The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
The charity's objects (as defined in its Memorandum of Association) are:
the relief of persons resident in the City of Gloucester and surrounding area ('the area of benefit') in need, hardship and distress, including the elderly and the disabled;
providing, or assisting in the provision of, advice and information regarding .their legal entitlements, particularly . (but not exclusively) state benefits, housing, consumer matters and debt;
providing, or assisting in the provision of, facilities and services to relieve persons suffering from substance addiction together with the families of such persons:
the advancement of education amongst persons resident in the area of benefit;
to provide, or assist in the provision of, facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities. by reason of their youth, age, infirmity, disability, financial hardship or social circumstances with the object of improving their conditions of life.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
We are immensely proud to present the Annual Report and Financial Statements describing GL Communities work during 2024-2025.
At its heart GL Communities exists to serve the residents of Gloucester. That statement brings up a lot of questions. Which residents? Who gets to say what it means to “serve”? Should all residents be served equally? How do we know we are doing a good enough job? And so on. It is neither easy to answer those questions nor to satisfy everyone who might ask them. This is made harder by knowing we have limited financial and human resources to achieve all our aims. It is with great pride that I can safely say GL Communities has over the past year taken those questions as its guiding light, using them as a challenge to improve what we do, how we do it, and who is served by the work we do. Finding the money we need to deliver everything from money advice and education programmes for thousands of individuals to maintaining the building is increasingly difficult in the face of continued austerity and an ever competitive charitable sector. Inequality is rising, not falling. Most of our users have been affected by rising prices for even the most basic goods. Whilst it may seem like these are issues for government to solve, nothing beats having a team that is willing to listen to what people in our neighbourhood really want to live fulfilled lives.
The successes and challenges throughout this report are a great testament to the immense work of the staff, board of trustees and volunteers at GL Communities, day in day out. And to the partnerships with other organisations that allow for us to be at the frontline of everything from environmental issues to youth engagement. They are a reflection of the thousands of hours these people have dedicated to challenging the inequalities in our community and providing the things people really want and need. This work is neither perfect nor done. We welcome further challenge and input from the people who live in the city, old, young, from whatever background and faith. We are reviewing our strategy this coming year as well as acknowledging that, so much can change. We are measuring our impact to see what we are doing well and what can improve even further.
We would like to thank our users who make use of our services whether this is Money Advice Service, Employability, Inclusion, Community Development, Community Connectors and Wellbeing to name just a few. Their actions and voices are really what this charity is about. This report is just a small reflection of that community spirit.
Finally, we would like to thank all the many people we have worked with for their strength, humour and desire to bring about positive change for themselves and for others. We would like to express our gratitude to all those who have supported GL Communities, whether through funding, donations, partnership working, volunteering their time, or through the dedication of our staff and Board members.
As we reflect on another year, it is appropriate recognise the commitment of our Chief Executive Officer, who retires at the end of October 2025, having been with GL Communities since 1998. Sue has been an outstanding colleague and a great advocate to GL Communities. Her leadership, wisdom and unwavering commitment has helped guide GL Communities through some of its most important milestones. We are incredibly grateful for everything she has done, and we know her legacy will continue to benefit the charity and our community for many years to come.
Over the past few years, GL Communities has faced some of the most challenging circumstances in its history. Since 2020, the board has had to make exceptionally difficult decisions in response to a funding landscape that has grown ever more competitive, while the demand for our services has never been higher. We have worked tirelessly to streamline costs across every part of the organisation, including making tough choices about our buildings and resources, all with the aim of ensuring we can continue to serve the residents of Gloucester who rely on us most.
Despite these pressures, this year’s accounts are a testament to the hard work and dedication of our staff, trustees, and volunteers. Thanks to careful financial management and the support of our partners and funders, GL Communities ended the year with a significant improvement in our financial position. Total income rose to £623,290, up from £419,038 the previous year, driven by increased grant funding and other income streams. Expenditure was tightly controlled at £551,735, resulting in a positive net movement in funds of £71,555. Our reserves have grown, with total funds at year-end standing at £113,081, compared to £41,526 last year. This achievement reflects the board’s commitment to making difficult decisions for the long-term sustainability of our charity, ensuring we can continue to meet the needs of our community in the years ahead.
The purpose of this Reserves Policy is to ensure that GL Communities maintains an appropriate level of financial reserves to safeguard the organisation's ongoing activities, manage financial risks, and ensure sustainability in the event of unforeseen circumstances or fluctuations in income.
Reserves are that part of the charity's funds which are freely available to be spent on any of its charitable purposes. They exclude:
• Restricted funds, which are subject to specific conditions imposed by funders or donors;
• Designated funds, which are set aside by the Trustees for specific purposes; and
• Fixed assets or funds tied up in operational commitments.
At a Board meeting on 25th March 2025, it was agreed to reduce the Reserves amount held to 3 months of the charity's core operating expenditure. It was further agreed that the Reserves Policy would be reviewed annually, and that the Finance and Resources Committee would monitor it regularly.
The Board of Trustees aspires to maintain unrestricted reserves equivalent to three months of the charity's core operating expenditure.
The 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:
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of GL Communities for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of GL Communities (the charity) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 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. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
GL Communities is a private company limited by guarantee incorporated in England and Wales. The registered office is The Trinity Centre, 60 Norbury Avenue, Gloucester, GL4 6AH.
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 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 or grantors 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.
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.
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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 the statement of financial activities.
Assets individually costing under £2,000 are written off to the Statement of Financial Activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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 and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2024 - none).
The charity had no material debt during the year.