REGISTERED COMPANY NUMBER.. 03608297 (England and Wales) REGISTERED CHARITY NUMBER.. 1084265 Report of the Trustees and Audited Flnan¢ial Statements for the Year Ended 31 March 2024 for The Frlendly Trust
The Friendly Trust Contents of the Financial Statements for the Year Ended 31 March 2024 Page Report of thg Trustge$ Report of the Independent Audltors Statement of Financial Activitigs 10 Statement of Financlal Position Statement of Cash Flows 12 Notes to the Statement of Cash Flows 13 Notes to the Financial Statemgnts 14 to 19 Detailed Staterngnt of Financial AGtivities 20 to 21
The Friendly Trust Report of the Trustees for the Year Ended 31 March 2024 Introduction What we do The Friendly Trust helps vulnerable people with their money. We work in partnership with people who have disabilities, or disabling illnesses, their families, and carers lo enable them lo manage their money more effectively and end the distress and isolation caused by poverty, abuse, and debt. The people we support are often al risk of exploitation and abuse, as described by the Financial Conduct Aulhorily's report in 2020 - Financial Lives.. The Experienc8s of Vulnerable Customers which stated 4 drivers of vulnerability.. Health - health conditions or illnesses that affect the ability to carry out day-to-day tasks. Life events - majo¥ life events such as bereavement, job loss or relationship breakdown Resilience - low ability to wilhsland financial or emotional shocks. Capability - low knowle¢Jge of financial mallers or low confidence in mana9ing money (financial capability). Low capability in other relevant areas such as literacy or digital skills. In their 2020 Financial Survey, Ihe FCA found that 46010 of UK adults 124.1 million people) display one or more characteristics that fall under these driver5. They 5ugggsI that sorn8 groups ar8 more likely lo display characlerislics of vulnerability than others, such as thosè over 75, those unemploygd, those who rent and those with no forrnal qualifications. The people we support will often display more than one characlerislic of vulnerability and without the appropriate support. are al risk of.. Financial exclusion. Difficulty in accessing Services. Exploilalion by family members or carers. Discrimination and stigma. Scams. Over-indebledness. Exposure lo mis-selling. Buying inappropriate products or seNices. We believe that vulnefable people.. 1. have the same value and slalus as everyone else. 2. have a right lo make important decisions lor themselves. 3. have a right to support from their families. commvnilies and any other support which will help them achieve their wishes and goals. 4. have a right lo influence and shap8 servic95 and sgrvice delivery. W8 provide accessible informalion and personalised, practical help lo help people become mor8 financially independent, improving the quality and security of their lives. Operatlons and chang• This financial year has been one of considerable change and development, 81ongside weathering suslainabilily challenges (driven by a rapidly inflating cost basel that have been impacting many small and medium charities across the third sector. A highlight of the financial year was the appointment by the Trustees of a new Oireclor via an executive search agency. An executive search agency was engaged by Ihe Trustees lo ensure the charity was able lo appoint a high calibr8 individual in a very compelilive and light labour market lo ensure the continued quality of our seNices to the 500 service users that rely on the Friendly Trust. The new Director has set about driving a programme of change built around clear priorities lo both shore up the suslainabilily of the Trust following the cosl-of-living crisis shock and leadership change. and lo deliver productivity and service enhancements. Progress in these areas is reported againsl al each Trustee meeting. Some of the key changes include". In light of ongoing budget Conslrainls, the Trustees made the difficult decision to offer staff Ihe opporttsnity for voluntary redundaricy lo balance future financial years, budgets. Two staff members accepted this offer and departed the organi5alion during the year. The Trustees 8pproved new Service User management sofmare to boost efficiency and automate processes. The Director identified suitable sothvare providers. who demonslraled their solutions lo the management team. CasparGov by Plainz was choseri lor implernenlalion. Currently. data migralion is underway, with a transition planned for eady 2025. Vvo also achieved Cyber Essential accredilalion in late 2023 to protect our staff and Service Users, data. Page 1
The Friendly Trust Report of the Trustees for the Year Ended 31 March 2024 One of the significant challenges we faced was the routine process of changing the named Deputy on several Court of Protection Depulyship Order5. The organisalion held Orders that named the previous Co-ordinator as ltte Deputy. Following advice from the Court of Protection, we made a block application lo list the named Deputy as the Holder of the Office of Coordinator of the Friendly Trust. In response, the Court direcled the Office ol the Public Guardian IOPGI to report on whether the Friendly Trust remains an appropriate organisalion foi the appoinlmenl of its officeholder and whether the current holder of the office ol Co-ordinator is suitable for depulyship appoinlmenl. This investigation rai58d the issue of Trust Corporation slalus. which had been delayed by the Ministry of Justice's lack of response lo an application made in 2014. To address this, the court scheduled a hearing for the end of OclDber, where the Friendly Tru51 successfully argued for the previous Co-ordinator lo be resigned as Deputy and for new Orders lo be issued with the Holder of the Office of Coordinalor of the Friendly Trust listed as the new Deputy. As a result. all the Court of Protection Cseputy Orders held by the Friendly Trust are now consislenl. The issue of whether trust Cofporation slalus is necessary andlor beneficial lor the Trust will be consid8r8d separately with the TrL¢sI's solicitors. Objectives and activities Objectives and aims Delivering our charitable objoctlvgs The Friendly Trust is led by a Director who is supported by a Board of Tnjslees to deliver the currenl strategic plan Isel out below). The Friendly Trust delivers ils day-to-day business via the following primary servic8S: Work with vulnerable people who need help lo manage their money including debts; Assist vulnerable people lo claim their rights lo social security benef1ts'. Vvork with vulnerable people, older people and carers lo safeguard their future by making a lasting power of attorney.. Provide advice lo families how they can plan for the lulure of their vulnerable fe181ive, Advise families on making wills and setting up trust lunds lo benefit a vulnerable relalivo, Manage Trusts which benefit a vulnerable person., Act as Deputy appointed by the Court ol Protection Lessen or eradicate vulnerability to financial abuse. The regular activities ol the charity are carried out by Trust Officers, who are led and supervised by Team Managers. Th9se manag9r5 a159 hancjle their own complex caseloads, with support from our Adminislralion team. Vvhile the Team Managers and Trust Officers work closely with Service Users, the adminislralive team oversees the management of both the charity's funds and the Service Users, money. This oversighl is conducted under the aulhorily granted by the Court of Proleclion, Ihe Department for Work and Pensions, and Ihe individuals themselves lunder Lasting Power of Allorneyl. Staff lime is valuable and there is big demand for the service. Al the lime of writing 105 people were on the wailing list for a service. Over the course of the year the Friendly Trust worked wiltt 616 Service Users across the following Loc81 Authorities and funding partners. Over the course of 115 existence the Friendly Trust has supported over 3,200 individuals with 91 % slating that their bills are more manageable with our support and guidance. We continue to work with the following organisations. Cardiff Council Monmouthshire Council Newport Council North Somersel Council Rhondda-Cynon-Taff Torfaen Council Vale of Glamorgan Council We are extremely grateful lo our funding partners for their continued support of The Friendly Trust. Page 2
Tha Friendly Trust Report of the Trustees for the Year Ended 31 March 2024 Objectives and activities Public benefit We refer to the guidance contained in the Charity Commission's general guidance on pvblic benefit and in particular. the trustees consider how planned activitie5 will contribute lo 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 lo achieve financial independenc8 and security. This can include providing advice tsr practical help lo budget and manage money and planning for the future by making 3 will Of selling up a trust for a vulnerable relative. Unfunded advice is provided lo any vulnerable person or unpaid carer calling in person or by telephone during 'office duly" limes which are weekdays 10am until 12pm and 2pm until 4pm. Moniloring and feedback exercises are carried out lo evidence funding we r8ceive for specific projects in addition ID the annua5 satisfaction survgy conducted across all projects and core services. The Trust continues lo operate and deliver against its existing slfalegic plan. Our goals over the next two years are.. Remain focused on providing public benefit.. Deliver outstanding levels ol service-lo-service users., Deliver a balanced budget., and Ensure the good adminislralion and governance of The Friendly Trust To meet our goals, we will pursue the following strategies.. Pursug partnershlp.. we will look for and develop opportunities for joint working with other agenci8S', Invest In staff: w8 will allracl, wlain and invest in a team of skilled and molivaled staff and volunteers, focusing on their professional development and reward,, Develop trustees: we will attract, relain and support the developmenl of a skilled and diverse 8oard of Trustees., Involve sorvicg u5ers.' we will ensure we seek out and listen lo the voices of our service users and conlinuou51y look for ways lo involve them in the work ol The Friendly Trust; Offer free servlcè$.' we will continue lo provide fe services lo some service users and expand this free service.. Grow only when prudent.. we will grow The Friendly Trust in a wise and prudent manner as suitable opportunities present Ihemselv8s, bul never al the risk of compromising our standards of service or our public benefit; Be flnancially practlcal.. we will carry on a conversation with our funders each year lo make sure we have the reasonable resources we need lo deliver the outstanding levels of service we and they expect us lo deliver. Devglop a sustalnable fundraising program.. We have engaged Richard Newton Consulting - a Cardiff based firm with experience In fundraising for the 3rd sector lo help us create and deliver a long-lerrn fundraising strategy by building relationships with a number ol Trusts and Foundations lo secure a valuable and consi51enl source of additional income, Ensure we work in an envlronmentally sustainable mod81: We are constantly seeking w8y$ in which to decrease the volume of paperwork managed by the charity. We have switched lo using electronic application processes where available and will further reduce our requirement lor paper bank slalemenl with the implementation of CasparGov. We have introduced 8 cycle lo work scheme for employees and we monitor how our waste is recycled by our waste carrier. Trusteos The board continues lo meet on a bi-monthly basis providing direction and 5UPPOrt for the staff and appfopriale oversight of charity operalions and significant decisions. Strategic report Financial Review The Charity's nel oulgoing resources amounted lo £73.444 12023 nel incoming resources.. £42,381). decreased the available funds from £579.649 10 £506.205. No reslricled income received in the year. which has Page 3
The Frlendly Trust Report of the Trustees for the Year Ended 31 March 2024 Strateglc report Financial review Investment pollcy and objectSves The Friendly Trust is a registered charity which helps vulnerable adulls lo manage their money. This investment policy applies lo the unreslricled reserves and reslricled reserves held by The Friendly Trust. 11 is not applicable lo inveslm8nls made Dn behalf of our service users in the role of Appointee, Deputy. Allorney, 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 lo clarify the responsibilities of the Iruslees and provide additional working guidance in relation to The Friendly Trust's Inveslmenls,. il is not intended to supersede or conlradicl the Trustee Act 2000. Investment Objectlves The Friendly Trust seeks lo produce the best financial return within an acceptable level of risk. Capital preservation is the highest priority in deciding wher8 to place funds. Resgrv•s policy The economic climate facing the Third Saclor over the past faw years has continued lo place pressure on funding streams and the Trustees acknowledge the need lo retain available reserves lo facililale the continuance of at lea51 the current level of service delivery. The Charity provides a range of services which are unfunded and without sufficient reserves. this assistance would be al risk. The Trustees also recognise that should a closure of operations be required due lo aDy external factors. they would want lo do so In such a way that those who rely on Th8 Friendly Trust. both Ihosg who work lor the Charity and Ihose who receiv8 direcl services from it, are not and do nol feel abandoned. The policy of the Charity, which 1$ reviewed al regular inleNals, is to aim towards securing sufficient reserves to fund six months, worth of operational costs in order lo meet these needs. Ai the balanc8 sheet dale, the level of available unrestricled funds amounted to £506,20512023', £579.6491. Page 4
The Friendly Trust Report of the Trustees for the Yèar Ended 31 March 2024 Strategic report Risk The unreslricled cash reseNes of The Friendly Trust are broadly in line with the rninimum deemed necessary lo provide working capital for our operations and lo deal with any reasonable risks Ihal malerialise and may result in an unexpected increase in expenditure or a reduction in income, Capital volalilily beyond the Trustee's risk appelile musl be avoided and unreslricled reserves should be invested with a cautious approach lo risk. Reslricled cash reserves, when held. are required lo fund specific projects and liabilities. Capital volatility should be avoided. and funds should be invested with a conservativè approach to risk. The Charity's funds should be held in cash or near cash inveslmenls denorninaled in sterling. The exception lo this would be in Circumstances if foreign assels or assets not held in cash were bequeathed lo the charity. In such circumstances The Friendly Trust would lake professional advice as soon as possible. The Friendly Trust will usually make use of banks and building societies covered by Ihe UK'S Financial Services Compensation Scheme. The institution should also be incorporated in the UK. The sum of money placed in such inslilulions lor related group) should nol normally exceed the maximum limit for compensation under the Scheme {currenily £85,0001. The Friendly Trust will seek professional fiT)anci31 advic8 before investing in any inslilulion not covered in paragraph above. The inslilulionlinvestmenl musl b8 regulated by the Financial SeNices Authority IFSAI or Prudential Regulation Authority IPRAI. Any investment opportunity which could not be described as being placed with a "bank Of building society" las outlined In para9raph above) must be discussed, agreed and noted al a management committee meeting lo which all the Iruslees have been invlled. Liquldlty Requlrgrnents Approximately £100,000 of available reserves conslilules a working balance and should be held where il can be imrnecjiately acces58d. The balance of funds may be invested for a period up lo 3 years however, any investment for period exceeding 365 days requires the approval of the Board ol Trustees. Management, Reportlng and Monltoring Day lo day decisions on placing and withdrawing deposits are lo be made by the Director. The Direclor will monitor the cash position and performance and report this lo the Board al least annually. Any of the Iruslees may request Information from the Director al any lime regarding cash balances, The Friendly Trust's investments or other budgetary information. The Oirector will normally respond lo such information requests within 7 days. Approval and Revlew This Investment Policy Sialemenl was prepared lo provide a framework for the investment of The Friendly Trust's funds. 11 will be reviewed on an annual basis, of more frequenlly if requested by any of the Iruslees. 11 will also be immedialely r8viewed should cash reserves exceed £500,000. Structure, governance and management Structure, Governance and Management Governlng Document The Charity is a company, limited by guarantee, registration number 03608297. 11 is registered with the Charity Commission number 1084265. The charity changed ils memorandum and articles in November 2013 10 allow itself lo become a Trust Corporation. Organisational structure The Friendly Trust is governed by a Bciard of Trustee Directors. all of whom act in a voluntary unpaid capacity. and me81 al least every other month lo direct the work ol The Friendly Trust. Flnanclal contro15 Financial probity Is allained by internal monitoring system5 and by external audit. Cash handling is recognised as the area most vulnerable lo error and fraud and so the syslemalic checking and monitoring is particularly scrupulous in this area. Appointment, induction and tralnlng of new trustees Thère is an on-going need lo recfuII new trustees 10 51renglhen the governance ol The Friendly Trust. New trustees are sought through advertising on volunteer recruilmenl siles. Polenlial trustees may also be approached following personal recommendation. New trustees are sent the govefning documents and inlroduced to other trustees and staff members. Formal training for Iruslees on their legal responsibilities is held from lime to lime. Vve have seen several resignations over the past 18 months. and we are In the process of Trustee recruitment lo ensure we have the best team ol trustees overseeing the governance and lulure direction of the charity. good governance and Trust outcomes. Page 5
The Frlendly Trust Report of the Trustees for the Year Ended 31 March 2024 Reference and administrative details Registered Company number 03608297 (England and Wales) Reglstered Charity number 1084265 Regi5t•red office Canton House 435451 Cowbridge Road Easl Canton Cardiff CF5 1JH Trustees Philip Joseph Boshier (Chairl Norbert Flynn Iresigned 21. 10.241 Janel Claire Burke (resigned 10.9.241 David Keith Riman (resigned 31.8.241 Jonathan Cordy (resigned 12.9.231 Matthew John Wedlake Susan Lesley Roberts Jason Tucker Elinor Kerr- Smith Iresigned 14.5.241 Owain Phillips Sarah Burke lappoinled 12.3.241 Auditors Haines Walls Wales LLP. Slalulory Auditors 7 Neptune Court Vanguard Way Cardiff CF24 5PJ Bankers The Co.op8ralive Bank plc PO Box 101 1 Ballon Street Manchester M60 4EP CAFCASH Limited PO Box 289 Wesl Malling Kent ME194TA Funds held as custodian for others The Charity manages money on behalf of ils services users. This service includes paying expenditure on their behalf, detailed records are kept ensuring that the Charity can idenlify amounts owed lolby each individual. As slated above when service users have substantial funds an Independent Financial Advisor Is consulted for recommendations on appropriate investments. Staternent of trustees. responsibilities The trustees (who are also the directors of The Friendly Trust for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial slalernents in accordarsce wlh applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel- Page 6
The Friendly Trust Report of the Trusteès for the Year Ended 31 March 2024 Statement of trustges. responsibilities continued Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the charitable company and of the incoming resource5 and application of resources, including the income and expenditure, of the charitable company lor that period. In preparing those financial statements, the trustees are required lo select Suitable accounting policies and then apply them consistently., observe the methods and principles In the Charity SORP.. make judgements and eslimales that are reasonable and prudent.. prepare the financial slalemenls on the going concern b8sis unless il is inappropriate lo presume that the charitable company will continue in business. The Iruslees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any lime the financial position of the charitable company ancs lo enable them lo ensure that the financial sl8lements 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 faf as the Iruslees are awarè.. Ih8re is no relevant audit information of which the charitable company's auditors are unaware., and the trustees have taken all steps that they ought lo have taken lo make themselves aware of any relevant audit information and lo establish that the auditors are aware of Ihal information. Auditors The auditors. Haines Watts Wales LLP, Slalulory Auditors. will be proposed for re-appoinlmenl al the forthcoming Annual General Meeting. Report ol the trustees, incorporaling 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 Ilhe 'charitable company'l for the year 8nded 31 March 2024 which comprise the Slalement of Financial Activities, the Slalemenl of Financial Position. the Slalemenl of Cash Flows and notes lo the financial slatemenls, 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 Praclicel. In our opinion the financial slalements.. give a true and fair view of the slate of the charitable company's affairs as al 31 March 2024 and of its incoming resources and application of resources. including Ils Income and expenditure, for thè year then ended., have been properly prepared in 8ccordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. asi$ for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial slalemenls section of our report. We are Independent ol the charitable company in accordance with the ethical requirements that are relevant lo our audit ol the financial slalements 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 lo provide a basis for our opinion. Conclusions relating to going ¢on¢orn In auditing the financial slalements, we have concluded that the Iruslees, use of the going concern basis of accounting in the preparation of the financial slalements is appropriale. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on Ihe charitable company's ability lo continue as a going concern for a period of al least e1ve months from when the financial slalemenls are aulhorised for issue. Our responsib111lies and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. Other Informatlon The Iruslees are responsible lor the other information. The other information comprises the information included in the Annual Report, other than the financial slalemenls and our Report of the Independent Auditors Ihereon. Our opinion on the financial slalemenls does not cover the other information and, except lo the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial slalem8nls, our r85ponsibilily 15 to read the other Information and, in doing so, consider whether the other information is rnalerially inconsislenl with the financial slalemenls or our knowledge obtained in the audit or otherwise appears lo be m81erially miss181ed. If we identify suctt malerial inconsistencies or apparent material misslalements, we are required to determine whether this gives rise lo a material misslalemenl in the linancial slalemenls themselves. If. based on the work we have performed, we conclude Ihal there is a material misslalemonl of this olher information, we ar8 requirgd to report that lacl. W8 have nothin9 to report In this regard. Opinions on other matters prescribgd by the Companlès Act 2006 In our opinion. based on the work undertaken in the course ol the audit.. the information given in the Report ol the Trustees for the financial year for which the financial slalomenls are prepared is consislenl wilh Ihe financial statemeIS.. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by èxceptlon In the light of the knowledge and understanding of the charitable Company and ils environment obtained in the course of the audit, we have not identified m31ofial misslalemenls in the Report of the Trustees. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us lo report to you if. in our opinion.. adequate accounting records have not been kept or returns adequate for OUT audit have not been received from branches nol visited by us.. or the financial slalemenls are not in agreement with the accounting records and relums., or certain disclosures of trustees, remLJneration specified by law are not made.. or we have not received all the Information and explanations we require for our audit. Page 8
Report of the Independent Auditors to the Members of The Friendly Trust Responslbilities of trustee$ As explained more fully in the Statement of Trustees. Responsibilities, the trustèes Iwho are also the direclors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlerrial control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misslalement, whether due lo fraud or error. In preparing the financial slalemenls, the Iruslees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing. as applicable, matters related lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable company or lo cease operations, or have no realistic alternative bul lo do $0. Our responsibilities for the audit of the fSnancial statements Our objectives are lo obtain reasonable assurance about whether the financial slalemenls as a whole are free from material misslalemenl, whether due lo fraud or error. and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK} will always detect a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. The exlenl lo which our pro¢edufes are capable of detecting irr8gL¢larilies, ineluding fraud is delailgd below.. Our planning procedur8s identify the legal and regulatory frameworks applicable to the operations and financial slèlemenls of the charily.These are reviewed internally with the audit team including relevant industry experience and expectations as well as exlefnally with the Client management. The key laws and regulations we considered in this context were the UK Companies Acr 2006. Charities Act 2011 and relevant lax legislation. Once identified. we assess the risks of material misslalemenls in relation lo the laws and iegulalions, irregularit18S, including fraud and adjust our lesling accordingly. Our audit procedures include.. Discussing wlh Trustees and management which areas of the business they believe lo be mor8 susceptible to fraud, and whether they have any knOedge or suspicion of fraudulent activities Obtaining an understanding of the key conlrols pul in plac8 by the charity lo addr8ss risks identified, assessing the effe¢livgness of those and discussing how these are maintained and monilor8d internally Assessing the risk of management override through review of cashbook entries Discussing with Trustees and managemenl the legal and regulatory obligations of the business and whether they have any knowledge or suspicion ol non compliance Substantively lesling 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 IUKI there remains an unavDidable risk that mal8rial misslalemenls in the financial slalemenls may not be detected owing lo inher8nl limitations ol th8 audit. and that by their veTy nature, any such instances of fraud or irregularities likely involve collusion, forgery. intentional misrepresenlalion, or the overridg of internal controls. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibililies. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the ch8rilable 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 ¢ompany'5 mernber5 Ihose mallers we are required lo slate lo them in an auditors, report and for no other purpose. To the fullest exlenl permilled by law, we do not acc8pI or assume respon5ibilily lo anyone other than the charitable company and the charilab ny's mernbers as a body, for our audit work, for this report, or for the opinions we have formed. Clive Edwards (Senior Slgtutory Audilorl for and on behalf of Haines Watts Wales LLP, Slalulory Auditors 7 Neptne Court Vanguard Way Cardiff CF24 5PJ Dalo-. Page 9
The Friendly Trust Statement of Financial Activities (Incorporating an Incorne and Expenditurè Account) for the Year Ended 31 March 2024 2024 Total funds 2023 Total funds Unrestrlcted funds Restricted funds Note$ Income and endowments from Donations and legacies 4,246 4,246 12.041 Charitable activltles Core services 774,460 774,460 710,639 Investment income 7,407 7,407 3,010 Total 786,113 786,113 725,690 Expendlture on Charitable activltles Core services 877,228 877,228 670.245 Net gainslllosse51 on investments 17,671 17,671 113,0641 NET INCOMEIIEXPENDITUREI 173,4441 173,4441 42,381 Reconciliation of funds Total funds brought forward 579,649 579,649 537,268 Total funds carrled forward 506,205 506,205 579.649 The notes form part of these financial statements Page 10
The Friendly Trust IRegister#d number: 036082971 Staternent of Financlal Position 31 March 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Notes Current assets Debtors Investments Cash al bank and in hand 166,395 363.931 104,512 166,395 363.931 104,512 171,027 436,809 178.12S 12 634.838 634,838 785,961 Creditors Amounts falling due within one year 13 1108.6331 1108,6331 1171,3121 Net current asset$ 526.205 526,205 614.649 Total asset5 less current liabilities 526,205 526,20S 614,649 Provlslons for Ilabllitles 14 120,0001 120,0001 135,0001 NET ASSETS 506,205 506,205 579,649 Funds Unreslricled funds 15 506,205 579,649 Total funds 506,205 579,649 i¥ slalemenls were approved by the Board of Trustees and aulhorised for issue and were signed on ils behalf by.. on Philip Joseph Boshier - Trustee The notes form part of these financial sta19menls Page 11
The Frièndly Trust Statement of Cash Flows for the Year Ended 31 March 2024 2024 2023 Notes Cash flows from opgrating activities Cash generated from operations Movement In provision 1156,5691 115.0001 16,647 Nel cash (used inllprovided by operating activities 1171,S691 16,647 Cash flows from Investlng activiti•$ Investments Interest received 90,549 7,407 {47.9461 3.010 Nel cash provided byllused inl investing activities 97,956 144,9361 Change in cash and cash equlvalents In the reporting perlod Cash and cash equivalents at the beginning of the reporting period 173,6131 128,2891 178,125 206,414 Cash and ¢a$h equivalents at the end of the reporting period 104,512 178,125 The notes form part of these financial statements Page 12
The Friendly Trust Notes to the Statement of Cash Flows for the Year Ended 31 March 2024 Reconciliation of net lexpenditurelllncome to net cash flow from operating actlvltie$ 2024 2023 Net lexpenditure}lincome for the reporting perlod la$ per the Statement of Financial Activities) Adjustments for: Losses on investments Interest received Decreasellincreasel in debtors {Decreasellincrease in cr8dilor5 173,444) 42,381 117,6711 17,4071 4,632 162,6791 13.0101 129,8111 7,087 Net cash {used in)Iprovlded by operations 1156.5691 16,647 Analysis of changes In net fund$ At 1.4.23 Ca$h flow At 31.3.24 Net cash Cash at bank and in hand 178.125 173,6131 104,512 178,125 173.6131 104.512 Llquld resources Deposits included in cash Current asset investments 436,809 172,8781 363,931 436.809 172,8781 363,931 Total 614,934 1146.4911 468,443 The notes form part of these financial statements Page 13
The Friendly Trust Note5 to the Financial Statements for the Year Ended 31 March 2024 Aeeounting policie$ Basls of preparing the financial statements The financial slalemenls of the charitable company, which is a public benefit èntity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 'Accounling and Reporting by Charities.. Sialemenl ol Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Rèpublic of Ireland IFRS 1021 leff@cliv8 1 January 20191,, 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 fee5, donation5 and similar incoming resources are recognised when they are received. Oulslanding legacies are regularly reviewed and recognised when the incoming resource can be measured with sufficient reliability. Donations in kind are included as income al a fair valu8. Donated lime 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 enlilled to the resources, il is virtually certain that the incoming resource wi15 be received and the monetary value can be measured with sufficient reliability. RevenLJe grants are credited lo the income and expenditure account in the year lo which they relate. Whero grants have been received bul relate lo 8 future accounting period, that part of the grant received is deferred lo the appropriate period. Expendlture Liabilities are recognised as 500n as there is a legal or conslruclive obligation commilling the charity lo the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate 811 costs related lo the category. Charitable expenditure comprises those c051s incurred by the charity in the delivery of ils activities and services for 115 beneficiari8s. It includes both costs that can be allocated directly lo svch aclivllies and those cos15 of a indirect nature necessary lo support them. Governance costs Governance costs include costs ol the preparation and examination of the slalulory accounts. th8 costs of Iruslee meetings and the cost of 8ny legal advice lo Iruslees on governance or conslilulional rnallers. Taxatlon The company is a registered charity and all of ils income $ primary purpose il is, therefore, exempl from laxalion. Fund accountlng Unrestricted funds can be used in a¢¢ordan¢e with the charitable objectives al the discrolion of the Irust8es. Restricted funds can only be used lor particular reslricled purposes within the objects of the charity. Reslriclions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanalion of the nature and purpose of each fund is included in the notes lo the financial statements. Pension costs and other post-retirement benefils The charitablè company operates a defined contribution pension scheme. Contributions payable lo the charitable company's pension scherne are charged lo the Slalemenl of Financial Activities in the period lo which they relate. Operatlng 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 liming and amount. the Charity provide5 for its best estimate of any eventual costs lo be Incurred. Debtors Debtors are recorded al the value of their recoverable amount. Page 14 continued...
The Friendly Trust Notes to thg Financlal Statements continued for the Year Ended 31 March 2024 Accounting policies - contlnued Investments Investment balances reflect amounts held on dep0511 to achieve an improved r3te of return in line with the Charities treasury management policy. Creditor5 Creditors are recorded 81 the value of the idenlifled liability. Donatlon5 and legacies 2024 2023 Legacies, bequests and donations 4,246 12,041 Investmant Income 2024 2023 Deposit account interest 7,407 3,010 Income from ¢harltable actlvltles 2024 2023 A¢tlvity Core services Cardlff County Council 360,636 331.737 Core servic8$ Torfaen County Borough Council 66.280 66.280 Cor8 services Vale of Glamorgan Council 88,795 77,207 Cor8 services Monmoulhshire County Council 2,880 2,D25 Core services North Somersel Council 6,917 Core services Fees re service users 146,952 138,320 Core services Newport Borough Council 1,440 1,260 Core services Rhondda Cynon Taf Council 100,560 93,810 774,460 710,639 Page 15 continued...
The Friendly Trust Notes to the Financial Statements - continued for the Year Ended 31 Mar¢h 2024 Charitable activities costs Support Costs Iseg note 61 Direct Costs Totals Core services 755,904 121.324 877,228 Support ¢osts Governance costs Finance Other Totals Core setvices 130,676 115,0001 5,648 121,324 The other income relates to a reduction in th& dilapidation provision as detailed in note 14. Support costs, included in the above, are as follows.. 2024 Core services 2023 Total activities Wages Social security Repairs and renewals Auditors, remunefalion Auditors, r8muneralion for non audit work 117,735 12,941 115,0001 2,119 3.529 86,116 8.517 1,800 2,999 121,324 99,432 Net incom•l{expenditurg1 Nel incornellexpendilurel is slated after chargingllcredilingl.. 2024 2023 Auditors, remuneration Auditors, remuneration for non audit work 2,119 3,529 1,800 2,999 Trustees, remuneration and beneflts There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.. Trustees. expenses During Ihe year Iruslees were reimbursed for travel expenses of £nil12023'. £951. Page 16 continued...
The Friendly Trust Notgs to the Financial Statements continued for the Year Ended 31 March 2024 Staff costs 2024 2023 Wages and salaries Social security costs Other pension costs 651,421 68,618 53,542 470,399 50.274 44,604 773,581 565,277 The average monthly number of employees during the year was as follows.. 2024 20 2023 14 Charitable activities Support and administration 25 21 No ernployoe5 received emoluments in exc@ss of £60,000. 10. Comparatlves for tho $tatement of flnanclal actlvlties Unrestricted funds Re$tricted fund$ Total funds Incorne and endowments from Donations and legacies 12.041 12,041 Charitable actlvltles Core services 710,639 710.639 Investment income 3,010 3,010 Total 725,690 725,690 Expendlture on Charitable actlvltles Core services 670,245 670,245 Nel g8insl{lossesl on investments 113,0641 113,0641 NET INCOME 42,381 42,381 Reconciliation of funds Total funds brought fotward 537,268 537,268 Total funds carried forward 579,649 579,649 Page 17 continued...
The Friendly Trust Notes to the Financial Statements - Continued for the Year Ended 31 March 2024 11. Debtors.. amounts falling due within one year 2024 2023 Grant debtors Other debtors Prepayments and accrued income 158,457 1,122 6,816 163,475 1,122 6,430 166.395 171.027 12. Current asset investments 2024 2023 Cash held on deposit 363,931 436,809 13. Creditors.. amounts faSllng due within one year 2024 2023 Social securlly and other taxes Amounts owed lo seNice users Accruals and deferred incomè 16.387 87.266 4.980 10.853 154,175 6,284 108,633 171,312 14. Provlslons for Ilabllltles 2024 2023 Provisions 20,000 35.000 Balance brought fOard Amounts provided in the year Amounts released in the yea 35,000 25,000 10,000 115,0001 Balance carried lorward 20,000 35.000 The dilapidation provision has been reduced by £15,000. Thi5 covers the Trust's legal commitment should they decide lo leave their cvrrenl premises. 15. Movement in fund$ Net movement In funds At 31.3.24 At 1.4.23 Unrestrlcted funds General fund 579,649 173,4441 506,205 TOTAL FUNDS 579,649 173,4441 506.205 Net movemenl in funds, included in the above are as follows.. Incoming resources Resource$ expended Gains and losses Movement in funds Unrestricted funds General fund 786,113 {877,2281 17,671 173.4441 TOTAL FUNDS 786,113 1877,2281 17,671 {73,4441 Pa9e 18 continued...
The Friendly Trust Note5 to the Financial Statements continued for the Year Ended 31 March 2024 15. Movement in funds- continued Comparatives for movement in funds Net movement in funds At 31.3.23 At 1.4.22 Unrestrlcted fund5 General fund 537,268 42,381 579,649 TOTAL FUNDS 537,268 42,381 579,649 Comparative nel movement in funds, included in the above are as follows: Incomlng resources Rosour¢8s expended Gains and losses Movement in funds Unrestrlcled funds General fund 725,690 1670,2451 113,0641 42,381 TOTAL FUNDS 725.690 1670,2451 113,0641 42,381 Unrestrlcted funds Unreslricled income funds ar8 general funds that arè available for use al the Iru$lg85' discretion in furth8ranc8 of the obiecliv05 of the charity. 16. Employee beneflt obllgations The charity operates a defined ¢onlribulion scheme. The pension costs charge lor the year represents contributions payable by the charity lo the scheme and amounted lo £53,54212023'. £44,604). There were no oulslanding or prepaid contributions al eilhei the beginrnlng or end of the financial year. Rèlatèd party disclosures 17. There were no related party transactions for the year ended 31 March 2024. 18. Managed funds As al 31 March 2024 the Friendly Tnjsl aolively managed funds lolalling £13,841,36912023'. £12,081,306) on behalf of ils service users. 19. Members. liablllty The charity is a private company. incorporated in England and Wales. limited by guarantee and consequently does not have Share capital. Each of the members is liable lo contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. Page 19
The Friendly Trust Detailed Statement of Financial Activities for the Year Ended 31 March 2024 2024 2023 Income and endowments Donations and legacies Legacies, bequests and donations 4,246 12,041 Investment Income Deposit account interest 7,407 3,010 Charltablg activiti¢5 Cardiff County Council Torfaen County Borough Council Vale of G18morgan Council Monmouihshire County Council North Somersel Council Fees re service user5 Newport Borough Council Rhondda Cynon Taf Council 360.636 66,280 88,795 2,880 6,917 146,952 1,440 100,560 331.737 66,280 77.207 2,025 138.320 1,260 93.810 774,460 710,639 Total In¢omlng rfrsour¢e$ 786,113 725,690 Expenditur0 Charltable actlvltles Vvages Social security Pen5i0ns Volunteer expenses Rent, rates and service charges Insurance Equipment costs not capilalised Office costs Travel and subsistence Books. publications and training Legal and profession81 lees 533,686 55,677 53,542 1,649 31,183 23,588 8,557 2,628 384,283 41,757 44.604 66 30,276 17.164 4,468 9.516 6.636 174 2.588 4.117 8,624 16.831 1,548 548 3,120 7,737 9.975 96 39 1,852 5,711 93 Telephone Recruilmenl & velling costs Conference & Training Books & memberships Postag8 IT seNices & softwafe Bank charges Legal fees Printing & Stationary 1,966 3,893 98 48 5.701 2,872 755,904 570.813 Support costs Flnance Wages Social secuTIIy 117,735 12,941 86,118 8,517 130,676 94.633 Other Repairs and renewals (15,000} This page does not form part ol the statutory financial slalernents Page 20
The Friendly Trust Detailed Statement of Finaneial Activities for the Year Ended 31 March 2024 2024 2023 Other Governance costs Auditors, remuneration Auditors, remuneration for non audit work 2,119 3,529 1,800 2,999 5,648 4,799 Totsl resotjrces expended 877,228 670,245 N9t (expenditurelllncome before gains and 10$5es 191,1151 55,445 Reallsed recognlsed gains and losses Realised gainsllosses on current asset investments 17,671 113,0641 Net lexpendlturellincorne 173,4441 42.381 This page does not form part of the slalutory financial statements Page 21