PHASES SOCIAL ENTERPRISE TRUSTEES, REPORT AND FThIANCIAL STA TEMENTS FOR THE YE4R ENDED 31 DECEMBER 2023 DN.&éeountanti 365 South Coast Road Tels¢ombe Clfiffs BNIO 7HA Page 1 AD8Y73QQ 1910912024 COMPANIES HOUSE
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PHASES SOCIAL ENTERPRISE IA eompany limited by guaranteo) CONTENTS R•hrence and admlnl•tratfv• d•tallB of th• charfty. Its tru8t•ts and Tfustses, report 12 thdep*ndant èxamin•rfs r•port 1>14 Stat•mant of flnanclal acllvltl Is Balanco $h•gt 16 Not•s to th• flnanclal 8tat•ments 1744 Page 2
PHASES SOCIAL ENTERPRISE (A company Ilmlted by guarante•) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARrrY. rrs TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trnstees Mr J MbaDg Mrs T Osunbayo Mr P Cartstairs Company reOst¢red number 04268028 Charlty regl$t¢red number 1089870 Regl$tered Offi¢¢ Unit 7 98 Gold8tone Villas Hove East Sussex BN3 3RU Chlef Ex¢¢utlve O(fieer Mr Glenn HeAtoll A¢¢ountants DNS Accountants 365 South Cwt Road Tclscombe Cliffy East Sussex. BNIO 7HA Bankers Unity Trust Bank PLC Nine Brindley Place Binninghwn BI 2HB Solicitors Griffith Smith Farrington Web LLP 47 Old St¢yne Brighton BNI INW Pa9e 3
PHASES SOCIAL ENTERPRISE IA company Ilmlted by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report logethcr with the fmancial stalenxnts for the period from I January 2023 to 31 December 2023. The Tntee$ confirni that the Annual Report and financial slatemeDts of the company comply witb the curttnt ststytory requirernents. the reqUirennts of the CoMpanS governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordan¢¢ with the Financial Reporting Stsndard applicable in the UK aod Republic of IrelaDd (FRS 102) (effective l January 2015) as amended by. Update Bulletin l (effective l January 2015). Since the cbarity qualifies as small under section 383. the strategic report required of medium and large companies undcr the Companies Act 2006 {strateC Report and Directofs Report) Regulations 2013 is not required. Objtttives and Activities . POLICIES AND OBJECTIVES By Special Resolutioo of 27th Mar¢b 2017 the following objects were adopted for the clwilable To relieve poverty, sickness and distress. in particular, bul not exclusively, by the provision of advice, training and support, and especially, through the development of projecls which construcl new properties, renovate underused buildings and Provide construction training opportunities for persons in Ch[bIe nee4" and by the pmvision of housing for persons in necessitous circumsthnces upon tern approprivdte to their meaThs' ID summary, the Charity's aims are focussed on the connection between homelessness and constru¢tioll, It to do three main tllltsgs.. - Train bomelcss aDd similarly marginalised people in CODStrn¢tion skills - Renovate empty properti¢s , bringing them back to life as affordable homes - Build new properties to be used as affordable housing b. STRATEGtES FOR ACHIEVING OBECTIVES Phas¢s constJu¢tion training courses for homele$$ and similarly marginalised people at its training workshop in Rotherhithe. We h&ve also deVelopd a strdtegy for bringing both empty private sector and empty public sector properties back into use. Outside of LondoD ther¢ are a number of organisations who ty to bring empty properties back into use. But in London the task is parti¢ularly difficult due to ever rising rents and property values which can make it hard to negotiate dcals with owners. Phases is unusual in that wc have had considernble success in the Capital. There are a number of rcasons for this but it is largely due to relationships established over a number of yeats with local councils,. loul Empty Property Officers and private property own¢tS. Page 4
PHASES SOCIAL ENTERPRISE (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 ACTVITIES FOR ACHIEVING OBJECTJVES Once empty pn)perti¢s have bcen brought back into Se, Phases then lets these propcrtics out as affordable housing. We then conlinue tLi let and manage these properties until they arc returned to their OWDer5. Tetwits are sourctsl thri)ugb contacts with Local Authority Housing Units. Phases continue to maintain conla¢t with local council empty property officers in various London boroughs to source new projects. It also contiDues to make direct contact with private owners of empty properties. More recently Phases has been forniulating plans to enter the field of new build dcvclopment. The intention is to eate new &ffordable housing in London. In r¢sp¢¢t of training, w¢ also run a small training workshop in Rotherhithe where trainees learn construction skills prior to being givcD thc opportunity to work on renovation projects. LIC BENEFIT . The Tnlee5 confum that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission's generdl guidance on public benefit. The TNstecs have rcfcrTcd to this guidance when reviewing the chariws aims and objectives and in planning future activities of the ¢barity. d. VOLUNTEERS Pbases relies on the help of volunteers in various aspects of its work: - Professionals provide their time at substantially subsidised cost in respect of various construction - related services. Tbis includes: architects. surveyors: and stn]ctural engioc¢rs. - Forn)er trdinees return to provide help in training new trainees in our workshop - Volunieers provide rnentoring assistance to homeless trainees Page S
PHASES SOCIAL ENTERPRISE IA company Ilmlted by guaranteè) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements *Dd performance KEY FINANCIAL PERFORMANCE INDICATORS Rental incom4 whi¢h is at th¢ Core of the social enterprise model of the clwity. was £173J76 for the year. This was slightly down as 2022. The clwity does have a longer-tenn plan to move slowly away from nwmging properttes aod to diversify SOU¢$ of social enterpTise iiicome. It has, bowever. been lookiog at whether some of the propertie5 that il managcs should be classified 'EXeMpl Aw)mmodYdtion' which would aurd¢t a higher level of rent (usually cov¢r¢d by Housing B¢n¢fit). UDrestricted and donations of £9k were relatively low. This follows a recent pattern where Phases has ¢onccntratcd on its 'entenSe, activiti¢s raiher than wts, Ow fixed assets at the end of the year were £696K the similar to 2022. Net ets were £642k, The reduction from 2022 was primarily due to a significant scheme of repair and maint¢nance works undertak¢D on our properti¢s during the yr and it)creased rents Charged by our IAKal Authority knndlords., b. REVIEW OF ACTIVITIES Pro vatlon5 Ind ance C W¢ did Dot ernbaTk on any new empty property Tenovalions duTing the year, PTinwily due to a lack of viable opportunities Presenting then1v¢S. Wc did however etnbark on a substantial progran¢ of works on our existin8 properties, si8nifiwitly in exLXSS of our usual annual rnaintenance jobs. Many of the properties 0ed and leased by Phas¢s have now been und¢r our mana8emeTht for over ten years. Anoual propety mainteDance costs were increasing and therefore it was felt that a sound investment from our reserves was to cary out a scheme of prevenlitive works. Tbis iDcluded repair works to the roof of Concorde Drive which alone cost over £12k and a number of boiler replacements. The totsl invested durin8 2023 wa5 ID the Te8iOD of fAOk Thi5 should subslantially re4Juce our fvture maintena¢ costs. These'planhed works facili¢ated significantly enhanced on-site work placements for our trainees during the year. esslon of Tr Durin8 the year 19 trdinees passed through our initial workshop training ph. They ¢ame from & variety of backgTounds. All were either in hostels or had rectlY moved on to their own accomrnodation. Theyincluded ex-seryirx persoDDel. refugees and Son who dTU8 or alcohol problems. Four trainees gained additional oJ)-site work experience through the planned mailltcnan¢¢ works at a number of our properties (above). Thts.experience included.. plunibing and drainage repairs. tiliog; carpeoty. pl&sterill8' carpel fittitl8' and painting and decorating. During the y¢ar.thre¢ trainees Secur full-time emplent and two secured part4ime work Four train¢a also undertook trade-specific ¢onstruction courses at FE ¢olleges or private providers. Page 6
PHASES SOCIAL ENTERPRISE IA company IlmSted by guarnnt••) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 New Bulld Pro We ren1n open to the poSsi111ty of developing a new project if we can identify and secure a suitable site. During the year wc continued to make enquirtes throu8b a number of London borougbs about possible sites. Including SouthwaTK Lantheth. Camden and NewhanL We also maintain contact in respect of the Transp)rt of london Small Sites initiative. The task is probably being made more dilTJcult by the fact tbat nmny London local authorities lookin8 to develop their own social bousing pioje¢ts. including on 8rn site8. le Hou Phases has three houses and ten tlats which it lets and manages. The properties ar¢ let out in Ilabordtion with the different local authorities within which the prop¢rtics are situated.. London boroughs of SouthwarL Lewisham and Newham; and Arun District Council. All of our properties are let out at affordable reDt levels which are usually the same as the Housing Benefit Icvel (l(nown as thc [1 HousiDg Allowance rnte). Constructlon Budd This 18 our.recruitmcnt agency-type PToject which has bcen to pla¢¢ marginalised people into constrtion job8 and appr¢nticeships. The idea is to plac¢ both currcnt ond fOrnr trainea8 but also a wider cohort of marginali5cd individuals into the industy. We did make a number of grant funding apications during 2023 in order to prOe$S this project bowever without success. 'In the meantime we have continued development of Consknction Buddy as a volunteer-led project. During 2023 we r¢red the scr¢¢tiing process for candidate5 and volunteas have supported a small number of fornier trainees into work placements without char8 y fees.. Creen Congtructlon Over the past 12 months we have been looking at our relationship to the green economy. Historically this has been integral to Phases. work anyway bc¢ause renovating an empty property iovolves far lowu C02 cmissions than buildin8 a new property. Historic England Says that mpare41 to refurbishing a Victorian terrace house, a new building of thc same size produces up to 13 times more embodied carbon. Over 2023 we have also been lookiD8 at CaTeer rout¢5 for our trainees into green construction, particularly in retrofitting. We've also been exploriog the possibility of renovating ao empty commercial propety as an EcoHub with a10¢81 authority.
PHASES SOCIAL ERPRISE IA company Ilmltod by guarant TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 FInane1 revlew & GOING CONCERN After makiDg appropriate enquiries. the trustees have a reasoDable cxpectation that the charity bas adequate resour¢¢s to continue in operational existence for the foreseeable future. For thj's reason they continue to adopt the goitig concern basis in preparing the fuwicial statements. Further details regarding the adoptiOD of the going concern basis ¢an be found in the A¢UntIng Policies. b. RESERVES POLICY The TnlS have reviewcd the reserves policy of Phases. This policy is meant to apply to general expendityre and does not cover contingencies on individual projects. Th¢ Tnle¢S conduct an annual review of the level of unrestricted reserves by considering the risks as50ciaied with various income stre$, expenditure plans and balance sheet items. This enables aD estimhte to bc made of th¢ r¢s¢rve levels required to: - Allow tirae for reorgaDisation of Pbases, work in the cvcnt of a downturn in income or asset values - Protect ongoing work programmes - Allow the charitabl¢ ¢ompany io meet its obj¢¢tives The Truste¢s have established that the level of unrestricted reserves in the general fund (that 1$ th08¢ funds that are freely available) that Phases ought to have is six months of gcncral expenditure. Genernl expenditure is takeD to exclude the costs of new renovatioll projects but does include repayinent of loaTrs. Six months of 8eneral expenditure is estin)a*d as £IOOk. The Trustees have therefore set a target to establish this level of reserves. Pa9e 8
PHASES SOCIAL ENTERPRISE (A company Ilmltod by guaran1••) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 PRINCIPAL FUNDING The clwitable c¢MnpaDs tytsl iticome for the year was £182k. Rental in¢orÈK which is at the core of th¢ 11 ¢nse mod¢l of the clA&ity. was £173k Othcr cbaritsble incoDK ¢ame througb donatioDS. The charitys frethold proWleS were noi uplifted ill value during th¢ year. This w&8 after ¢ODsid¢ration of valuatRoD evidence by the Trust¢es. BorrovA The chlty has 8ured l¢ndin8 with the Big Issue knvestment of £157k. These were OnnallY used towards purchase of th¢ ¢harity8 fr¢¢bold ets. During the year Phases very gratefvl for the inpul of 312 hours of volunteer work. This was primarily assistan¢¢ in our training workshop (ofien by fomicr tiain¢es) and mentoring support provided to tsainees. Structll governanee •ad mana8em¢ot COIYSTITirrioN Ph¢S Social Enterpri8e is constituted as a Compaoy Limited by Guarantee (No: 04268028) and is theref¢)r¢ 8overn¢d by its M¢moraodum and Articles of Association whi¢h were originally dated 9 Au8U8t 2001. The ¢haritable Company orinallY called, Advocas for the Homeless,. On 6 Au8USt 2010, by Special Resoluti the charitable ¢ornpany unaninjowty decided to Lwe usin8 the name 'AdVOleY for the Home)e88' and to adopt the new n•rne of 'Pha Social En*rprise'. A Certificat¢ of Change of Name was issued by Compatiies House to this effed oo 26 Au8USt 2010. Th¢ clwitsble . company 18 also ofteo simply known by the name 'Plwe8' on a daity operatiD8 basi8. Page 9
PHASES SOCIAL ENTERPIUSE {A company limlted by guarante•) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 b. METHOD OF APPOllYTMENT OR ELECTION OF TRUSTEES Trustees are recruited by the Board of TnCeS based on the skills needed by the Board and the skills of potential Board members. Tnkn are elect under the tern of the Articles of Association. In acrdance with th¢ Articles, One third of the TTUStees will retire at the Annual General Meeting but may offer themselves for re-clcction. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES New trustees undergo an inductioD when they are appointe(L to brief them on their le1 obligations under ¢harity and ¢ompany law. the aims and procethwes of thc chuity. the ¢ontcnt of the memorandum and articles of associalion, the boanl decision rnaking process. the business plan and the recent fnCial perforniance of the charity. TnleeS are encouraged to attend external training events where these will facilitate th¢ undeTtskin8 of their rol¢. d. PAY POLICY FOR SENIOR STAFF Tbe pay of the Cbief Executive is set anDually by the Trust¢es. In ca1ng out this fiCtiOll. tegard 18 had to the pay of cbi¢f executives in similar-sized clwities. e. ORGANISATIONAL STRUCTURE AND DECISION MAJaNG The Board of Trustees meets every quarter to discuss the current and future skntegic developmcnt of the charity and any issues affecting the charitys objective5. The Chief Executive mana8es the day to day operatiotis of the charity. The Cbief Executive is ppointed by the tru$ttts who rnay also be involved io the appointrneDt of other staff gether with the Chief Executive. The training workshop is manged by an experienced trainin8 coordinator. Individual construction sites, whilst projects are ongoing, are managed by a site project nwMger, in coordination with the training Coordinator. Page 10
(A compgny Ilmtt•d by gu•rnntso) TRUSTEES. REPQRT FOR THE YEAR ENDED 31 DECEMBER 2023 f. RISK MANAGEMENr ¢xist& Th¢y ote r¢sponsible for safe8wdmg the assets of th¢ Charity. taking rcw)nable steps for th¢ prevention 4Dd d¢te¢tiOD of hud and oihry inr8uJ8riiie8 and Pl1ft8 Yeasotithle thaL' - Th¢ ¢hity is operntiDg etTiciendy and efftivelY . Its assets are Saf¢gUded againm unAuthorised use or di$SlI . Propv ffrds ore ouintained and fitwiciol inforn)gtion 1$ reliable - The ch•rity complies with relevdnt Jaws 8nd wulations The systems ofiDiern&l CODtrol arc deBigDed io provid¢ reasomble 488urance aDiD8t malefial misslat¢meDt or loss. Tbcy ilde.. - Effectiv¢ plaoninE of the strotrBi¢ dirwtion of the charity •lld project developmellt - R¢guJar review of the finonci&l and operntional r¢sults by the Chief Exc¢utive and Bo•rd . Kobust and independent pmcethwes ID place for managing IKalth and Safety regitne . Review by the Boanj of TnLste¢s wlth the extenNI ovditoxs of any mattm raised Project risks OTC r¢Yi¢wed at th¢ begiJ)Ain8 of ¢ach project by the Chief Exetutiv¢ and may be r¢vi¢wed by th¢ Board of TTuses. OrgaDisational risks are r¢vi¢w¢d eacb year by th¢ Board of Ttee9 who miy tske iDdependent professional and finattcial advice to ¢nsure that risks ore prwly mwi8ed. FUTURE DEVELOPMENTS Two proposals for sites in Bro¢kley remain on hold- one to build six flats on Brockley Road and another to convert a pro on Brockley GTove and develop flats ai the rear. Di8uJssiotts with the landowner are likely lo contioue. We shll also contioue to mon1w4Y furtlw lites put forwvd by Trnnsport for London under a small 8it¢s sch¢m¢. W¢ ¢ontinue to have close relAti*)ns with the tA)cal Authority empty pft)rty officers in SouthwaTk, Lewisham aJ)d Camden oj)d will consider Any projects pui forw4r CollstruciloD Buddy W¢ will Continue to develop our recruitment Agency-e project fonstruction Buddy,. Green Co8truction Over the next 12 months we shall be seeking to devek4) our link5 with other or8anisations itivolved in retrofittin8 older PTopertiu as this fits wcll'with our traditional lld¢1 of renovatiDg empty Ptowties. W¢ will. in particular, be focussing on potential ¢are¢r routes for our lrninees in this direction. We shall also b¢ exploring possibilities for the creation of an 'EcoHub' with local authorities. This would involve rerfiubtshitk8 empty commercial property lor us¢ 88 8 $wIAinability ¢entr¢ by Ioc41 groups. Page 11
PHASES SOCIAL ENTERPRISE (A company Ilmlted by guaran1••) TRUSTEES. REPORT TRUSTEES RESPONSIBILITIES STATEMENT Tbe Trustces (who are also directors of Pbases Social EDterprise for the puSe8 of company law) are responsible for preparin8 the TnJst¢es' repKIrt and the Kingdom A¢¢ounting fiDancial stslements ID accordance with applicable law and UDited Standards (UK Generally Accepted AccountiDg Practice). Company law requires the TntteS to prepare fmaDcial statements for each financial year. Under company law the Tnlee$ must not approve financial statements unless tbey are satisfied that they give a lrne and fair view of the slate of affaiTS of the charithble cornpany and of incoming resour¢¢s and application of Tesources. including thc income and expenditure of the charilable company for that period. In prepgring these financial slatenxnts, the Tnle¢S are required to: Select suitable accounting policie5 and then apply them consistently Observe the methods and principles ID the Cbarities SORP Make judgements and accounting estin)ates that are reasonable and prudeDt Prepare the finan¢ial statemeDts on the goiDg conrxrn basis unless it is inappropriate to presuThK that th¢ ¢harithble company will continue in operntion The TnLStees are responsible for keeping adequate accountin8 records that Bre sufficient to show and explain the ¢haritsble compan$ transactions and disclose with reasonable accurary at any time th¢ financial position of ihe charitable company and enable them to ensure that the financial stalements comply with the CoThwanies Act 2006. Th¢y are also respK)nsible for safeguardiDg the assets of th¢ ¢baritable company And beDce for tskiD8 reasonable steps for the preventioo and detec¢ioD of fraud and other irr¢8ulariti¢s. DISCLOSURE OF INFORMATION TO AcCoANTs Ea¢h of the petsons who are Thtee$ at the time when this Tntee8, report is approved has eonfirnied thal so far as that TTUStee is aware, th¢re 1$ no relevant audit information of which the charitable conwanys accountant's are unaware, and that Trustee has taken all steps that ought to bave been tsken as a Tn)ee in order to be aware of any relevaot audit infornmtion aDd to establish that the charitable company'8 accouDtants are aware of that infonnatioD. . 2024 and sId on their behwlf by". Mr J Mb8n8 TN8tee Mr P Carstsir8 Trustee Pag8 12
PHASES SOCIAL ENTERPRISE (A company Ilmltsd by guarnnte&) INDEPENDE EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2Q13 INDEPENDENT EXAMINERIS REPORT TO THE TRuEEs OF PHASES SOCIAL EI¥TERPIUSES {¢be 'ckn•rlty) T re&rt to the charity Tntsttts 00 eXamItion of the a¢¢ouftts of the Charity foT the ende4131 Dffo4nber 2023 This report 18 made.solely to the ebAr1$ Truststs. as a bcdy, in aeeordance with Part 4 of the CbarAti¢s {A¢couttts Reports) Regulations 28. My work been undertaken so that I might state to the charity'$ Trustees thos¢ matters J am re4uir¢d 10 State kn the ID ats Indwd¢nt examitirf5 rwt and for no oth¢T Puryw. To the fi1¢ extent peThitted by18w. I do not Accept or responsibility to Anyone other than th¢ ¢b•rity and th¢ ¢lMritys Tjwtees al a im, for my work or for thi8 report. RESPONSIBILITIES AND BASIS OF REPORT As the Tru8¢eu of the clwrity {d its director8 for th¢ purpws of ¢omp•Dy l&w) ytyj are re$wlb1e for the prwaration of the Mcwunts in accoTdonc¢ with th¢ rwuirernts of the Compatiies Act 2006 (Ihe 2(M)6 Acfj. Having sati$fied myself that the accounts of the Gharity are not Tequired to be audiie tmder Part 16 of the 2(Ki6 Act and are eligible for independent examtnation, I report in respe¢t of my examination of the chvity8 accounts carried our und¢r se¢tion 145 of th¢ Clwitiu Aci 2011(Ih¢ 2011 ACV). In ¢4tryinB out my examination I bave followal th¢ Di1108 'Ven by the Charity Commission under s¢ctiott 145(5) (b} of th¢ 2011 Act. INDEPENDENT EXAMINERS STATEMENT I hove ¢omplete4J tny examiDatiOD. l eln coofirm that Do matt¢rs bave ¢ome lo my Attention in cimne<tion with th¢ ex&mina¢ion giving me cause I believe: a¢¢ouotiN8 rttords were not kept ID re8pe¢t of th¢ Charity M require41 by StiOn 386 of th¢ 2fM)6 Act: OT 2. th¢ accounts do not ¢4)rd with those rordS. or 3. the a¢coun¢s do Dot wly with the accounting rquiremettts of 396 of tbe 21)06 Act oth¢r ooy reguirvnent that the #ccounts 8ive a'true oDd fairf view whi¢b 1$ o matter nsld¢red * part of In i)ende4Jt examin•ttoft' or 4. the accounts have not been Prepar in a¢¢ord•o¢e with th¢ methods and Principles of th¢ StAtcment of Recorntnended Prnctice for a¢couDtin8 and r¢porting by cbari¢ies[appli¢abl¢ to charities prep4rin8 their A¢Lx)unts in a¢¢ord¥tt¢¢ with the Financial R¢portin8 Styndard 4ppIic4ble in the UK Rq)ithlic of Irtland (FRS 102)J Page 13
PHASES SOCIAL ENTERPRISE (A ¢ompany Ilmited by guaranla•) INDEPENDENT EXAMINER'S RPORT (eonllnued) FOR THE YEAR ENDED 31 DECEMBER 2023 I have no concerns and have rne across no other matters in connection with the examiDa(ion to which attentioD should be drnwn in this report ID onler to enable proper understanding of the accounts to b¢ rea¢bed sigft.. Date:..l81.0.%.2024 DNS Account8Dts 365 South Coast Ro&d Telscombe Cliffs East Sussex. BNIO 7HA SUMIT AGARWAL ACfvIA CHARTERED MANAGEMENT ACCOUNTANT DNS ACCOUNTANTS LTO DNS HOUSE, 382 KENTON ROAD HARROW, MIDDLESEX HA3 80P TEL.. 033 0088 6686 FAX. 020 8907 8442 Page 14
PHASES SOCIAL ENTERPRISE (A company Ilm1t by guarant•41 STATEMENT OF FINANC AcfiviTJESINCORPORAThC INCOME AND EXPENDtTUIiE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlct•d nds 2023 Re8trlcted funds 2023 Total funds 2023 Tolal funds 2022 Not• INCOME FROM: Donatk>ns arKI18gadeslGrants Invèstmants 1750 173376 8750 173376 20145 180311 TOTAL INCOME 182126 182126 200456 EXPENDITURE ON: Charitable aclivities 44 259217 259217 208104 TOTAL EXPENDrniRe 259217 2S9217 208104 NET,EXPENOITURE BEFORE INVESTMENT GAINILOSSES (77091) (77091) (7648) NEf EXPENOITURE BEFORE OTHER RECOGNISEO GAINS AND LOSSES {77091) {T10911 (7648) RECONCIUATION OF FUNDS: Total funds brought foThvard 719319 719319 726967 TOTAL FUNDS CARRIED FORWARD 642228 642228 719319 Th8 notes on pages 15 lo 25 form part of those financlal $talements Pago 15
PHASES SOCIAL ENTERPRISE (A ¢4Mnpany Umlt•d by gvavants•) REGisfERED IIIIIABER: I142026 ALANCE SHEEY AS AT 31st DECEMBER 20TJ 2022 FIXED ASSETS Inv•$lmenl prywty Eqwpment 12 6169 19610 CURRENT A88ET8 O¢btors Cash at bank and In hand 13 2075 126S24 128599 2250 208276 210526 CREDThORS: •m(S falllng dufr thln ane year 14 31204 31204 NEf CURRENT {UA8ILmE5VAS8Ef8 973•5 179322 TOTAL ASSETS LESS CURRENT LIABIUTIE8 877226 CReDITOR8: arno11 f•lllng duo aft•r morg than on• >•ar 15 151336 157WJ7 NET A¥SErs 719319 CHARITY FUNDS Urmtslct•d fvnd• 17 719319 TOTAL FUNDS 719319 Th0 eh8riiYs finanoal st•m•nt3 hwe been pfvparnd kn acawd#nc• TAth tha provi910 applle4ble to o)mpanlo8 $ubje¢l to th8 sm811 rAmpanlfjs reglme. Th• T¢u8teey consk48r Ihat the (ortty is onllll•d to exempllon from thg r•qulr•m•nl to ho gn audit under th• ov151Dns of s•ctw)n 477 01 th• Comparries Act 2006 Vhe Acfl and Memb9 have r1 requirpd th¥ chaiity to oblalnèd an audit for Ihe year In quostion in a¢1dn with Sgcllon 476 of thfr Acl. Th• Tw5teos ath1tr•41•dge th•lr re531b611tI¥S foT LxJmptyn9 wFtr* th• rwulr•m•nls oftr• Cornpanleo Ad 2006 wllh rewicl to 8¢14unlln9 ond thè prnmIl0n of fln•n¢i•l sl•tornent8. Thé flnonclal $tstements T• opwovod and avthoh50d for by lh• Trys¢ees on ........... ..... 2024 ned on Iheir bghaw, by.. Mr J Mban Mr P Corntal The nDt•s on p•Jes 15 to 25 fom p•rt 01th finan¢lg1 ststements Page 16
PHASES SOCIAL ENTERPIUSE (A ¢OmP•Dy lindted by ar•Otee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES 1.1 Bis of prepra¢lon otlknnci#l sts¢ements The finAncio1 ststern have be prepared iti x¢ordan¢e with AccouDtin8 ReN)rting by Chariti¢s.' Stat¢nwit of ReMDndtd Practice pplicable lo charitiu preparing their ocLx)unts in acwrdan¢¢ with the FAttan¢xal Reportiryg Standard appli¢abl¢ iti the UK and Republic of Ireland (FRS 102) {eff¢ctive l Jonuary 2015) {Charities SORP IFRS 102)), the Financial Reporttng SiaDdard applicable in the UK and Republic of ]relADd IFRS 102) and the (knpanies Act 2006. Phases Social Enten8¢ meets the definilion of a public benefit entity underFRS 102. Assets and liabilities are ioitiAUy re£IS it historical $¢ or traDsaction valu¢ uttless othen¥i8¢ Statcd ID th¢ r¢levan¢ accounting policy. 1.2 C•mpany #tthi The ¢barity is a cOmpY limited by gumte¢. The membern of th¢ compatsy Ire the TnLS nan%d on p&8e l. In ihe event of the ¢harity Ixin8 wound UP the liability in r¢speci of the Surntee 18 limit¢d to £1 per meniber of th¢ clwity. IJ Income All in¢ome is recols¢d on¢¢ the clwity h)s eutitlem¢nt lo the income. il 1$ probable that the iD¢om¢ will be r¢¢¢iv¢d And the Amount of in¢om¢ r¢ccivabl¢ can be nK8sured r¢knably. For legacies. ¢nti¢lemenl is taken as th¢ e8rlier of the date on wbich ¢ither. the charity 1$ aware that probwe has be¢n 8T•nted the estate hAs been finAlised and notification has be¢n nwle by the ex¢cutot(s) lo the Tnt thAI A di5tyibution will b¢ made. or when a digtribution is rt¢1V fmm the estatr. Rec¢ipt of the ley. ID whole or ID pail 1$ only nSidered probabl¢ an an1 wi be me&8ured reliably and the charity bo5 been notified of th¢ ¢xe¢utor'B intention lo m8k¢ a distribution. Wbere le¢[eS have been notified io the charity, or the charity is aware of the 8rnlliiD8 of prob4t¢. •nd the lri• for income rn¢08nition hive not been mel then ihe lepcy 1$ treated &q a cofttiDgenl assets and disclosed if njalerial. Doned 5erYices or facilitie5 are recogoiaed wheD the charity bas wntrol over th¢ Ite any ¢oudition8 as80CiAtal with the dOted item have been mei the receipt of economic benefit from the use of the clwity of the item is probable and that economic benefit be measured reliablyi in accordance with the Charities SORP (FRS 102). the g¢n¢rnl volunteer lime of th¢ Friertth is not retO8nised and refer to the TnOeS, let for infornwiott &bout their WDtyibution. On [elp don*4J profe88iOtwI s¢rvicu and donated hcilities or¢ r¢co8Dised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay ¢0 obtsin servi$ and facilities of equivalent cconomic benefit on the open matknl" a cowndin8 amount 18 then rec4)8ftised ift expenditure ITh the period of ttceipt. Income tax reVeble in relatioo to donations rK¢¢v¢d underGift Aid or de¢ds of coveDt is reco8ois¢d at the time of th¢ d0ti4tion. Page 17
(A COMPDY limited by guAr•nl¢¢) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAK ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (¢on¢iDued) IA Expendhmre Expctidlty is lS¢d oo¢e there is a legal or nstnliVe obligtion to traDsfeT economic benefit to a third party, 1¢ is probable that • transfer of economic benefits will be required in settlement and the amount of the obligation can be measure41 reliably. Expenditure is clossified by activity. The c4)sts of each activity are tDade up of the totyl of dir¢&# costs and sbar¢d cos¢& iticluding support Q)8ts involved in undeTtakiDg each adivity. Direct costs attrIb¢d to a siti activity Ar¢ allo¢ott41 directly to that &¢tiwity. Shared costs which ¢Ontribut¢ to ow)Y¢ than on¢ activity and support ¢osts 1¢h are not •ttributed io A Single activity ore apportioned betwrxn those activities on a basis wjsistent with the use of rewurces. Central staff costs are allocated on the basis of tinK spenL and d¢pr¢¢iatioD cbvg¢s allocated on the Portion of the asset's us¢. Support are those costs iD¢uThed d]rY in Support of expetidithre on the objects of the ¢hOTity and iDclud¢ project matt#g¢m¢nt Carried out ai H¢adquartern. Governanc¢ are thos¢ In¢Urr in ConntIon with athnini$trnlion of the Clwrity and ¢omplian¢¢ with consti110n&I aad Charitable activitiu •nd Oovern8nc¢ costs are costs illcurred on the clwitys edUloaL op¢r4tions, in¢ludin8 SllPPOrt ond c(ts relating kn the 8oveTnaDC¢ of the ¢lwity apportiotted to ¢b8ritable activiti¢s. l.S FInan¢1 Instruments Th¢ Charity only has financial assets and fits¢111 liabilities of a kind that qualtfy as b8sic financial instnunenL4. Basic financial iLqlnllnents ve initially rwnised 81 tranwlion ylle and 8ubwenily me&8ured at their 8ettl¢meDt value with th¢ ¢xc¢ption of bonk loans vkni¢h ar¢ Subsequently at amortised ¢0gt usin8 the effedive inteRst meth(. 1.6 Fund *ccoyntthq General fijnds ore unrestricted funds which are available for use at the discr¢tion of the Tru$tK¥ in rther8n¢e of the general obje¢tives.of th¢ Charity and wthi¢h have not been desig0atl foT other purpos¢s Restricted funds are fid8 wbich are to be used ID a¢¢ordaorK with spxifi¢ r¢6trictions imposed by donors or which hav¢ bee raised by the charity for particular Puose& The costs of raising and admirtTst¢rin8 8u¢h fund are chat8¢d against the 8pecific fund. The Aim and use of each r¢stri¢l¢d fillKI 1$ set out in th¢ notes to the financial stsiements. 1.7 Judg¢ments In applylDE Wldes 4Dd key of estlmAtIoD un¢¢rtalnty Estimitcs and judgements are continually evaluated ond are based s)n historical exp¢rieftce and other f4¢10r8. including expectstions of fjjlltre events that are believed to be regsonable under the ¢1Umstances. Page 18
{A comp*tty limited by guarAntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 I INCOME FROM DONATIONS AND LEGACIES Total funds 2023 funds 2023 funds 2022 2023 tk)n4tionSlFets 8750 8750 20145 2023 2022 Government GTants 8750 12SOO 7645 PaddiD8ton D¢¥¢k)pnt Total 8750 20I4S INVESTMENT INCOME UnreJtrl¢ted Restrl¢ted fundj fuod8 2023 2023 Totsl fuDds 2023 Totsl 2022 Investment income from investhwnt properties 173376 173376 180311 DIRKCT cosrs Gtnerxl Funds Fuods 2023 2022 Staff Q)sts Rent Prof¢ssion41 fe¢thrvi¢e Charyes Loan ititerest RepairB and maintenance Electricity Wages and s&lories 269 120877 3511 8500 40932 1519 64857 269 120877 3511 8500 40952 1519 64857 177 100208 500 9256 15159 1545 65805 241M85 241M85 192650 Page 19
PHASES SOCIAL ENTERPRISE (A eompDy limited by gur4nte¢) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 SUPPORT COSTS GeDer21 Funds Total 2023 Totsl 2022 PTiDttn& postsge and ststionery Telephon¢ 256 1436 4234 2425 256 1436 4234 2425 419 1628 4997 1037 2434 204 WaterlR*tes Other cjwitoble cxp¢nse4 129 1283 4160 76 1735 15734 129 1283 4160 76 1735 157J4 Travel & SubsistenG¢ IT Cost Credit card charge5 DeprccialioD Subiol¥l 1735 12454 GOVERNANCE COSTS Unrestrlcted fuDd8 201J R¢strl¢¢ed fuod$ 2023 Totsl fid$ 2022 2023 ExamiDeT8 remuneration 3000 3000 7. ANALYSIS OF EXPEI¥DITiJRE BY EXPENDJTURE TYPE Staff ¢osts 1023 Other cwts 2023 Totsl 2023 2022 G¢n¢rnl Funds Exp"tUre on 8ovenwice 64857 191360 30110 256217 3000 20S104 64857 194360 2592J7 208104 NET INCOME(EXPENDITURE) This is g•t¢d after cha8. 2•23 2022 Examin¢rn remuneration. audit 3000 Duriog th¢ year, tso TrusteeA rtteivcd any remuneration (2023-£NIL) During the yeaT, no TTUStecs rtteived any b¢n¢fits in kind (2023.£NIL) DuTiDg the year• no Th15tees received any reimburs¢mtht of expensesl2023.£NiL) P898 20
PHASES SOCIAL EI¥TERPRISE (A comp*lly limited by 8UAfAntee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 9. EXAMINERS REMiINERATION The Indelld¢t Examinees renon amounts to an Indedent Examination fee of £3.000 (2022. £3,OiXI) 10. STAFF COSTS Stsff ¢osts were as follows.. 2023 2022 Wages and salAri¢$ 64857 65805 11. INTEREST PAYABLE 23 2022 On bank k)4ns and overdrafts 8500 9256 12. INVEsfMENT PROPERTY Equipment Free1Id Inveslmont property V•luAdoD As l janu 2023 Additions (website) Depreciation 7904 690000 (1735) Al 31 D¢c¢mber 2023 6169 6900(K) ComprisiD8 Cost 408695 reV8htIOn yuryllus (deficit) 2016 2017 2018 2020 A¢ 31 DeeeAther 2023 230543 (20401) 21163 50C The 2023 valu¥tions were by the Tn¢¢ ott an op¢n mArket value for ¢xisting u8¢ b•Ji8. Page 21
(A company Ilml¢ed by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EI¥DED 31 DECEMBER 2013 13. DEBTORS 202J 2022 Restri¢attd Funds yanl PrepayThettts a&xn*41 iti¢oD 2075 2075 2250 2250 14L CREDfToRS: Anb)wits falling due wltlthi year 2023 2022 Bank lo$ 8Dd ov¢rdr•fts Other uThlilo 15070 16134 31204 15070 16134 31204 Bank I0$ are secuttd by way of a legal mort848e over the lottg temi freehold properties and leuehold PToperty by the company u well a$ 8 fix 8nd tloatiug ¢h8rg¢ oveT C¢rtaill Property and undertaknn8s of the Company. IS. CREDTtORS: thr th•n on¢ ye 2•23 2022 Bank lo5 IS1336 157907 The lo•n5 Includ within the bkn above are rtyayable between periods 5.25 year& The applicable rnte ofinleffst on the lo•ns are betsve 3.0%- 5.6%. I& FINANCIAL INSTRUMENTS 2•23 2022 FitiaDcial w¢ts Mwurl at fair value thTOU8h iD¢OU aDd exp¢nditLwe J26524 208276 Financi liabililies at fwr value thTOU8b income expenditwe 182540 189111 Page 22
PHASES SOCIAL ENTERPRISE (A eompany Ilmited by gllarantee) NOTES TO TBE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECKMBER 2023 17. STATEMENT OF FUNDS B•l•n¢e •t l JaDllary 2023 I JAtsu 2024 IBcome EApendltsre Unrestricted fimds General Fund8- &ll fimds 719J19 726967 182126 J82126 125921n (208104) 642228 642228 STATEMENT OF FUNDS- PRIOR YEAR BlAnee t l January 2022 eat l J*ry 2023 Gal/ Expenditure (Losses) Income Unr¢stri¢tcd funds GeJ)ernl Funds. all fimds 726967 739075 200456 200456 20811M 200612 719319 719319 18. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDSiURENT YEAR UDMtrl¢ted fullds 2023 Investment property EqUipnnI 6901100 6169 128599 (31204> (1SJ336 642228, Creditor5 du¢ within one year credito due in more than one year ANALYSIS OF NET ASSEIS BETWEEN FUND&PRIOR YEAR UnrnJlri¢ted funds 2022 Inveslment property Equipm¢nt Curnt 2$5¢ts Creditors due wi¢htD one y Creditors du¢ in moT¢ than one y 69CrfXIO 7904 210526 (31204) 157907 719319 Poge 23
PHASES SOCIAL ENfERPRISE IA compgoy limlted by gu4rantee) NOTES TO THE FII¥ANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2023 19. RECONclATION OF NET MOVEMENT LN FUNDS TO NET CASFd FLOW FROM 2023 2022 Net (expendibJTeYmcome fot the year (as per Statemettt of FinaDeial Xlivities) (7fA8> Adiusthmi for. Grants. Donations Rents from inveslments ( Increase) Decrease in debtors Jncrease(De¢reJs¢) in CTeditors RevllatiOn. PTQP¢rty 182120 175 200456 (2250) 2724 Net used ID op¢rotiDg activitie8 105479 193282 ZO. ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 2022 Cash in hand Total 126524 126524 208277 208277 21. RELATED PARTY TRANSACTIONS lkning tho yeaT UDd¢r r¢view, thae v4Ut Do related pty tran5action$ WUiTin8 di10$Ure. 22. coiYfROLLING PARTY The ultimate controlling pgrty is the Board of Trustees. Page 24