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 #247 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$tered Offi¢¢ Unit 7 98 Gold8tone Villas Hove East Sussex BN3 3RU Chlef Ex¢¢utlve O(fieer Mr Glenn HeAtoll A¢¢ountants DNS Accountants 365 South Cwt Road Tclscombe Cliffy East Sussex. BNIO 7HA Bankers Unity Trust Bank PLC Nine Brindley Place Binninghwn BI 2HB Solicitors Griffith Smith Farrington Web LLP 47 Old St¢yne Brighton BNI INW Pa9e 3 PHASES SOCIAL ENTERPRISE IA company Ilmlted by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report logethcr with the fmancial stalenxnts for the period from I January 2023 to 31 December 2023. The Tn￿tee$ confirni that the Annual Report and financial slatemeDts of the company comply witb the curttnt ststytory requirernents. the reqUiren￿nts of the CoMpan￿S 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 {strate￿C 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 deVelop￿d 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 Tn￿lee5 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 'ente￿nSe, 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 y￿r 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 then￿1v¢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 0￿ed 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 rec￿tlY 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 empl￿ent 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 ren￿1n open to the poSsi￿111ty 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 constr￿tion job8 and appr¢nticeships. The idea is to plac¢ both currcnt ond fOrn￿r 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 prO￿e$S this project bowever without success. 'In the meantime we have continued development of Consknction Buddy as a volunteer-led project. During 2023 we r¢r￿ed the scr¢¢tiing process for candidate5 and volunteas have supported a small number of fornier trainees into work placements without char￿8 y fees.. Creen Congtructlon Over the past 12 months we have been looking at our relationship to the green economy. Historically this has been integral to Phases. work anyway bc¢ause renovating an empty property iovolves far lowu C02 cmissions than buildin8 a new property. Historic England Says that mpare41 to refurbishing a Victorian terrace house, a new building of thc same size produces up to 13 times more embodied carbon. Over 2023 we have also been lookiD8 at CaTeer rout¢5 for our trainees into green construction, particularly in retrofitting. We've also been exploriog the possibility of renovating ao empty commercial propety as an EcoHub with a10¢81 authority. PHASES SOCIAL E￿RPRISE IA company Ilmltod by guarant￿ TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 FInane1￿ revlew & GOING CONCERN After makiDg appropriate enquiries. the trustees have a reasoDable cxpectation that the charity bas adequate resour¢¢s to continue in operational existence for the foreseeable future. For thj's reason they continue to adopt the goitig concern basis in preparing the fuwicial statements. Further details regarding the adoptiOD of the going concern basis ¢an be found in the A¢￿UntIng Policies. b. RESERVES POLICY The Tn￿l￿S have reviewcd the reserves policy of Phases. This policy is meant to apply to general expendityre and does not cover contingencies on individual projects. Th¢ Tn￿le¢S conduct an annual review of the level of unrestricted reserves by considering the risks as50ciaied with various income stre￿￿$, 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¢MnpaD￿s tytsl iticome for the year was £182k. Rental in¢orÈK which is at the core of th¢ ￿1￿1 ¢n*￿￿se mod¢l of the clA&ity. was £173k Othcr cbaritsble incoDK ¢ame througb donatioDS. The charitys frethold proW￿leS were noi uplifted ill value during th¢ year. This w&8 after ¢ODsid¢ration of valuatRoD evidence by the Trust¢es. BorrovA The ch￿lty has 8￿ured l¢ndin8 with the Big Issue knvestment of £157k. These were On￿nallY 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 ori￿nallY called, Advoca*s for the Homeless,. On 6 Au8USt 2010, by Special Resoluti￿ the charitable ¢ornpany unaninjowty decided to Lwe usin8 the name 'AdVO￿leY 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 Tn￿CeS 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 ac￿rdance 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 le￿1 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 f￿nCial perforniance of the charity. Tn￿leeS 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 ca￿1ng out this fi￿CtiOll. 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$ttts who rnay also be involved io the appointrneDt of other staff ￿gether with the Chief Executive. The training workshop is manged by an experienced trainin8 coordinator. Individual construction sites, whilst projects are ongoing, are managed by a site project nwMger, in coordination with the training Coordinator. Page 10 (A compgny Ilmtt•d by gu•rnntso) TRUSTEES. REPQRT FOR THE YEAR ENDED 31 DECEMBER 2023 f. RISK MANAGEMENr ¢xist& Th¢y ote r¢sponsible for safe8wdmg the assets of th¢ Charity. taking rcw)nable steps for th¢ prevention 4Dd d¢te¢tiOD of hud and oihry inr8uJ8riiie8 and Pl￿￿1ft8 Yeasotithle thaL' - Th¢ ¢h*ity is operntiDg etTiciendy and eff￿tivelY . Its assets are Saf¢gU￿ded againm unAuthorised use or di$￿SlI . Propv ff￿rds 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 i￿l￿de.. - 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 TTus*es. OrgaDisational risks are r¢vi¢w¢d eacb year by th¢ Board of T￿￿tee9 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 sh*ll also contioue to mon1w4￿Y 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 Co￿8truction 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 ll￿d¢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 $wIAinability ¢entr¢ by Ioc41 groups. Page 11 PHASES SOCIAL ENTERPRISE (A company Ilmlted by guaran1••) TRUSTEES. REPORT TRUSTEES RESPONSIBILITIES STATEMENT Tbe Trustces (who are also directors of Pbases Social EDterprise for the pu￿Se8 of company law) are responsible for preparin8 the TnJst¢es' repKIrt and the Kingdom A¢¢ounting fiDancial stslements ID accordance with applicable law and UDited Standards (UK Generally Accepted AccountiDg Practice). Company law requires the Tn￿tteS to prepare fmaDcial statements for each financial year. Under company law the Tn￿lee$ 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 Tn￿le¢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 AcCo￿ANTs Ea¢h of the petsons who are Th￿tee$ at the time when this Tn￿tee8, 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 sI￿d 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 TRu￿EEs OF PHASES SOCIAL EI¥TERPIUSES {¢be 'ckn•rlty) T re&￿rt to the charity Tntsttts 00 eXamI￿tion 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 2￿8. 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 fi￿1¢￿ 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$w￿lb1e for the prwaration of the Mcwunts in accoTdonc¢ with th¢ rwuirern￿ts of the Compatiies Act 2006 (Ihe 2(M)6 Acfj. Having sati$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¢ Di￿110￿8 ￿'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 cimnens 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 $talements Pago 15 PHASES SOCIAL ENTERPRISE (A ¢4Mnpany Umlt•d by gvavants•) REGisfERED IIIIIABER: I142￿026 ALANCE SHEEY AS AT 31st DECEMBER 20TJ 2022 FIXED ASSETS Inv•$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: arno￿11 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• T*Ath tha provi910￿ applle4ble to o)mpanlo8 $ubje¢l to th8 sm811 rA*mpanlfjs 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 r￿1 requirpd th¥ chaiity to oblalnèd an audit for Ihe year In quostion in a¢￿1d￿n￿ with Sgcllon 476 of thfr Acl. Th• Tw5teos ath1tr•41•dge th•lr re5￿31b611tI¥S foT LxJmptyn9 wFtr* th• rwulr•m•nls oftr• Cornpanleo Ad 2006 wllh rewicl to 8¢14unlln9 ond thè prn￿mIl0n of fln•n¢i•l sl•tornent8. Thé flnonclal $tstements ￿T• opwovod and avthoh50d for by lh• Trys¢ees on ........... ..... 2024 ned on Iheir bghaw, by.. Mr J Mban Mr P Corntal The nDt•s on p•Jes 15 to 25 fom p•rt 01th￿ finan¢lg1 ststements Page 16 PHASES SOCIAL ENTERPIUSE (A ¢OmP•Dy lindted by ￿ar•Otee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES 1.1 B**is of prepra¢lon otlkn*nci#l sts¢ements The finAncio1 ststern￿ have be￿ prepared iti x¢ordan¢e with AccouDtin8 ReN)rting by Chariti¢s.' Stat¢nwit of Re￿MD￿ndtd Practice *pplicable lo charitiu preparing their ocLx)unts in acwrdan¢¢ with the FAttan¢xal Reportiryg Standard appli¢abl¢ iti the UK and Republic of Ireland (FRS 102) {eff¢ctive l Jonuary 2015) {Charities SORP IFRS 102)), the Financial Reporttng SiaDdard applicable in the UK and Republic of ]relADd IFRS 102) and the (knpanies Act 2006. Phases Social Ente￿n8¢ meets the definilion of a public benefit entity underFRS 102. Assets and liabilities are ioitiAUy re￿£￿IS￿ it historical ￿$¢ or traDsaction valu¢ uttless othen¥i8¢ Statcd ID th¢ r¢levan¢ accounting policy. 1.2 C•mpany #tthi The ¢barity is a cOmp￿Y limited by gumte¢. The membern of th¢ compatsy Ire the TnL*S 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 reco￿ls¢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 Tn￿t thAI A di5tyibution will b¢ made. or when a digtribution is rt¢1V￿ fmm the estatr. Rec¢ipt of the le￿y. ID whole or ID pail 1$ only ￿nSidered probabl¢ an an￿1 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 ￿l￿ri• for income rn¢08nition hive not been mel then ihe lepcy 1$ treated &q a cofttiDgenl assets and disclosed if njalerial. Don￿ed 5erYices or facilitie5 are recogoiaed wheD the charity bas wntrol over th¢ Ite￿ any ¢oudition8 as80CiAtal with the dO￿ted 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 Tn￿OeS, 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 re￿Ve￿ble in relatioo to donations rK¢¢v¢d underGift Aid or de¢ds of coveD￿t 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 ￿nstn￿liVe oblig*tion 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]r￿Y 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 Conn￿tIon with athnini$trnlion of the Clwrity and ¢omplian¢¢ with consti1￿10n&I aad Charitable activitiu •nd Oovern8nc¢ costs are costs illcurred on the clwitys edU￿lo￿aL op¢r4tions, in¢ludin8 SllPPOrt ond c(*ts relating kn the 8oveTnaDC¢ of the ¢lwity apportiotted to ¢b8ritable activiti¢s. l.S FInan¢1￿ Instruments Th¢ Charity only has financial assets and fits￿¢111 liabilities of a kind that qualtfy as b8sic financial instnunenL4. Basic financial iLqlnllnents ve initially rwnised 81 tranwlion y￿lle and 8ubwenily me&8ured at their 8ettl¢meDt value with th¢ ¢xc¢ption of bonk loans vkni¢h ar¢ Subsequently at amortised ¢0gt usin8 the effedive inteRst meth(￿. 1.6 Fund *ccoyntthq General fijnds ore unrestricted funds which are available for use at the discr¢tion of the Tru$tK¥ in rther8n¢e of the general obje¢tives.of th¢ Charity and wthi¢h have not been desig0at￿l foT other purpos¢s Restricted funds are fi￿d8 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 Pu￿ose& 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 ¢1￿Umstances. 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)n4tionSlFe￿ts 8750 8750 20145 2023 2022 Government GTants 8750 12SOO 7645 PaddiD8ton D¢¥¢k)pn￿t 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 eomp*Dy limited by gu*r4nte¢) 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 fi￿d$ 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 cha￿￿8. 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 Inde￿lld¢￿t Examinees re￿n￿￿on amounts to an Inde￿dent 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 Free1￿Id 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 reV8h￿tIOn 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 I￿0$ 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 lo￿5 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 Mwur￿l 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 B*lAnee *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 EqUipn￿nI 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$5¢ts Creditors due wi¢htD one y Creditors du¢ in moT¢ than one y 69CrfXIO 7904 210526 (31204) 157907 719319 Poge 23 PHASES SOCIAL ENfERPRISE IA compgoy limlted by gu4rantee) NOTES TO THE FII¥ANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2023 19. RECONc￿lATION OF NET MOVEMENT LN FUNDS TO NET CASFd FLOW FROM 2023 2022 Net (expendibJTeYmcome fot the year (as per Statemettt of FinaDeial Xlivities) (7fA8> Adiusthmi for. Grants. Donations Rents from inveslments ( Increase) Decrease in debtors Jncrease(De¢reJs¢) in CTeditors Rev￿llatiOn. PTQP¢rty 182120 175 200456 (2250) 2724 Net used ID op¢rotiDg activitie8 105479 193282 ZO. ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 2022 Cash in hand Total 126524 126524 208277 208277 21. RELATED PARTY TRANSACTIONS lkning tho yeaT UDd¢r r¢view, thae v4Ut Do related pty tran5action$ WUiTin8 di￿10$Ure. 22. coiYfROLLING PARTY The ultimate controlling pgrty is the Board of Trustees. Page 24