The trustees, who are also the directors for the purposes of company law, present their report and accounts for the year ended 31 March 2023.
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 Memorandum and Articles of Association, 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 Objects of the charity are set out in the Memorandum of Association as being 'to advance education of the public in matters relating to conservation, protection and enhancement of the environment, public safety, and in matters pertaining to those in necessitous circumstances, the elderly, and those suffering or recovering from physical or mental ill health', and any other charitable purposes which the trustees may from time to time determine.
The Company has been involved in a range of activities aimed at promoting sustainability and well-being particularly in the West Midlands but also into other regions of England. The Charity continues to run a successful project, with the aid of grants from various organisations, to place bird boxes at locations in England. With locations ranging from village halls, churches, schools, hospices as well as countryside locations via the National Trust, this scheme has not only provided homes to birds but brought enjoyment to those people brought closer to this wildlife.
In other environmental and social campaigns, the Sustainable Communities booklet distribution continued. We also support the work of Transition Evesham Vale, an organization which encourages the community to engage in action to reduce reliance on fossil fuels particularly in use of recycling and utilising local resources rather than those from further afield.
WTOF's long standing subsidiary company, MRRT Ltd, works to promote sustainable businesses in the West Midlands, but in particular enterprises within Herefordshire, Shropshire, and Worcestershire. This subsidiary ceased to be a member of the group after the year end. Another subsidiary, Marches Centre for Community Led Housing Limited, works to support the development of community led housing in Herefordshire, Shropshire and Telford and Wrekin, membership of this subsidiary ceased on 30 March 2023.
The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.
Funds are adequate and available to fulfil the obligations of the charity. Reserves are split between Restricted Reserves and those available for the day to day running of the company. At the year end Restricted Reserves amounted to £8,758 (2022 £26,173). The unrestricted funds were £124,857 (2022 129,089).
During the period the charity had net outgoing resources of £21,647 (after accounting for monies due under a deed of covenant from the subsidiary undertaking MRRT Limited of £68,000) (2022 net outgoing resources of £270), of which £17,415 outgoing (2022 £10,881 outgoing) related to the Restricted funds.
The charity currently holds unrestricted reserves at a level that equates to twelve months unrestricted expenditure and the aim, which is the policy of the charity, is to maintain unrestricted funds, which are free reserves, at a level that equates to six to eighteen months unrestricted expenditure. This is sufficient to cover management and administration costs and to fund the objects of the charity. This policy is under regular review.
The trustees have assessed the major risks to which the charity is exposed and maintains a risk register. The trustees are satisfied that such exposure is controlled.
During the year the prospects for MRRT Ltd were reviewed and it was decided that as there was no likelihood of new funds for onward lending being acquired, the future profitability of the subsidiary was in doubt. A key employee had also decided to retire and with a limited future, as earnings from its existing loan book reduced, it would be difficult to replace that employee. The decision was therefore taken to pass the public assets held in MRRT to a similar company in the sector , before the company became loss making. As MRRT Ltd was the main contributor to the funds of WTOF the decision was also made to wind the charitable company up once the unrestricted reserves had been exhausted. As part of the closure process it was decided that MCCLH Ltd membership would also cease.
MRRT Ltd had retained some earnings accumulated over the years of operation for its working capital requirements, and as part of the membership transfer those funds were released to WTOF by Deed of Covenant.
WTOF has been using these funds to distribute grants to organisations engaged in activities which comply with the objectives of the charity, principally schools to engage pupils in environmental projects, but also to other projects which involve enhancing the environment for the enjoyment of the public.
The trustees are looking at possible activities in order to continue the work of WTOF, but if none are viable, once the funds referred to above have been spent, having held back sufficient resources to meet the statutory obligations of the charity, the charity will close. The most likely timing for this would be in early 2024.
The trustees who are also the directors for the purpose of company law, who have served during the period from 1st April 2022, were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees may, through their involvement in other enterprises provide services to entities applying for grant aid. In such instances declarations of interest are made at the start of Board meetings and the respective trustees are excluded from the decision making process regarding those applications.
New trustees are appointed by the members and elected at the AGM.
The trustees receive induction training upon appointment, usually from the Company Secretary,
The charitable company is administered by its Board. The Board should comprise not more than ten persons elected by and from the membership of the charity, and not more than five persons co-opted onto the Board. At every AGM one third of the elected Board should retire.
The Board governs the general policy of the charity, with the administrative work being done by the Company Secretary. Rates of pay for all staff and key management personnel are set by the Board.
The charity had two subsidiary undertakings called MRRT Limited and Marches Centre for Community Led Housing Limited, both incorporated in England and Wales. The charity was the sole member of both Companies and had appointed directors to manage them; each company had independent board members who have no role within the Charity.
The principal activity of MRRT Limited is that of lending money to local businesses to assist in the development of the local economy, trading under the name of Impetus. Trading profits from MRRT are remitted to WTOF under a perpetual Deed of Covenant, subject to sufficient funds being held to support working capital requirements. Since the year end the membership of MRRT Ltd has been transferred and it is no longer a subsidiary undertaking.
The principal activity of MCCLH is the co-ordination of community housing projects and advice in the Marches region. The subsidiary was not expected to make trading profits, but its work directly contributes to the objectives of WTOF. The membership of MCCLH ceased on 30 March 2023.
Investment powers are governed by the Memorandum of Association and the charity can invest monies not immediately required for its purposes as it sees fit.
Note 16 sets out an analysis of the assets attributable to the various funds and a description of the trusts can be found in note 15. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Welcome To Our Future (Local Agenda 21) (the charity) for the year ended 31 March 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements 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
the financial statements 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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Welcome To Our Future (Local Agenda 21) is a charitable company limited by guarantee, incorporated in England and Wales. Its registered address is The Garden House, Queen Elizabeth Drive, Pershore, Worcestershire, WR10 1PZ.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, 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.
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 concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Incoming resources are included in the Statement of Financial Activities on an accruals basis.
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 Gift Aid or deeds of covenant is recognised at the time of the donation.
Grants from the government and other agencies have been included within income from activities in furtherance of the charity's objects where they represent reimbursement of restricted fund costs incurred.
Investment income is accounted for on an accruals basis and gross of tax.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All expenditure is accounted for on an accruals basis.
Charitable expenditure comprises those costs directly attributable to the charity's work.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity. This includes a proportion of staff costs (25%) and other non support costs.
Support costs include 75% of staff costs, as the trustees feel this accurately reflects level of staff activity on each class of expenditure.
Wages are apportioned between restricted and unrestricted funds based on estimated staff time. Rent, rates and insurance are apportioned between restricted and unrestricted funds based on estimated use of office space.
Grants payable are charged in the year when the offer is conveyed to the recipient.
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Details of the nature and purpose of each fund is set out in note 15.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates 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 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Deed of covenant
The service charge includes management fees of £9,638 (2022 - £21,949) due in respect of the management of restricted grant funding received and as permitted under the funding agreements. This is shown as income in the unrestricted activities of the charity and expenditure in the restricted activities of the charity rather than as a transfer between funds as it is considered that this better reflects the nature of the activities of the charitable company.
Use of Facilities
Print, Postage and Stationery
Travel and Other Sundry Costs
Rent
Recharges to subsidiary undertaking
Benches
Bird Boxes
Administration Fees
Housing project support
Insurance
Independent examination (2022 - Audit) fees
Bank charges
Legal fees
Other governance costs
Governance costs includes payments to the independent examiner (2022 -auditors) of £2,800 (2022: £2,304) for VAT inclusive audit fees.
None of the trustees (or any persons connected with them) received any remuneration during the year, but one of them were reimbursed a total of £40 for travelling expenses (2022 - one was reimbursed £120).
The average monthly number of employees during the year was:
Wages and salaries costs include redundancy costs of £14,275 (2022 - £nil).
Actual payments made in the year regarding defined contribution pension costs amounted to £720 (2022: £420).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The Sustainable Communities fund is for a variety of leaflets and pamphlets in aid of improving sustainability among local parishes.
The Sustainable Communities Roadshow project ran a roadshow of sustainable technologies and opportunities aimed at community buildings in Gloucestershire, Herefordshire, Shropshire and Worcestershire.
The Benches fund was a grant to provide four benches at various locations in Worcestershire.
The Bird Box fund is for the provision of bird boxes to be installed in church yards, village halls, schools, hospices and National Trust properties.
Other restricted funds
Other restricted funds
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Welcome To Our Future (Local Agenda 21) is the sole member and has appointed directors to manage MRRT Limited, a company incorporated in England and Wales and limited by guarantee.
At 31 March 2023 the reserves stood at £1,143,666 (2022 - £1,265,389) with a deficit of £45,759 (2022 - £nil) for the year.
Subsequent to the reporting date the subsidiary undertaking has been transferred to ART Share (Social Help Association For Reinvesting in Enterprise) Limited, an Industrial and Provident Society registered in England & Wales.
Until 30 March 2023 Welcome To Our Future (Local Agenda 21) was the sole member and appointed directors to manage Marches Centre for Community Led Housing Limited, a company incorporated in England and Wales and limited by guarantee. On that date membership was transferred to other local Community Led Housing enterprises.
The charity paid expenses on behalf of MRRT Limited amounting to £29,873 (2022: £28,653), and on behalf of Marches Centre for Community Led Housing Limited £29,883 (2022: £37,660).
At the year end there were balances due from MRRT Limited of £18,000 (2022: £33,005) and these are included within debtors.