The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements of the charity for the year ended 31st March 2024 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011, 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 published in October 2019.
Chairman's statement
As we look back on the last twelve months everyone at Groundwork Northamptonshire can do so with an enormous amount of pride on the substantial number of regular large programmes that have been delivered day after day or one off special projects that provide the Trust with the opportunity to showcase what we are capable of and provide regular income to support our numerous other projects.
Strategically we have put in place a strong 3 year plan but it is the follow through that is important. Our adherence to this plan and ability to deliver what is required locally has been the key to our success. We continue to look closely at our areas for growth and huge amounts of time are going in with our tenders and bids to make sure we continue to build on our successes. Good examples of this are our lottery Project - Big Impact and the renewal of our Grow, Cook, Eat Project. We continue to build on our Green Doctors Programme and this now much needed offering is becoming more established and providing a solid regular income for the Trust.
Our Green Patch never ceases to amaze me with the numerous programmes for young people, the increase in the sale of vegetable boxes or our increasingly successful Corporate Volunteering days. Improvements to this site have been numerous including the fourth polytunnel which has been reskinned and permanent flooring laid by Bovis supported volunteers, together with our walled Butterfly garden, again created by the volunteers. We have also made changes to the way we run this site to improve overall leadership consistency and the level of engagement with our volunteers. A major success by the Senior Management Team and the Trustees was to successfully work with Developers to stop plans to build a road through the centre of Green Patch. There was relief and delight from everyone involved in the numerous and lengthy negotiations which stopped the destruction of our ‘Jewel in the Crown’.
This financial year has been all about bedding in a new Senior Management Team structure. The team continues to grow and understand their expanded roles and think more clearly about what is strategically important and making the best use of their time. The pressure on our Executive Director and Operations Director remains but overall the team can be proud of their collective achievements and all their hard work.
The economic and political headwinds have continued this year. Inflation may now have peaked and is coming down but it has left a lasting impact on the people we serve and their need for help has never been greater. Whether it be Green Doctors, our Grow Cook Eat Project or simply being there to aid their mental health, Groundwork Northamptonshire will leave no stone unturned to ensure we get the right help to the people most in need of our support. This year has been challenging financially for many of our funders especially our local authorities who have so many competing priorities. Whilst we have seen some inertia in terms of the speed of decision making we are hoping things will improve in the financial year ahead. We are facing a change in political administration nationally which could impact on some of the programmes we deliver in conjunction with Groundwork UK. Only time will tell, but we will continue to work hard to get the best support we can for the people who need us.
Providing training, guidance and support to our staff is key to retaining our talent. We have looked closely at all of our policies and spent some considerable time updating these and creating new policies to enhance the way we work. Implementation of our policies is critical and we have identified a small number of practical issues that need addressing and training that is required. We have made some enhancements to policies to support a more flexible way of working for our staff and ensured that retention of our talent is incorporated. We are confident that this will strengthen the Trust going forward and give confidence to the staff we support and the Trustees that we have solid foundations in the way we work.
Our 2023/24 Financial Year results show a very solid picture and the results of a lot of hard work and dedication from the entire team. We are confident that we have the right financial controls in place and awareness levels of making the right decisions of our funding remains strong. The team supporting our financial controls are very experienced and this is shown by the high quality of reports and the regular interaction with the Finance Sub Group of Trustees.
Our reserves continue to grow which is essential to support more projects in the future and gives us the confidence that we could call upon these should the need arise to support new areas of delivery. We have a clear Strategic Plan to grow our reserves and have set a target which is broadly on track and subject to regular review. Our financial budgets for the 2024/25 budgets show that these reserves will continue to grow and we have already derisked most of the plan for the coming financial year.
We have strong links with our Unitary Authority and we are keeping a close eye on the impact of any potential changes to their funding. Adults Services and Childrens Services are under enormous pressure just as they are nationally but we remain confident that we are at the table and part of discussions before any changes are made. The economic picture is unlikely to change materially during this financial year which means we will have to remain vigilant to any downward changes and alert to new opportunities.
Our Board has seen changes during the last financial year with 2 trustees stepping down. One of these was nominated by the Local Authority who has already selected a replacement for ratification at our Autumn Board and the other long serving Trustee has stepped down due to a conflict of interest but will better serve the Trust in their new position with the Unitary Authority. We have revamped our Trustee recruitment information pack and are currently advertising for several new trustees to build back the long term strength we believe we need for the future.
We remain confident in knowing the type of skills required for the Board and have no doubt that we will bring in new talent over the coming months. The national picture for recruiting Trustees is challenging but we believe the overall strength of our Board will attract the right candidates.
The Federation remains independent but we remain committed to working with Groundwork UK and other Groundwork Federations to support a central England approach. This more co-ordinated approach is helping us bid and obtain funding in a more cohesive way. We are also leveraging support services from other Federations e.g. Human Resources support and Training which is more cost effective than seeking outside support.
As always a massive thank you to our Volunteers who work tirelessly and enjoy the success we keep creating every day. With the appointment of a Volunteer Co-ordinator we are seeing our volunteer numbers grow which will stand in good stead to support our various sites now and in the future.Thank you also to our Service Users, Funders, and Partners. Without their continued support many of the things we achieve would simply not be possible.
We have a strong record on delivery which continues to go from strength to strength. My thanks go to the Trustees, Senior Management Team and all the staff for their relentless efforts to strive for greater success. The sum of these parts makes Groundwork Northamptonshire what it is today and although some times the road may seem a little bumpy, with the collective team we will achieve even greater success in the coming year.
We work tirelessly to find new and innovative ways of delivering help to the local people and community we are proud to support. We will not rest in our quest to support more people and expand our reach to all those that need our help. The economic and political environment may continue to throw challenges at us but we are remain determined to provide the helping hand that so many people need. Groundwork Northamptonshire remains determined to serve and support all those that need our help in 2024/25 and beyond!
Stuart Bonham
Chair Groundwork Northamptonshire
Groundwork Northamptonshire's charitable objectives are set down in its Memorandum of Association and as amended from time to time at annual general meetings or by elective special resolutions. They commit the Trust to the following activities and actions:
to promote the conservation, protection and improvement of the physical and natural environment in Corby Borough, East Northamptonshire District and Kettering Borough and the rest of the county of Northamptonshire (the beneficial area).
provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving conditions of life for those living and working in or utilising the beneficial area.
to advance public education in environmental matters and other ways of better conserving, protecting and improving the same wheresoever.
to promote the efficiency and effectiveness of charities and the effective use of charitable resources for the benefit of the public within the beneficial area.
promote, for the public benefit, urban and rural regeneration in areas of social and economic deprivation in Corby Borough; East Northamptonshire District; Kettering Borough and the rest of the county of Northamptonshire (area of benefit) by:
the relief of poverty
the advancement of education, training or re-training, particularly amongst unemployed people and providing unemployed people with work experience
the maintenance, improvement or provision of public amenities
the provision of assistance in the provision of recreational facilities for the public at large and/or those who, by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities
the protection or conservation of the environment
the promotion of public safety and prevention of crime
such other means as may, from time to time, be determined subject to the prior written consent of the Charity Commissioners for England and Wales.
The Trust continues to work with, and for, local people, and all sectors to create better places to live and work. It frequently relies on and encourages partnership work and appropriate collaboration to secure robust delivery and strong and sustainable impact. The Trust continues to improve the quality of life for people and the places where they live, having a focus on the most disadvantaged areas and communities in greatest need.
Aims and missions
Through the delivery of projects and partnership work the Trust continues to deliver practical community development plans.
Based around the priorities of local communities, projects fall under three main streams, although increasingly interlinking. These streams embrace Youth Work, the Environment and the Community.
Working in line with public policy, national trends and local priorities, the Trust offers a wide range of opportunities to people wanting to improve their current circumstances. Combining excellent management skills, fundraising capabilities and specific expertise and knowledge, the projects the Trust offers are unique to the county and in some areas are nationally acclaimed for excellence and creative delivery.
Public benefit
As a principle the trustees refer to the Charity Commission's general guidance on Public Benefit when reviewing the Trust's objectives and planning future activities. In particular the trustees consider how planned activities will contribute to its charitable objectives.
Charitable activities, achievements and performance
For many years our role within the sector has been working towards an increase in partnership work and a desire to work together more closely to support those who need it the most.
Over the last year huge strides have been made in achieving that, post covid we have seen the sector taking stock of partnerships across the VCSE and strengthening them, through the opportunity of the Integrated Care System (ICS), a new way of working with our statutory partners is emerging.
Groundwork have been a significant partner in the development of the ‘Place Based’ agenda for North Northamptonshire, hosting part of the Support North Northants project funded through ICS to bring a person centred approach to supporting people and preventing further strain on front line services. A crucial part of this work is the engagement of the Voluntary Sector to build that support package, tracking and reporting the difference our organisations make to sustaining positive health and wellbeing. We have chaired the Corby Place Based Partnership and played an integral role, as part of the team, in designing the system for the future. We have collaborated on an increased number of bids creating stronger more creative investment to deliver services.
As we move forward, with a potential change in our political landscape we remain committed to ensuring the voice of the VCSE and communities is considered and valued as investment and planning develops.
Our wonderful Green Patch site has continued to enjoy a very busy and beneficial year, we have been able to make considerable improvements to the infrastructure on the site, creating a hard standing floor in one of our poly tunnels, which is now our people’s poly tunnel, we have created a butterfly bank for new habitat, introduced a bike hub through our partnership with Brightwayz and developed our food and cooking offer through the grow cook eat project. Our volunteers continue to give the site the care, joy and kindness we know makes people keep coming back and our team have worked really hard to make sure the site always looks its best.
This year we have worked in partnership with Balfour Beatty to develop an offer for young people who are looking to get into work but for whom achieving that has been a struggle. Acknowledging that investing time to bring on confidence, work ready attitudes, addressing worries or concerns and building a positive mind set to work makes a considerable difference. The partnership with Balfour Beatty has been incredible, with direct outcomes for all parties, mainly the young men who have now gone into a guaranteed one year paid work placement. We look forward to developing the model further in 2024 as we continue our partnership.
Our Youth Work has had a boost this year with funding from the Lottery to contribute to one million hours of additional youth work across the UK, we have deployed detached youth work teams across Wellingborough, with the next areas being Corby and Kettering as we build young people’s voice and confidence to access services over the next two years.
Green Droctors is now a regular delivery area for our Trust as we visit between 4-6 homes per week to offer energy advice, make small adaptations and offer support with onward referrals and debt advice. Many people remain hidden in their homes with everyday struggles that could be helped by accessing more services, Green Droctors has proved its role in this area and will continue to grow into 2024-25 with British Gas funding.
The evaluation of the first two years of the Grow, Cook, Eat (Public Health) Project has been very insightful, reaching out to groups across the North of the County to make growing, cooking and eating healthily a priority. Developing the spaces to learn about Growing fruit and vegetables and creating conversations about how we can do this more as a community, this project is at the heart of our objectives and really plays to our strengths in supporting people and building wellbeing – whilst developing green spaces and healthy habits, as we move forward with the next two years we are developing the model further working alongside Public Health.
We have seen some changes in personnel over the last 12 months, where some of the team members who have been with the Trust for many years have moved on, life offers new challenges and it’s great that our team want to move forward and grow into new roles. It also brings fresh perspective and energy to our work, with new team members offering that challenge and drive to keep evolving what we do.
Following the recruitment work done to re-form the Made with Many team, they have now settled down well and are functioning strongly with a Co-Directorship model at the helm. The team have recently applied for an extension year to their funding, with a view to submitting a three year application post general election. The team continue to focus on Corby and Wellingborough and have shown great impact on encouraging those most removed from arts and culture to engage.
We continue to support KHL Big Local (Kingswood & Hazel Leys), the partnership are on the final year of their funding now and have a plan to have completed their work by December 2024. Groundwork will continue to support the partnership to complete spend in line with the Local Trust guidelines, fulfilling our role as the Locally Trusted Organisation (LTO).
We are looking forward to 2024-25, with new team members on board, a secure and positive financial plan for the year and a good position with partners – all enabling us to continue delivering our well needed work in the community.
The Trust recorded a surplus of £17,313 for the year, following a previous surplus of £27,755
Our fundraising drive and quality remains a priority as we look ahead to a year of significant change with contracts and commitments to grants changing.
Reserves Policy
Year-end unrestricted funds totalled £216,216 of which £30,096 supported fixed assets, leaving free reserves of £186,120 (2023: £161,967).
The Trust is aiming to secure and maintain six months of running costs as a reserve.
The board regularly reviews our reserves policy to ensure it is fit for purpose and provides the reassurance we need to continue into the years ahead.
Risk management
All the Trust's activities are risk assessed, within the framework of board approved policies, to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The SLT continually reviews the financial and operational risks to which the Trust is exposed in the delivery of its projects and satisfies itself appropriate measures are in place to minimise and mitigate those risks.
Project activities are risk assessed at outset and at regular intervals to ensure any changing circumstances are recognised and reflected in the assessments.
Unusual activities are referred to insurers for advice and confirmation of cover and if this is not forthcoming then the activity is not pursued.
The Trust is insured for public, employer, trustee and professional liability as well as normal business activities. Financially, legally and in respect of strategic and charitable object fit, an assessment of all projects is undertaken before they are commenced and compared with bid documentation. Projects are monitored on a monthly basis throughout their duration to ensure control of income and expenditure and identify the need for repeat funding with continuing activities.
Future developments
We continue to work to our strategic priorities listed below,
Strategic Priorities 2022-2025;
Communities in the lead
Supporting our Planet to manage changes ahead and continue to thrive, focusing on a continued reduction in our carbon contribution
Prioritising Children and Young People
Prioritising Wellbeing and Positive Mental Health
Caring and rewarding our staff team
Building longer term funding
Embedding stronger evaluation practices into our work
This year has seen us work toward securing an extension to the Public Health funded project, ‘Grow, Cook, Eat’, working alongside Public Health practitioners to recognize the place and importance of the connection to green space and healthy eating.
We have started the second year of Come Together @ The Green Patch, embedding the systems and engagement we started in year one and seeing our offer for volunteers and young people strengthen significantly.
Our support for the cost of living crisis and families living in poverty is ever present with our Sharing Shed initiative at the Green Patch supporting families every week with healthy food options. Supported by our volunteers and the newly established cooking club we support up to 60 to 70 people per week with meals or food parcels.
Future developments will involve further development of these models as well as continuing to look for new and innovative projects to support those who need us the most.
Groundwork is a Federation of Trusts in England, Wales and Northern Ireland.
Groundwork Northamptonshire is a regulated charity and a company limited by guarantee. It has its own Board of Trustees, who are also directors, and is independent of all other trusts within the Federation. It, therefore, decides its own priorities governed by a Memorandum and Articles of Association which was last updated on 28 September 2021.
The Trust operates within the public, private and voluntary sectors of Northamptonshire.
Recruitment and appointment of trustees
The Memorandum and Articles specify a minimum of six and a maximum of eighteen trustees, to include no more than six nominated trustees and no more than twelve co-opted trustees (subject to variation in the event that the Trust is or intends to be in receipt of funding through the Landfill Tax Credit Scheme).
Each founder member institution (or any successor institution) may nominate one or more trustees as follows:
The Federation of Groundwork Trusts 2
Northamptonshire County Council 1
Kettering Borough Council 1
Corby Borough Council 1
East Northamptonshire District Council 1
Nominated trustees may hold office for a fixed or indeterminate period not exceeding three years, but so that the nominated trustee shall be eligible for renomination. The Board has the power of appointing and removing any co-opted trustee and shall seek so far as possible a balanced and representative co-option reflecting the main interest groups in Corby Borough, Kettering Borough, East Northamptonshire District and the rest of the County of Northamptonshire and giving representation where appropriate to individuals with special interests in the objects of the Trust.
The Board has the power of appointing and removing any co-opted trustee and shall seek so far as possible a balanced and representative co-option reflecting the main interest groups in Corby Borough, Kettering Borough, East Northamptonshire District and the rest of the County of Northamptonshire and giving representation where appropriate to individuals with special interests in the objects of the Trust.
A co-opted trustee will serve until the end of the first annual general meeting after his or her appointment and will only remain in office thereafter if at least half of the members entitled to attend pass a resolution approving their appointment.
No trustee may serve for more than three years unless re-nominated by his or her appointing institution or re co-opted by the Board.
The Trust operates an induction policy for all new trustees, supported by an established integration process, which seeks to inform them of their legal obligations and responsibilities and their need to act independently and in the best interests of the Trust. It also makes them aware of the activities of the Trust and in particular those aspects of Trust work for which they have been appointed.
The Board re-appointed Stuart Bonham as Chair at the AGM in September 2023.
In order to support the governance and management of the Trust the Board agreed to the creation of 2 sub-groups (Finance & Business Development) and to ensure a Trustee attended the consortium of Made with Many to satisfy Groundworks role as Accountable Body.
The Board of Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the Board of Trustees has any beneficial interest in the company. All of the Board of Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Organisational structure
Internally the Trust conducts its affairs within a framework of Board approved policies, with operational activities delegated to the Executive Director and the Senior Management Team (SMT) working within this framework and seeking Board direction on issues of policy interpretation and in line with the Performance Sub group. The establishment of a further finance sub group and business development sub group mean that Board members are meeting more regularly and we are benefitting from the right skills in the right places.
The Board meets quarterly with senior management team members in attendance when required. The Executive Director maintains a frequent dialogue with board members and this enables the Board to remain appraised of current issues. Board members are also very active in our relationship with Groundwork UK and fundraising activity.
The trustees consider that they and the senior management team comprise the key management personnel of the Trust.
The senior management team at 31 March 2024 comprises executive director Kate Williams, operations director Kimberley Lawson and Made with Many programme directors Victoria Bell and Vicky Frayard supported by Georgia Vickers, Finance Manager.
No remuneration is paid to the Trustees who can reclaim approved expenditure incurred on behalf of Trust business. The pay of any key management personnel is reviewed annually and any increase is awarded based on various factors, including an assessment of affordability.
The Trust has always recognised the contribution all members of staff make to its activities and aims. Their dedication and professionalism has ensured the Trust's standing within the communities it serves and their continuing commitment is reflected in many ways both within and outside the Trust.
Team meetings are held during the year with an open agenda and have proved an effective way of ensuring an openness of communication and a platform for involvement in all aspects of the Trust's activities. As the Trust has grown, so have the importance of individual programme area team meetings. These meetings are held to enable all staff members to participate, providing opportunity for more focused and involved discussion, also providing opportunity to highlight issues to SMT and full team meetings as well as providing opportunity for members of SMT to talk directly to specific programme issues. SMT meetings are scheduled every month.
The Trust has available to it, monthly management accounts showing the current financial status and detail of both unrestricted funds and individual project funding. This combined with the use of the project management system gives the Trust an accurate and up to date financial view of all its activities enabling financial guidance to be exercised.
Quarterly, the Board receives a summary of the Trust's financial and non-financial performance and status together with any specific information felt appropriate.
The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting.
The Board of Trustees' report was approved by the Trustees.
The Board of Trustees, who are also the directors of Groundwork Northamptonshire for the purpose of company law, are responsible for preparing the Board Of Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust 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 Board of Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- 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 concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Board of Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Groundwork Northamptonshire (the ‘Trust’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 Practice).
In our opinion, the financial statements:
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust 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.
In auditing the financial statements, we have concluded that the Board of 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 Trust’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 Board of Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Board of Trustees are responsible for the other information 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 information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge 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 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 our audit:
the information given in the Board of Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the Board of Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Board of Trustees' report.
We have nothing to report in respect of the following 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 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
we have not received all the information and explanations we require for our audit; or
the Board of Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Board of Trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of Board of Trustees' responsibilities, the Board of Trustees, who are also the directors of the Trust 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 Board of 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 Board of Trustees are responsible for assessing the Trust’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 Board of Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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 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 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances 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 with 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 perform 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 irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with 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 management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal 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 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 of not detecting 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 internal 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 state to the charitable company's members those matters we are required to state to them in an auditor's 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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Groundwork Northamptonshire is a private company limited by guarantee incorporated in England and Wales. The registered office is The Business Exchange, Rockingham Road, Kettering, Northamptonshire, NN16 8JX, United Kingdom.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. The company's accounts present information about it as an individual undertaking.
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 Board of Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Board of 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 Board of 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.
Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Income from donations and legacies comprises grants of a general nature, provided by national and local government, charitable foundations and other organisations, which are not conditional on delivering certain levels of a service. The income is recognised when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.
Income from charitable activities includes income received both from the supply of services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular services.
Where grants are considered to be performance-related, income is recognised to the extent that the activities outlined in the funding agreement have been performed by the period end. Where income has been received but the related activities have not been completed by the period end, a balance of income proportional to the outstanding activities to be performed is carried forward to the next period as deferred income.
Where donors specify grants are to be used in a future accounting period, the income is deferred until that period.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, and it is probable 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.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
All costs are allocated between the activity categories on the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on the basis of estimated usage.
With the exception of governance costs, all expenditure incurred is classified as direct costs on the basis that, in the opinion of the trustees, it results directly from undertaking the charity's activities. That part of expenditure which relates to support costs, including general management, administration and similar costs, is not considered material.
Tangible fixed assets are initially measured initially on the balance sheet at their historical cost.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. As summarised below, assets held at the Green Patch are being written off over there estimated useful life of seven years. Residual fixtures and fittings were not depreciated in the year and remain valued at £2,000.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
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.
Basic financial liabilities, including creditors are initially recognised at transaction price.
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
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.
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
Termination benefits are recognised immediately as an expense when the Trust 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.
Donated services and facilities
Donated services and facilities are included at the value to the charity where this can be measured reliably.
As explained in the notes to the financial statements the charity rents land from Kettering Borough Council for a nominal charge of £1 per annum. In the successful delivery of its activities the charity also benefits from significant levels of help with bigger projects from the workforces of local employers, as well as regular support from volunteers within local communities.
In the opinion of the trustees it is impractical for the value to the charity of these services and facilities to be measured reliably and no income or equivalent expenditure has been recognised in the statement of financial activities.
Similarly, the value of services provided by volunteers has not been included in the financial statements.
Operating leases
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
In the application of the Trust’s accounting policies, the Board of 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.
Communities
Worklessness/Education
Youth
Communities
Worklessness/Education
Youth
Charitable Expenditure
Charitable Expenditure
Communities
Worklessness/Education
Youth
Actvity costs include allocated governance costs totalling £17,320 (2023: £16,059) as follows:
Communities £16,802 (2023: £13,981).
Worklessness/Education £140 (2023: £620).
Youth £378 (2022: 1,458)
Governance costs totalling £17,320 (2023: £16,059) are included in expenditure on charitable activities and are apportioned pro rata to the total costs incurred in delivering each activity. Governance costs are met from unrestricted funds with the exception of auditor's remuneration where an appropriate proportion is allocated to specific projects.
Governance costs include payments of £10,200 (2023 - £7,800) to the auditors comprising £8,500 (2023 - £6,500) for audit fees and £1,700 (2023 - £1,300) of unrecoverable VAT.
None of the Board of Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.
During the year, 1 trustee was reimbursed £1,073 (2023 - £890) for motor expenses incurred on behalf of the charity.
The average monthly number of employees during the year was:
The charity considers that its key management personnel comprise the trustees and Senior Management Team. The total employment benefits, including employer pension contributions, of key management personnel were £134,724 (2023 - £120,289).
The average number of employees disclosed above is the average number of full time equivalent employees. The actual average number of staff employed during the year was 34 (2023 - 32).
The Trust rents land from Kettering Borough Council (KBC) for a nominal charge of £1 per annum. This land is used as a community allotment known as The Green Patch and provides horticultural and learning facilities for an increasingly diverse range of user groups. The trust greatly values this resource which enables it to have a physical presence within the community and is grateful to KBC for its generous consideration.
The Trust also benefits from significant levels of help on bigger projects from the workforces of local employers as well as regular support from volunteers from within local communities.
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.
See note 18 for full details of income deferred as at 31 March 2024.
Deferred income is included in the financial statements as follows:
During the year, the income funds of the charity included restricted funds comprising the following donations and grants held on trust for specific purposes:
Restricted funds are used for the following programmes:
Communities
Helping local communities through capacity building and support to take actions which improve their quality of life.
Worklessness/Education
Improving employment, volunteering and educational opportunities through training, learning and work experience.
Youth
Engaging with young people, particularly those at risk of exclusion or from disadvantaged background and using interventions to divert them from anti social behaviour and provide them with better life opportunities.
Transfers
An amount has been transferred from unrestricted funds to restricted funds in respect of certain project costs met from unrestricted funds.
Restricted deferred income
The Communities and the Youth restricted funds include grants received in advance of expenditure. These grants are fully refundable until qualifying expenditure is incurred and as such unspent grants at the year end are deferred. Details are set out below:
1. Local Trust Award: Kingswood Hazel Leys
Deferred income at 1 April 2023 £ 72,969
Grant received £ 39,375
Resources expended (£ 90,798)
Deferred income at 31 March 2024 £ 21,546
2. Other
Deferred income at 1 April 2023 £ 142,337
Grant received £ 718,397
Resources expended (£ 676,861)
Deferred income at 31 March 2024 £ 183,873
3. Arts Council England Funding - Creative People and Places: Made With Many
Deferred income at 1 April 2023 £ 143,675
Grant received £ 364,054
Resources expended (£ 342,164)
Deferred income at 31 March 2024 £ 165,565
The charity is lead member of a consortium of local organisations participating in the Creative People and Places project. Following the award of a grant of £1,000,000 in the year ended 31 March 2014, a further grant of £885,325 was awarded in the year ended 31 March 2018. Details of the income deferred, amounts received and amounts expended in the year are disclosed above.
The Federation of Groundwork Trusts, Northamptonshire County Council, Northampton Borough Council, Kettering Borough Council, Corby Borough Council and East Northamptonshire Council nominate trustees to serve on the Board. The Trust is also a member of The Federation of Groundwork Trusts.
The Trust has material transactions with The Federation of Groundwork Trusts and the local authorities listed above. However, none of the nominated trustees of the charity has a controlling interest or a material beneficial interest in these entities. In the trustees' opinion therefore, the transactions do not fall within the definition of related parties given in the Charities SORP and no separate disclosure of the transactions between the Trust and these entities, which were carried out under normal commercial terms, is required.
There were no other related party transactions that require disclosure.
The Trust had no debt during the year.