**Charity registration number 1087511**
**Company registration number 04241324 (England and Wales)**
## **WELCOME**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **WELCOME**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr Adam Darkes|
|---|---|
||Mr John Elsegood|
||Mr Mark Lewis|
||Dr L Williams|
||Mr Cairo Nickolls|
|**Charity number**|1087511|
|**Company number**|04241324|
|**Registered office**|2 Highlands Court|
||Cranmore Avenue|
||Shirley|
||Solihull|
||B90 4LE|
|**Auditor**|BK Plus Audit Limited|
|**CEO**|Sally Edwards|
## **WELCOME**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 26|
## **WELCOME**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The Trustees, who are also Directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of 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).
Welcome is a charitable company limited by guarantee, incorporated on 26 June 2001 and registered as a charity on 13 July 2001. The company was established under a constitution, the governing document, which underlines the company objectives, membership, activities, meetings, and how the constitution may be changed. In the event of the company being wound up members are required to contribute an amount not exceeding £10 each.
## **Objectives and activities**
The charity's objectives are:
a) to provide open access and a single point of contact to a range of drug and alcohol services in Solihull for those individuals whose lives are adversely affected by substance misuse. These services include not only those who use substances, but also their friends and family (who are often also indirectly affected);
b) to work in partnership to ensure a seamless service is provided for those accessing treatment pathways in the borough of Solihull;
c) to enable individuals to change their lives in a positive way through the provision of support, advice, counselling and care co-ordination services.
## **Significant activities**
The charity's stakeholders have continued to benefit from Welcome’s provision of services as a member of the SIAS (Solihull Integrated Addiction Services ) Partnership.
Welcome employs the Single Point of Engagement (SPOE) team, which plays a critical role in welcoming and engaging clients into the service, carrying out triage assessments before allocating clients to their Practitioner. The charity also employs a small team of Adult Treatment Practitioners, one of whom has Additional Responsibility across the SIAS Partnership for leading on Harm Reduction and Needle Exchange Services.
Welcome charity is the SIAS Partnership lead in the provision of young persons' services, including early intervention and prevention, treatment, and support for children affected by a family member's substance misuse (known as Hidden Harm). We employ two YP treatment Practitioners and two Hidden Harm Practitioners as well as a Hidden Harm Counsellor.
Welcome also continues to act as Marketing Lead on behalf of the SIAS Partnership, adding content to its website and social media platforms, planning campaigns, networking and delivering awareness sessions in the community. This work is crucial in ensuring everyone in Solihull who might benefit from the service is aware of it and that the service is able to fully meet drug & alcohol treatment and recovery support needs in the Borough.
Welcome’s charity shop in Lea Village closed in December 2022. The shop in Shard End closed in May 2022. Sadly, these enterprises had become unsustainable, so at the financial year end Welcome charity no longer had any shops.
## **Public Benefit**
The Trustees are aware of the obligations of the charity, which are set out in the Guidance issued by The Charities Commission under the Companies Act 2006. They are confident that the work of the charity in pursuit of its objects is delivering Public Benefit. The Trustees will comply with the future reporting requirements in this regard.
- 1 -
## **WELCOME**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Welcome Change CIC**
Welcome Change CIC, a subsidiary undertaking of Welcome charity, has continued to provide opportunities for people who have received treatment and support through SIAS, as well as others with mental health issues or disadvantaged in society, to volunteer, build skills and confidence and make positive contributions in the community. The CIC's current enterprises include a Community Centre, a Community Garden and two Community Hubs. Aiming to 'Encourage Enterprise and Support Communities', our work through Welcome Change CIC continues to support communities across East Birmingham including Shard End, Kitts Green/Lea Village, Tile Cross and Glebe Farm.
The Board is pleased to note that the steps taken to secure the financial position of the charity were effective, meaning there was a small operating surplus on unrestricted activities of £642, after taking into account expenditure on restricted activities the charity achieved a small deficit of £4,340. Welcome Change CIC achieved a small surplus for the year.
## **Position at the end of 2023**
Our staff have continued to deliver effective drug and alcohol treatment and recovery services, meeting their contractual obligations and go ‘above and beyond’ in terms of their willingness to do whatever it takes to ensure that their clients are well served.
Additional funding, made possible by the Government’s 10 year Harm to Hope Strategy adopted as a result of Dame Carol Black’s reports, has helped to secure the charity’s position and the Board is anticipating a positive position at the end of the current financial year.
## **Volunteers**
Welcome makes extensive use of volunteers where appropriate and is extremely grateful for the contribution they make to the work of the charity.
## **Achievements and performance Financial review**
## **Financial position**
The charity generated a net deficit of £4,340 (2022: deficit £106,555) for the year ended 31 March 2023. The results for the year are shown on page 9. The charity has total funds of £415,607 (2022:£419,947) at the year end. The Financial position at the year end is shown on page 10.
## **Principal funding sources**
The principal funding source during the year ended 31 March 2023 continued to be from our programme delivery as a SIAS Partner which ensures our charitable activities are met.
## **Reserves policy**
Welcome is committed to maintaining a level of reserves that is prudent to meet ongoing liabilities, sufficient to ensure that all service delivery commitments can be met and to protect the long term future of its operations. The policy seeks to balance these priorities by holding a level of reserves sufficient to:
- ensure the availability of sufficient working funds in hand to ensure that spending commitments can be met and to provide a breathing space in case of unexpected loss of income;
- provide sufficient funds for an orderly wind down in the event of a need to cease our activities.
The charity has total funds of £415,607 (2022: £419,947) at the year end, of which £14,725 is restricted (2022: £19,707).
- 2 -
## **WELCOME**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Plans for future periods**
The Board is confident that Welcome remains a strong organisation, with good reserves and resilience derived from its skilled and loyal staff team.
The Board acknowledges and thanks the team on the ground for their continued hard work, flexibility and enthusiasm for supporting people in need.
Welcome is proud to be an essential part of the SIAS partnership, helping adults and children in Solihull affected by substance misuse on the road to recovery. In the year ahead we will be looking to further strengthen and grow the charity.
The Board of Trustees continues to support the charity giving up their essential free time to ensure its sustainability going forward. The Board will continue to provide commitment and guidance, helping to ensure that Welcome is a strong organisation that is able to take difficult decisions and steer its way through any challenges that arise.
## **Structure, governance and management**
## **Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Adam Darkes
Mr John Elsegood Mr Mark Lewis Dr L Williams Mr Cairo Nickolls
## **Recruitment and appointment of new trustees**
Under the governing document members of the Board are elected to serve for three years after which they must be re-elected at the next Annual General Meeting.
We regularly review the skills of our current Board to ensure the charity has the appropriate level of skill and expertise required to ensure it is effectively directed. If any skill gaps are identified we seek to recruit new Trustees from the communities we serve, with the necessary skills to join the board.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
## **Organisation structure**
Welcome has a Board of Trustees which meets six weekly. Day-to-day responsibility rests with the CEO who is responsible for ensuring that the charity delivers the services specified and that service level agreements are achieved. The CEO along with the Service Manager and Senior Practitioner have responsibility for the operational management of the charity, staff supervision and ensuring the staff continue to develop their skills and working practices in line with good practice.
## **Induction and training of new trustees**
Any potential new Trustees are invited to visit the charity and its trading arm and experience its full range of activities in operation. Additionally, Trustees are kept abreast of ongoing work through a short presentation at each Board meeting by a member of the Welcome team.
Members of our existing Board and any new Trustees undertake governance training and are involved in an annual Away Day to facilitate discussions surrounding strategic direction for the charity and CIC.
- 3 -
## **WELCOME**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Key management remuneration**
The remuneration paid to the Charity's employees is reviewed annually. The pay is benchmarked against pay levels for other roles with similar responsibilities elsewhere within the sector.
## **National Drug Strategy**
Welcome is guided by both local and national drugs and alcohol policies. The Government has a published Drugs Strategy and an Alcohol Strategy, but the lead responsibility for commissioning drug and alcohol services rests with local authorities.
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Throughout the year, effective control over expenditure has been maintained so that our cash balance at the year end remains healthy. As part of our charity's overall risk management, possible dangers to assets and future cash flows have been assessed and deemed to be under satisfactory control.
## **Statement of trustees' responsibilities**
The trustees, who are also the directors of Welcome for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
The auditors, BK Plus Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
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## **WELCOME**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
Mr Adam Darkes
**Trustee**
16 November 2023
- 5 -
## **WELCOME**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCOME**
## **Opinion**
We have audited the financial statements of Welcome (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- 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 _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity 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 charity’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.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
- the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
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## **WELCOME**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF WELCOME**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- 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; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 charity’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.
## **Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
- Performing audit work over the risk of understatement of income including substantive testing and obtaining corroborated explanations from Management.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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## **WELCOME**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF WELCOME**
## **Use of our report**
This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Paul Mannion FCCA, FCA (Senior Statutory Auditor) for and on behalf of BK Plus Audit Limited**
16 November 2023
**Chartered Certified Accountants Statutory Auditor**
- 8 -
## **WELCOME**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income from:**
Donations and
legacies
**3**
150
-
Charitable activities
**4**
541,215
36,518
Other trading
activities
**5**
97,079
-
Investments
**6**
1
-
**Total income**
638,445
36,518
**Expenditure on:**
Raising funds
**7**
113,353
-
Charitable activities
**8**
524,450
41,500
**Total expenditure**
637,803
41,500
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
642
(4,982)
Fund balances at 1 April
2022
400,240
19,707
**Fund balances at 31**
**March 2023**
400,882
14,725|**Total**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**2023**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
150
43
-
43
577,733
460,735
50,728
511,463
97,079
122,299
-
122,299
1
-
-
-
674,963
583,077
50,728
633,805
113,353
168,862
-
168,862
565,950
534,752
36,746
571,498
679,303
703,614
36,746
740,360
(4,340)
(120,537)
13,982
(106,555)
419,947
520,777
5,725
526,502
415,607
400,240
19,707
419,947|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **WELCOME**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**14**
**Current assets**
Debtors
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**19**
Unrestricted funds|**2023**
**£**
25,635
456,334
481,969
(84,733)|**£**
18,371
397,236
415,607
14,725
400,882
415,607|**2022**
**£**
9,868
432,123
441,991
(56,728)|**£**
34,684
385,263|
|---|---|---|---|---|
|||||419,947|
|||||19,707
400,240|
|||||419,947|
The financial statements were approved by the Trustees on 16 November 2023
Mr Mark Lewis **Trustee**
## **Company registration number 04241324**
- 10 -
## **WELCOME**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**24**
**Investing activities**
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Investment income received
**Net cash generated from/(used in)**
**investing activities**
**Financing activities**
Subsidiary Loan
**Net cash (used in)/generated from**
**financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
-
1,000
1
(12,757)|**£**
35,967
1,001
(12,757)
24,211
432,123
456,334|**2022**
**£**
(9,360)
-
76,460|**£**
(80,001)
(9,360)
76,460
(12,901)
445,024
432,123|
|---|---|---|---|---|
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## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Charity information**
Welcome is a private company limited by guarantee incorporated in England and Wales. The registered office is 2 Highlands Court, Cranmore Avenue, Shirley, Solihull, B90 4LE.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **Preparation of consolidated financial statements**
The financial statements contain information about Welcome as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Retail income including income from clothing and other items donated for resale through the charity shops are included in income from other trading activities when the sale takes place.
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## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements Straight line over the life of the lease Fixtures and fittings 15% straight line Furniture and Computer equipment 20% straight line Motor vehicles 25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.13 Grants**
Grants are credited to deferred income. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the asset. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 14 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3 Donations and legacies**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2023**|**2022**|
||**£**|**£**|
|Donations and gifts|150|43|
- 15 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **4 Charitable activities**
|Charitable income
**Analysis by fund**
Unrestricted funds
Restricted funds|**SIAS BBC Children**
**in Need**
**2023**
**2023**
**£**
**£**
541,215
9,950
541,215
-
-
9,950
541,215
9,950|**Aquarius**
**Grant**
**Angling Trust**
**Grant**
**2023**
**2023**
**£**
**£**
24,677
1,891
-
-
24,677
1,891
24,677
1,891|**Total**
**2023**
**£**
577,733
541,215
36,518
577,733|**SIAS BBC Children**
**in Need**
**2022**
**2022**
**£**
**£**
460,735
28,228
460,735
-
-
28,228
460,735
28,228|**Aquarius**
**Grant**
**2022**
**£**
22,500
-
22,500
22,500|**Total**
**2022**
**£**
511,463|
|---|---|---|---|---|---|---|
|||||||460,735
50,728|
|||||||511,463|
- 16 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **5 Other trading activities**
|**6**
**7**|**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Shop income
97,079
115,632
Trading activity income: other
-
6,667
Other trading activities
97,079
122,299
**Investments**
**Unrestricted**
**Total**
**funds**
**2023**
**2022**
**£**
**£**
Interest receivable
1
-
**Raising funds**
**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Trading costs
Other trading activities
26,477
75,065
Staff costs
86,876
93,797
Trading costs
113,353
168,862
113,353
168,862|**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Shop income
97,079
115,632
Trading activity income: other
-
6,667
Other trading activities
97,079
122,299
**Investments**
**Unrestricted**
**Total**
**funds**
**2023**
**2022**
**£**
**£**
Interest receivable
1
-
**Raising funds**
**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Trading costs
Other trading activities
26,477
75,065
Staff costs
86,876
93,797
Trading costs
113,353
168,862
113,353
168,862|
|---|---|---|
|||168,862|
|||168,862|
- 17 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **8 Charitable activities**
|Staff costs
Depreciation and
impairment
Insurance
Advertising
SIAS direct costs
Womens/ family group/
activities
Needle exchange
Repairs and renewals
Travelling
Motor expenses
legal and professional
Telephone
Computer costs
Equipment rental
Post and stationary
Subscriptions
Other charitable
expenditure
Share of support costs
(see note 10)
Share of governance
costs (see note 10)
**Analysis by fund**
Unrestricted funds
Restricted funds|**SIAS**
**BBC**
**Children in**
**Need Grant**
**2023**
**2023**
**£**
**£**
323,824
8,608
7,694
-
6,629
-
44,040
-
4,825
-
4,363
-
7,500
-
2,312
-
7,416
-
130
-
309
-
5,669
-
9,579
-
1,454
-
272
-
4,426
-
14,633
-
445,075
8,608
72,625
-
6,750
-
524,450
8,608
524,450
-
-
8,608
524,450
8,608|**Active**
**Citizens**
**Aquarius**
**Grant**
**2023**
**2023**
**£**
**£**
-
6,378
540
-
-
-
-
15,588
-
-
-
-
-
10,386
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
540
32,352
-
-
-
-
540
32,352
-
-
540
32,352
540
32,352|**Total**
**2023**
**£**
338,810
8,234
6,629
59,628
4,825
4,363
17,886
2,312
7,416
130
309
5,669
9,579
1,454
272
4,426
14,633
486,575
72,625
6,750
565,950
524,450
41,500
565,950|**Total**
**2022**
**£**
392,373
8,434
7,360
24,763
-
6,367
7,973
1,536
4,364
74
2,029
8,393
10,000
872
517
4,628
7,937|
|---|---|---|---|---|
|||||487,620
64,520
19,358|
|||||571,498|
|||||534,752
36,746|
|||||571,498|
- 18 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **8 Charitable activities**
## **(Continued)**
## **For the year ended 31 March 2022**
|Staff costs
Depreciation and impairment
Insurance
Advertising
Womens/ family group/ activities
Needle exchange
Repairs and renewals
Travelling
Motor expenses
legal and professional
Telephone
Computer costs
Equipment rental
Post and stationary
Subscriptions
Other charitable expenditure
Share of support costs (see note 10)
Share of governance costs (see note 10)
**Analysis by fund**
Unrestricted funds
Restricted funds|**SIAS**
**BBC**
**Children in**
**Need Grant**
**£**
**£**
356,447
21,102
7,614
100
7,360
-
24,763
-
6,367
-
7,973
-
1,536
-
4,364
-
74
-
2,029
-
8,393
-
10,000
-
872
-
517
-
4,628
-
7,937
-
450,874
21,202
64,520
-
19,358
-
534,752
21,202
534,752
-
-
21,202
534,752
21,202|**Active**
**Citizens**
**Aquarius**
**Grant**
**£**
**£**
-
14,824
720
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
720
14,824
-
-
-
-
720
14,824
-
-
720
14,824
720
14,824|**Total**
**2022**
**£**
392,373
8,434
7,360
24,763
6,367
7,973
1,536
4,364
74
2,029
8,393
10,000
872
517
4,628
7,937|
|---|---|---|---|
||||487,620
64,520
19,358|
||||571,498|
||||534,752
36,746|
||||571,498|
- 19 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **9 Description of charitable activities**
## SIAS
Solihull Integrated Addiction Service
Welcome remains the SIAS Partnership lead in the provision of young persons' services, including early intervention and prevention, treatment, and support for children affected by a family member's substance misuse (known as Hidden Harm). We employ two Young Person treatment Practitioners and a Hidden Harm Practitioner as well as a Hidden Harm Counsellor.
## BBC Children in Need Grant
Funding to provide support to young people affected by parental drug and alcohol misuse. Through taking part in various activities the young people will be more confident, resilient and able to make more informed life choices.
## Active Citizens
Funding towards supporting a mobile platform from which the charity can provide support to young people affected by parental drug and alcohol misuse. Through engaging with the mobile platform in various activities, the young people will become more confident in engaging with the charity.
## Aquarius Grant
Funding to provide support to young people affected by parental drug and alcohol misuse through young people workers. Through taking part in various activities the young people will be more confident, resilient and able to make more informed life choices.
## Angling Trust Grant
Funding to provide angling facilities to increase opportunities for mental health, addictions,women's sport and disability sport.
- 20 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **10 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
60,055
-
Depreciation
1,900
-
Insurance
1,529
-
Repairs and renewals
533
-
Travelling and motor
1,741
-
Training and recruitment
1,044
-
Legal and professional
-
-
Telephone
1,308
-
Computer costs
2,210
-
Equipment rental
336
-
Post and stationary
63
-
Subscriptions, sundry
and bank charges
1,906
-
Audit fees
-
6,750
Bookkeeping fees
-
-
72,625
6,750
Analysed between
Charitable activities
72,625
6,750|**2023**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
60,055
45,133
-
1,900
3,011
-
1,529
2,629
-
533
549
-
1,741
1,584
-
1,044
1,369
-
-
711
-
1,308
2,998
-
2,210
3,571
-
336
311
-
63
184
-
1,906
2,470
-
6,750
-
10,480
-
-
8,878
79,375
64,520
19,358
79,375
64,520
19,358|**2022**
**£**
45,133
3,011
2,629
549
1,584
1,369
711
2,998
3,571
311
184
2,470
10,480
8,878|
|---|---|---|
|||83,878|
|||83,878|
## **11 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **12 Employees**
The average monthly number of employees during the year was:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
|Counselling staff|13|14|
|Administration|3|5|
|Charity Shops|5|7|
|Total|21|26|
- 21 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**12**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2023**
**2022**
**£**
**£**
429,827
469,392
30,258
34,724
25,656
27,187
485,741
531,303|**(Continued)**
**2023**
**2022**
**£**
**£**
429,827
469,392
30,258
34,724
25,656
27,187
485,741
531,303|
|---|---|---|
|||531,303|
There were no employees whose annual remuneration was more than £60,000.
## **13 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **14 Tangible fixed assets**
|**Leasehold**
**improvements**
**Fixtures and**
**fittings**
**Furniture and**
**Computer**
**equipment**
**Motor vehicles**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2022
31,905
9,418
89,481
18,585
Disposals
(31,905)
-
-
(9,360)
At 31 March 2023
-
9,418
89,481
9,225
**Depreciation and impairment**
At 1 April 2022
31,905
9,348
66,581
6,871
Depreciation charged in the year
-
70
7,610
2,454
Eliminated in respect of disposals
(31,905)
-
-
(3,181)
At 31 March 2023
-
9,418
74,191
6,144
**Carrying amount**
At 31 March 2023
-
-
15,290
3,081
At 31 March 2022
-
70
22,900
11,714|**Total**
**£**
149,389
(41,265)|
|---|---|
||108,124|
||114,705
10,134
(35,086)|
||89,753|
||18,371|
||34,684|
- 22 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **15 Debtors**
|**15**
**Debtors**|||
|---|---|---|
|**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**16**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
**17**
Trade creditors
Amounts owed to fellow group undertakings
Other creditors
Accruals and deferred income
**17**
**Deferred income**
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Resources deferred in the year
Deferred income at 31 March 2023|**2023**
**£**
19,678
3,555
2,402
25,635
**2023**
**£**
6,628
28,435
26,297
6,144
2,040
15,189
84,733
**2023**
**£**
28,435
**2023**
**£**
28,435
14,944
13,491
28,435|**2022**
**£**
-
5,000
4,868|
|||9,868|
|||**2022**
**£**
7,677
14,944
1,292
18,902
2,468
11,445|
|||56,728|
|||**2022**
**£**
14,944|
|||**2022**
**£**
14,944|
|||3,887
11,057|
|||14,944|
- 23 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **18 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £20,876 (2022 - £23,937).
## **19 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||||**Movement**|**in funds**|||**Movement**|**in funds**|||
|---|---|---|---|---|---|---|---|---|---|---|
||**Balance at**||**Incoming**|**Resources**|**Balance at**||**Incoming**|**Resources**||**Balance at**|
||**1 April 2021**||**resources**|**expended**|**1 April 2022**||**resources**|**expended**|**31**|**March 2023**|
|||**£**|**£**|**£**|**£**||**£**|**£**||**£**|
||BBC Children||||||||||
||In Need||||||||||
||Grant||28,228|(21,202)|7,027||9,950|(8,608)||8,369|
||Active||||||||||
||Citizens||||||||||
||Award Grant|5,725|-|(720)|5,005||-|(540)||4,465|
||Aquarius||||||||||
||Grant||22,500|(14,824)|7,675||24,677|(32,352)||-|
||Angling Grant|-|-|-||-|1,891|-||1,891|
|||5,725|50,728|(36,746)|19,707||36,518|(41,500)||14,725|
|**20**|**Analysis of net assets between funds**||||||||||
|||**Unrestricted**||**Restricted**|**Total **|**Unrestricted**||**Restricted**||**Total**|
||||**funds**|**funds**|||**funds**|**funds**|||
||||**2023**|**2023**|**2023**||**2022**|**2022**||**2022**|
||||**£**|**£**|**£**||**£**|**£**||**£**|
||Fund balances at 31||||||||||
||March 2023 are||||||||||
||represented by:||||||||||
||Tangible assets||16,753|1,618|18,371||32,526|2,158||34,684|
||Current assets/(liabilities)||384,128|13,108|397,236||367,714|17,549||385,263|
||||400,881|14,726|415,607||400,240|19,707||419,947|
## **21 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Within one year|-|1,350|
- 24 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **21 Operating lease commitments**
## **(Continued)**
## **22 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|50,632|51,350|
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
During the year ended 31 March 2023 the Charity recharged expenses totalling £58,681 (2022: £28,247) to its subsidiary company, Welcome Change CIC.
As at 31 March 2023 the Charity owes £6,144 to Welcome Change CIC (2022:Owed £18,902).
## **23 Subsidiaries**
Details of the charity's subsidiaries at 31 March 2023 are as follows:
Welcome is a Corporate director of Welcome Change CIC, a company limited by guarantee, company number 07758208. Also the Board of Welcome has common board members with Welcome Change CIC. Therefore, the directors of Welcome consider Welcome Change CIC to be the charity's subsidiary.
Welcome Change CIC's principal activities are the provision of a variety of enterprises operated for the benefit of the community consisting of a community centre a community garden and two community hubs. These enterprises offer volunteering opportunities and work experience placements for people in recovery from substance misuse, or otherwise disadvantaged in the mainstream job market, helping to build their confidence and skills and enable them ultimately to find work.
## **Name of undertaking Registered office**
Welcome Change CIC 316, Kitts Green Road, Lea Village, Birmingham, West Midlands, B33 9SB
- 25 -
## **WELCOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **23 Subsidiaries**
## **(Continued)**
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**
**Profit/(Loss)**
**Capital and**
**Reserves**
**£**
**£**
Welcome Change CIC
90
17,463
**24**
**Cash generated from operations**
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Loss on disposal
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
**Cash generated from/(absorbed by) operations**|**2023**
**2022**
**£**
**£**
(4,340)
(106,555)
(1)
-
10,134
11,445
5,179
191
(15,768)
14,318
40,763
600
35,967
(80,001)|
|---|---|
## **25 Analysis of changes in net funds**
The charity had no debt during the year.
- 26 -
## **Document Activity Report**
**Document Sent** Thu, 07 Dec 2023 16:09:11 GMT **Document Approval Status** Approved **Approval Activity Summary** Adam Darkes Approved Fri, 08 Dec 2023 11:30:24 GMT Mark Lewis Approved Thu, 07 Dec 2023 16:54:31 GMT
## **Document Activity History**
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**Date Activity** Fri, 08 Dec 2023 15:30:43 GMT Mark Lewis viewed the document Fri, 08 Dec 2023 11:30:25 GMT Adam Darkes Approved the document Fri, 08 Dec 2023 11:27:45 GMT Adam Darkes viewed the document Thu, 07 Dec 2023 16:52:43 GMT Mark Lewis viewed the document Thu, 07 Dec 2023 16:51:53 GMT Mark Lewis viewed the document
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