Registered number: 05026647 Charity number: 1102216 FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ishop Fleming
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Advisers Trustees. Report Trustees. Responsibilities Statement Independent Auditors, Report on the Flnanclal Statements Statement of Financial Activities 10 Balance Sheet 11 Statement of Cash Flows 12 Notes to the Flnancial Statements 13-24
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees F S Morton C C Britton D Y Pincott B E Sawyer N J Morgan Company registered number 05026647 Charity registered number 1102216 Registered offlce Leigh Court Day Centre Pill Road Abbots Leigh Bristol BS8 3RA Company secretary R L Burkinshaw Independent auditors Bishop Fleming LLP Chartered Accountants 10 Temple Back Bristol BS16FL Bankers Barclays Bank plc 86 Queens Road Clifton Bristol BS81RB Sollcitors Burges Salmon LLP One Glass Wharf Bristol BS2 OZX Page 1
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustee5 {who are also the directors of the charity for the purpose of the Companies Act) present their annual report together with the audited financial statements of Freeways Trust (the charity) for the year ended 31 March 2024. The Trustees confirm that the Annual Report and financial statements ofthe charity comply with the current statutory requirements, the requirements of the charity's governing document and Accounting and Reporting by Charities: Statement of Recommended practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) {effective 1 January 2019). Since the charity qualifies as small under section 383. the strategic report required of medium and large companies under The Companies Act 2026 (Strategic Report and Directors, Report} Regulations 2013 is not needed. Freeway Trusvs charitable purpose is enshrined in its objects "to promote the education and training {including social and physicall and the care and relief of mentally handicapped persons or persons suffering from mental illness or other disorder of the mind by the establishment or acquisition, maintenance and operation of residential houses and hostels and training centres for such persons" The Trustees ensure that this purpose is carried out for the public benefit by delivering the provision of high quality properties to Freeways {Charity no. 298603 - a charity undertaking to provide direct support to adults with learning disabilities) for use as facilities for residential homes, supported living properties or as day care and therapeutic facilities for people with learning disabilities,. and also directly to adults with leaming disabilities for supported living. The Trustees confirm that they have complied with the duty to have regard to the Charity Commission's general guidance on public benefit, "Charities and Public Benefit.. Structure, Governance and Management Freeways Trust is a company limited by guarantee (Registered no. 50266471 registered in England and Wales and a registered charity (Registered no. 1102216). The company is limited by guarantee having no share capital. In the event of the company being wound up every member undertakes to contribute to the assets of the company up to an amount not exceeding £1. Freeways Trust was established in December 1987 under a deed of Trust as a registered charity. From 1 April 2004. the activities of the charity were incorporated. The governing document is the Memorandum and Articles of Association of the company and members of the Board of Trustees are the Directors of the company. The Trustees have delegated day to day finance management of the charity to the Company Secretary. In addition, the Trustees have appointed a Strategic Estate Manager to lead the preparation and irnplemenlation of an estates strategy and also report on the performance of the Gharity against strategic plans set and agreed by the Trustees. The Trustees meet bi-monthly. During the year, there were no changes to the Trustees appointed to the Freeways Trust Board. New Trustees invited to join the Board are selected on the basis of their experience and skills. Trustees are encouraged to attend appropriate extemal training events where these would facilitate the understanding of their role. A separate charity, Freeways {Charity no. 298603), mainly has common Trustees to Freeways Trust, but is not under common control and both organisations have similar charitable objects. A small number of staff work across both organisations in a shared office space at Leigh Court. All Trustees give of their time freely and none receive remuneration or other benefit for their work with the Charity. Trustees are required to disclose all relevant interests and register them with the Company Secretary and any connection between a Trustee and a related paty of other organisation with which the charity CO- operates is disclosed in the same way as any other contractual relationship with a related paty. Details of Trustee expenditure and related paty transactions are disclosed in note 17 of the financial statements. Page 2
FREEWAYS TRUST {A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Risk Management The Board of Trustees has reviewed during the year an assessment of the risks to which the charity is exposed. Risks are identifi'ed in four key areas as follows: governance, propety management, financial management and external factors. The review looked at the key risks around Freeways Trust's ability to deliver its strategy. The review redUd or removed the risks associated with COVID-19 and also reduced the retained risk relating to the vacancies within the supported living properties following the introduction and implementation of the risk-sharing arrangements beleen the Trust and Freeways. Key Management Personnel remuneration The Trustees consider the Board of Trustees, the Company Secretary and the Strategic Estate Manager to comprise the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to4ay basis. The pay of the Company Secretary and Strategic Estate Manager is reviewed annually and can be increased in accordance with average earnings. In view of the nature of the charity, the Trustees benchmark against pay levels in other charities of a similar size and also take into account sector experience. Activities in the y8ar strategic Estate Programme During 2023-24 work has continued in relation to the proposed re4evelopment of Whites House in Bristol. The Trustees considered the reviewed business case for the capital project, including the recommended contractor for works, and the project was approved in March 2024. Significant work was undertaken in regards to the contractual obligations beeen Freeways Trust and NeOrk Rail and the required BAPA (Basic Asset Protection Agreement) between the organisations was signed by both parties post yearend. At the request of the TrLtstees, further work is being carried out in relation to Trewartha Park in Weston-Super- Mare, including an options review to be prepared by both the Trust and Freeways before final submission to the Freeways Trust Board. Provlslon of care facllities During the year. Freeways Trust continued to lease 7 residential homes, which can accommodate 74 persons. as well as the Head Offi, Day Centre and Hydrotherapy pool to Freeways for its operations in delivering services to adults with learning disabilities. The Trust also leased 8 supported living properties, accommodating up to 41 persons, to individual tenants. All properties are geographically spread over Bristol, North Somerset, South Gloucestershire and Bath & North East Somerset. Repairs and maintenance The Charity is committed to improving the standard of all existing properties and the cyclical repairs and maintenance programme completed a number of planned and reactive Maintenan works during the year. Considerable additional works were needed to ensure that Underhay House met CQC requirements to move the Whites cohort into it ahead of the commencement of the redevelopment project. Freeways Trust continues to provide regular maintenance to 4A The Beach as part of an SLA with the owners of the propetty. Investment Policy The funds available to Freeways Trust are intended for the purchase of new, or improvement to existing properties, so Trustees do not consider it prudent to invest monies on a long-term basis. The policy to invest surplus cash in short-term deposits from one week to up to e1ve months has been followed during the financial year and Treasury deposits made on behalf of the Trust. Reserves Policy The current policy is to continue to build cash reserves in order to finance future development projects which are part of the Strategic Estates Programme. In 2019 the Trustees designated £3,250,000 to fund the Strategic Page 3
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Esiate Programme over the next 7 to 10 years and at 31 March 2024 this fund was £1,702,344 (2023: £1,702,344}. At 31 March 2024, the general resernes were £11,019,321 (2023-. £10,767,466) and restricted reseNes were £519,150 (2023.. £529,020)- The total free reserves, being general reserves not lied up in fixed assets or investment propety, were £1,814,110. The Trustees will continue to review the policy on a regular basis and amend it accordingly dependent on strategic plans and key risks to which the charity is exposed. Plans for 2024-25 and beyond The Charity plans to continue activities in line with its objects and the estate strategy in particular in relation to the deVelOPMent works at Whites House, which it is hoped will complete in late 2025. Existing properties in use will continue to be maintained in-line with the repairs and rna1ntenan programme. A review of the estate strategy will be undertaken in conjunction with Freeways to ensure that the Trusfs plans align with the strategic direction of Freeways. Financlal Revlew A surplus of £225,355 was generated on unrestricted funds in 2023-24 {2022-23'. £234,839). In addition, a deficit of £9,870 was generated on restricted funds in 2023-24 (2022-23.. deficit £9,870) arising from depreciation charged on the asset part-funded by the grant received from NHS England in a previous year. Golng Concern Freeways Trust endeavoured to complete as much of the necessary planned repairs and maintenance work during the year as possible. The impact of the cost of living crisis felt in 2022-23 lessened in 2023-24, although Freeways Trust did experience the impact of rising inflation on the Construction cost pre-tender estimates for both Whites House and Trewartha Park. The Trustees considered the level of reserves held, the cash held in Treasury deposits and the cash-flow of the charity and determined that no significant risk to the long-term viability of Freeways Trust has been identified. Disclosure of information to audltors Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to estsblish that the charitys auditors are aware of that information. Ap rov y order of the members of the board of Trustees and signed on their behalf by.. orton C C Britton Trustee Chair Date.. 25th September 2024 Page 4
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEEI STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also the director5 of the Charity 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). 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP {FRS 102}', make judgements and accounting estimates that are rèasonable and prudent, stste whether applicable UK Accounting Standards IFRS 102} have been followed. subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees a responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements Comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 5
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FREEWAYS TRUST Opinion We have audited the financial statements of Freeways Trust (the 'charitable companv) for the year ended 31 March 2024 which Comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended", have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going conrn basis of accounting in the preparation of the finanGial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least *e1ve months from when the financial ststements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. other Infofmatlon The other information Comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other infomation contained within the Annual Report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial ststements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FREEWAYS TRUST (CONTINUED) Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, Report is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept,. or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going Concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 7
FREEWAYS TRUST IA COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FREEWAYS TRUST (CONTINUED) Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulation5. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We have considered the nature of the sector, control environment and financial performance,. We have considered the SUItS of enquiries with management and trustees in relation to their own identification and assessment of the risk of irregularities within the entity., We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation,, and We have considered the matters discussed among the audit engagement team regarding how and whe fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in latiOn to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAS (UK) we are also required to perform specific procedures to respond lo the risk of management override. We have also obtained understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charity SORP 2019, FRS 102 and the terms and conditions attaching to material grants received by the Charity. In additions, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity's ability to operate or avoid a material penalty. These included data protection regulations, health and safety regulations and employment legislation. Our procedures to respond to the risks identified included the following.. Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements., Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud- Review of board minutes-, Enquiring of management in relation to actual and potential claims and litigations. Perfoming detailed transactional testing in relation to the recognition of revenue, specifically grants, with a particular focus around year-end cut off-, In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments. We also communicated identified laws and regulations and potential fraud risks to all engagement team Page 8
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FREEWAYS TRUST (CONTINUED) members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non<ompliance with laws and regulations, will not be detected by us. The risk increases the further removed Complian with a law or regulation is from the events and transactions reflected in the financial stalements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one off error, as this may involve intentional ¢oncea5ment. forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.o .uklauditorsres onsibilities. This description forms part of our Auditors, Report. Use of our report This report is made solely to the charitsble company's members, as a body, in accordance with Part 4 of the Charities {Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors, 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 Company and its members, as a body. for our audit work, for this report, or for the opinions we have formed. Davld Butler FCA DChA Bishop Fleming LLP Chartered Accountants Statutory Auditors 10 Temple Back Bristol BS16FL Date: 27 November 2024 Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 9
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total fvnds 2023 Note Income from: Charitable activities Other trading activities Investments 1.052,288 30,391 68,938 1.052,288 30,391 68,938 1,007,841 114,922 13,376 Total Income 1,151,617 1,151,617 1,136,139 Expenditure on: Charitable activities 926,262 9.870 936,132 836,170 Total expendlture 926,262 9,870 936,132 836,170 Net Incomel(expenditure) before net galns on investments Net gains on investments 225,355 26,500 {9,870) 215,485 26,500 299,969 Net movement In funds 251.855 (9,8701 241.985 299.969 R8con¢illatlon of funds: Total funds brought forward Net movement in funds 12,469.810 251,855 529,020 (9,8701 12,998.830 241.985 12,698,861 299.969 Total funds Carried forward 12,721,665 519,150 13,240.815 12,998,830 Page 10
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE} REGISTERED NUMBER:05026647 BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Flxed assets Tangible assets Investment property 10 9,322,185 364,000 9,323,623 337,500 9,686,185 9,661,123 Current assets Debtors 12 51,805 3,581,301 70,550 3,349,187 Cash at bank and in hand 3,633,106 3,419,737 Creditors: amounts falling due within one year 13 (78,476 (82,0301 Net current assets 3,554,630 3,337,707 Total net assets 13,240,816 12.998,830 Charity funds Restricted funds Unrestricted funds 14 519,150 529,020 Designated funds General funds 14 14 1,702,344 11,019,321 1.702.344 10.767,466 Total unrestricted funds 14 12,721,665 12.469,810 Total funds 13,240,815 12,998,830 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entstses subject to the small companies regime. ncial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. FSMO Chair C C Britton Trustee Date.. 25th September 2024 The notes on pages 13 to 24 form part of these financial statements. Page11
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 473,356 522.041 Cash flows from investing activities Interest received Purchase of tangible fixed assets 68,938 13,376 (310,180) {285,689) Net cash used in Investing activities (241,2421 1272,3131 Cash flows from financing activities Net cash provided by financing activities Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 232,114 249,728 3,349,187 3,099,459 Cash and cash equivalents at the end of the year 3,581,301 3,349,187 The notes on pages 13 to 24 form part of these financial statements Page 12
FREEWAYS TRUST IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General infomiation Freeways Trust is a private company limited by guarantee, incorporated in England and Wales, with the registered company number 5026647 and the registered charity number 1102216. The charity's regISted office is Leigh Court Day Centre, Pill Road, Abbots Leigh, Bristol, BS8 3RA. Accountlng policies 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepared in accordance with the 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 IFRS 1021 (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} and the Companies Act 2006. Freeways Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 GOING CONCERN The Trustees consider that there are no material uncertainties about Freeway Trust's ability to continue as a going concem based on the ongoing cashflows of the charity. Rental payments continue to be received from both Freeways and for tenants in supported living accommodation. 2.3 INCOME All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 2.4 EXPENDITURE Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support cost5 involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 INTEREST RECEIVABLE Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity- this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Page 13
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.6 TANGIBLE FIXED ASSETS AND DEPRECJATION Tangible fixed assets costing £NIL or more are capitslised and recognised when fvture economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases.. Freehold propety Plant and machinery Motor vehicles 50 years straight line 5-10 years straight line 5 years straight line 2.7 DEBTORS Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.8 CASH AT BANK AND IN HAND Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.9 LIABILITIES AND PROVISIONS Liabilities are recognised when there is an obligation at the Balanc8 Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity antlGipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or seNices it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.10 FINANCIAL INSTRUMENTS The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic fjnanGial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised Gost using the effective interest method. 2.11 PENSIONS The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. Page 14
FREEWAYS TRUST {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.12 FUND ACCOUNTING General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fijnd. Income from charitable a¢tivltles Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 Rentsl income from Freeways Rental income from supported living properties 534,996 517,292 534,996 517,292 509,520 498,321 1,052,288 1,052.288 1,007,841 TOTAL 2023 1,007,841 1,007,841 Income from other tradlng activities Income from fundraislng events Unrestrlcted Restrlcted funds funds 2024 2024 Total funds 2024 Total funds 2023 other income 30,391 30,391 114,922 TOTAL 2023 39,922 75,000 114,922 Page 15
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Investment income Unrestricted funds 2024 Total funds 2024 Total fvnds 2023 Bank interest 68,938 68.938 13,376 TOTAL 2023 13,376 13,376 Analysis of expenditure by activiti88 Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Total funds 2023 Provision of care services 914,616 21,516 936,132 836,170 914,616 21,516 936,132 836,170 TOTAL 2023 821,438 14,732 836,170 Analysls of dlrect costs Total funds 2024 Total funds 2023 staff costs Depreciation Management charge Legal and professional fees Repairs and maintenance Other property expenses Loss on the disposal of fixed assets 121,550 311,618 22,602 73,875 236,859 148.112 118,072 298,954 11,603 41,523 186,875 151,810 12,601 914,616 821,438 Page 16
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure by activities {continued Analysis of support costs Total funds 2024 Total nds 2023 Governance costs 21,518 14,732 Auditors, remuneration 2024 2023 Fees payable to the Charitys auditor for the audit of the Charity's annual accounts 5.250 5,000 Staff costs 2024 2023 Wages and salarie5 Social security costs other pension costs 99,800 18,651 3,099 97,754 17,644 2,674 121,550 118,072 The average number of persons employed by the Charity during the year was as follows.. 2024 No. 2023 No. Administration Maintenance No employee received remuneration amounting to more than £60,000 in either year. The key management personnel compfise the Trustees, the Company Secretary and the Strategic Estates Manager. The total employee benefits of the key management personnel of the charity was £32,288 {2023.' £67,506). Some of these costs are included in the management charge. Page 17
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NILI. During the year ended 31 March 2024, expenses totalling £2,008 were reimbursed Of paid directly to 2 Trustees (2023 - £NIL)- During the year, Trustee indemnity insurance was purchased at a cost of £4,76012023.. £4,760) to cover Trustees, directors and employees. 10. Tangible fixed assets Assets Motor under vehicles construction Freehold property Plant and machlnery Total COST OR VALUATION At 1 April 2023 Additions 13,577,039 310,180 37,200 27,360 36.824 13,678,423 310,180 At 31 March 2024 13,887,219 37,200 27,360 36,824 13,988,603 DEPRECIATION At 1 April 2023 Charge for the year 4,316,688 306,146 37,200 912 5,472 4,354,800 311,618 At 31 March 2024 4,622,834 37,200 6.384 4,666,418 NET BOOK VALUE At 31 March 2024 9,264,385 20,976 36.824 9,322,185 At 31 March 2023 9,260,351 26,448 36,824 9,323.623 There was a depreciation charge of £9,870 to the restricted fund in the year12023'. £9,870) and a net book value at the year end of £444,150 (2023.. £454,020) in relation to charges held by NHS England over a freehold propety. Assets under construction relate to the development works ongoing at Orchard Cottage. The tangible fixed assets are all used to support Freeways Trust activities. Page 18
FREEWAYS TRUST IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Investment property Freehold investment property VALUATION At 1 April 2023 Surplus on revaluation 337,500 26,600 At 31 March 2024 364,000 Investment property relates to land owned at Leigh Court Farm. The fair value of the land is based on an Independent valuation carried out by Nancekivell & Partners in March 2024. 12. Debtors 2024 2023 DUE WITHIN ONE YEAR Other debtors Prepayments and accrued income 3,494 67,056 51,805 51.805 70,550 13. Creditors: Amounts falling due within one year 2024 2023 Trade creditors other taxation and social security Other creditors Accruals and deferred income 36,378 4,271 20,218 17,609 52.517 4,329 16,071 9,113 78,476 82,030 Deferred income for 2024 was £Nil 12023.. £39,664). The amounts deferred at 31 March 2023 will be recognised in the 2023124 financial year. Deferred income relates to rental income reiVed in advance and a contribution towards the cost of adaptations at Orchard Cottage. Page 19
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Statement of funds statement of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Gainsl (Losses) Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Strategic Estate Programme 1,702,344 1,702,344 GENERAL FUNDS General Funds 10,767.466 1,151,617 1926,2621 26,500 11,019,321 TOTAL UNRESTRICTED FUNDS 12,469,810 1,151,617 1926,262) 26,500 12.721,665 RESTRICTED FUNDS NHS Grant Orchard Cottage grant 454,020 75,000 19,870) 444,150 75,000 629.020 (9,870 S19,150 TOTAL OF FUNDS 12,998,830 1,151,617 (936,132) 26.500 13,240,815 Page 20
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Statement of funds (continued) Statement of funds - prior year Balan at 31 March 2023 Balance at 1 April 2022 Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Strategic Estate Programme 1,702,344 1,702,344 GENERAL FUNDS General Funds 10,532,627 1,061,139 (826.3001 10.767,466 TOTAL UNRESTRICTED FUNDS 12,234,971 1,061,139 (826.300} 12,469,810 RESTRICTED FUNDS NHS Grant Orchard Cottage grant 463,890 (9,870} 454,020 75,000 75.000 463,890 75.000 (9,8701 529,020 TOTAL OF FUNDS 12,698,861 1,136,139 {836,1701 12,998.830 Strateglc Estate Programme - The Trustees gave designated funds to implement the programme os estate improvements and replacements planned to take place over the next 7 to 10 years. NHS Grant - a capital grant from NHS England for use in providing supported living accommodation for people with a learning disability. Page 21
FREEWAYS TRUST IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Summary of funds Summary of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Gainsl {Lossesl Income Expenditure Designated funds General funds Restricted funds 1,702,344 10,767,466 529,020 1,702,344 26.500 11,019.321 519,150 1.151,617 {926,262) (9,870) 12,998,830 1,151,617 1936,132) 26,500 13.240,815 Summary of funds - prior year Balance at 31 March 2023 Balance at 1 April 2022 Income Expenditure Designated funds General funds Restricted funds 1,702,344 10,532,627 463,890 1,702,344 {826,300) 10,767,466 (9,870) 529,020 1,061.139 75,000 12,698,861 1,136.139 1836,1701 12,998,830 16. Analysis of net assets between funds Analysls of net assets between funds - current perlod Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Investment propety Current assets Creditors due within one year 8,841,211 364,000 3,594,930 {78,476) 480.974 9,322,185 364,000 3,633,106 (78,476) 38,176 TOTAL 12,721,665 519,150 13.240,815 Page 22
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior period Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 490,844 9,323,623 337,500 3,419,737 (82,030) Tangible fixed assets Investment property Current assets Creditors due within one year 8,832,779 337,500 3,381,561 {82,030} 38,176 12,469,810 529,020 12,998,830 TOTAL 17. R8conciliatlon of net movement in funds to net cash flow from operating activitles 2024 2023 Net income for the period (as per Statement of Financial Activities) 241,985 299,969 ADJUSTMENTS FOR: Depreciation charges Interest retsived Loss on the sale of fixed assets Decreasel(increase) in debtors Decrease in creditors Revaluation of investment propety NET CASH PROVIDED BY OPERATING ACTIVITIES 298,954 (13,376) 12,601 (10,820) (65,287) 311,618 (68,938) 18,745 13.554) (26.500) 473,356 522,041 18. Anatysis of cash and cash equivalents 2024 2023 3.581,301 3,349,187 Cash in hand TOTAL CASH AND CASH EQUIVALENTS 3,581,301 3,349,187 Page 23
FREEWAYS TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. Analysis of changes in net debt At 1 April 2023 Cash flows At 31 March 2024 Cash at bank and in hand 3,349.187 232.114 3,581,301 20. Contlngent liabilities There is a contingent liability in respect of the capital grant of £493,500 from NHS England to provide accommodation for people with learning disabilities. Should Freeways Trust cease to provide this accommodation or an agreed alternative then the grant would be repayable based on the current value of the propety and the original proportion funded be the grant. 21. Related party transactions The majority of the Trustees are also the Trustees of Freeways, a charitable company that provides residential, supported living and day care setvices for persons with learning disabilities. Freeways leases some of the charity's properties and paid £534,99612023: £509,520) to the charity in the year ended 31 March 2024. Freeways Trust paid £2,80112023. £Nil} to Freeways and received £54,756 {2023-. £53.5871 in respect of management Charges during the year. At the year end, Freeways Trust owed £3,171 (2023-. £3,494) to Freeways. This balance is included within creditors (2023.. debtors). Page 24