G N G Community Services Ltd - Charities report - 22.2

REGISTERED COMPANY NUMBER: 04898761 (England and Wales)

REGISTERED CHARITY NUMBER: 1135022

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

G N G COMMUNITY SERVICES LTD

Page

Report of the Trustees

1

to

3

Report of the Independent Auditors

4

to

6

Statement of Financial Activities

7

Balance Sheet

8

Notes to the Financial Statements

9

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 trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's main objective is to act as a resource for children and young people living in the primary area of benefit by providing advice and assistance and organising the provision of childcare within the city of Wolverhampton, particularly the area of Blakenhall ('the primary area of benefit'). In setting the objectives and activities of the charity, the Trustees have exercised due regard to the public benefit guidance published by the Charities Commission.

Main activities

To provide childcare for children aged 0-5 years. The charity operates within Blakenhall, Wolverhampton and works with the local council and community in order to offer a range of funded and private nursery places.

ACHIEVEMENT AND PERFORMANCE

Blakenhall neighbourhood nursery have continued to work with the local council and community and are pleased that they have been able to continue to offer funded places under the 2 year pilot scheme for children aged 2 years who are from a deprived background. During the year they have taken on new children from other local nurseries that have closed down. They have also held many stay, play and learn sessions to help both new children and parents integrate into the nursery.

The Khalsa school continues to offer weekend classes to children in the local community which are funded and operated by the Gurdwara temple. G N G Community Services Limited continues to support the Khalsa School by offering the School use of its premises and facilities.

With Senior Staff Changes and restructure of the Management Team, the Nursery has reevaluated and assessed key performance indicators throughout. Ensure compliance and conformity to relevant legislative indicators.

FINANCIAL REVIEW

Reserves policy

The charity's free reserves, excluding fixed assets at the 2023 year end were £303,291 (2022: £282,633).

It is the policy of the charity that unrestricted funds that have not been designated for a specific use should be built up and maintained at a level equivalent to one years expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities whilst consideration is given to ways in which additional funds may be raised. Due to the inflationary rise in costs the Charity has Unrestricted funds equivalent to 9 months of expenditure. To cover this shortfall the Charity plan to seek external funding.

The trustees are still building up this reserve of funds which will be kept in a separate reserve account.

Financial review

The trustees are able to report a surplus of £17,567 (2022: deficit £34,684) for the year and the state of the affairs of the charity at the balance sheet date are considered to be satisfactory.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a private company limited by guarantee without share capital and is governed by its memorandum and articles of association.

None of the trustees have a beneficial interest in the company.

The liability of the members is limited to £1 and all of the members have agreed to contribute this in the event of the company being wound up.

Recruitment and appointment of new trustees

Any applications received in respect of potential new trustees are reviewed by the existing trustees and approved by the main board.

Related parties

The Trustees of G N G Community Services Limited are all members of The Gurdwara.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04898761 (England and Wales)

Registered Charity number

1135022

Registered office

GNG Building

Baggott Street

Blakenhall

Wolverhampton

West Midlands

WV2 3AP

Trustees

G Singh Dhaliwal Trustee

D Singh Mann Trustee

H Singh Sandhu Trustee

Directors

G Singh Dhaliwal

D Singh Mann

H Singh Sandhu

K Singh Kalon

Company Secretary

G Singh

Auditors

SFB Group Limited

Chartered Accountants

Statutory Auditor

Manor Court Chambers

Townsend Drive

Nuneaton

Warwickshire

CV11 6RU

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of G N G Community Services Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The Auditors, SFB Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 21 December 2023 and signed on its behalf by:

G Singh Dhaliwal - Trustee

Opinion

We have audited the financial statements of G N G Community Services Ltd (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing further to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of trustees' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit; or

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-Enquiry of management around actual and potential litigation and claims;

-Enquiry of management to identify any instances of non-compliance with laws and regulations;

-We agreed the financial statements disclosures to underlying supporting documentation;

-We gained an understanding of the design and implementation of the processes and controls in place within the group which are designed to prevent, detect or correct fraud or error within the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 state to the charitable company's members those matters we are required to state to them in an auditors' 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 for the opinions we have formed.

Paul Carvell BFP FCA (Senior Statutory Auditor)

for and on behalf of SFB Group Limited

Chartered Accountants

Statutory Auditor

Manor Court Chambers

Townsend Drive

Nuneaton

Warwickshire

CV11 6RU

21 December 2023

2023

2022

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Nursery

398,681

325,349

Government grant

930

1,337

Investment income

2

641

982

Total

400,252

327,668

EXPENDITURE ON

Charitable activities

Nursery

382,685

362,352

NET INCOME/(EXPENDITURE)

17,567

(34,684

)

RECONCILIATION OF FUNDS

Total funds brought forward

301,360

336,044

TOTAL FUNDS CARRIED FORWARD

318,927

301,360

2023

2022

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

6

15,636

18,727

CURRENT ASSETS

Debtors

7

21,956

15,982

Cash at bank and in hand

306,423

283,654

328,379

299,636

CREDITORS

Amounts falling due within one year

8

(21,371

)

(12,356

)

NET CURRENT ASSETS

307,008

287,280

TOTAL ASSETS LESS CURRENT LIABILITIES

322,644

306,007

ACCRUALS AND DEFERRED INCOME

10

(3,717

)

(4,647

)

NET ASSETS

318,927

301,360

FUNDS

11

Unrestricted funds

318,927

301,360

TOTAL FUNDS

318,927

301,360

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 21 December 2023 and were signed on its behalf by:

G Singh Dhaliwal - 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.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 results 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the charity's accounting policies:

The following are critical judgements, apart from those involving estimations (which are dealt with separately below), that the trustees have made in the process of applying the charity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Going concern

The charity's ability to continue as a going concern is assessed based on the expected future ability to receive income and donations from charitable activities over a period of not less than 12 months from the date of approval of these financial statements. Judgement is required in reviewing forecast income levels and cash flows.

Key sources of estimation uncertainty:

There are no key sources of estimation uncertainty as at March 2023.

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.

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

-

20% on reducing balance

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.

Grants receivable

Income from grants is included in the accounts in the period to which the charity is entitled to the grant. Any grants received for future periods are carried forward in creditors as deferred funding.This includes the Government Coronavirus Job Retention Scheme ("Furlough"). Grant funding received for capital expenditure is released over the useful life of the asset.

Debtors and creditors receivable or payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Leases

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

2.	INVESTMENT INCOME

2023

2022

£

£

Deposit account interest

641

982

3.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023

2022

£

£

Auditors' remuneration

3,310

3,150

Other non-audit services

7,678

4,584

Depreciation - owned assets

3,905

4,680

Operating leases - rent

13,920

13,920

4.	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.

5.	STAFF COSTS

2023

2022

£

£

Wages and salaries

263,641

253,601

Social security costs

9,033

8,944

Other pension costs

3,239

2,996

275,913

265,541

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

2023

2022

Management and administration

2

2

Charitable activities

20

23

22

25

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

6.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2022

131,750

Additions

814

At 31 March 2023

132,564

DEPRECIATION

At 1 April 2022

113,023

Charge for year

3,905

At 31 March 2023

116,928

NET BOOK VALUE

At 31 March 2023

15,636

At 31 March 2022

18,727

The net book value of tangible fixed assets includes £3,717 (2022 £4,647) in respect of assets acquired through grant funding.

7.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

15,697

8,178

Bad debt provision

(875

)

(875

)

Other debtors

5,000

5,000

Prepayments

2,134

3,679

21,956

15,982

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

11,692

3,347

Social security and other taxes

788

1,019

Accrued expenses

8,891

7,990

21,371

12,356

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023

2022

£

£

Within one year

13,920

13,920

Between one and five years

24,360

9,280

38,280

23,200

10.	ACCRUALS AND DEFERRED INCOME

2023

2022

£

£

Deferred government grants

3,717

4,647

11.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.22

in funds

31.3.23

£

£

£

Unrestricted funds

General fund

301,360

17,567

318,927

TOTAL FUNDS

301,360

17,567

318,927

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

400,252

(382,685

)

17,567

TOTAL FUNDS

400,252

(382,685

)

17,567

Comparatives for movement in funds

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

336,044

(34,684

)

301,360

TOTAL FUNDS

336,044

(34,684

)

301,360

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

327,668

(362,352

)

(34,684

)

TOTAL FUNDS

327,668

(362,352

)

(34,684

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.4.21

in funds

31.3.23

£

£

£

Unrestricted funds

General fund

336,044

(17,117

)

318,927

TOTAL FUNDS

336,044

(17,117

)

318,927

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

727,920

(745,037

)

(17,117

)

TOTAL FUNDS

727,920

(745,037

)

(17,117

)

12.	RELATED PARTY DISCLOSURES

The Guru Nanak Sikh Gurdwara owns the building from which G N G Community Services Limited operates. During the year rent was charged amounting to £13,920 (2022 £13,920).

Some of the trustees of G N G Community Services Limited are also members of The Gurdwara.