2023-03-31-accounts - The Friendly Trust

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REGISTERED COMPANY NUMBER: 03608297 (England and Wales) REGISTERED CHARITY NUMBER: 1084265

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 March 2023

for

The Friendly Trust

Contents of the Financial Statements for the Year Ended 31 March 2023

		Page
Report of the Trustees	1	to	7
Report of the Independent Auditors	8	to	10
Statement of Financial Activities		11
Statement of Financial Position		12
Statement of Cash Flows		13
Notes to the Statement of Cash Flows		14
Notes to the Financial Statements	15	to	21
Detailed Statement of Financial Activities	22	to	23

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Introduction

The Friendly Trust helps vulnerable people with their money. We work in partnership with people who have disabilities, disabling illnesses, their families and carers by providing practical support and advice to enable them to manage their money more effectively and to end the distress and isolation caused by poverty, abuse and debt.

This year marked a significant change for The Friendly Trust with the retirement of its very long serving Coordinator - Alison Brunt in February 2023 after more than two decades of service to the charity. Under Alison the charity has gone from strength to strength to do what it does now: offering a unique and high-quality service to hundreds of vulnerable people in South Wales, with long-established relationships with many local authorities and other partners. The Board of Trustees wishes to extend its heartfelt thanks and gratitude to Alison for the years of selfless and determined commitment to the charity and its goals, and to wish her a long and happy retirement.

With the Coordinator's retirement, the work of the charity has nonetheless gone on, with one of the main activities facing the Trust being to recruit a new Director and Coordinator to ensure the continuity of service to our 700 services users. It was agreed to engage Goodson Thomas to lead in the recruitment of the new Director. The Trustees worked with the recruitment specialists to draft a new job description and to ensure the person specification would appeal to as wide a range of suitable candidates as possible.

As an interim measure the Trustees worked with Alison, the Senior Trust Officers and the Senior Administrator to ensure ongoing continuity of service. Each of the Senior staff took on additional responsibilities with Stefan Fellows taking on the role of Acting Coordinator for the interim period. Alison also agreed to a phased retirement to oversee a productive handover of responsibilities and to ensure that the process had minimum impact on our Service Users. The trustees wish to thank the Senior staff for their ongoing commitment to the organisation during this period of transition.

Page 1

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Objectives and activities Objectives and aims Delivering our charitable objectives

The Friendly Trust is now led by a Director and Coordinator, a new post created following the retirement of the Coordinator in February 2023. Trustees created the new title and post to ensure a competitive field of candidates, and to also ensure a stronger strategic focus by deleting the requirement for the Director to manage a caseload. The Director is supported by a Board of Trustees to deliver the current strategic plan (set out below).

The Friendly Trust delivers its day to day business as usual via the following primary activities:

Assist vulnerable people who need help to manage their money including debts;
Assist vulnerable people to claim their rights to social security benefits;
Assist vulnerable people, older people and carers to safeguard their future by making a lasting power of attorney;
Advise families how they can plan for the future of their vulnerable relative, v)Advise families on making wills and setting up trust funds to benefit a vulnerable relative,
Manage trusts which benefit a vulnerable person;
Act as Deputy appointed by the Court of Protection; and
Lessen or eradicate vulnerability to financial abuse.

These business-as-usual activities of the charity are delivered by several teams of Trust Officers (led and supervised by Senior Trust Officers with their own complex caseloads) along with administrative support by an 'admin team'. Whilst the Senior and Trust Officers work closely with service users, the administrative team monitor the management of the charity's money and our service users' money which we look after under the authority granted by the Court of Protection, the Department for Work and Pensions, and the person themselves (under Lasting Power of Attorney).

Over the course of the year the Friendly Trust worked with 761 Service Users across the following Local Authorities and funding partners

Cardiff Council Cardiff and Vales Health board Monmouthshire council Newport Council North Somerset Council Rhondda-Cynon-Taff Torfaen Council Vale of Glamorgan Council

We are extremely grateful to our funding partners for their continued support of The Friendly Trust

Office Team: Trust Officers & Admin.

A high quality service individually tailored to the needs of each service user is delivered by Trust Officers supported by the Admin team.

The Co-ordinator and the Senior Trust Officers supervise the work of the Trust Officers and each carry a small caseload of service users themselves. Staff time is valuable and there is big demand for the service. At the time of writing 105 people were on the waiting list for a service.

The Administration department keep the office running smoothly and support the Trust Officers and the Co-ordinator. They monitor the management of both the charity's money and our service users' money which we look after under the authority granted by the Court of Protection, the Department of Work and Pensions or the person themselves (Lasting Power of Attorney).

Trustees

The board continues to meet on a bi-monthly basis providing direction and support for the staff and appropriate oversight of charity operations and significant decisions.

Page 2

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Objectives and activities

Public benefit

We refer to the guidance contained in the Charity Commission's general guidance on public benefit and in particular, the trustees consider how planned activities will contribute to our aims and objectives. All our charitable activities focus on helping vulnerable people, including disabled people and people who are ill; their families and unpaid carers to achieve financial independence and security.

This can include providing advice or practical help to budget and manage money and planning for the future by making a will or setting up a trust for a vulnerable relative. Unfunded advice is provided to any vulnerable person or unpaid carer calling in person or by telephone during "office duty" times which are weekdays 10am until 12pm and 2pm until 4pm. The definition of free advice includes helping to plan their will and draw up lasting powers of attorney. Monitoring and feedback exercises are carried out to evidence funding we receive for specific projects in addition to the annual satisfaction survey conducted across all projects and core services.

Strategic report Achievement and performance Charitable activities Achievement and performance Impact and Value

Financial review

Principal funding sources

The Charity's net incoming resources amounted to £42,381 (2022 net incoming resources: £330,261), which has increased the available funds from £537,268 to £579,649. No restricted income received in the year.

Investment policy and objectives

The Friendly Trust is a registered charity which helps vulnerable adults to manage their money. This investment policy applies to the unrestricted reserves and restricted reserves held by The Friendly Trust. It is not applicable to investments made on behalf of our service users in the role of Appointee, Deputy, Attorney, Executor or Trustee.

The Trustees of The Friendly Trust are governed by the Trustee Act 2000 which sets out the general power of investment. This policy is intended to clarify the responsibilities of the trustees and provide additional working guidance in relation to The Friendly Trust's investments; it is not intended to supersede or contradict the Trustee Act 2000.

Investment Objectives

The Friendly Trust seeks to produce the best financial return within a balanced level of risk.

Reserves policy

The economic climate facing the Third Sector over the past few years has continued to place pressure on funding streams and the Trustees acknowledge the need to retain available reserves to facilitate the continuance of at least the current level of service delivery. The Charity provides a range of services which are unfunded and without sufficient reserves, this assistance would be at risk. The Trustees also recognise that should a closure of operations be required due to any external factors, they would want to do so in such a way that those who rely on The Friendly Trust, both those who work for the Charity and those who receive direct services from it, are not and do not feel abandoned.

The policy of the Charity, which is reviewed at regular intervals, is to aim towards securing sufficient reserves to fund six months' worth of operational costs in order to meet these needs. At the balance sheet date, the level of available unrestricted funds amounted to 579,649 (2022: £537,268).

Page 3

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Strategic report

Risk

The unrestricted cash reserves of The Friendly Trust are broadly in line with the minimum deemed necessary to provide working capital for our operations and to deal with any reasonable risks that materialise and may result in an unexpected increase in expenditure or a reduction in income. Capital volatility beyond the Trustee's risk appetite must be avoided and unrestricted reserves should be invested with a balanced approach to risk.

Restricted cash reserves, when held, are required to fund specific projects and liabilities. Capital volatility should be avoided and funds should be invested with a conservative approach to risk.

The Charity's funds should be held in cash or near cash investments denominated in sterling. The exception to this would be in circumstances if foreign assets or assets not held in cash were bequeathed to the charity. In such circumstances The Friendly Trust would take professional advice as soon as possible.

The Friendly Trust will usually make use of banks and building societies covered by the UK'S Financial Services Compensation Scheme. The institution should also be incorporated in the UK. The sum of money placed in such institutions (or related group) should not normally exceed the maximum limit for compensation under the Scheme (currently £85,000). The Friendly Trust will seek professional financial advice before investing in any institution not covered in paragraph above. The institution/investment must be regulated by the Financial Services Authority (FSA) or Prudential Regulation Authority (PRA).

Any investment opportunity which could not be described as being placed with a "bank or building society" (as outlined in paragraph above) must be discussed, agreed and noted at a management committee meeting to which all of the trustees have been invited.

Liquidity Requirements

Approximately £100,000 of available reserves constitutes a working balance and should be held where it can be immediately accessed. The balance of funds may be invested for a period up to 3 years however, any investment for a period exceeding 365 days requires the approval of the Board of Trustees.

Management, Reporting and Monitoring

Day to day decisions on placing and withdrawing deposits are to be made by the Director.. The Board will monitor the cash position and performance and report this to the Board at least annually.

Any of the trustees may request information from the Director at any time regarding cash balances, The Friendly Trust's investments or other budgetary information. The Director will normally respond to such information requests within 7 working days.

Approval and Review

This Investment Policy Statement was prepared to provide a framework for the investment of The Friendly Trust's funds. It will be reviewed on an annual basis, or more frequently if requested by any of the trustees. It will also be immediately reviewed should cash reserves exceed £500,000.

Appointment, induction and training of new trustees

There is an on-going need to recruit new trustees to strengthen the governance of The Friendly Trust. New trustees are sought through advertising on volunteer recruitment sites. Potential trustees may also be approached following personal recommendation. New trustees are sent the governing documents and introduced to other trustees and staff members. Formal training for trustees on their legal responsibilities is held from time to time.

Page 4

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Strategic report

Future plans

It will be for the new Director to recommend to the Board of Trustees their recommendation for the future direction and goals for The Friendly Trust at the appropriate time. In the meantime, the Trust will continue to operate and deliver against its existing strategic plan.

Our goals over the next two years are:

Remain focused on providing public benefit;
Deliver outstanding levels of service to service users; and
Ensure the good administration and governance of The Friendly Trust

To meet our goals, we will pursue the following strategies:

Pursue partnership : we will look for and develop opportunities for joint working with other agencies;
- Invest in staff: we will attract, retain and invest in a team of skilled and motivated staff and volunteers, focusing on their professional development and reward;
Develop trustees : we will attract, retain and support the development of a skilled and diverse Board of Trustees;
- Involve service users : we will ensure we seek out and listen to the voices of our service users and continuously look for ways to invol ve them in the work of The Friendly Trust;
Offer free services : we will continue to provide free services to some service users and expand this free service;
- Grow only when prudent : we will grow The Friendly Trust in a wise and prudent manner as suitable opportunities present themselves, bu t never at the risk of compromising our standards of service or our public benefit;
Be visible and open : we will maintain a professional and updated website and ensure current and prospective service users can c ontact staff and get information easily; and
Be financially practical : we will carry on a conversation with our funders each year to make sure we have the reasonable resources we need to deliver the outstanding levels of service we and they expect us to deliver.

Structure, governance and management

Governing document

The Charity is a company, limited by guarantee, registration number 3608297. It is registered with the Charity Commission number 1084265. The charity changed its memorandum and articles in November 2013 to allow itself to become a Trust Corporation.

Organisational structure

The Friendly Trust is governed by a Board of Trustee Directors, all of whom act in a voluntary unpaid capacity, and meet at least every other month to direct the work of The Friendly Trust.

Financial controls

Financial probity is attained by internal monitoring systems and by external audit. Cash handling is recognised as the area most vulnerable to error and fraud and so the systematic checking and monitoring is particularly scrupulous in this area.

Appointment, induction and training of new trustees

Reference and administrative details

Registered Company number 03608297 (England and Wales)

Registered Charity number

1084265

Page 5

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Registered office

Canton House 435-451 Cowbridge Road East Canton Cardiff CF5 1JH

Trustees

Philip Joseph Boshier (Chair) Norbert Flynn Janet Claire Burke David Keith Riman Jonathan Cordy Matthew John Wedlake Susan Lesley Roberts Jason Tucker Elinor Kerr- Smith Owain Phillips

Auditors

Haines Watts Wales LLP, Statutory Auditors 7 Neptune Court Vanguard Way Cardiff CF24 5PJ

Bankers

The Co-operative Bank plc PO Box 101 1 Ballon Street Manchester M60 4EP CAFCASH Limited PO Box 289 West Malling Kent ME19 4TA

Funds held as custodian for others

The Charity manages money on behalf of its services users. This service includes paying expenditure on their behalf, detailed records are kept to ensure that the Charity is able to identify amounts owed to/by each individual. As stated above when service users have substantial funds an Independent Financial Advisor is consulted for recommendations on appropriate investments.

The Public Guardian acknowledged that high returns had been achieved for service users by using this strategy but urged that we continue to exercise caution if investors are elderly in case they do not live long enough to recoup the fee paid to the advisor.

Statement of trustees' responsibilities

The trustees (who are also the directors of The Friendly Trust 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).

Page 6

The Friendly Trust

Report of the Trustees for the Year Ended 31 March 2023

Statement of trustees' responsibilities - continued

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, Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:

.......................................................................... Philip Joseph Boshier - Trustee

Page 7

Report of the Independent Auditors to the Members of The Friendly Trust

Opinion

We have audited the financial statements of The Friendly Trust (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Emphasis of matter - Prior period adjustment

These financial statements include a prior period adjustment. This is following the identifiction of Core services income received in the year ended 31 March 2023 that related to the year ended 31 March 2022. These financial statements now correctly accrue these into the comparative year. Our opinion is not modified in this respect.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Page 8

Report of the Independent Auditors to the Members of The Friendly Trust

Matters on which we are required to report by exception

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

We have nothing 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.

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

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

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

Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the charity.These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies ACT 2006, Charities Act 2011 and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:

Discussing with Trustees and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities
Obtaining an understanding of the key controls put in place by the charity to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally
Assessing the risk of management override through review of cashbook entries
- Discussing with Trustees and management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance
Substantively testing by sample, income and expenditure transactions recorded against individual service users, reconciliations performed by management and the controls over-arching the safe guarding of service users funds.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.

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

Page 9

Report of the Independent Auditors to the Members of The Friendly Trust

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Clive Edwards (Senior Statutory Auditor) for and on behalf of Haines Watts Wales LLP, Statutory Auditors 7 Neptune Court Vanguard Way Cardiff CF24 5PJ Date: .............................................

Page 10

The Friendly Trust

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2023

Unrestricted Restricted funds funds Notes £ £ Income and endowments from Donations and legacies 2 12,041 - Charitable activities 4 Core services 710,639 - Investment income 3 3,010 - Total 725,690 - Expenditure on Charitable activities 5 Core services 670,245 - Net gains/(losses) on investments (13,064) - NET INCOME 42,381 - Reconciliation of funds Total funds brought forward 537,268 - Total funds carried forward 579,649 -	2023 Total funds £ 12,041 710,639 3,010 725,690 670,245 (13,064) 42,381 537,268 579,649	2022 Total funds £ 219,331 687,800 798
		907,929
		577,668
		-
		330,261 207,007
		537,268

The notes form part of these financial statements

Page 11

The Friendly Trust (Registered number: 03608297)

Statement of Financial Position 31 March 2023

Unrestricted Restricted funds funds Notes £ £ Current assets Debtors 11 171,027 - Investments 12 436,809 - Cash at bank and in hand 178,125 - 785,961 - Creditors Amounts falling due within one year 13 (171,312) - Net current assets 614,649 - Total assets less current liabilities 614,649 - Provisions for liabilities 14 (35,000) - NET ASSETS 579,649 - Funds 15 Unrestricted funds Total funds	2023 Total funds £ 171,027 436,809 178,125 785,961 (171,312) 614,649 614,649 (35,000) 579,649 579,649 579,649	2022 Total funds £ 141,216 388,863 206,414 736,493 (164,225) 572,268 572,268 (35,000) 537,268 537,268
		537,268

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. Philip Joseph Boshier - Trustee

The notes form part of these financial statements

Page 12

The Friendly Trust

Statement of Cash Flows for the Year Ended 31 March 2023

Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Investments Interest received Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2023 £ 16,647 16,647 (47,946) 3,010 (44,936) (28,289) 206,414 178,125	2022 £ 233,531 233,531 (177,282) 798 (176,484) 57,047 149,367 206,414

The notes form part of these financial statements

Page 13

The Friendly Trust

Notes to the Statement of Cash Flows for the Year Ended 31 March 2023

1. Reconciliation of net income to net cash flow from operating activities

				2023	2022
				£	£
	Net income for the reporting period (as per the Statement of Financial
	Activities)			42,381	330,261
	Adjustments for:
	Interest received			(3,010)	(798)
	Increase in debtors			(29,811)	(81,651)
	Increase/(decrease) in creditors			7,087	(14,281)
	Net cash provided by operations			16,647	233,531
2.	Analysis of changes in net funds
		At 1.4.22		Cash flow	At 31.3.23
			£	£	£
	Net cash
	Cash at bank and in hand	206,414		(28,289)	178,125
		206,414		(28,289)	178,125
	Liquid resources
	Deposits included in cash		-	-	-
	Current asset investments	388,863		47,946	436,809
		388,863		47,946	436,809
	Total	595,277		19,657	614,934

The notes form part of these financial statements

Page 14

The Friendly Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

1. Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

Service user fees, donations and similar incoming resources are recognised when they are received. Outstanding legacies are regularly reviewed and recognised when the incoming resource can be measured with sufficient reliability. Donations in kind are included as income at a fair value. Donated time provided by volunteers is not included.

Investment income is recognised on a receivable basis.

Grants are included as an incoming resource when the charity is entitled to the resources, it is virtually certain that the incoming resource will be received and the monetary value can be measured with sufficient reliability. Revenue grants are credited to the income and expenditure account in the year to which they relate. Where grants have been received but relate to a future accounting period, that part of the grant received is deferred to the appropriate period.

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.

Taxation

The company is a registered charity and all of its income is primary purpose it is, therefore, exempt from taxation.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Operating leases

Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.

Provisions

Where liabilities exist of uncertain timing and amount, the Charity provides for its best estimate of any eventual costs to be incurred.

Page 15

continued...

The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

1. Accounting policies - continued

Debtors

Debtors are recorded at the value of their recoverable amount.

Investments

Investment balances reflect amounts held on deposit to achieve an improved rate of return in line with the Charities treasury management policy.

Creditors

Creditors are recorded at the value of the identified liability.

2. Donations and legacies

2. Donations and legacies
Legacies, bequests and donations 3. Investment income Deposit account interest 4. Income from charitable activities Activity Core services Cardiff County Council Core services Torfaen County Borough Council Core services Vale of Glamorgan Council Core services Monmouthshire County Council Core services Fees re service users Core services Newport Borough Council Core services Rhondda Cynon Taf Council Core services C3SC	2023 £ 12,041 2023 £ 3,010 2023 £ 331,737 66,280 77,207 2,025 138,320 1,260 93,810 - 710,639	2022 £ 219,331
		2022 £ 798 2022 £ 362,500 63,732 62,563 1,522 118,943 1,188 74,952 2,400
		687,800

Page 16

continued...

The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

5. Charitable activities costs

5.	Charitable activities costs
		Support
	Direct	costs (see
	Costs	note 6)	Totals
	£	£	£
	Core services
	570,813	99,432	670,245
6.	Support costs
		Governance
	Finance	costs	Totals
	£	£	£
	Core services
	94,633	4,799	99,432
	Support costs, included in the above, are as follows:
		2023	2022
		Core	Total
		services	activities
		£	£
	Wages	86,116	120,567
	Social security	8,517	10,099
	Auditors' remuneration	1,800	1,700
	Auditors' remuneration for non audit work	2,999	2,650
		99,432	135,016
7.	Net income/(expenditure)
	Net income/(expenditure) is stated after charging/(crediting):
		2023	2022
		£	£
	Auditors' remuneration	1,800	1,700
	Auditors' remuneration for non audit work	2,999	2,650
8.	Trustees' remuneration and benefits
	There were no trustees' remuneration or other benefits for the year ended 31 March	2023 nor for the	year ended 31
	March 2022.

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The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

8. Trustees' remuneration and benefits - continued

Trustees' expenses

During the year trustees were reimbursed for travel expenses of £95 (2022: £43).

9. Staff costs

10.

Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Charitable activities Support and administration No employees received emoluments in excess of £60,000. Comparatives for the statement of financial activities Unrestricted funds £ Income and endowments from Donations and legacies 219,331 Charitable activities Core services 687,800 Investment income 798 Total 907,929 Expenditure on Charitable activities Core services 577,668 NET INCOME 330,261 Reconciliation of funds Total funds brought forward 207,007 Total funds carried forward 537,268		2023 £ 470,399 50,274 44,604 565,277 2023 14 7 21 Restricted funds £ - - - - - - - -		2022 £ 417,071 36,888 42,983 496,942 2022 14 7 21 Total funds £ 219,331 687,800 798


				907,929
				577,668
				330,261 207,007
				537,268

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The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

2023 £ 163,475 1,122 6,430 171,027 2023 £ 436,809 2023 £ 10,853 154,175 6,284 171,312 2023 £ 35,000	2022 £ 123,664 11,122 6,430 141,216 2022 £ 388,863 2022 £ 9,814 148,561 5,850 164,225 2022 £ 35,000	2022 £ 123,664 11,122 6,430 141,216 2022 £ 388,863 2022 £ 9,814 148,561 5,850 164,225 2022 £ 35,000


35,000		25,000
		10,000
-		-


35,000		35,000

	At 31.3.23 £ 579,649 579,649

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continued...

The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

15. Movement in funds - continued

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

	Incoming	Resources	Gains and	Movement
	resources	expended	losses	in funds
	£	£	£	£
Unrestricted funds
General fund	725,690	(670,245)	(13,064)	42,381
TOTAL FUNDS	725,690	(670,245)	(13,064)	42,381

Comparatives for movement in funds

Unrestricted funds General fund TOTAL FUNDS	Net movement At 1.4.21 in funds £ £ 207,007 330,261 207,007 330,261	At 31.3.22 £ 537,268
		537,268

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

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	907,929	(577,668)	330,261
TOTAL FUNDS	907,929	(577,668)	330,261

Unrestricted funds

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

16. Employee benefit obligations

The charity operates a defined contribution scheme. The pension costs charge for the year represents contributions payable by the charity to the scheme and amounted to £44,604 (2022: £42,983).

There were no outstanding or prepaid contributions at either the beginning or end of the financial year.

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The Friendly Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

17. Related party disclosures

There were no related party transactions for the year ended 31 March 2023.

18. Managed funds

As at 31 March 2023 the Friendly Trust actively managed funds totalling £12,081,306 (2022: £9,793,157) on behalf of its service users.

19. Members' liability

The charity is a private company, incorporated in England and Wales, limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

Page 21

The Friendly Trust

Detailed Statement of Financial Activities for the Year Ended 31 March 2023 Income and endowments Donations and legacies Legacies, bequests and donations Investment income Deposit account interest Charitable activities Cardiff County Council Torfaen County Borough Council Vale of Glamorgan Council Monmouthshire County Council Fees re service users Newport Borough Council Rhondda Cynon Taf Council C3SC Total incoming resources Expenditure Charitable activities Wages Social security Pensions Volunteer expenses Rent, rates and service charges Insurance Equipment costs not capitalised Office costs Travel and subsistence Legal and professional fees Utilities Telephone Recruitment & vetting costs Conference & Training Books & memberships Postage IT services & software Bank charges Printing & Stationary Support costs Finance Wages Carried forward	2023 £ 12,041 3,010 331,737 66,280 77,207 2,025 138,320 1,260 93,810 - 710,639 725,690 384,283 41,757 44,604 66 30,276 17,164 4,468 9,516 6,636 548 3,120 7,737 9,975 96 39 1,852 5,711 93 2,872 570,813 86,116 86,116	2022 £ 219,331 798 362,500 63,732 62,563 1,522 118,943 1,188 74,952 2,400
		687,800
		907,929 296,504 26,789 42,983 - 30,637 14,299 2,288 1,988 4,655 - 2,727 7,757 2,275 1,015 72 1,752 4,750 96 2,065
		442,652 120,567 120,567

This page does not form part of the statutory financial statements

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The Friendly Trust

Detailed Statement of Financial Activities for the Year Ended 31 March 2023

Detailed Statement of Financial Activities for the Year Ended 31 March 2023
Finance Brought forward Social security Governance costs Auditors' remuneration Auditors' remuneration for non audit work Total resources expended Net income before gains and losses Realised recognised gains and losses Realised gains/losses on current asset investments Net income	2023 £ 86,116 8,517 94,633 1,800 2,999 4,799 670,245 55,445 (13,064) 42,381	2022 £ 120,567 10,099
		130,666 1,700 2,650
		4,350
		577,668
		330,261 -
		330,261

This page does not form part of the statutory financial statements

Page 23