & 6 Coopers Yard Curran Road Cardiff CF10 5NB Company Secretary A Roper- appointed 23 June 2023 Trustees C Brian l Brown N Grimes S Pullen- resigned 8 April 2023 R Ahme& resigned 21 July 2023 C Williams- resigned 21 April 2023 I Courtney - appointed 24 October 2023 A Pala - appointed 24 October 2023 L Williams - appointed 27 November 2023 Senior Management A Roper (Interim Chief Executive from 23 June 20231 G Meredith {Chief Executive resigned 23 June 2023) J Nicholson (Operations Director retired 31 March 2023) S Jones (Assistant Regional Director} S Coffey (Director of Finance) C Ferris (Assistant Director of People retired 31 December 2022) G Jenkins (Operations Director) N Phillips (Assistant Regional Director) K Wilshaw (Assistant Regional Director) Auditors Azets Audit Services Ty DeNI Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB Bankers National Westminster Bank PLC 277 Cowbridge Road East Canton Cardiff CF5 1WX Solicitors Antony Collins Solicitors LLP 134 Edmund Street Bimiingham. B3 2ES 14-
CARTREFI CYMRU CO-OPERATIVE LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Geldards LLP 4 Capital Quarter Tyndall Street Cardiff CF10 4BZ Messrs. Passmorés, Lewls & Jacobs Solicitors 21 Tynevrydd Road Barry CFS2 8H8 Funds held as custodlan trustee The charity manages money on behalf of the people tl supports. This ser¥Ke indudes paylng expenditure on the service users behalf., d8taile¢J records are kepi to ensure that the tharity Is able to Identlfy amounts owed tolby each indiwdual. Each service user has its own bank acnt held with Natwest which is linked to the chartty, this ensures servic8 user accounts and balan5 are easily identnlable. No other assets or liabiliti85 ate held on behalf of service users. The total valuè of such accounts al the year end totslled £1,486.252 (2023: £636.282). Disclosurè of infomiation to auditor Each of the trustees ha5 Gonfirmed that there is no infomatiM of which they are aware which is relevant to the audit. but of which the audttor Is unaware. They have fvrther conflmxd Ihal they have laken appropmate steps to identfy such relevant rnfomiation and to establish that the auditor is aware of such infonnation. The trustees. report. induding the strategic report. was approved by the Board of Trustees. C Brfan Trustee 15-
CARTREFI CYMRU CO-OPERATIVE LIMITED STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors of Cartrefi Cymru Coperative Limited for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United 'ngdoM Generally Accepted Accounts'ng Practice). Company Law requires the trustees lo prepare financial slatements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to= select suitable accounting policies and then apply them consistenlly- observe the methods and principles in the Charities SORP: make judgements and estimates that are reasonable and prudent., and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the Maintenan and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 16-
CARTREFI CYMRU CO-OPERATIVE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARTREFI CYMRU CO-OPERATIVE LIMITED Opinion We have audited the financial statements of Cartrefi Cymru C¢>operative Limited {the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements. induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting practi>. In our opinion, the financial statements- give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance Intemational Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditoffs responsibilities for the audit ol the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the UK, including the FRC'S Ethical Standard, and we have lfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffiaent and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have conduded that the twstees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charity's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going conrn are described in the relevant sections of this report. Other information The other information comprises the infomiation induded in the annual report other than the finarcial statements and our auditor's report thereon. The trustees are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial stalements or our knovledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we condude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the infomialion given in the trustees, report for the financial year for which the financial statements are prepared, which includes the directors, report and the strategic report prepared for the purposes of company law, is consistent with the financial statements,. and the strategic report and the directors, report induded within the trustees, report have been prepared in accordance with applicable legal requirements. 17-
CARTREFI CYMRU CO-OPERATIVE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARTREFI CYMRU CO-OPERATIVE LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect of the foll0vng matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion= adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us- or the financial ststements are not in agreement viith the accounting records and returns" or certain disdosures of trustees, remuneration specified by law are not made" or we have not received all the information and explanations V require for our audit. Responsibilities of trustees As explained more fully in the statement of trustees. responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misststement, whether due to fraud or eOr, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance th ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial ststements. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https.'Il www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. 18-
CARTREFI CYMRU CO-OPERATIVE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARTREFI CYMRU CO-OPERATIVE LIMITED Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities. including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying th that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of iegUlar1tieS and non-compliance with laws and regulations. including fraud, we designed procedures which included.. Enquiry of management and those charged with govemance around actual and potential litigation and claims as well as actual, suspected and alleged fraud- Reviewing minutes of meetings of those charged Yth governance., Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection,. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations., Performing audit work over the risk of managemenl bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the nomial course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit. there is a risk that we viill not detect all irregularities. including those leading to a material misststement in the financial statements or norFcompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of noTrcompliance. The risk of not deteding a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal control. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stste to the charitatle company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or forthe opinions we have formed. Katherine Parkin (Senior Statutory Auditor) for and on behalf of Azets Audit Services 13 November 2024 Chartered Accountants Statutory Auditor Ty DeTW, Lime Tree Court Cardiff Gate Business Park Cardiff United Kingdom CF23 8AB 19-
CARTREFI CYMRU CO-OPERATIVE LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Unrestricted funds funds 2024 2023 Notes fr Donations and legacies Charitsble activities Investments Other income 8,852 38,420,121 35,580,651 98,684 21,211 6,138 Total income 38,533,795 35,601,862 Charitable activities 37,053,983 35,046,123 Net income for the yearl Net movement in funds 1,479,812 555,739 Fund balanS at 1 April 2023 9,563,934 9,008,195 Fund balances at 31 March 2024 11,043,746 9,563,934 The ststement of financial activities indudes 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. -20-
CARTREFI CYMRU CO.OPERATIVE LIMITED BALANCE SHEEr ASAT31 MARCH 2024 2024 2023 Flxed assets Tangible assets 12 1,926.252 2,126,443 Current assets Debtors Cash at bank and in hard 13 4.034.055 8.407,854 5.569,275 3.149.229 10.441.909 8.718,504 Croditors." amounts falllng due within one year 14 {1.324.415) (1.281.013) Net current assets 9.117.494 7,437,491 Total assèts less current Ilabllities 11.043.746 Income funds Unrestricted fvnds Designated funds General unrestrthd funds 17 4.303,240 6,740.506 4,465.182 5,098,752 11.043.746 9.563.934 11.043,746 9,563,934 The financAal statements were approved by the Tntstees on ..... C Brian Tru¥tse Company reglstration number 2420623 -21-
CARTREFI CYMRU CO-OPERATIVE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash generated froml(absorbed by) operations 20 2,997,886 (963,114) Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Investment income received (112.675) 274,730 98,684 21,211 Net cash generated from investing activities 260.739 21,211 Financing activities Repayment of bank loans (195,421) Net cash used in financing activities (195,421) Net increasel(decrease) in cash and cash equivalents 3,258.625 (1,137,324) Cash and cash equivalents at beginning of year 3,149.229 4,286.553 Cash and cash equivalents at end of year 6,407.854 3,149.229 -22-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity information Cartrefi Cymru Co-operative Limrted is a private company limited by guarantee incorporated in England and Wales. The registered office is Units 5 & 6 Coopers Yard. Curran Road, Cardiff: CF10 5NB, United Kingdom. 1.1 Accounting convention The financial statements have been prepared in accordan with the charity'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)" The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterting, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the trustees for SFEcific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally entitled to it after any perfomiance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the time of the donation. Income from local authority contracts and service user income is recognised in the period in which the service was provided. Investment income is recognised when received. -23-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Icontinued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third paty, it is probable that settlement wll be required and the amount of the obligation can be measured relialjy. Irrecoverable VAT is Charged as a cost against the activity for which the expenditure was incurred. Costs are allocated betsyeen the differerrt categories according to the nature of the cost. here oJsts are shared, they are apportioned between the Categories on a basis consistent with the use of the resources. Charitable expenditure COTnprises those costs incurred by the charrty in the delivery of its activities. includes bolh costs that can be allocated direcuy to such activities and those costs of an indirect nature necessary to support them. Governan costs indude those costs associated with meeting the constitutional and statutory requirements of the charity and indude the audit fee and costs linked to the strategic management of the charity. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to WTite off the cost or valuation of assets less their residual values over their useful lives on the following bases= Freehold land and buildings Fixtures and fittings CompLrters Motor vehides 1.50A Straight Line Over 31 months Over 31 months 200h Straight Line The gain or loss arising on the disposal of an asset is detemiined as the difference between the sale proceeds and the carying value of the asset. and is recognised in the statement of financial activities. 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indution exists, the recoverable amount of the asset is estimated in order to determine the extent of the impaimient loss (if any). 1.8 Cash and cash equivalents Cash and cash equivalents indude cash in hand, deposits held at call with banks, other short-tem liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 'Basi¢ Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, 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. -24-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Icontinued) Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price induding 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. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another paty that is able to sell the asset in its entirety to an unrelated third party. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are inits'ally recognised at transaction price unless the arrangement constitutes a finanang transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interesL 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 charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entidement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.12 Leases Rentals payable under operating leases. are charged as an expense on a straight line basis over the term of the relevant lease. 1.13 Taxation As a registered charity, Cartrefi Cymw C¢>operative Limited is entilled to the exemption from taxation in respect of income and capital gains received wth sections 47PA89 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects purposes only. -25-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual SUItS may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects cmly that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical judgements Bad debt provision Contained in the financial statements is a bad debt provision totalling £300,000 (2023.. £277,716). The provision requires judgements to be made which indude the charity's review of the debtors listing and those debts that are aged or where debtors are not timely in setuing debt owed. Donations and legacies Unrestricted funds Unrestricted funds 2024 2023 Donations and gifts 8,852 Charitable activities Charitable Charitable activities activities 2024 2023 Service users charges. receivable Local authority contracts other grants and allowances Appointeeship income, consultancy and central sales Meeting room hire 22,614,928 19,415,188 13,246,556 10,701,556 2,430,482 5,363,731 118,818 78,411 9,337 21,765 38,420,121 35,580,651 -26-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 98,684 21,211 Other income Unrestricted funds Total 2024 2023 Net gain on disposal of tangible fixed assets 6,138 7 Charitable activities 2024 2023 Staff costs Depreciation and impaimient Other staff-related costs Accommodation costs Other costs Operating leases 27,811,759 27,594,757 44,274 99,716 1,348,840 990,328 2.717,853 2,441.540 557,730 265.335 81,209 107.351 32,561,665 31,499,027 Share of support costs {see note 8) Share of governance costs (see note 8) 4,462,219 3,521,436 30,099 25,660 37,053,983 35,046,123 -27-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Support costs Support Governance costs costs 2024 Support Governance Costs costs 2023 Staff costs Accommodation costs Other costs 2.418.414 370.617 1.673.188 2,418.414 370.617 1,673.188 2,392.495 332,937 796.004 2,392,495 332,937 796,004 Auditor fees 30.099 30.099 25,660 25.660 4.462.219 30.099 4,492.318 3.521.436 25,660 3,547.096 Analysed between Charitable activities 4,462,219 30,099 4,492,318 3,521,436 25,660 3,547,096 Governan costs includes payments to the auditors of £27,399 (2023- £23,660) for audit fees and £2,700 for accountancy services (2023 - £2,000). Trustees None of the trustees (or any persons connected Vth them) received any remuneration or benefits from the charity during the year. No trustees were reimbursed for expenses during the current or prior year. 10 Employees The average monthly number of employees during the year was.. 2024 Number 2023 Number Supported accomodation and domiciliary care Management and administrative staff 1,092 76 1,088 79 Total 1,168 1,167 Employment costs 2024 2023 Wages and salaries Social security costs other pension costs 27,341,381 2,238,281 650,511 27,001.794 2,332.062 653.396 30,230,173 29,987,252 During the year, the charity made ex-gratia payments totalling £60,288 (2023." £Nil) which were approved by the trustees in recognition of exceptional arcumstances. -28-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Employees Icontinued) Key management personnel The key management personnel of the charity during the period are noted in the trustees report. The total emoluments and benefits received by the key management personnel during the year was £639,267 12023= £556,780). The total above includes an amount of £58.800 (2023.. £nil} paid to entities that provide key management personnel servi5 to the charity. The number of employees whose annual remuneration VRS more than £60,000 is as follows= 2024 Number 2023 Number £60,000- £70,000 £80,000- £90,000 £90,000- £100,000 11 Taxation The charity is exempt from tax on income and gains falling wthin section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 12 Tangible fixed assets Freehold land Fixtures and and buildings rrttings Computers Motor vehicles Total Cost At 1 April 2023 Additions Disposals 2,473,125 35,507 314 508,457 51,761 13,995 60,600 3,031,084 112,675 {286,707) (286.707) At 31 March 2024 2.186.418 35,821 560,218 74,595 2,857,052 Depreciation and impairment At l April 2023 Depreciation charged in the year Eliminated in respect of disposals 347,054 33,411 (18,115) 35,507 61 508,085 2,394 13,995 8,408 904,641 44,274 (18,115) At 31 March 2024 362.350 35,568 510,479 22,403 930,800 Carrying amount At 31 March 2024 1.824.068 253 49,739 52.192 1,926.252 At 31 March 2023 2,126.071 372 2,126.443 Banking facilities are secured by way of fixed charges over properties ovmed by the charity. -29-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 13 Debtors 2024 2023 Amounts falling due within one year: Trade debtors other debtors Prepayments and accrued income 1,972,041 94,062 1,967,952 5,300,193 165,943 103,139 4,034,055 5,569,275 14 Creditors: amounts falling due within one year 2024 2023 Notes Other taxation and social security Deferred income Trade creditors Other creditors Accruals 530,540 541,233 300,000 57,857 359,023 22,900 15 224,038 505,884 63,953 1,324,415 1,281,013 Included wthin 'Other creditors, for the current year is an amount of £356,386 which was previougy dassified as 'Deferred income,. This reclassification has been made to better reflect the nature of the liability. This change in classification has no impact on the overall financial position and has been made to enhance clarity within the financial statements. 15 Deferred income 2024 2023 Other deferred income 300,000 Deferred income is induded in the financial statements as follows= 2024 2023 Deferred income is induded within.. Current liabilities 300,000 Movements in the year.. Deferred income at 1 April 2023 Released from previous periods Resources deferred in the year 300,000 (300,000) 300,000 Deferred income at 31 March 2024 300,000 -30-
CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Retirement benefit schemes Defined contribution schemes The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £650,511 (2023 - £653,396). Balances outstnading at year end totalled £116,355 (2023- £110.406). 31
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CARTREFI CYMRU CO-OPERATIVE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Operating lease commitments At the reporting end date the charity had outstsnding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows= 2024 2023 Within one year Between two and five years 3,390 16 12,592 3.426 3,406 16.018 19 Related party transactions During the year the charity incurred charges from Antur Waunfatw regarding the collection and shr8Jding of paper totalling £nil {2023'. £382). At the current and prior year end amounts of £nil were outstandng. The organisations are related by the way of common trustees. 20 Cash generated from operations 2024 2023 Surplus for the year 1,479,812 555,739 Adjustments for: Investment income recognised in statement of financial activities Gain on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets {98.684) (6.138) 44.274 (21,211) 99.716 Movements in working capital.. Decreasel(increasel in debtors Increase in creditors (Decrease)lincrease in deferred income 1,535,220 343,402 1300,000) {2,051,598) 154,240 300,000 Cash generated froml{absorbed by) operations 2,997,886 (963,114) 21 Anatysis of changes in net funds The charity had no debt during the year. -35-