Company reglstration number: 04012143 Charity registration number: 1094807 The Freedom Community Trust Limited Consolidated Financial Statements 31 March 2025 Smalles Goldie Chartered Accountants Regent's Court Prlncess Street Hull East Yorkshire HU2 8BA
The Freedom Communlty Trust Limited Contents Referen and Administrative Details Trustees, Report 2to6 Independent Auditors, Report 7t010 Consolldated Statement of Financial Activib'es 11 Consolidated Balance Sheet 12 Balance Sheet 13 Consolidated Ststement of Cash Flows 14 Notes to the Flnanclal Statements 15to32
The Freedom Communlty Trust Limited Reference and Administrative Details Trustee8 S J Alltoft J Boyd H C Bridges H Mcconnell R Nomian Rev R P Phillips S Sheppard C A Rickles Socr•tary S Gamett Charlty Reglstratlon Number 1094807 Company Reglstratlon Number 04012143 The charlty Ss Incorporated in England and Wales. The Freedom Centre 97 Preston Road Hull East Yorkshlre HU9 3QB Smalles Goldie Chartered Accountants Regent's Court Princess Street Hull East Yorkshlre HU2 88A Reglstered Offlce Audltor Bankors Virgin Money 214 Holderness Road Hull HU9 2AA Page 1
The Freedom Community Trust Limited Trustees. Report Chair's Statement We are here to improve the quality of life for communities in East Hull. The challenges we face continue to develop around key themes of health, wellbeing and opportunities. We continue to work hard to find solulions lo these challenges. Our focus remains on being a proactive, positive force - bringing people together, creating joyful eXperienS, and celebrating the strength and resilience that exists in abundan in East Hull. While much of our work addresses issues relating to poverty, isolation. and health inequalities, we do so in a way that uplifts and empowers. As always. the Freedom Centre has been at the heart of our delivery. We are deeply graleful to the team for their continued dedication and for developing the skills needed to secure funding from 8 wide range of sources. Their efforts have enabled us to continue delivering vital services and innovative projects. This year, we've seen a wide range of impactful work, including.. Creatlvo and In¢luslv• ¢ommunity event8 from science based activities to animal encounters offering free food for children and vital support for famllies during school holidays, helping to encourage engagement, curiosity, reduce isolation and financial pressure. A vibrant summer programme, including two free family fun days featurlng pettlng zoos and memorable moments like the visit from unicorns. creating lasting memories and bringing joy to children and families. Essentlal support for families, including hygiene packs, sanitary products, sun protection kits, and a free school uniform service, helping to ease financial strain and promote dignity and wellbeing. A wlnter support programme for older residents, offering affordable meals, energy advice, and wami equipment, helping to tackle fuel poverty and social isolation during colder months. Flood preparedness, with free equipment available to help households respond quickly to emergencies, increasing community resilience and safety through collaboration with co-located partners. Fostlve c61ebratlon8, Induding a visit from Father Christmas, free gifts, and personalised letters to children, spreading loy and helping all families feel included during the holiday season. Free publlc WIFI, free SIM cards Iwilh free calls, texts and data) and provision of library and ICT services. helping to bridge the digital divide and support lifelong learning. Continued support for Hull's Poverty Truth Commission, amplifying lived experiences to influence positive change and drive community led solutions. We are grateful to our partners - Hull Cily Council. Tess (Hull) Ltd, Vic Coupland Ltd, MS3 Networks, the Humberside Police and Crime Commissioner, Cranswick Foods plc. the National Lottery Community Fund, Power to Change, and many others - for their continued support. As we look ahead, we know the challenges will evolve. But so will we. We are proud of what we've achieved and remain committed to doing even more for our community. Suo Sheppard - Chair Page 2
The Freedom Community Trust Limited Trustees, Report ACHIEVEMENTS AND PERFORMANCE Our highlights include (but are not limited tol.. Obioctive What we did The relief of poverty and unemployment Conlinued provision of low-cost food via the Freedom Centre Café and Freedom Frésh Food project (Ivilh EMS and Cranswick Food8) Dlslrlbut8d free gym passes, low-cost meals: hyglene and sanllary products. and 8un protection kits. Delivered free community events ond piovlded energy advic8. Supported Hull's Povety Tfuth Commlsslon. The advancemont ol education, lialning. or relralnlng Mainlained Support for &duli èducallon, library setvices. and communlty ICT acce55 to Improve dlgllal and employment skills. The provision of financial asslslance, technlcal asslslance. advlsory and counselling servlces. buslness advlce or consultancy Pfovldéd ongoing SUPPOrt for start-ups and youth enlèfprfse. Offered technlcal and Itnancial guldancè 14) help local businesses and care leaver5 accgss OPPQrtunhles. The provlsion of facillll8s for recreation81 and leisure lime and the oiganisation ol leisuie acknvliies D611ver8d a wide range of famlly-friendly events Includlng fun day5, Craft sessions, and animal encounter5. Supported the Freedom Cenlfe's recreational facilllie5 and social programs. The protection 01 cons8allOn of the envlronment Free flood alleviailon equipment made available (e.9. pumps. absorbent mals). Conllnued program lo convert to low eneTgy usag8 ffittings. Fitted large Solar array on the roof. The holdlng of exhlbltlons, m&ellngs, &lc. Continued Ihe11081ing 4)f exhibrllons. mèellng6, and evenls lo f051er engagement and induslon. The promotlon of public safèly and preventlon ol cdme Completed CCTV upgrades with 8UPPOrt from the Police and Cilme Commlssioner. Malnlalned Strong partnerships wilh police. housiTh9 provlders, and the loc818uihoflty. The promollon of health and heahhy lifestyles Supported health promolion carnpaign8 in partnershlp wlth NHS and local charities. Operaled a Iow-cost communty gym and provided nulrilious meals Ihrough Iho calé, Page 3
The Freedom Community Trust Limited Trustees. Report Flnanclal review The charity's consolidated income for the year ended 31 March 2025 was £1.020.757 (2024: £785,755). The total consolidated oulgoing resources amounted to £1,432,965 (2024.. £1,237,464) resulting in a deficit of £412,208 {2024: £451,709). The charity had consolidated unrestricted reserves of £7,102,931 (2024- £7,520,213) and consolidated restricted reserves of £23.480 <2024: £18,406). Taking into account the nature of the charity's income streams, the trustees are of the view that reserves at these levels are sufficient. Plans for future perlods We anticipate that W8 will continue to see increasing demands for support, rising delivery costs and continued pressure on revenues. However, we will conlinue our commitment to deliver our objectives. We are hopeful that providers in th8 funding market will be retuming to support community priorities. ctive The relief of poverty and unemployment Our lan We will conllnue to work wilh partnars lo Improv8 opportunFlles to access skills and find employmenl. Conllnued partnedng wlth EMS to help reduce hougehold expenditure on utilitl88 and lood, reduclng poverty Continue to partner with PROBE and olhers to support ski118 and 8mployabillty The advancement of educallon, training, or rgtralrling W8 wlll conllnue to work with paflners to improv8 OPPOrtunllies to acce58 skli Is and find employment. Contlnued partnering with EMS to help reduce household expendhure on utllltles and food, reduclng poverty Continue to partner wlth PROBE and othefs lo support skllls and 6mployabillty Page 4
The Freedom Community Trust Limited Trustees. Report Plans for future periods lans We viill continue to work wllh partners lo Improve opportunities to access ski118 and find employment. The provision of flnanclal assistance, lechnical assistance, advisory and counselling services, buslness advice or consuhancy Contlnued partnering with EMS lo help Feduce household expendilure on utlllties and food. reducing poverty Contlnue lo partner wilh PROBE and others lo support ski118 and èmployablllly The pro¥lslon of facilities for recreatlonal and leisure Ilme and Ihe 01ganlsation of leisure activitles Supportlng Ihe work of the Fre@dom C8nlre to deliver recreational facllilles and posilive social 8xperiences Develop exlstlng communlty groups Encourag8 naw communty groups lo form The protection or consepiatlon of the environmenl Worklng iyllh partnérg and otheTS lo explore ways of ensuring the development loward5 SUStaSnabillty of Ihe local environment The holdlng of exhlbltlons, meetings. elc. Supportlng Ihe Freedom Centre lo provlde exceptlonal quality facllllles to Ihe benefit of the wldef communlty The promotlon of publlc satety and prevention of crime We wlll seek conl.inued Improvements In the securlty of Ihe area wothing closely wlth agencles such Ihe police. The promollon of h8allh and healthy lifestyles Supporting or co-ordlnallng health promollng chanties, volunteer gfOUPS, Statutory bodles, and the objective8 ol national ro fammes. Structure, governance and management Nature of governlng document The charity is controlled by its govemlng document, a deed of trust, and constitutes a Ilmited company, limited by guarantee, as defined by the Companies Act 2006. All Irustees have been in appointment throughout the year except for the below.. C A Rickles - appointed 19th March 2025 Page 5
The Freedom Communlty Trust Limited Trustees. Report Statemenl of trustees. responslbilities The trustees (who are also the directors of The Freedom Community Trust Limited for the purposes 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). including FRS 102 "The Financial Reporting Standard applicable in the UK and Republlc of Ireland.. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources. including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to: select sultable accounting policies and apply them consistently; observe the methods and princlples In the Charities SORP; make judgements and estimates that a reasonable and prudent; state whether applicable accounting stsndards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the parent charitable company will continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parenl charitable company and the group and enable them to ensure that th8 financial statements comply with the Companies Act 2006. Th8y are also responsible for safeguarding the assets of the parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularlties. The trustees are responsible for the Maintenan and integrity of the corporate and financial information included on the charitable companls website. Legislalion governing the preparation and dissemination of financial statements may differ from legislation in olher jurisdictions. Disclosure of Informatlon to auditor Each trustee has taken steps that they ought to have taken as a trLJStee in order to make themselves aware of any relevant audil information and to establish that the charity's auditor is aware of that Information. The trustees confimi that there is no relevant information that they know of and of which they know the auditor is unaware. Reappolntment of auditor The auditors, Smalles Goldie, wlll be proposed for re-appointment 8t the forthcoming Annual General Meeting. The annual report was approved by the trustees of the charity on 24 September 2025 and signed on its behalf by: S Sheppard Trustee Page 6
The Freedom Community Trust Limited Independent Auditor's Report to the Members of The Freedom Community Trust Limited Oplnlon We have audited the financial statements of The Freedom Community Trust Limited (the 'charitable parent company,) and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Financial Activities, Consolidated Balan Sheet. Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reportlng framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financlal statements: glve a true and fair view of the stste of the group's and parent charity's affairs as at 31 March 2025 and of its incoming resources and applicatlon of resources. including its income and expenditure, for the year then ended; have been properly prepared in accordance with Unlted Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Ba315 for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those stsndards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. Concluslons relatlng to golng 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 collectlvely, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. other Inforniatlon The trustees are responsible for the other information. The other infomiation comprises the information included in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statement5 does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report. we do not express any fomi of assurance conclusion thereon. Page 7
The Freedom Community Trust Limlted Independent Auditor's Report to the Members of The Freedom Community Trust Llmited In connection with our audit of the financial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otheiSe appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 r8POrt in this regard. Oplnlon on other matter prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the and Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements. and the and Twstees, Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustees, Report. We have nothing to report in respect of the foSlowing matters where the Companies Act 2006 requires us lo report lo you if. in our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us", or the parent charitable company 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 explanatlons we require for our audit. Responslbllitles of trustèès As explained more fully in the Statement of trustees, r8sponsibilities (set out on page 6), tha trustees are responsible for th8 preparation of the financial stalements 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 financlal 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 conrn basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 8
The Freedom Community Trust Limited Independent Auditorfs Report to the Members of The Freedom Community Trust Limited Audltor responslbllltles 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 wtth ISAS (UK) will always detect a material misstatement when it exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen the economic decisions of users taken on the basis of these financial statements. The extenl to which our procedures are capable of detecting irregularitles, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, induding fraud and non-compliance with laws and regulations, was focused on specifi'c laws and regulations which we considered may have a direct material effect on the charity only and consolidated financial slatements or the operations of the charitable company and the group, Including the Companies Act 2006, the Charities Act 2011, data protection, anti-bribery. employment, fundraising regulations, health and safety legislation, health and social care regulations and childcare regulations. An understanding of these laws and regulations and the extent of compliance was obiained through discussion with management and inspecling legal and regulatory correspondence. We assessed the susceptibility of the ch8ritable companls and consolidated financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigale risks of fraud and non-cornpliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: tested joumal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias: and Investigated th8 rationale behind the significant or unusual transactions. In response to the risk of irregularities and non-complianc8 Wlth laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance,. and enquiring of management as to actual and potential litigation and claims. Due to the inherent limitations of the 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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instsnces of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omissions or misrepresentation. Page 9
The Freedom Communlty Trust Limited Independent Audito¢s Report to the Members of The Freedom Community Trust Limited Use of our report This report is made solely to the charltable parent companvs trustees, as a body, In accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's trustees those matters we are required to state to them in an auditorfs report and for no other purpose, To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Luke Taylor Bsc (Honsj, FCA (Senior Statutory Auditor) For and on behalf of Smalles Goldie, Statutory Auditor Regenl's Court Princess Street Hull East Yorkshlre HU2 8BA 24 September 2025 Page 10
The Freedom Communlty Trust Limited Consolidated Statement of Financial Actlvities for the Year Ended 31 March 2025 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restrlctod funds Total 2025 Total 2024 Note Income and Endowments from: Donations and legacies Charitsble activities Trading activitles Investment income Other income 100,000 100,000 149,465 265,707 487,987 17,598 149.465 57,025 225,678 484,563 18,489 265,707 487,987 17,598 Total income 871.292 149.465 1,020,757 785,755 Expendlture on: Raising funds Charitable activities (148,407) 1,140,167 (148,407) 1,284,558 (128,405) 1,109,059) 144,391 Total expenditure Net (expenditure)lincome Net movement in funds 1,288,574 144,391 1,432,965 1,237,464 417,282 5,074 412.208 451,709) (417.282) 5,074 {412,208) (451,709) Reconciliatlon of funds Total funds brought forward 7,520,213 18.406 7,538,619 7,990.328 Total funds carried forward 21 7,102,931 23,480 7,126,411 7.538,619 All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 12. The notes on pages 15 to 32 form an integral part of these financial statements. Page11
The Freedom Community Trust Limited (Registratlon number: 04012143) Consolldated Balance Sheet as at 31 March 2025 2025 2024 Note Fixed assets Tangible assets 13 6,463,190 7,070,852 Currnnt asso18 Stocks Debtors Cash at bank and In h8nd 15 16 1.723 71,090 746,252 1,365 63.801 557,624 622,790 819,065 Credltors: Amount8 falllng du• wlthin one year Net current assets 17 155,844 155,023 663.221 467,767 Net assets 7,126,411 7,538,619 Funds of tho group: Restrlcted income funds Restricted funds 23.480 18,406 Unrestrlcted income funds Unrestricted funds 7,102,931 7,520,213 Total funds 21 7,126,411 7,538.619 The financial statements on pages 11 to 32 were approved by the trustees, and authorised for issue on 24 September 2025 and signed on their behalf by.. S Sheppard Trustee The notes on pages 15 to 32 form an integral part of these financial statements. Page 12
The Freedom Community Trust Limited (Registration number: 04012143) Balance Sheet as at 31 March 2025 2025 2024 Note Fixed assets Tangible assets Investments 13 6,439,903 10 7,050,602 10 6,439,913 7,050,612 Current a88ets Debtors Cash at bank and in hand 16 41,362 621,357 662,719 31.284 474,477 505,761 Credltors: Amounts falllng due wlthln one year Not current assets 17 65.840 73,708 596.879 432,053 Net assets 7,036,792 7,482,665 Funds of th8 charlty: Restrlcted income funds Restricted funds 23,480 18,406 Unrestrlcted Income funds Unrestricted funds 7,013,312 7,464,259 Total funds 21 7,036,792 7,482,665 The financial statements on pages 11 to 32 were approv8d by the trustees, and authorised for Issue on 24 September 2025 and signed on their behalf by: S Sheppa Trustee The notes on page5 15 to 32 form an integral part of these financial statements. Page 13
The Freedom Community Trust Llmited Consolidated Statement of Cash Flows for the Year Ended 31 March 2025 2025 2024 Note Cash flows from operatlng actlvlti•s Net cash expenditure (412.208) (451.709) Adjustments to cash flows from non-cash Items Depreciation Investment income Property management costs Loss on disposal of tangible fixed assets Donated capital 466,770 (487,987) 79,682 50,237 100,000 474,602 {484,563) 68,256 (403.506) (393,414) Worklng capital adjustments (Increase)Idecrease in stocks Increase in debtors Increase in creditors 15 16 17 (358) (7.290) 821 472 (3,691) 47,302 Net cash flows from operating activities 410,333 349,331 Cash flows from Investlng actlvlties Interest receivable and similar income Property management costs Purchase of tangible fixed assets Sale of t8ngible fixed assets Net cash flows from investing activities Net increase in cash and cash equiv81ents 487,987 (79,682) (10.278) 200,934 484,563 (68,256) (10,017) 13 598,961 406,290 188,628 56,959 Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March 557,624 500,665 746,252 557,624 All of the Cash flows are derived from contlnulng operations during the above two periods. The notes on pages 15 to 32 form an integral part of these financial statements. Page 14
The Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 1 Accountlng policiés Statement of complianc6 The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Basls of preparatlon The Freedom Communlty Trusl Limited meets the definition of a public beneflt entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transactlon value unless otherwise stated in the relevant accounting policy notes. Ba81s of consolldatlon The consolidated financial siatements consolidate the financial st8tements of the charity and its subsidiary undertakings drawn up to 31 March 2025. No statement of financial activities Is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made net outgoing resources for the financial year of £445,873 (2024 - net incoming resources £401,732). A subsidiary is an entity controlled by the charity. Control 15 achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus cosls directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilitles recognised is recorded as goodwill. Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the con501idated financial statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identifr'ed separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even rf this results in the non-controlling interests having a deficit balance. Page 15
The Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 Going concern The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any slgnificant areas of uncertainty that affect the carrying value of assets held by the group. Incom• and endowments All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it IS Probable that the income will be received and the amount can be measured reliably. Donatlons and legacles Voluntary Income is recognised once the Charity has been able to establish certainty as to the timing and amount of the income. Glfts In klnd Gifts in kind are recognised in different ways dependent on how they are u8ed by the charity: (i) Those donated for resale produce income when they are sold. They are valued at the amount actually realised. (li) Those donated for onward transmission to beneficiaries are included in the Statement of Financlal Activities as incoming resources and resources expended when they are distributed. They are valued at the amount the charity would have had to pay to acquire them. (iii) Those donated for use by the charity itself are included when recelvable. They are valued at the amount the charity would have had to pay to acquire them. Investment Income Investment income received in respect of the letting of premises is r8cognlsed in the Statement of Financial Activities in the period to which it relates. Expendlture Resources expended are Included in the Statement of Financial Activities on an accruals basls, Inclusive of any value added tax which cannot be recovered. Costs associated with the provision of the premises from which the Charity derives its Investment income are classified as costs of raising funds, whilst all remaining costs, excluding governance costs, are treated as supporting the grant making activities and classified as appropriate. Grants in furtherance of the Charity's objectives are recorded on the basis of the liability arising In the period. Taxatlon The company, as a registered Charity, has obtained exemption from corporation tax. Charitable lax exemptions can therefore be claimed to the extent that income andlor gain are applicable and applied for charitable purposes only. Value added tax is absorbed as part of the operational costs of the company to the ext8nt that it is not able to be recovered under the terms of its registration. Page 16
The Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 Tanglble fixed assets Fixed assets are initially recorded at cost. All land and buildings are classified as mixed motlve investments held for a combination of the finanaal return they generate and the contribution their use by the subsidiary and other parties makes to the investing Chariws own purposes. However the trustees consider it impractical to apportion the properties between tangible fixed assets and investment properties such that all properties are classed as tangible fixed assets. Deprnclatlon and amortlsatlon Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estlmated resldual value. over their expected useful economic life as follows.. Asset class Freehold Buildings Freehold Land Leasehold Buildings Fixtures & Fittings Deproclatlon method and rate Straight line over 25 or 50 years Straight line over the term of the lease Str8ight line over 3 to 5 years Flxed asset Investments Fixed asset investments are included at cost less any provision for permanent diminution in value. Stock Stocks are stated at the lower of cost or estimated selling price less costs to complete and sell. At each reporting date an assessment is made for impaiment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the Statement of Financial Activities. Reversals of impsirmant losses are also recognised in the Statement of Financlal Activities. Trade debtor8 Trade debtors are amounts due from customers for merchandlse sold or servlces performed in the ordinary course of business. Trade debtors are recognised initially at the transaction prlce. Thèy are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there Is objeclive evidence that the charity will not be able to collect all amounts due accordlng to the original terms of the receivables. Cash and Cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 17
The Freedom Community Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2025 Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary ourse of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right. at the end of the reporting period, to defer settlement of the creditor for at leasl twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date. they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. Fund structure Unrestricled income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the group. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Further detail on each restricted funds purpose is at note 20. Operating leasos Leases which do not transfer substantially all the risks and rewards incidental to ownership are classified as operating leases. Income from operatlng leases is recognised in the Statement of Financial Activities on a straight Ilne basis over the lease term. Costs incurred in earning the lease income are recognised as costs of raising funds. Operaling lease expenses are recognlsed as an expense over the lease term on a straight line basis. Penslons and other post retirement obligations The subsidiary undertaking Preston Road Enterprises Limited makes payments to a money purchase pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. Flnanclal Instrumants Classlflcatlon The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Recognition and measurement Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Page 18
The Freedom Community Trust Llmlted Notes to the Financial Statements for the Year Ended 31 March 2025 Employee beneflts The costs of short-term employee benefits are recognised as a liability and an expense. 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 company is demonstrably committed to teminate the employment of an employee or to provide temination benefits. 2 Income from donatlons and lagacies Unrestrlcted funds General Total 2025 Total 2024 Donated assets for use by the group 100,000 100,000 100,000 100,000 3 Income from ¢harltable activlti08 Restrlcted funds Total 2025 Total 2024 Big Lottery - Freedom Fresh Food HERCT Funding Asda - Youth Club Other Donations Morrisons - New Chairs Hull City Council External Lights Groundworks UK - Solar Energy System Groundworks UK- Hygiene for all Groundworks - Ceiling Tiles ESC Lottery - New Gym Equipment Hull City Council 52,248 2,079 2.000 2,000 2,698 4,896 7.897 120,751 2,000 1.200 8,841 1,880 149,465 4.896 7,897 120,751 2,000 1,200 8,841 1.880 149,465 57,025 4 Investmont income Unrestrlcted funds Ganoral Total 2025 Total 2024 Rents and service charges receivable 487,987 487.987 484.563 Page 19
The Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 5 Expendlture on ralslng funds a) Costs of trading activities General funds Restrict•d funds Total 2025 Total 2024 Costs of goods sold 68,725 68,725 68,725 60,149 60,149 68,725 b) Investment management costs Unrastrlctod funds General Restricted funds Total 2025 Total 2024 Property management costs 79,682 79,682 79,682 68,256 79,682 68,256 6 Expenditure on charltable actlvlties Actlvity undartaken dirèctly Actlvlty support Costs 2025 2024 Community services & facilities 440,934 843,624 1,284,558 1,109,059 Page 20
The Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 7 Analy81s of support costs Charltable actlvitles èxpenditure Unrestricted funds General Restrlcted funds Total 2025 Total 2024 Management Finance Information technology Human resources Premises costs Governance cosis Depreciation Loss on disposal of tsngible fixed asset 52,719 51,055 400 73,317 52,719 51,055 400 73.317 134.391 14,735 466.770 38,876 30,988 372 69,174 134,391 14,735 466,770 14,000 474,602 50,237 709,233 50.237 134,391 843.624 628,012 8 Nat Incomingloutgolng resources Net outgoing resources for the year include: 2025 2024 Audit fees Loss on disposal of tangible fixed assets Depreciation of fixed assets 14,735 50,237 466.770 14.000 474,602 9 Trustees remuneratlon and expenses Durlng the year the group made the following transactions with trustees.. 8 Sheppard £300 (2024.. £300) of expenses were relmbursed to S Sheppard during the year. These were for telephone, intemet and other expenses. No trustees, nor any persons connected with them, have received any remuneration from the group during the year. Page 21
The Freedom Communlty Trust Llmlted Notes to the Financial Statements for the Year Ended 31 March 2025 10 Staff costs The aggregate payroll costs were as follows: 2025 2024 Staff costs durlng the year were: Wages and salaries Social security costs Pension costs 409,639 29,515 9,665 390,920 25,692 9,146 448.819 425,758 2025 No 2024 No Average number of employees 18 19 The number of employees whose emoluments fell withln the following bands wa8: 2025 No 2024 £60.001- £70,000 The totsl employee benefits of the key management personnel of the group were £136,155 {2024 - £128,306). Page 22
The Freedom Communlty Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 11 Taxatlon The company is a registered charity and is therefore exempt from taxation. 12 Comparativé Statement of Flnanclal Activity Unrestricted funds Restricted funds Total 2024 Note Income and Endowments from: Charitable activities Tradlng activit188 Investment income Other income 2,698 225,678 484,563 18,489 54,327 57,025 225,678 484.563 18,489 Total income 731,428 54,327 785.755 Expendlture on: Raising funds Charitable activities (128,405) 1,055,532 (128,405) 1,109,059 53.527 Total expenditure 1,183,937 53,527 1,237,464 Net (expenditure)lincome Net movement in funds 452,509 800 451,709 (452,509) 800 (451,709) Reconclllation of funds Total funds brought forward 7,972.722 17,606 7,990,328 Total funds carrled forward 21 7.520,213 18,406 7,538,619 Page 23
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The Freedom Community Trust Llmlted Notes to the Financial Statements for the Year Ended 31 March 2025 14 Fixed asset investments Charity Shares In group undertaklngs and partlclpatlng Intarosts Subsldiary undertakings Total Cost At 1 April 2024 10 10 At 31 March 2025 10 10 Net book value At 31 March 2025 10 10 At 31 March 2024 10 10 Detalls of undertakings Details of the investments in which the charity holds 200/0 or more of the nominal value of any class of share capital are as follows.. Country of Incorporatlon Proportlon of votlng rlghts and shares held 2025 2024 Prlnclpal actlvlty Undertaklng Holdlng Subsldlary undertaklngs Preston Road England and Enterprises Limited Wales Functionlmeeting facilities In the opinion of the directors, the value of the companls investment in its subsidiary undertaking is not less than the amount at which it is stated in the balance sheet. Ordinary 1000 1000/0 2025 2024 Turnover Expenditure 843,526 (780,740) 62,786 779,401 {748,553 30.848 Net profi'U(loss) Reserves 89,629 55,961 Page 26
The Freedom Communlty Trust Limlted Notes to the Financial Statements for the Year Ended 31 March 2025 15 Stock Group Charity 2025 2024 2025 2024 Stocks 1,723 1.365 16 Debtors Group Charity 2025 2024 2025 2024 Trade debtors Other debtors 26,050 45,040 38,777 25,024 17,207 24,155 25,265 6,019 31,284 71,090 63,801 41.362 17 Creditors: amounts falllng due wlthln one year Group Charlty 2025 2024 2025 2024 Trade creditors other taxation and social security Other credltors Accruals and deferred income 48.682 31,776 26,616 16,167 21,417 14,46g 71,276 17,456 15.631 90.160 1.396 15.631 40,514 73,708 14,469 24,755 65,840 155.844 155,023 Page 27
The Freedom Communlty Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 18 Obligations under leasas and hire purchase contracts Operating lease commitments Total future minimum lease payments under non-cancellable operating leases are as follows: Group Charity 2025 2024 2025 2024 Within one year Beeen one and five years After five years 5,655 15,920 209.259 3,672 9,079 211,342 2,083 8,332 209,259 2,083 8,332 211,342 230,834 224,093 219,674 221,757 Minimum lease payments due to the charitsble company and the group under non-cancellable operating leases fall due as follows.. 2025 Group 2024 Group 2025 Charlty 2024 Charlty Within Orie year Beeen one and five years Over five years 221,126 260,747 28,650 224,267 352,147 55,383 631,797 135,322 358,600 18,592 138,462 466.500 45,225 650,187 510,523 512,514 19 Contlngent assets Group During 2005 the subsidiary company successfully defended an employment tribunal case brought by a former employee. The company was awarded costs of £10,197 which the claimant was not immediately able to pay. The amount of costs plus accrued interest at 8 /0 per annum is now secured against the claimant's private residence and will be settled when the property is sold. 20 Contlngent Ilabllltles Group The terms of the subsidiary companys original funding agreement with Government office provide that if fi'xed assets are sold or their ownership transferred while they have any economic value, Government Office must be notified as soon as possible and they may require the proceeds or an appropriate proportion thereof to be repaid. The Village Childcare Centre was in part funded by the National Lottery. In the event that the building is sold 6.6 % of the market value (being the proportion of the original construction cosls funded by the donor) will be repayable to the donor under the terms of the grant. Page 28
The Freedom Community Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2025 21 Funds Group Balance at 1 Aprll 2024 Incoming rnsources Resources expended Balance at 31 March 2025 Unrèstrictéd funds Ganoral Unrestricted 7,520,213 871,292 (1,288,574) 7.102,931 Restrlcted funds Freedom Food Project Hygiene for All Youth Project F8cilities and Infrastructure 18,406 (10,000) 8,406 2,000 2,000 11,074 2,000 2,000 145,465 134,391 Total restrlcted funds 18,406 149,465 144,391 23,480 Total funds 7,538,619 1,020,757 1,432,965 7,126,411 Balance at 1 Aprll 2023 Incomlng resources Resources expended Balance at 31 March 2024 Unre8trlcted funds General Unrestricted 7.972.722 731,428 (1,183,937) 7,520,213 Restrlcted funds Freedom Food Project Stationery Project Total restrfcted funds 17,606 52,248 2,079 (51,448) 2,079 18,406 17,606 54,327 53,527 18,406 Total funds 7,990,328 785,755 1,237,464 7,538.619 Page 29
The Freedom Community Trust Limited Notes to the Flnanclal Statements for the Year Ended 31 March 2025 Charity Balance at 1 April 2024 Incoming resources Resources expended Balance at 31 March 2025 Unrestrlcted funds General Unrestricted 7.464.259 548,577 (999,524) 7,013,312 Restrlcted funds Freedom Food Project Hygiene for All Youth Project Facilities Infrastructure 18,406 (10,000) 8,406 2,000 2.000 11,074 2.000 2,000 145,465 134,391 Total restrlcted funds 18,406 149,465 144,391 23,480 Total funds 7,482,665 698,042 1,143.915 7,036,792 Balance at 1 Aprll 2023 Incomlng resources R•sources expended Balance at 31 March 2024 Unrestrlcted funds General Unrestricted 7,866,791 504.151 (906,683) 7,464,259 Restrlcted funds Freedom Food Project Stationery Project Total restrlcted funds 17,606 52,248 2,079 (51,448) 2.079 18,406 17,606 54.327 53,527 18.406 Total funds 7,884,397 558,478 960,210 7,482.665 Page 30
Tha Freedom Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 22 Analysis of net assets between funds Group Unrestrlcted funds General Total funds Total funds at at 31 March 31 March 2025 2024 Restrlcted funds Tangible fixed assets Current assets Current liabilities 6,463,190 795,585 155,844 6,463.190 819.065 155,844 7,070.852 622.790 155,023 23.480 Total net assets 7.102,931 23,480 7,126,411 7,538,619 Charlty Unrestrlcted funds General Total fund8 Total funds at at 31 March 31 March 2025 2024 Restricted funds Tangible fixed assets Fixed asset investments Current assets Current liabilities 6,439,903 10 639,239 65,840 6,439,903 10 662,719 65,840 7,050,602 10 505.761 73,708 23,480 Total net assets 7,013,312 23,480 7.036.792 7.482,665 Page 31
The Freedom Community Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2025 23 Related party transactions Group The board members named in the directors, report as Resident or Independent Trustees live in the Preston Road neighbourhood. As such they are likely to have derived some benefit from the projects and initiatives undertaken by the company. However apart from the matter noted below the Board is of the opinion that such benefits are unlikely to influence the said members in pursuing the sepsrate interests of the Charity. Accordingly in accordance with paragraph 9.18 SORP 2015 no disclosure is considered necessary. The following related party transactions have occurred: Group Charlty 2025 2024 2025 2024 Environmental & Management Solutions Llmlted Sales Purchases Debtorl(Creditor) 4,058 5,906 8,605 41,679 2,274 4,058 514 8,006 36,595 2,214 Child Dynamlx Llmlted Sales Purchases Debtorl(Creditor) 45,622 45.622 45,622 45,622 7,500 7,500 7,500 7,500 Both entities are related parties due to having common directors. 24 Memberfs Ilablllty The company was incorporated as a company limited by guarantee and therefore has no share capitsl and is also registered as a Charity. The liability of the members is limited on the winding up of the company. Each member is only liable whilst being a member. At the balance sheet date there were 9 members. Page 32