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2021-08-31-accounts

Company number: 4402061 Charity number: 1094827

Friends First

Report and Financial Statements

Period ended 31 August 2021

FRIENDS FIRST

Financial Statements - 31 August 2021

CONTENTS

Page
Reference and Administrative Details 1
Trustees' Report 2-5
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance Sheet 8
Cash Flow Statement 9
Notes to the Financial Statements 10-15

FRIENDS FIRST

REFERENCE AND ADMINISTRATIVE DETAILS

Friends First is a registered charity (1094827) and a company limited by guarantee (4402061).

Its registered office is:

21/23 Clarendon Villas Hove East Sussex BN3 3RE

The Trustees throughout the period, (unless otherwise shown), and at the date the report is signed were:

S Horne P Jarvis N Jones H Evans (resigned on 20[th] July 2021) J Foreman K Stevens M Sibanda K Ball

Company Secretary

A Waller

The company’s advisors are:

Bankers : National Westminster Bank plc 103 Church Road Hove East Sussex BN3 2BF Independent Examiner: John Thacker FCA DChA Chariot House Limited 44 Grand Parade Brighton BN2 9QA

1

FRIENDS FIRST

TRUSTEES’ ANNUAL REPORT

The trustees present their 20[th] report and the unaudited financial statements for the period ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 10 and 11 and comply with current statutory requirements the Financial Reporting Standard applicable in the U.K. and Republic of Ireland (FRS102) (effective from 1 January 2015), the Memorandum and Articles of Association, and the Statement of Recommended Practice: Accounting and Reporting by Charities 2015.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company was incorporated on 22 March 2002 and was registered as a charity on 28 November 2002. It is governed by its Memorandum and Articles of Association. The company is limited by guarantee and has no share capital.

Friends First is connected with Clarendon Trust Ltd (of 21-23 Clarendon Villas, Hove, East Sussex, BN3 3RE) in that the charities have common trustees and Clarendon Trust Ltd is the sole corporate member of Friends First. The trustees of the company are appointed upon becoming a trustee of Clarendon Trust Ltd. The induction process for trustees involves supplying them with copies of the Memorandum & Articles of Association, recent Accounts and Minutes of trustees’ Meetings. They are also shown the work of Friends First and meet with the senior staff. Trustees meet regularly through the period and all the major decisions of the charity are made by them in consultation with the charity’s managers.

The trustees have recognised the importance of assessing and managing risk associated with the charity’s objectives. The process of identifying risk is ongoing and has been an essential part of the management of the charity. The trustees have implemented systems to ensure ongoing identification, management and documentation of foreseeable risks.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The trustees have had regard to the Charity Commission guidance on public benefit, and paid due regard to it in deciding what activities the charity should undertake. The trustees are satisfied that the ongoing activities which they are involved in means that the charity is continuing to meet the public benefit requirement.

Friends First Trust aims to contribute toward:

Friends First also works with socially minded property investors, enabling Friends First beneficiaries access to secure and affordable accommodation. The accommodation Friends First have available includes: short stay and emergency accommodation, shared housing and lodgings in the local community.

Friends First provides intensive personal support for beneficiaries to assist them in gaining momentum and achieving independent living. Alongside this Friends First recruit, screen, and train volunteer mentors and befrienders to come alongside beneficiaries living in their local communities. The charity also has access to counselling referral and regularly work alongside and signposts to other like-minded agencies in the city.

2

FRIENDS FIRST

Trustees’ Report – continued

ACHIEVEMENTS AND PERFORMANCE FOR THE PUBLIC BENEFIT

Housing

4 individuals and a mother with 2 children continue to take residency across the two properties. Within this, 3 are in full-time employment & 1 undertaking studies in preparation for University.

Following a visit to the Green Pastures Conference the team were re-envisioned for using the houses as places of Christian discipleship. Friends First aims to equip people with lived experience of homelessness to become part of their team and potential support workers of the future. To this end a health and social care training course was offered to one of our residents and the team begun a more intentional discipleship process with a few others. Friends First continues to partner with Green Pastures and draw on their experience. They have a set up a national training centre for residents that have become Christians and want to become support workers and offer pastoral care to others.

Support

Since the Covid 19 outbreak in March 2020, the Friends First team has partnered with the Care Team of Emmanuel Church. Over the course of January - August 2021, Friends First was involved with various projects around the city including:

The Circle

From November 2019, Friends First have actively been involved in the leading and running of the Brighton Churches Night Shelter. In March 2020, all guests on the Night Shelter were moved to a location in Portslade called the Circle. This project ran till March 2021 with two members of the team collectively giving 486 hours to the project from March 2020 - March 2021. Volunteer food delivery hours for the 12 months: 50. In total just over 40 people were helped into more permanent housing due to the longevity and success of the programme.

Foodbanks

In 2021, Emmanuel set up two Foodbanks within our buildings, one at the Clarendon Site and the other at the Villas location. Friends First Team members supported the opening of these two projects and continue to do so, weekly. Having Friends First team members attend these foodbank sessions, offers an instant ability to refer clients who may need support with counselling or work experience.

Charis Counselling

During 2021 Charis Counselling offered affordable professional counselling and creative therapy. Friends First has partnered with Charis Counselling to enable low income clients to access counselling.

3

FRIENDS FIRST

Trustees’ Report – continued

Keys Community Detox

Keys Detox is a National church based detox programme to help people escape from alcohol and drug addiction through integrated medical, spiritual and community support.

Friends First has recently become the Keys hub coordinating support across Brighton & Hove. The team has supported 10 clients engaging with the programme.

FINANCIAL REVIEW

The Statement of Financial Activities on page 7 shows total incoming resources of £90,833. The charitable company has funded a variety of projects and activities, which are in line with its stated objectives. The level of activity for the period was satisfactory. There was a surplus for the period of £8,140. At the end of the period the funds of the charity were in surplus by £36,907. The trustees of Clarendon Trust Ltd have indicated that they will provide ongoing financial support for at least 12 months from the date of this report.

RESERVES POLICY

The trustees have formulated a reserves policy in line with Charity Commission guidance. It is the trustees’ intention to create free reserves sufficient to enable the trust to meet its recurring expenditure for the foreseeable future. At period end unrestricted reserves of £36,907 cover more than three months of current expenditure.

PLANS FOR FUTURE PERIODS

Friends First has established a good relationship with Brighton & Hove City Council, in their homeless prevention area. In light of this relationship, there has been an enhancement of opportunities to work serving our city through projects such as SWEP (Sever Emergency Weather Protocol).

This is a council run initiative which offers emergency accommodation to rough sleepers. In recent weeks, the project has been moved to the Brighton Hotel on Brighton Seafront. It is Friends Frist’s aim that staff members along with volunteers will be able to give some time to this project, either helping set up rooms during the day, provide support to the team, etc.

‘Here for Good’: This is a cross church initiative involving churches that previously organised and ran the Brighton Churches Nightshelter. There was a desire to continue to work in partnership with one another. Following a consultation and listening exercise with agencies in the City working with the homeless Friends First decided to focus on the Housing First scheme and support previously homeless people to settle into new accommodation.

Friends First have also agreed to make use of the St Patricks church hall as a day centre, prayer space and furniture store for those moving into unfurnished flats. Following an inspirational visit to the Wholesome Warehouse in Storrington the Friends First team invited them to help set up a similar model in the heart of the city this next period.

Throughout the course of 2022, Friends First hopes to be able to relaunch its project of helping those long-term unemployed, back into work, thus reducing homelessness. This is something the team hopes to run in tandem with the foodbanks and other supporting organisations.

4

FRIENDS FIRST

Trustees’ Report – continued

Chariot House Limited have been appointed as independent examiners via a resolution at the Annual General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by the trustees on 5[th] April 2022 and signed on their behalf by

Neville Jones Chair of Trustees

21/23 Clarendon Villas Hove East Sussex BN3 3RE

5

INDEPENDENT EXAMINER’S REPORT TO THE SOLE MEMBER OF FRIENDS FIRST

I report to the charity trustees on my examination of the accounts of Friends First for the period ended 31 August 2021.

Responsibilities and basis of report

As the charity trustees of Friends First you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of Friends First’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Thacker FCA DChA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: 5[th] April 2022

6

FRIENDS FIRST

Statement of Financial Activities for the period ended 31 August 2021

Notes
INCOME AND EXPENDITURE ACCOUNT
Incoming resources from generated funds
Voluntary income
2
Activities for generating funds
Incoming resources from charitable activities
4
Total incoming resources
Resources expended
Cost of generating funds
Fundraising and publicity
Charitable activities
Housing & Employment Support
5
Total resources expended
Net movement in funds
Fund balances brought forward at
1 January 2021
Fund balances carried forward at
31 August 2021		 2021
£
64,284
11,517
15,032

90,833

-
82,693

82,693

8,140
28,767

36,907
 2020
£
84,116
3,114
34,266
121,496
-
119,193
119,193
2,303
26,464
28,767

All funds are unrestricted.

The Statement of Financial Activities reflects the results of continuing activities for the period. There were no recognised gains or losses for the period other than those shown on the Statement of Financial Activities.

The notes on pages 10 to 15 form part of these financial statements.

7

Company number: 4402061

FRIENDS FIRST

Balance Sheet at 31 August 2021

Notes
£
CURRENT ASSETS
Debtors
7
470
Cash at bank and in hand
40,988
──────
41,458
CREDITORS - AMOUNTS FALLING
DUE WITHIN ONE PERIOD
8
(4,551)
──────
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES

FUNDS
Unrestricted funds
General fund
9
Designated funds
9
TOTAL FUNDS		 2021
£
£
5,135
27,512
──────
32,647
(3,880)
──────
36,907
─────
36,907


35,452
1,455
─────
36,907
═════		 2020
£
28,767
─────
28,767

27,312
1,455
─────
28,767
═════

The company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the period ended 31 August 2021. The members have not required the company to obtain an audit of its financial statements for the period in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the trustees, signed on their behalf by and authorised for issue on 5[th] April 2022.

Neville Jones Chair of Trustees

The notes on pages 10 to 15 form part of these financial statements.

8

FRIENDS FIRST

Cash Flow Statement for the period ended 31 August 2021

2021 2020
Reconciliation of net movement in funds £
£		 £ £
to net cash flows from operating
activities
Net movement in funds 8,140 2,303
Depreciation - -
Decrease/(increase) in debtors 4,665 (4,769)
Increase/(decrease) in creditors 671 (2,089)
────── ──────
Net cash outflow from operating 13,476 (4,554)
activities
Capital expenditure
Purchase of tangible fixed assets - -
────── ──────
Net cash outflow from capital - -
expenditure
────── ──────
Increase/(decrease) in cash in the period 13,476 (4,554)
══════ ══════
Reconciliation of net cash flow to
movement in net cash funds
Net funds at beginning of the period 27,512 32,066
Change in net funds during the period 13,476 (4,554)
────── ──────
Net funds at end of the period 40,988 27,512
══════ ══════

9

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

1 ACCOUNTING POLICIES

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006. The financial statements have been prepared under the historical cost convention

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. The trustees do not consider that Covid 19 will have a significant impact on the charity for the following reasons:

In light of the above and following a review of our financial position, reserves and future plans, the trustees have confidence the charity will remain a going concern for the foreseeable future.

(a) Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met. The amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Gifts in kind are included at estimated market value.

Any income relating to future periods is deferred.

(b) Resources expended

Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is recognised on an accruals basis and is allocated between cost of generating funds, charitable expenditure, support costs and governance of the charitable company. Overhead and support costs have been allocated to charitable expenditure.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office and governance costs. They are incurred directly in support of expenditure on the objects of the charity.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

10

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

(c) Voluntary assistance

A certain amount of time is expended by volunteers on the charitable company's activities which is donated free of charge. It is not possible to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

(d) Taxation

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax arose in the period.

(e) Pensions

The charitable company contributes to defined contribution pension schemes. The charge to the Statement of Financial Activities for 2021 was £3,571 (2020 - £5,450).

(f) Fund accounting

An explanation of the nature and purpose of each fund is included in the notes to the financial statements. Funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

All funds held are unrestricted funds.

11

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

2 VOLUNTARY INCOME
2021 2020
£
 £
Housing and Employment Support
General Income 64,284 84,116
Donated facilities - -
────── ──────
64,284 84,116
3 GRANTS RECEIVED
During the period the following grants were received:
Garfield Weston £10,000
Derek & Eileen Dodgson Foundation £1,500
4 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES
2021
2020
£
£
Housing and Work Support
Local authority funding 14,806 24,066
Other funding 226 10,266
──────
──────
15,032
 34,266

12

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

5 RESOURCES EXPENDED ON CHARITABLE ACTIVITIES

2021 2020
£ £
Direct Costs:
Direct staff costs 35,768 54,333
Other direct costs 45,042 63,845
_ _
80,810 118,178
Support costs:
Support staff costs - -
Other support costs 1,883 1,015
Depreciation - -
────── ──────
82,693 119,193

Other support costs include independent examiner’s fees of £1,750.

6 TRUSTEES AND STAFF COSTS

No trustees received or waived salary or expenses from the company during the period.

Staff costs

taff costs
2021 2020
£ £
Gross salaries 29,718 44,852
Social security costs 2,479 4,032
Pension costs 3,571 5,449
───── ─────
35,768 54,333

Total paid to key management personnel was £23,190 (2020: £35,532).

The average number of persons employed by the charitable company during the period was as follows:

eriod was as follows:
2021 2020
Number Number
Housing and work support 2 2

No employees had emoluments in excess of £60,000: nil (2020: nil).

13

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

7 DEBTORS
2021 2020
£
 £
Other Debtors 470 5,135
8 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE PERIOD
2021 2020
£
 £
Accruals and deferred income 4,551 3,880
9 UNRESTRICTED FUNDS
Balance at Movement in resources Balance at
1 January 31 August
2021 Incoming Outgoing Transfers 2021
£ £ £ £ £
General fund 27,312 90,833 82,693 - 35,452
Specific Project 1,455 - - - 1,455
fund
───── ────── ────── ────── ─────
28,767
 90,833 82,693
 - 36,907
Balance at Movement in resources Balance at
1 January 31 December
2020 Incoming Outgoing Transfers 2020
£ £ £ £ £
General fund 25,009 121,496 119,193 - 27,312
Specific Project 1,455 - - - 1,455
fund
───── ────── ────── ────── ─────
26,464
 121,496 119,193
 - 28,767

The designated fund was established to specifically develop Social Enterprise initiatives.

14

FRIENDS FIRST

Notes to the Financial Statements for the period ended 31 August 2021

10 CONNECTED CHARITY

The charitable company is connected with Clarendon Trust Limited (of 21-23 Clarendon Villas, Hove, East Sussex, BN3 3RE) in that the charities have common trustees and Clarendon Trust Ltd is the sole corporate member of Friends First.

11 CHARITABLE COMPANY STATUS

The charitable company does not have a share capital and the liabilities of its sole member are limited to the guarantee of up to a maximum of £10.

12 RELATED PARTY TRANSACTIONS

There were no related party transactions during the period.

15