Groundwork London Annual Report 2010-2011 by Groundwork London

GROUNDWORK LONDON Annual Report and Financial Statements 2010 / 11

Groundwork London 18 - 21 Morley Street London SE1 7QZ www.groundwork.org.uk/london

Registered Charity No. 1121105 Registered Company No. 04212532 (England and Wales)

Contents

Page

About Groundwork

Chairman’s Statement

Trustees Report to 31 March 2011 Reference and Administrative Details

Structure, Governance and Management

Public benefit Statement

Financial Review

Objectives and Activities

Achievements and Performance

Future Plans 2011/12

Statement of Trustees’ responsibility

Independent auditors’ report

Statement of financial activities

Balance sheet

Cash flow statement

Notes to the accounts

23-33

Groundwork London Vision Our vision is of a society of sustainable communities which are vibrant, healthy and safe, which respect the local and global environment and where individuals and enterprise prosper.

Mission Our mission is to enable the transformation of lives and places in communities in need in London.

Our core values are:  equality and diversity - valuing differences and treating everybody and all things with respect  innovation and learning - always looking for new and better ways of working  subsidiarity - making decisions at a level as close as possible to the communities we serve  integrity and professionalism - maintaining high personal and professional standards  partnership - working alongside communities, public bodies, private companies and other voluntary sector organisations to deliver maximum benefits to people, places and businesses  sustainability - respecting nature's limits and the needs of future generation

Aim We aim to be an outstanding deliverer of local environmental projects and programmes in areas of need. Our work will result in:  better local environments  people more satisfied with the places where they live  people more empowered to engage in local decision-making  people and organisations better equipped to connect with economic opportunity  people behaving in ways which are healthier, more community-minded and more respectful of the environment To achieve our vision we are working together with individuals, communities, Local Authorities and other public sector organisations, regional bodies, and the voluntary and private sectors.

Report of the Trustees for the Year ended 31 March 2011

Chairman’s Statement 2010/11 was successful year for Groundwork London as we continued to deliver our services across London focusing on the needs of London and Londoners. We are pleased to present our Annual Report demonstrating how we continue to change places and change lives for the better in the Capital. We have responded quickly and effectively to the changes in the economic climate, and we have implemented our own austerity measures in line with the work we started in 2007 following the mergers of 6 Groundwork Trusts in London and the London regional office of Groundwork UK. Operating as a single Trust has enabled us to make changes to our structures and to reduce costs to ensure that we are both more efficient and more effective. Since the mergers we have halved our overheads and reduced our indirect staff costs by a third – saving at least £1 million per annum. We have sought to invest in specialist staff to enhance our level of expertise so that, in our chosen field, we can become the third sector preferred provider. And we have achieved this whilst still maintaining our local presence and local focus, ensuring we are delivering the work that communities need. We believe that we are a leader in the breadth and depth of our expertise and service offerings: to communities and young people; to urban landscapes and open spaces; to youth, employment & skills; and to environmental services. During the year, we enabled adults and young people to engage in more than 70,000 days of activity in their neighbourhoods. We delivered landscape improvement projects from parks and play areas to new inspirational spaces for derelict sites which resulted in the improvement of over 28 hectares of open space. We maintained 139 hectares of land. We also enabled the diversion 516 tonnes of waste from landfill and avoided/saved 540 tonnes of CO2 emissions. By aligning our Youth and Employment, and Skills and Training programmes more closely, we have been able to deliver Future Jobs Fund placements, supporting almost 700 18-25 year olds in finding employment. Additionally, we are expanding our youth services to provide even more recreation, education, training and employment opportunities to help young Londoners achieve their potential. In the year we provided over 12,000 weeks of training enabling 537 qualifications to be gained. Overall, in 2010/11 we delivered more than 700 regeneration projects to the value of £14 million (making us one of the largest third sector operators in London). The success of our work is rooted in the partnerships we form with local authorities, housing associations, London regional agencies, the private sector and with other voluntary organisations. We are grateful for their support and thank them for their commitment in this difficult economic environment. We are particularly proud to be leading the Olympic Legacy programme, Transform, to improve derelict outdoor spaces in the 6 Olympic Host Boroughs; and to manage the Mayor’s Street Trees Programme; and the Forestry Commission’s Community Woodland Grant Scheme, which resulted in over 11,000 trees being planted in the Capital in the last year. We also successfully delivered the final year of the three-year Well London programme where we have worked with local people to improve the health and wellbeing of Londoners in 20 neighbourhoods.

Report of the Trustees for the Year ended 31 March 2011

We recognise the benefit from the continuation of our incredibly valuable corporate partnerships. For example, working with Johnson Controls Inc., we developed and expanded our successful Climate Change Youth Ambassadors programme to enable a further 100 young people to participate in a sustained volunteering experience in their local communities in order to raise awareness of climate change, whilst also developing their skills and life experiences. 2010/11 was a year of significant changes, both externally and internally. Whilst we focused on maximising the benefits that we could achieve by action as Groundwork London rather than individual Trusts, we also took the opportunity to review our Governance. This review brought our Governance in line with the latest Executive Structure of Groundwork London. A number of members of our former Sub-Regional Committees have agreed to become active Ambassadors to assist our work in communities. We have also established a Local Authority Strategic Input Board (LASIB) which will become a forum for an active exchange of ideas on what focus is required from Groundwork London to change places and lives in the Capital for the better. Finally enormous thanks are due to our hard-working staff, Trustees and volunteers for their commitment and passion through these changes. Despite the challenges they face daily, I always find them “dedicated, supportive, committed and smiling”. They are uplifting and without them, we would not be able to deliver our projects to improve Londoners’ lives and the places where they live. Together, we look forward to delivering services for London and for Londoners, in the year ahead, and enhancing Groundwork London’s reputation. John Harley, Chairman

Report of the Trustees for the Year ended 31 March 2011

Trusteesâ&#x20AC;&#x2122; Report to 31 March 2011 The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2011. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March 2005.

Reference and Administrative Details Registered Company number 04212532 (England and Wales)

Registered Charity number 1121105

Registered office of the company and principal office of the charity 18-21 Morley Street London SE1 7QZ Trustees Name John Harley, Chair Jeremy Bennett Peter Head Matthew Craston Cate Newnes-Smith June Campbell Eugenie White David Bent-Hazelwood Patrick Hammill Edward Argar John Smith

Date of appointment 13/05/2008 03/09/2007 03/09/2007 03/09/2007 13/05/2008 17/11/2008 17/11/2008 16/02/2009 19/05/2009 20/09/2010 24/05/2010

Detail of appointment Co-opted Groundwork UK Nominee Groundwork UK Nominee Co-opted Co-opted Co-opted Nominated West sub region Co-opted South sub region Co-opted East sub region Co-opted North sub region Co-opted

Trustees who resigned during the year Martin Hurst Brian Haley David Walden Sophie Linden Mark Flanagan

Resigned 24th May 2010 Resigned 24th May 2010 Resigned 24th May 2010 Resigned 29th November 2010 Resigned 3rd December 2010

Executive Director Company Secretary

Lindy Kelly Stuart Harrison

Auditors Strover Leader & Co Chartered Accountants & Registered Auditors Barry House 20-22 Worple Road Wimbledon London SW19 4DH

Bankers Lloyds TSB Greenwich Branch PO Box 1000 BX1 1LT

Solicitors Bates, Wells & Braithwaite 61 Charterhouse Street London EC1M 6HA Report of the Trustees for the Year ended 31 March 2011

Structure, Governance and Management Structure Groundwork London is a registered charity and company limited by guarantee and is governed by its memorandum and articles of association. Groundwork London was registered as a limited company on 8th May 2001 under the name Groundwork London Partnership and changed its name by Special Resolution to Groundwork London on 10th September 2007. Groundwork London is a member of the Federation of Trusts in England, Wales and Northern Ireland, each working with partners to improve the quality of the local environment, the lives of local people and the success of local businesses in areas in need of investment and support. The Federation Membership Agreement is a bilateral agreement jointly signed by both the Trust and the Federation, setting out the obligations, defining the minimum quality and ethical standards, setting out the core values and defining the circumstances and procedures whereby Trusts may be required to leave the Federation. The work of the Trust is supported by the national office of Groundwork UK. The Members of Groundwork London The company members are the Federation of Groundwork Trusts, Matthew Craston, Mark Flanagan and Cate Newnes-Smith. Governance Board of Trustees The Governing body of the Trust is the Board of Trustees whose members are unpaid. The Board comprises of not more than 15 Directors of whom not more than 6 are nominated and 9 co-opted Trustees:  4 nominated Local Authority members, (1 elected from each of the 4 sub regions  4 co-opted members, 1 from each of the 4 Sub Regional Committees  2 Groundwork Federation nominees  5 independent co-opted members Directors generally serve terms of between 12 months and 3 years. Trustees can be reappointed by the Board. The Board is responsible for major strategic decisions and has ultimate responsibility for the conduct and financial viability of the organisation. The Board meets formally four times a year. The Board has established a number of committees:  Finance & Audit Committee is responsible for reviewing the overall direction of financial and investment resources at Groundwork London and for making appropriate recommendations to the Board. It meets four times a year.  The Executive Recruitment & Remuneration Committee is appointed to assist the Board in the appointment of the Executive Director and to support the Executive Director in the appointment of members of the Executive Team and to consider and approve their remuneration. The Remuneration Committee meets when required.  Sub Regional Committees are established in 4 sub regions, they have delegated responsibility to the Board to shape the strategic direction of Groundwork within the sub region; Monitor and improve performance within the sub region; Ensure leadership and resources within the sub region.  From time to time, when appropriate, other sub committees may be formed in order to address specific issues. A Governance sub committee was formed and met several times in 2010/11.

Report of the Trustees for the Year ended 31 March 2011

Induction & Training New members of the Board of Trustees are provided with the Groundwork London Governance handbook and other key documents and have an induction meeting with the Executive Director. The induction includes an overview of the objects of Groundwork London and its Vision and Mission, the structure, its staff and volunteers, and finance. Governance training is provided by the Federation and new members are expected to attend one of these training events. Trustees are also encouraged and supported in visiting projects. Organisational structure The Board delegates day to day financial and managerial control of the organisation to the Executive Director. The Executive Director, together with the Executive Team, meets monthly to discuss the operational and financial status of the Trust. Groundwork London’s professional team continues to evolve in response to changes to our organisational structure and changes to the scale of the activities across each of our thematic areas and the needs of our business operational requirements. All professional roles in Groundwork London and the framework within which they are organised are guided by the following principles:  We must remain embedded in the local community, with local delivery at the core of what we do  We must be able to operate a seamless, consistent and high quality delivery service across London  We need to be a credible local and regional partner able to operate at a strategic level  We must be a strong and viable organisation Projects and programmes continue to be delivered by local teams, with management organised through area management structures, services and directorates. The heart of Groundwork London’s business is described in terms of the four thematic areas: Communities & Local Partnerships; Urban Landscapes & Open spaces; Environmental Services; and Youth, Employment & Skills. The delivery of the programmes and services within these thematic areas is where most of our human resources are focused. At the end of the 2010/11 we had 118 full time equivalent employees. Internal Control and Risk Management The Board accepts its responsibility under the Charity Commission’s Statement of Recommended Practice (SORP) for ensuring the major risks to which the charity is exposed are identified and reviewed and that there are systems in place to mitigate against them. The risk management analysis continues to be an integral part of the business planning and business review and reporting process. The Trust maintains a comprehensive risk register in which all risks are evaluated and graded. Each risk is allocated both an Impact and Probability rating to provide an overall risk score. The Board reviews the risks quarterly. The six key risks to Groundwork London in 2010/11 were:  Failure to secure funding for the projected operations plan  Failure to embed consistent operating practices across London  Loss or reduction of local government sponsorship  Poor performance and partner dissatisfaction with the quality of delivery  Inability of the organisation to meet its utilisation target or meet target chargeable rate  Increasing competition

Report of the Trustees for the Year ended 31 March 2011

Whilst our response to each of these varies, there are some common features that help us address these risks:  Renewed emphasis on demonstrating the value and benefit of Groundwork’s services  Expansion of our offer across local authorities and new partnerships  Prioritising the development and preparing for the growth potential arising from significant opportunities emerging through worklessness, youth and low carbon/climate change agendas  Increasing our competencies and professionalism to meet the growing demands of commissioning, audit and evaluation  Reviewing and addressing overhead costs in particular staffing, properties and other general overhead costs Financial management of projects is controlled using GPMS (Groundwork Project Management System). Expenditure is only made on projects once income has been secured. The amount of secured and unsecured income and the expenditure and revenue on all projects is analysed on a monthly basis. Detailed management information is imported from the system to provide up to date financial and operational performance against targets. The Executive Team reviews, on a monthly basis, income and contribution secured against business plan, team capacity and project performance together with other business information. These are also reported to the staff teams at monthly Operations & Development meetings and on a quarterly basis to the Board, to focus Trust attention on achieving Business Plan targets. In addition to reviewing the risk register, quarterly reports to the Board enables it to monitor income & expenditure and progress towards financial targets. Detailed management accounts are examined at each meeting. The Trust submits these accounts to Groundwork Federation on a quarterly basis and is monitored on security of income and financial stability.

Public Benefit Statement All Groundwork London’s activities contribute to the achievement of our strategic aims & objectives and are undertaken to further our charitable purposes for the public benefit. Our main activities and who we try to help are described below. We review our aims, objectives and activities each year in the Business Planning process. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are established to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Report of the Trustees for the Year ended 31 March 2011

Financial Review The Trust had a total income for the year of £14m. The overall net outgoing resources were £97k with £300k applied against restricted reserves. The Trust made an unrestricted surplus of £203k. Reserves Policy The Board of Trustees has agreed a long term aim of holding unrestricted, free reserves equivalent to six month's (180 days) running costs. The Board believes this is a prudent level of reserves for a Charity based in Central London and is in line with other Groundwork Trusts. The Board has agreed that a reasonable level of Reserves is required to:  absorb short term set backs such as loss or delays in funding  finance working capital needs and fund time delays between the expenditure and receipt of funds  set aside funds for appropriate capital assets such as IT equipment and securing and developing suitable premises The Board monitors unrestricted reserves on a quarterly basis and the Reserves Policy will be reviewed on an annual basis to assess the needs of the organisation. At the year end unrestricted reserves shown in the balance sheet covered 82 days (2009/10 67 days) running costs. Including geographically restricted reserves (used to cover staff costs and overheads within sub regional areas) increases the days to 180 days (2009/10 156 days). Principal Funding Sources Funding for Groundwork London was provided by the following sources: Central Government Local Authorities Public and Regional Agencies European Union Private Sector National Lottery

Report of the Trustees for the Year ended 31 March 2011

£ 1,066,450 2,989,772 4,095,607 1,863,824 2,734,066 1,289,355 14,039,074

Objectives and Activities Charitable Objectives Groundwork London’s charitable objectives are set down in its Memorandum of Association, they include:  to promote the conservation, protection and improvement of the physical and natural environment in the area covered by the City of London and the London Boroughs;  to provide facilities in the interest of social welfare for recreation and leisure time occupation with the object of improving the lives of those living or working anywhere in the area covered by the City of London and the London Boroughs;  to advance public education in environmental matters and other ways of better conserving, protecting and improving their environment;  to promote for the public benefit urban and rural regeneration in areas of social and economic deprivation;  to promote sustainable development for the benefit of the public;  to advance the education of the public in subjects relating to sustainable development and the protection, enhancement and rehabilitation of the environment and promote study and research in such subjects;  to promote the efficiency and effectiveness of charities in the direct furtherance of their objects. Strategic Objectives Groundwork London’s Strategy objectives in 2010/11 were to:  Create and deliver programmes and projects through four thematic areas: o Communities & Young People o Urban Landscapes & Open Space o Environmental Services o Youth, Employment & Skills  Build productive relationships and partnerships  Influence and shape policies, share learning, and demonstrate positive impacts  Maintain a strong, viable business, achieving excellence in service delivery Groundwork London’s annual Business Plan sets out the actions necessary to achieve these objectives. Grant Making Policy The Trust administers applications for various grants schemes on behalf of partnerships with local authorities and other Public Agencies. The Applications are reviewed against specific criteria and business objectives which are set out by the grants panels and awarded to constituted groups.

Report of the Trustees for the Year ended 31 March 2011

Achievements and Performance We serve the Capital, and the principal issues driving our activities are the needs of London and Londoners. The difficult economic climate has and continues to have significant impact on our communities, on local authorities and on our other public and private sector partners. With 2m people living in deprivation in London, these hugely diverse and vulnerable communities are the hardest hit. We have responded by delivering over 700 regeneration projects focused on the most deprived communities 1 across London. 2010/11 is the second full year of operation for Groundwork London following the mergers of the 6 London Trusts and the London Regional office during 2007/8 and 2008/9. The process of establishing Groundwork London and managing change has required an enormous amount of effort from the Board, Executive and the staff teams and has now placed Groundwork London in a stronger position in its market, organisationally and financially It is apparent that the effort put into this consolidation was worthwhile as significant benefits have been realised over the last two years of operation. These benefits have allowed us to be more efficient, to focus our resources on the beneficiaries and projects that are important to them, and to increase the quality of the services which we are providing to communities in need. Our work is delivered in partnership with Local Authorities, Housing Associations, regional agencies and other organisations. We have set out below the headline achievements for 2010/11. Creating and delivering programmes and projects through four thematic areas: Communities & Young People, During the year we enabled adults and young people to engage in more than 70,000 days of activity. We achieved this through projects that focused on: community development, consultation and capacity building; behaviour change, helping residents reduce energy and waste and reuse and recycle; health and well-being; community gardening and local food growing; promoting and conserving the natural environment; outreach play, music and/or multimedia and sport for children and young people; community and corporate volunteering opportunities Urban Landscapes & Open Space, We continued to enhance our impact by integrating landscape design and community development delivering urban environments that meet the needs of local communities now and in the future. We improved 28.9 hectares of open space and maintained 139 hectares of land. Our activities resulted in 11,400 trees being planted. We delivered landscape improvements to; housing estate open spaces; parks and green spaces; play and recreation areas and heritage sites. We also developed food growing projects and temporary uses for vacant sites. We continued to develop our competence in sustainable landscape design and management and designing safer neighbourhoods. We also delivered quality maintenance and management for open spaces. Our work was recognised through a variety of awards including The Landscape Institute for â&#x20AC;&#x2DC;Design under 1 hectareâ&#x20AC;&#x2122; for the Lyric Theatre Roof Garden in Hammersmith. Environmental Services With an increased emphasis on low carbon, energy and waste efficiency measures, we supported other organisations and community groups in managing their environmental impact through waste management, energy efficiency, reuse and recycling.

According to the Index of Multiple Deprivation

Report of the Trustees for the Year ended 31 March 2011

This resulted in enabling the diversion of 516 tonnes of waste from landfill and avoiding/saving 540 tonnes of CO2 emissions. We also enabled around 220 businesses to engage in environmental improvements. We managed open grant schemes, including the Western Riverside Environment Fund, Mayor’s Street Trees Programme and London Trees and Woodland Grant Scheme allocating £1.84million to voluntary and community organisations across London. Our work was recognised through the NEA Footprint Awards as regional winners for the combined programme of Energy Doctor in the Home and Energy Doctor in the Community. Youth, Employment & Skills We planned, developed and delivered youth and employment initiatives for young people not in employment, education or training (NEETS), pre NEETS, ex offenders, lone parents and long term unemployed. We provided over 12,000 training weeks with 537 formal qualifications gained. Over 575 jobs were created or safeguarded. These outcomes reflect the focus on Future Jobs Fund (FJF) which dominated the activities of the Employment & Skills team in 2010/11. During the year we provided over 750 work placements funded by FJF. Our bespoke and tailored activities included: outreach & engagement; and building skills, confidence and opportunities to participate in local regeneration projects. We provided employability support through Information Advice and Guidance (IAG), -training including informal, basic skills, vocational, formal qualifications and work experience and volunteering. We also provided job brokerage and career pathways, linking employers and employment opportunities to local unemployed. We continued to develop our competence in delivering specialised training and employment opportunities in horticulture, low carbon skills, waste management, social enterprise, health, child care and education. We have continued to strengthen the relationships we have with Grounds Maintenance companies such as Quadron and Serco, helping us get long term unemployed people back into work. Building productive relationships and partnerships We progressed positive working relationships with the London Boroughs of Haringey, Camden, Islington, Hammersmith & Fulham, Hackney, Ealing, Merton, Wandsworth, Lambeth, Southwark, Lewisham, Newham, Hackney, Greenwich, Waltham Forest and the City of Westminster. We built on productive relationships with regional bodies, with the Forestry Commission and the GLA to manage the Mayor’s Street Trees and Community Woodland Grant schemes. We established Re:Build – a reuse and recycling project with Western Riverside Waste Authority and London Community Recycling Network. Working with key Olympic bodies, LOCOG and the 2012 legacy delivery company and voluntary sector organisations, including London Sustainability Exchange, we secured funding to deliver community led open space improvements in the 6 host Olympic boroughs. We have benefitted from the continuation of our valuable corporate partnerships. Working with Johnson Controls International we developed and expanded our successful Climate Change Youth Ambassadors programme to enable a further 100 young people to participate in a sustained volunteering experience in their local communities. This partnership with JCI has enabled us to involve other organisations such as Barclays, the BBC and Ikea, Report of the Trustees for the Year ended 31 March 2011

We successfully delivered the London elements of Groundwork's national corporate programmes with M&S and Cadburys; our 10th M&S funding award being offered to create an Eco-hub in East London, and hosting Kraft executives from Switzerland at our Cadburys Spots vs Stripes activities in local communities. We also provided a range of opportunities for London's corporates to participate in the delivery of local community projects through team building days'. Influencing and shaping policies, sharing learning, and demonstrating positive impacts During 2010/11 we worked with the LDA and GLA on the development of the Green Grid and supporting the management of East London Green Grid. We also supported the development of the Wandle Valley Regional Park by providing administrative services to the Wandle Valley Regional Park (WRVP) Development Board and member of the WVRP Management Board. Maintaining a strong, viable business, achieving excellence in service delivery Out of the public eye there has been a formidable effort to carry through the exacting processes of planning human and financial resources and implementing systems and structures essential to the successful development of Groundwork London. During the year, major restructuring was undertaken, resulting in changes to the Executive team structure as well as a reduction of staff through redundancies in the Landscape Design Service, Finance & Administration, Environmental Services and Area Management team. We continued to focus on our specialism’s and to invest in staff training and development to improve our people management and to underpin the cultural changes needed to foster open, participative and integrated working across all our staff teams. As Groundwork London has evolved we have also recognised the need to review our Governance to ensure that it is both relevant, effective and will be resilient to future changes in the modus operandi of Groundwork London. Following the comprehensive review undertaken by the Boardappointed special purpose sub committee, the changes agreed will be implemented during 2011/12. We also delivered a number of business performance measures, we:  Retained our environmental management standard ISO 14001.  Continued to implement and imbed performance management and appraisal, induction process and training & development plans for all staff as we work towards Investors in People.  Further developed the Groundwork Project Management System (GPMS) as the core management tool for all our activities.

Report of the Trustees for the Year ended 31 March 2011

Future Plans 2011/12 Groundwork London has agreed the following strategic objectives for 2011/12 through which we expect to meet the challenges posed by London’s operating environment. We will:  Create and deliver programmes and projects across four thematic areas: o Communities & Young People o Urban Landscapes & Open Space o Youth, Employment & Skills o Environmental Services  Build productive relationships and partnerships  Influence and shape policies, share learning, and demonstrate positive impacts  Maintain a strong, viable business, achieving excellence in service delivery Creating and delivering programmes and projects across four thematic areas The value of our offer lies in the strategic combination of all these elements and the particular qualities we bring to them. Delivering high quality, innovative actions and being the best at whatever we do is central to all our thinking. During the coming year we will progress over 600 projects across all our thematic areas: Communities & Young People – engaging communities in decision making We will deliver high quality community development activity and improve the contribution we make to social cohesion. Our activities will include:  Community development, consultation and capacity building projects  Behaviour change programmes helping residents reduce resource consumption  Health and well-being  Community gardening and local food growing  Conserving the natural environment  Outreach play, music and/or multimedia focus and sport programmes for children and young people  Community and corporate volunteering opportunities Working with key Olympic bodies, LOCOG and the 2012 legacy delivery company and voluntary sector organisations, we will deliver community led open space improvements in the 6 host Olympic boroughs. Urban Landscapes & Open Space – improving open spaces. We will maximise the potential of open spaces to provide environmental, social and economic benefits to communities. We will champion sustainable landscape management and design, thus enhancing our reputation as a deliverer of high quality urban environments. Our land improvement programme will focus on:  Housing estate open spaces  Parks and green space improvement projects  Play and recreation areas  Heritage projects  Temporary uses for vacant sites We will continue to work with strategic partners to ensure the success of East London Green Grid and Wandle Valley Regional Park (WRVP), and programmes funded by Outer London Fund and Regional Growth Fund. Report of the Trustees for the Year ended 31 March 2011

We will support environmental improvements and local communities through the management of open grant schemes including the Western Riverside Environment Fund, Mayor’s Streets Trees and Community Woodland Grant scheme. Environmental Services – promoting positive environmental behaviours We will develop practical projects and services to help tackle environmental issues and resource management. Our environmental services programme will focus on:  environmental impact through waste management, energy efficiency, reuse and recycling  Encouraging behavioural change and practical responses to the challenges of climate change  Generating enterprise opportunities linked to employment and skills training We continue to develop Re:Build, our reuse and recycling project with Western Riverside Waste Authority and London Community Recycling Network. Youth, Employment & Skills – delivering skills training and employment opportunities, and helping young people to realise their potential. We will help people move from welfare to work helping them gain the skills and confidence to stay in education and employment. We will develop skills and employment opportunities in the Green economy. We will engage, motivate and inspire young people, particularly those not in education, employment or training, to make and lead positive changes in their neighbourhoods and to make positive choices about their future. We will focus on the journey and the destination by supporting people step by step to identify and attain their goals. Our bespoke and tailored activities will include:  Outreach and engagement  Building skills, confidence and opportunities to participate in local regeneration projects  Information, Advice and Guidance (IAG), employability support  Training: Informal, basic skills, vocational, and formal qualifications  Work experience and volunteering  Job brokerage and career pathways, linking employers, employment opportunities to local unemployed We will look to generate enterprise opportunities and job creation potential from the programmes we develop and deliver. We will build productive relationships and partnerships - developing and strengthening our relationships with the GLA functional bodies, regional statutory organisations, and voluntary agencies. We will continue to work closely with the London Boroughs developing programmes of activity relevant to the needs of their communities. We will continue to develop and expand our corporate partnerships building long term alliances and adding value to local partnership frameworks. We will also influence and shape policies, share learning, and demonstrate positive impacts by supporting Boroughs in developing their local strategies and contributing to the London Plan and other Mayoral and regional partner strategies. We will share our knowledge, experience, results and learning. We will maintain a strong, viable business, achieving excellence in service delivery through increasing the quality, consistency and efficiency of our operations.

Report of the Trustees for the Year ended 31 March 2011

We will continue to look for ways to improve the effectiveness and efficiency of our operations, considering how we use our various property assets and ensuring we make our IT and Treasury operations more effective. We will also implement changes agreed through the review our governance. A number of members of our former Sub-Regional Committees will become active Ambassadors to assist our work in communities. Our new Local Authority Strategic Input Board (LASIB) will become a forum for an active exchange of ideas on what focus is required from Groundwork London to change places and lives in the Capital for the better.

Report of the Trustees for the Year ended 31 March 2011

Statement of Trustees’ responsibilities The trustees (who are also the directors of Groundwork London for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to;    

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

there is no relevant audit information of which the charitable company's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS The auditors, Strover Leader & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. ON BEHALF OF THE BOARD:

Trustee Date: 19th September 2011

Report of the Trustees for the Year ended 31 March 2011

GROUNDWORK LONDON REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GROUNDWORK LONDON We have audited the financial statements of Groundwork London for the year ended 31 March 2011 on pages 19 to 32. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the financial statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements:  give a true and fair view of the state of the charitable company's affairs as at 31 March 2011 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and  have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:  adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or  the financial statements are not in agreement with the accounting records and returns; or  certain disclosures of trustees' remuneration specified by law are not made; or  we have not received all the information and explanations we require for our audit. John Ironmonger FCA (Senior Statutory Auditor) for and on behalf of Strover Leader & Co Chartered Accountants & Registered Auditors Barry House 20-22 Worple Road Wimbledon London SW19 4DH

Date: ............................................. Report of the Independent Auditors

GROUNDWORK LONDON STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2011

Unrestricted funds £ Notes INCOMING RESOURCES Incoming resources from generated funds Incoming resources from charitable activities Transferred in on 1 April 2009

Restricted funds £

31.3.11 Total funds £

31.3.10 Total funds £

4,727

126,481

131,208

204,263

5,628,388

8,279,478

13,907,866

11,617,193

1,438,094

5,633,115

8,405,959

14,039,074

13,259,550

Total Incoming Resources RESOURCES EXPENDED Costs of generating funds Charitable activities

4 5

4,793,477

118,893 9,170,142

118,893 13,963,620

97,121 11,292,641

Governance costs

53,364

50,007

4,846,841

9,289,035

14,135,876

11,439,769

786,274

(883,076)

(96,802)

1,819,781

(583,169)

583,169

203,105

(299,907)

(96,802)

1,819,781

1,063,520

2,370,012

3,433,532

1,613,751

1,266,625

2,070,105

3,336,730

3,433,532

Total resources expended NET (OUTGOING)/INCOMING RESOURCES before transfers Transfers between funds Net (outgoing)/incoming resources RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD

The Statement of Financial Activities includes all gains and losses recognised in the year All incoming resources and resources expended derive from continuing activities The notes on pages 22 to 32 form part of these financial statements

Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON BALANCE SHEET AT 31 MARCH 2011

Notes

31.3.11 £

31.3.10 £

11 12

472,711 644,767

531,542 657,267

1,117,478

1,188,809

4,618,090 3,680,075

4,905,535 2,308,063

8,298,165

7,213,598

(6,078,913)

(4,968,875)

NET CURRENT ASSETS

2,219,252

2,244,723

TOTAL ASSETS LESS CURRENT LIABILITIES

3,336,730

3,433,532

NET ASSETS

3,336,730

3,433,532

1,266,625 2,070,105

1,063,520 2,370,012

3,336,730

3,433,532

FIXED ASSETS Tangible assets Investment property

CURRENT ASSETS Debtors Cash at bank

CREDITORS Amounts falling due within one year

FUNDS Unrestricted funds Restricted funds TOTAL FUNDS

The financial statements were approved by the Board of Trustees on 19th September 2011 and were signed on its behalf by:

Trustee

Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON The notes on pages 22 to 32 form part of these financial statements CASH FLOW STATEMENT AT 31 MARCH 2011

Notes Net Cash inflow from operating activities

Return on Investment and servicing of finance Investment Income received Capital expenditure and financial investment Payments to acquire tangible fixed assets Cash inflow/(outflow) before financing Financing Net cash inflow/(outflow)

Increase in cash for the year

31.03.11 ÂŁ

31.03.10 ÂŁ

1,247,280

795,544

131,208

204,263

(6,476)

(32,990)

1,372,012

966,817

1,372,012

966,817

The notes on pages 22 to 32 form part of these financial statements

Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

1. ACCOUNTING POLICIES Accounting convention The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets, and are drawn up in line with the Companies Act 2006, and in accordance with the Statement of Recommended Practice (SORP) â&#x20AC;&#x153;Accounting and Reporting by Charitiesâ&#x20AC;? published in March 2005 and applicable accounting standards. Incoming resources All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants receivable, where related to performance are accounted for as the charity earns the right to consideration by its performance. Where income is received before entitlement is established recognition is deferred and included in creditors and where entitlement arises before income is received the income is accrued. Resources expended Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Allocation and apportionment of costs Support costs include administrative staff time and overheads. These are allocated to projects based on the number of project hours worked on each project. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Long leasehold -over the term of the lease Fixtures and fittings -at varying rates on cost Motor vehicles -at varying rates on cost Computer equipment -at varying rates on cost Investment properties Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve. No depreciation or amortisation is provided in respect of freehold investment properties and leasehold investment properties with over 20 years to run. Taxation The charity is exempt from corporation tax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the note 24 to the financial statements. Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON

ACCOUNTING POLICIES â&#x20AC;&#x201C; (continued) Hire purchase and leasing commitments Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease. Consolidation The company has taken advantage of Section 405 of the Companies Act 2006 not to prepare consolidated accounts as its two subsidiaries are dormant and their inclusion is not material for the purpose of giving a true and fair view. Therefore, these financial statements present information about the Company as an individual undertaking and not about its Group. Pensions The company operates a defined contribution scheme whereby the company pays fixed contributions which are charged to the statement of financial activities in the period to which they relate Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON

2. INVESTMENT INCOME

Rents received Deposit account interest

31.3.11 £ 126,481

31.3.10 £ 193,252

4,727

11,011

131,208

204,263

Investment income includes income received for the leasing out of business units at Artichoke Mews and a public house adjacent to Denmark Hill railway station. 3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unrestricted Funds

Restricted Funds

31.3.11 £

31.3.10 £

2,130,450

2,292,629

4,423,079

5,893,858

584,112

1,274,491

1,858,603

3,000,823

1,038,614

4,403,577

5,442,191

2,091,408

1,875,212

308,781

2,183,993

631,104

5,628,388

8,279,478

13,907,866

11,617,193

Income was provided by: Central Government

31.3.11 £ 1,066,450

31.3.10 £ 2,169,544

Local Authorities

2,989,772

4,487,577

Public and Regional Agencies European Union

4,095,607

1,541,471

1,863,824

888,193

Private Sector

2,602,858

1,404,649

National Lottery

1,289,355

1,125,760

13,907,866

11,617,193

31.3.11 £ 64,000 54,893

31.3.10 £ 64,000 33,121

118,893

97,121

Income was received for: Communities & young people projects Urban Landscapes & Open Space Employment & skills training & Youth projects Environmental Business Services projects

4. INVESTMENT MANAGEMENT COSTS - restricted fund

Other operating leases Administrative expenses

Administrative costs relate to the management of business units at Artichoke Mews and a public house adjacent to Denmark Hill railway station. Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON 5. CHARITABLE ACTIVITIES COSTS Direct costs

Communities & young people Urban Landscapes & Open Space Employment & skills training & Youth Environmental Services

£ 3,223,833 1,860,380

Support costs (See note 6) £ 785,411 145,908

Totals 31.03.11 £ 4,009,244 2,006,288

31.03.10 £ 4,979,747 3,296,762

5,070,813

657,689

5,728,502

2,363,226

2,124,494

95,091

2,219,585

652,906

12,279,520

1,684,099

13,963,619

11,292,641

Unrestricted Funds

Restricted Funds

Total Funds

31.03.10

£ 1,313,716 657,847

£ 2,695,528 1,348,441

£ 4,009,244 2,006,288

£ 4,979,747 3,296,762

970,295

4,758,207

5,728,502

2,363,226

1,851,619

367,966

2,219,585

652,906

4,793,477

9,170,142

13,963,619

11,292,641

31.3.11

31.3.10

6. SUPPORT COSTS Support costs, included in the above, are as follows:

Community & young people Urban landscapes and open space Employment & skills training & Youth Environmental Services

Wages

Office and other costs

Total Activities

382,459

402,951

785,410

1,088,706

71,050

74,857

145,907

250,758

320,265 46,305 820,079

337,424 48,788 864,020

657,689 95,093 1,684,099

455,673 130,961 1,926,098

31.3.11 £ 19,067 19,297 15,000 53,364

31.3.10 £ 18,874 16,133 15,000 50,007

7. GOVERNANCE COSTS

Staff costs Legal fees Auditors' remuneration

Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON 8. NET INCOMING/(OUTGOING) RESOURCES Net resources are stated after charging/(crediting):

Auditors' remuneration – audit services Auditors' remuneration – non audit services Depreciation - owned assets Other operating leases

31.3.11 £ 15,000 4,056 65,307 345,963

31.3.10 £ 15,000 5,586 74,880 321,737

9. TRUSTEES' REMUNERATION AND BENEFITS There were no trustees' remuneration or other benefits for the year ended 31 March 2011 nor for the year ended 31 March 2010. There were no trustees' expenses paid for the year ended 31 March 2011 nor for the year ended 31 March 2010. 10. STAFF COSTS

Wages and salaries

31.3.11 £ 4,505,452

31.3.10 £ 4,673,492

The average number of employees (full time equivalents) during the year was as follows: 31.3.11 31.3.10 Direct Charitable 123 132.8 Fundraising 5 6 Governance 0.2 0.2 128.2 139 Staff costs were as follows:

Wages and salaries Social security costs Pension costs

31.3.11 £ 3,913,571 389,608 202,273

31.3.10 £ 4,140,055 403,001 130,436

4,505,452 4,673,492 The company operated a defined contribution pension scheme. The assets of the scheme were held separately from those of the company in an independently administered fund. Contributions payable for the year were charged in the Statement of Financial Activities. 31.3.11 31.3.10 19,754 Amount of outstanding pension contributions 3,446 Amount of prepaid pension contributions Number of employees whose emoluments (excluding pension contributions) exceeded £60,000 in the year: 2011 2010 £60,000 - £69,999 £70,000 - £79,999 2 2 £80,000 - £89,999 £90,000 - £99,999 2 2 The total employer's contributions paid to defined contribution schemes for the above higher paid employees was £9,952 (31st March 2010 £8,070). Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON 11. TANGIBLE FIXED ASSETS

COST 2010 Additions Disposals 2011

Freehold land & buildings

Long leasehold

Fixtures and fittings

Motor vehicles

Computer equipment

Totals

620,000 620,000

72,144 72,144

148,703 6,476 (72,231) 82,948

110,912 (11,865) 99,047

627,004 (273,659) 353,345

1,578,763 6,476 (357,755) 1,227,484

72,144 -

148,110 (72,231)

98,528 (11,865)

561,939 (273,659)

1,047,221 (357,755)

1,654

7,691

37,462

65,307

72,144

77,533

94,354

325,742

754,773

DEPRECIATION 2010 166,500 Disposals Charge 18,500 for year 2011 185,000 NET BOOK VALUE 2010

453,500

593

12,384

65,065

531,542

2011

435,000

5,415

4,693

27,603

472,711

12. INVESTMENT PROPERTIES MARKET VALUE 2010 and 2011

730,000

AMORTISATION 2010 Charge for year 2011

72,733 12,500 85,233

NET BOOK VALUE 2011

644,767

2010 657,267 The investment properties are held in the UK. The historical cost of the properties is £373,000. The properties were revalued in March 2003 by Andrews and Robertson, Chartered Surveyors, on an open market value in accordance with the guidelines issued by the Royal Institute of Chartered Surveyors. The above represents investment at market value in the following properties which were transferred from Groundwork Southwark and Lambeth on 1st November 2007 as follows: Artichoke Mews (125 year lease from 1 July 1990) - £480,000. Historical cost £183,000 Denmark Hill (41 year lease from 5 June 1983) - £250,000. Historical cost £190,000 The Lease on Denmark Hill expires in 2024 and in line with the company’s accounting policy for investment properties the property is amortised over its remaining 20 years. 13. INVESTMENTS Shares in Group Undertakings

31.3.11 £ 2

31.3.10 £ 2

The charity holds 100% of the issued ordinary share capital of Groundwork Environmental Services (West London) Limited and Groundwork Environmental Services (East London) Limited. Both companies are incorporated in England and Wales. Neither company traded during the year. Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.11 31.3.10 £ £ Trade debtors 2,661,807 3,538,036 Other debtors 1,549,493 1,219,025 Related company debtor 406,790 148,474 4,618,090 4,905,535 The related company debt represents balances due from The Federation of Groundwork Trusts 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Taxation and social security Accruals and deferred income Related company creditor Other creditors

31.3.11 £ 584,779 219,389 5,194,597 10,133 70,015

31.3.10 £ 614,332 340,803 3,936,144 77,596

6,078,913

4,968,875

16.ACCRUALS AND DEFERRED INCOME At 1 April 2010 £ Performance grants where services not yet provided

3,936,144

Received in year

Released to income

13,907,866

12,649,413

17. OPERATING LEASE COMMITMENTS The following operating lease payments are committed to be paid within one year: 31.3.11 £ Expiring: Not later than one year 39,907 Later than one year and no later than five years 179,198 Later than five years 55,000

At 31 March 2011 £ 5,194,597

31.3.10 £ 33,897 170,925 88,000

18.ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets Investments Current assets Current liabilities

Unrestricted funds £ 472,711 2,968,579 (2,174,666) 1,266,624

Notes to the Audited Financial Statements to 31 March 2011

Restricted funds £ 644,767 5,329,586 (3,904,248) 2,070,105

31.3.11 Total funds £ 472,711 644,767 8,298,165 (6,078,914) 3,336,729

31.3.10 Total funds £ 531,542 657,267 7,213,598 (4,968,875)

3,433,532 29

GROUNDWORK LONDON

19. MOVEMENT IN FUNDS Transferred in/(out) from:

31.03.11 £

31.03.10 £

Restricted Funds: Groundwork West London Groundwork South London Groundwork North London Groundwork East London

(5,375) (23,587) 413,747 1,053,309

Total all Funds Transferred

STATEMENT OF FUNDS Brought Forward

Unrestricted Funds General Funds Total Unrestricted Funds Restricted Funds Geographically restricted reserves Revaluation Fund Property Fund Programme Funds Total Restricted Funds Total Funds

Transfer In/(Out)

1,438,094

Carried Forward

Incoming Resources

Resources Expended

1,063,520

5,633,115

(4,846,841)

(583,169)

1,266,625

1,063,520

5,633,115

(4,846,841)

(583,169

1,266,625

1,402,744

(282,407)

1,120,337

339,544 627,724 -

126,481 8,279,478

(3,000) (115,893) (9,170,142)

(25,088) 890,664

336,544 613,224 -

2,370,012

8,405,959

(9,289,035)

583,169

2,070,105

3,433,532

14,039,074

(14,135,876)

3,336,730

20. Reconciliation of changes in resources to net inflow from operating activities 31.03.11 31.03.10 £ £ (96,802) 1,819,781 Net incoming resources (131,208) (204,263) Investment income 77,807 87,380 Depreciation (480,703) Net inflow from transfer of fixed assets 287,445 (2,196,805) Decrease in debtors 1,110,038 1,770,154 Increase in creditors Net cash inflow from operating activities

Notes to the Audited Financial Statements to 31 March 2011

1,247,280

795,544

GROUNDWORK LONDON

21. Reconciliation of net cash flow to movement in net funds Increase in cash in the year /Movement in net funds in year Net funds as at 1 April 2010

31.03.11 1,372,012 2,308,063

31.03.10 966,817 1,341,246

Net funds

3,680,075

2,308,063

1.4.10 £

Cashflow £

31.03.11 £

2,308,063

1,372,012

3,680,075

22. Analysis of net funds/debt

Cash at bank and in hand

23. Acknowledgements Groundwork London thanks all its supporters. We have been asked to specifically acknowledge the support of the following funders: Source BIG Lottery BIG Lottery BIG Lottery BIG Lottery BIG Lottery BIG Lottery BIG Lottery BIG Lottery BIG Lottery LDA Heritage Lottery Fund Heritage Lottery Fund Heritage Lottery Fund

Income Well London Healthy Spaces Well London Active Living Map No Particular Place to Go 3 - Bramshill HEIP Queen Caroline Estate Ealing Homes Playrangers Project No Particular Place To Go 4 Paignton Implementation Russell Park Implementation Green Buddies Young Londoners Access to West London's Nature - WL049 Talkin' 'Bout My Generation - HA007 Wild West - Extension - HF020

Notes to the Audited Financial Statements to 31 March 2011

£513,747 £40,740 £2,645 £6,500 £10,000 £28,645 £43,982 £44,745 £37,696 £245,737 £6,964 £10,433 £4,027

GROUNDWORK LONDON 24.

FUNDS

Restricted Funds On 1 November 2007 Groundwork Southwark and Lambeth, Groundwork South East London and Groundwork Merton transferred their funds into Groundwork London. On 1 April 2008 Groundwork West London transferred its funds to Groundwork London. On 01 April 2009 Groundwork North & East London transferred their funds onto Groundwork London. The funds transferred, including the general funds, are all being treated as â&#x20AC;&#x153;restricted fundsâ&#x20AC;?. Specific Restricted funds which were transferred include the following: Geographically Restricted Funds The unrestricted reserves from the pre-merged organisations of Groundwork Southwark & Lambeth, Groundwork Merton, Groundwork South East London, Groundwork West London, Groundwork North London and Groundwork East London were transferred into restricted reserves upon merger into Groundwork London. These funds are restricted to use within the geographic locations from which they were derived. No other specific restriction was set at the time of merger. These funds are used for development and project activities in each of those geographic areas. Property Fund The investment property fund represents the original transfer value of the properties. The properties are the public house at Denmark Hill Station, the workshops and flats at Artichoke Mews and the property at Lower Clapton Road. The properties at Denmark Hill and Artichoke Mews are intended to be set aside so that the returns are used for the day to day expenses of the charity in relation to projects undertaken within the London Borough of Southwark. The property at Lower Clapton Road is a freehold property transferred from Groundwork East London. The trustees have set aside the amount equivalent to the value of the investment properties as designated funds. The revaluation surplus following the most recent valuation of the properties in March 2003 for Denmark Hill is held in a separate Revaluation Fund. The investment income less the investment management costs are allocated to a "Property" restricted fund. Revaluation Fund A revaluation fund is required by the Companies Act 2006 where investment properties are revalued subsequent to their acquisition, or in the case of assets held prior to the mergers, transfer to the control of Groundwork London. The balance shown on the revaluation reserve in the accounts, represents the difference between the pre merger valuation of the investment in the Denmark Hill property (in 2003) and its original cost. None of the properties held have been revalued in the period since the merger Programme Funds Grants, which are received for specific programmes (Communities & Young People, Urban Landscapes and Open Space, Employment & Skills Training and Environmental Services), are accounted for as restricted funds. The balances on restricted funds arise from grants received for these programmes on which some expenditure is still to be incurred in the coming financial year. There were no restricted balances on these grant funded programmes at 31st March 2011. Notes to the Audited Financial Statements to 31 March 2011

GROUNDWORK LONDON Unrestricted Funds General Funds Funds available are sufficient to permit the company to continue in operation in the short term given the continued support of the funders. Should this support not continue in the longer term, further financial support would need to be sought to replace it. 25.

CAPITAL COMMITMENTS

At 31 March 2011 the company had no capital commitments which were contracted for but not provided for. 26.

RELATED PARTY TRANSACTIONS

The Federation of Groundwork Trusts (Company Number 01900511, Charity Number 291558) is a member of Groundwork London. During the year the charity paid £90,000 (31st March 2010 £90,000) in rent to The Federation of Groundwork Trusts for the use of the premises at 18-21 Morley Street, London, SE1 7QZ At 31st March 2011 there was £406,790 (31 March 2010 £270,597) owing to Groundwork London by the Federation of Groundwork Trusts. At 31st March 2011 there was £10,133 (31 March 2010 £32,164) owing to the Federation of Groundwork Trusts by Groundwork London.

27.

SHARE CAPITAL

Groundwork London is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the company being wound up

Notes to the Audited Financial Statements to 31 March 2011