Connecting Communities in Berkshire Ltd - Charities report - 22.2

REGISTERED COMPANY NUMBER: 03212736 (England and Wales)

REGISTERED CHARITY NUMBER: 1056367

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2023

for

Connecting Communities in Berkshire Ltd

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Statement of Financial Position

8

to

9

Notes to the Financial Statements

10

to

14

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023.

The annual report and financial statements comply with the Memorandum and Articles of Association and the requirements of the Statement of Reported Practice (SORP) Accounting and Reporting by Charities (FRS102) (effective 1 January 2019).

Connecting Communities in Berkshire (CCB) is an independent charity with almost 50 years of experience in community development work, originally found in 1973 as a Rural Community Council. Our team is knowledgeable and experienced in finding solutions that best meet the needs of communities. We develop partnerships that foster good communications, which in turn build engagement and deliver strong, sustainable communities.

CCB is an active member of Action with Communities in Rural England (ACRE) the national body for 38 charitable local development agencies.

Our vision is for all communities in Berkshire to be strong, resilient, sustainable and able to take control of their own futures.

CCB's purpose is to inspire action at a community level that improves people's quality of life. We work across Berkshire, with a particular focus on rural areas. We run projects that provide advice, support and training that:

- reduces poverty & rural disadvantage

- improves rural health & wellbeing

- increases digital inclusion & social connectedness

Our organisation values include:

Integrity: honesty, fairness, respect and trustworthiness in all that we do

People: we respect the individual rights, dignity and diversity of all people. We value the skills and experience our staff bring to their work and seek to develop the best in others

Volunteering: we encourage people to find ways of giving their time for the benefit of their communities.

Health, Safety and the environment: we challenge and encourage ourselves and others to protect the environment, the health & safety of our employees and those within the communities we support

Partnerships: we are committed to maintaining and developing positive relationships with partners, funders and our beneficiaries

Progress: we challenge ourselves to continually improve and develop new projects and services to meet emerging needs

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objectives (the Objects) are to promote any charitable purpose for the benefit of the communities in Berkshire and in particular, but not exclusively:

- Community capacity building in urban and rural communities to ensure equality and diversity of opportunities and sustainable regeneration;

- Information, advice, support, training and personal development for the benefit of individuals and organisations within the voluntary and community sector;

- Information, advice, support and training for the benefit of communities, village and community buildings, community groups and individuals within the public and voluntary sectors;

- Information, advice, support, training and the advancement of education for the benefit of disadvantaged groups and individuals, elderly people, and young people.

These Objects were approved at the Annual General Meeting on 14 July 2009 and there have been no subsequent changes to them.

During the coming year, staff and trustees will undertake a review of CCB's constitution and update, where necessary, our memorandum and articles of association. However, it is unlikely that CCB's charitable objects will change.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

What a difference a year makes! Twelve months ago we were working hard on our second stage bid to the Reaching Communities Fund. We had just completed a pilot project bringing new exercise classes to young people and older people in rural communities. We were once again providing fuel poverty advice at drop-in sessions to vulnerable families and were back in the classroom delivering training face-to-face following the ending of all Covid restrictions.

Spring 2023 finds us busier than ever, delivering our new 21st Century Halls programme funded by the National Lottery Community Fund and the Princes Countryside Fund. Our team has grown for the first time in years, having welcomed Maria Kelly as our new Project Development Officer. Our Fuel Poverty project has reached more people than ever before and membership of the Community Buildings Advice Service is at an all-time high.

This time last year we had just finished work on our new strategic plan, which highlighted the three strategic aims identified by CCB's staff team and trustees:

- Reducing poverty & rural disadvantage

- Improving rural health & wellbeing

- Increasing digital inclusion & social connectedness

These aims serve as the cornerstone of our business development work and represent our commitment to our beneficiaries across Berkshire. Details of the progress we have made towards achieving these aims can be found in our Impact Report, which also describes our ongoing work to improve and expand the support we offer. The report can be found on our website - www.ccberks.org.uk.

In May 2023, our national body ACRE published a paper examining the rural characteristics of the cost-of-living crisis. High fuel prices, expensive housing and limited access to services can add additional pressures to households living in rural areas. People in rural areas have to travel further to access education, retail, health and employment opportunities which can be costly, and is very difficult for people without a car.

Improving the range of services delivered on an outreach basis in rural communities is one way of improving this situation. Improving access to services helps to reduce the need to travel, saving rural residents both time and money. We advocate for greater use of village halls and other community buildings by service providers and will work with local policy makers to include outreach delivery as part of their service delivery strategies.

Trustees of the Charity have had due regard to the Charity Commission's guidance on public benefit and are content that decisions made by them comply with these requirements. Further information on the work of the charity during the year can be found in our Impact Report, published separately.

Fundraising activities

CCB doesn't employ professional fundraisers, or invest money in raising donations from the general public. Our fundraising activities focus on approaching grant funders and charitable trusts, selling membership services to some of our beneficiaries and entering into Service Level Agreements, mainly with public sector bodies, to deliver services on their behalf.

In September 2022 we were awarded a significant grant by the National Lottery Community Fund which will provide 5-year funding to extend our work with village halls, and provides us with much needed core funding.

FINANCIAL REVIEW

Performance

The overall surplus for the year as shown on the statement of financial activities was £1,322 (2022: £1,556).

The net surplus for the year on unrestricted funds (representing core activities) amounted to £796 (2022: £1,556). The balance carried forward (unrestricted) at 31 March 2023 was £54,258 (2022: £53,206).

The net surplus for the year on restricted funds amounted to £526 (2022: -£726). The balance carried forward (restricted) at 31 March 2023 was £0 (2022: £0).

The notes to the financial statements summarise the year's movements on each fund. Restricted funds relate to specifically funded projects for which income and expenditure balance over the period of their operation. However, receipts and payments are not always in step in the short term and balances held at any given date can vary.

The key tools used by the Charity to maintain tight financial controls are:

1. The Budget: broken down into central core costs and costs for each key project or service

2. Cash-flow analysis: showing all income and expenditure, with a projected cash-in-hand figure and required contingency reserve figure on a monthly basis. At the request of trustees, this projection has been extended to cover a 24-month timescale

3. Terminal Contingency calculator: showing the total staff redundancy cost, combined with the total costs of all existing leases and contracts, analysed on a monthly basis

4. Reserves Policy: describing the key financial risks the charity faces with appropriate mitigating actions, including the sums held in reserve to enable actions to be taken if required.

These tools are regularly updated and reviewed by the Board at their meetings during the year.

Reserves policy

The policy of CCB is to keep sufficient unrestricted reserves to allow the charity to continue to operate through periods of income uncertainty, to meet legal requirements and to cover any longer term liabilities arising if an orderly closure of the charity was required.

This policy is discussed by trustees every 6 months, with a formal review conducted annually.

Due to current successful funding initiatives, CCB has identified that the likelihood of an orderly closure of the charity being necessary has reduced significantly. As a result of this a full terminal contingency reserve is not currently required. Therefore, reserves are required only to cover unforeseen operational risks such as staff illness and short-term funding gaps. This will facilitate continuity of delivery while grants are being renewed and alternatives sought.

In addition to this operational reserve, a small sum is required to cover unforeseen legal or accountancy costs and funds to cover office lease liabilities.

The trustees consider that target reserves should be £31,670 to cover these risks. Current reserves of £54,528 meet this target. In order to plan for the future and prepare for an end to CCB's current National Lottery grant in September 2027, trustees have set aside a designated fund of £22,858 for new project development.

FUTURE PLANS

In our Impact Report, published separately, we set out a series of goals for the coming year. They establish a series of themes, linked to our strategic aims, which will enable us to improve and increase the support we offer to our beneficiaries.

- We will develop new alliances with other organisations to extend the reach of our fuel poverty project

- We will respond to the needs of our beneficiaries and create new training courses

- We will create new activities at rural halls and develop new partnerships with health providers to increase outreach provision

- We will support new rural Warm Hubs in village halls and offer support to existing hubs

- We will support any venue interested in becoming a digital hub to get connected and offer support with digital skills to their community

- We will help village halls understand and improve the thermal efficiency of their buildings and investigate low carbon heating

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is a charitable company limited by guarantee, incorporated on 16 June 1996 and registered as a charity on 25 June 1996. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

Organisational structure

The affairs of Connecting Communities in Berkshire Ltd are controlled by a Board of Trustees. Board members are either elected or co-opted in accordance with the Articles of Association. The Board of Trustees meets quarterly.

Connecting Communities in Berkshire Ltd is a membership organization that is open to membership from individuals and organizations across the county that are sympathetic to its aims and objectives. Trustees are drawn from the membership, and are invaluable in ensuring that the organization continues to deliver its mission effectively through understanding of the changing needs, policy framework and funding streams.

Induction and training of new trustees

CCB uses a skills matrix to record Trustee's skills and competencies against 60 different criteria. Recruitment activity is tailored depending on existing Trustee's skills and competencies to ensure gaps in skills can be filled by new Trustees. As Trustees approach their retirement date, analysis through the skills matrix enables the organisation to identify skills that will be required once they stand down.

New Trustees are assisted in familiarising themselves with the charity and the context within which it operates through a thorough induction process, which covers:

- The obligations of Trustees

- The main documents which set out the operational framework for the charity including the Memorandum and Articles of Association.

- Resourcing and the current financial position as set out in the latest published accounts.

- Future plans and objectives.

Risk management

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Significant external risks to funding have led to the development of a strategic plan which allows for the diversification of funding and activities.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the offices. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. Major financial risks that have been identified and quantified are detailed in the notes to the accounts.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03212736 (England and Wales)

Registered Charity number

1056367

Registered office

Unit 11 Diddenham Business Park

Diddenham Court, Lambwood Hill

Grazeley

Reading

Berkshire

RG7 1JQ

Trustees

P N Sampson Consultant

B E Lyon Retired

P Thorn Retired College Principal

S Morland Retired

A Hedges Advertising Production Consultant

M Nevitt Retired

E Herbert Chief Executive Officer (appointed 9.6.22)

C Salzedo Senior Training Fellow (appointed 9.6.22)

The Directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association the members of the Board of Trustees are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.

Company Secretary

T Parry

Independent Examiner

David Edmonds

EDMONDS ACCOUNTANCY LIMITED

Unit 11, Diddenham Bus Park,

Diddenham Court

Grazeley,

READING

Berkshire

RG7 1JQ

Accountants

Edmonds Accountancy Ltd

Unit 11 Diddenham Business Park

Diddenham Court

Grazeley

Reading

Berkshire

RG7 1JQ

Approved by order of the board of trustees on 28 September 2023 and signed on its behalf by:

T Parry - Secretary

Independent examiner's report to the trustees of Connecting Communities in Berkshire Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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 accounts to be reached.

David Edmonds

EDMONDS ACCOUNTANCY LIMITED

Unit 11, Diddenham Bus Park,

Diddenham Court

Grazeley,

READING

Berkshire

RG7 1JQ

Date: .............................................

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Government Agencies

-

34,840

34,840

34,840

Local Authorities

7,332

17,178

24,510

15,220

Corporate and other agencies

5,400

54,451

59,851

40,355

Sales and subscriptions

1,922

10,990

12,912

13,132

Total

14,654

117,459

132,113

103,547

EXPENDITURE ON

Charitable activities

Activities undertaken directly

13,858

116,933

130,791

101,991

NET INCOME

796

526

1,322

1,556

Transfers between funds

9

526

(526

)

-

-

Net movement in funds

1,322

-

1,322

1,556

RECONCILIATION OF FUNDS

Total funds brought forward

53,206

-

53,206

51,650

TOTAL FUNDS CARRIED FORWARD

54,528

-

54,528

53,206

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

5

-

-

-

-

Investments

6

1,000

-

1,000

1,000

1,000

-

1,000

1,000

CURRENT ASSETS

Debtors

7

6,771

-

6,771

5,554

Cash at bank

50,707

34,830

85,537

60,547

57,478

34,830

92,308

66,101

CREDITORS

Amounts falling due within one year

8

(3,950

)

(34,830

)

(38,780

)

(13,895

)

NET CURRENT ASSETS

53,528

-

53,528

52,206

TOTAL ASSETS LESS CURRENT LIABILITIES

54,528

-

54,528

53,206

NET ASSETS

54,528

-

54,528

53,206

FUNDS

9

Unrestricted funds

54,528

53,206

TOTAL FUNDS

54,528

53,206

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 28 September 2023 and were signed on its behalf by:

S Morland - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

3.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.3.23

31.3.22

Chief Operating Officer

1

1

Administration

1

1

Projects

3

2

5

4

No employees received emoluments in excess of £60,000.

4.	MARCH 2022 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Government Agencies

-

34,840

34,840

Local Authorities

7,079

8,141

15,220

Corporate and other agencies

11,000

29,355

40,355

Sales and subscriptions

2,132

11,000

13,132

Total

20,211

83,336

103,547

EXPENDITURE ON

Charitable activities

Activities undertaken directly

17,929

84,062

101,991

NET INCOME/(EXPENDITURE)

2,282

(726

)

1,556

Transfers between funds

(726

)

726

-

Net movement in funds

1,556

-

1,556

RECONCILIATION OF FUNDS

Total funds brought forward

51,650

-

51,650

TOTAL FUNDS CARRIED FORWARD

53,206

-

53,206

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2022 and 31 March 2023

8,387

DEPRECIATION

At 1 April 2022 and 31 March 2023

8,387

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

Tangible assets are held at Nil value

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

MARKET VALUE

At 1 April 2022 and 31 March 2023

1,000

NET BOOK VALUE

At 31 March 2023

1,000

At 31 March 2022

1,000

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

IKU Services Limited

Registered office: Unit 11 Diddenham Business Park, Diddenham Court, Grazeley, Reading, Berkshire, RG7 1JQ

Nature of business: Dormant

%

Class of share:

holding

Ordinary

100

31.3.23

31.3.22

£

£

Aggregate capital and reserves

1,000

1,000

7.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade debtors

2,673

2,204

Other debtors

2,604

2,604

Tax

269

-

VAT

-

171

Prepayments and accrued income

1,225

575

6,771

5,554

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade creditors

225

346

Amounts owed to group undertakings

1,000

1,000

Other creditors

781

571

Accruals and deferred income

1,944

229

Deferred government grants

34,830

11,749

38,780

13,895

9.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.22

in funds

funds

31.3.23

£

£

£

£

Unrestricted funds

General fund

53,206

796

526

54,528

Restricted funds

Restricted

-

526

(526

)

-

TOTAL FUNDS

53,206

1,322

-

54,528

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

14,654

(13,858

)

796

Restricted funds

Restricted

117,459

(116,933

)

526

TOTAL FUNDS

132,113

(130,791

)

1,322

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.4.21

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General fund

51,650

2,282

(726

)

53,206

Restricted funds

Restricted

-

(726

)

726

-

TOTAL FUNDS

51,650

1,556

-

53,206

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

20,211

(17,929

)

2,282

Restricted funds

Restricted

83,336

(84,062

)

(726

)

TOTAL FUNDS

103,547

(101,991

)

1,556

Transfers between funds

I was agreed with The National Lottery that a portion of their funding would be used as part of the terminal contingency fund to be used in the event or cessation. A transfer of £526 between the lottery fund and general funds has been made.

10.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.