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2022-03-31-accounts

COMPANY REGISTRATION NUMBER 5024637

FREE THE WAY

COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

31 MARCH 2022

Charity Number 1107435

BREWSTER & CO.

Chartered Accountants 5a Station Terrace East Boldon Tyne & Wear NE36 0LJ

FREE THE WAY COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

CONTENTS PAGES
Trustees Annual Report 1-5
Independent examiner's report to the members 6
Statement of financial activities (incorporating the
income and expenditure account) 7
Balance sheet 8
Notes to the financial statements 9-13

FREE THE WAY COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

The trustees, who are also directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Free The Way Charity registration number 1107435 Company registration number 5024637 37 Church Street Seaham Co. Durham SR7 7EJ Registered office 37 Church Street Seaham Co Durham SR7 7EJ

THE TRUSTEES

The trustees who served the charity during the period were as follows:

L Anderson C Darvell A Elliwell T Welch P Scholes

Secretary Mrs. S.J. Robb

Bankers

Unity trust

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Free The Way Ltd, a registered charity, is a company limited by guarantee governed by its Memorandum and Articles of Association. Anyone over the age of 18 can become a member of the company and there are currently seven members, each of whom agree to contribute £1 in the event of the charity winding up.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

Appointment of Trustees

The chair of trustees (management committee). The qualification of a management committee member is that he or she is a member of the company. Members of the management committee are appointed in accordance with the Articles of Association.

The management committee may at any time co-opt any four persons to the management committee whether not they are members of the company, provided that the maximum number of sixteen is not exceeded and that no more than four such co-options shall be made between one annual general meeting and the next. All persons so co-opted shall retire at the next annual general meeting following their co-option but shall be eligible to be reappointed thereafter.

Trustee Induction and Training

New trustees undergo training to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the management committee and decision making process, the business plan and recent financial performance of the charity.

The trustees have all undergone training in specialist areas in order to provide a more professional service including drug awareness, health and safety, child protection, food and hygiene, counselling skills and community enterprise management together with engaging skills and confidentiality.

Organisation

Free The Way Ltd is administered by its Board of Trustees (management committee) who meet monthly. The day to day operations are managed by the centre manager who directs the assistants and volunteers.

To facilitate effective operations, the centre manager has delegated authority, within the terms of delegation approved by the management committee, for operational matters including finance, employment and centre activities.

The management committee may delegate any of their powers to sub-committees consisting of such members of their body and/or the company as they think fit. Any sub-committees so formed shall conform to any regulations imposed on it by the management committee.

Risk Management

The trustees have a risk management strategy which comprises:

. an annual review of the risks the charity may face;

. the establishment of systems and procedures to mitigate those risks identified in the plan; and

. the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

OBJECTIVES AND ACTIVITIES

The objectives for which Free The Way was established are:

(a) For the benefits of the residents of Seaham and surrounding areas in Co Durham, the provision of support, advice and information to families and carers of people with drug, alcohol and gambling addiction without distinction of gender, sexuality, race, disability, political, religious or other opinions, by working in partnership with such people and their community, to identify their needs.

(b) Advance facilities in a common effort to provide facilities in the interest of social welfare, education and leisure time occupation, with the object of improving the quality of life for the people of Seaham and surrounding areas of Co Durham.

(c) To engage in any business, trade or industry this may seem to the company directly or indirectly conductive to the interests or convenience of the company’s area of activity generally.

The main objectives for the period continue to be a local initiative providing care, counselling and support to the addictive community and their families. We aim to help people achieve and maintain total abstinence from drug / alcohol use with our supported accommodation programme. The strategies employed to achieve the charity’s objectives are:

• Supported Accommodation facility providing a safe place to live, stability and support to help clients in their journey towards recovery and independent living.

• A help and information service for substance and alcohol users and their families so they can access up to date information on the variety of services available to them.

ACHIEVEMENTS, PERFORMANCE AND PLANS FOR FUTURE PERIODS

Currently

Currently HB payment (Monthly)

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

Our accounts are in a stable state, we saw an increase in 2021 due to Covid and extra funds being released. However, we anticipate a lower turnover in 2022 as this support made available drops off. However, our accounts are still healthy with a prudent reserve in place to ensure operating. However, we do not have the masses of reserves and need funding to help reach maximum potential.

With funding we could either

Currently we have a backlog of people wanting to be admitted into the project but cannot grow without the above in place to support greater numbers.

FINANCIAL REVIEW

The principal funding during the year were grants from a variety of sources.

Investment powers and policy

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish.

The trustees, having regard to the liquidity requirements of operating the charity and to the reserves policy have operated a policy of keeping available funds in an interest bearing deposit account and seek to achieve a rate of deposit interest which matches or exceeds inflation.

Reserves Policy

The general reserve, which represents an accumulation of accounting surpluses out of unrestricted income, is available to enable the charity to fulfil its objectives, to meet existing commitments and to provide funds for tangible asset replacement and project development. The agreed policy of the board of trustees is to provide a reasonable working capital base of between six and twelve months unrestricted income to enable Free The Way to fulfil its objectives and meet its contingent responsibilities.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also the directors of Free the Way for the purposes of company law) are responsible for preparing the Trustees Annual 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT EXAMINER

Charles Brewster BA (Hons) FCA has been re-appointed as independent examiner for the ensuing year.

Registered office: 37 Church Street Seaham Co Durham SR7 7EJ

Signed on behalf of the trustees

Director and Trustee 9[th] July 2022

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF FREE

THE WAY (continued)

YEAR ENDED 31 MARCH 2022

I report on the accounts of the charitable company for the year ended 31 March 2022, which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.

Respective responsibilities of trustees and examiner

The Trustees, who are also directors for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charitable company and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that, in any material respect, the requirements:

have not been met, or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Charles Brewster BA (Hons) FCA Independent examiner

5a Station Terrace East Boldon Tyne & Wear NE36 0LJ

9[th] July 2022

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2022

Total Funds Total Funds
2022 2021
Note
£
£
INCOMING RESOURCES
Incoming resources from generating funds:
Voluntary income 2 346,701 370,454
Investment income 3 - -
----------------------------------------------- ------------------------------------------------
TOTAL INCOMING RESOURCES 346,701 370,454
--------------------------------------------- ---------------------------------------------
RESOURCES EXPENDED
Charitable activities 4/5 (344,780) (327,514)
Governance costs 6 (10,002) (6,403)
--------------------------------------------------- ---------------------------------------------------
TOTAL RESOURCES EXPENDED (354,782) (333,917)
--------------------------------------------------- ---------------------------------------------------
NET (OUTGOING)/INCOMING RESOURCES FOR THE YEAR/NET
(EXPENDITURE)/INCOME FOR THE YEAR 7 (8,081) 36,537
RECONCILIATION OF FUNDS
Total funds brought forward 76,741 40,204
------------------------------------- ----------------------------------------
TOTAL FUNDS CARRIED FORWARD 68,660 76,741
============================ ===========================

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The notes on pages 9 to 13 form part of these financial statements.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

BALANCE SHEET (continued)

BALANCE SHEET(continued) BALANCE SHEET(continued)
31 MARCH 2022
2022 2021
Note £ £
FIXED ASSETS
Tangible assets 9 39,729 13,227
CURRENT ASSETS
Debtors 10 - -
Cash at bank and in hand 32,939 66,714
------------------------------- -------------------------------
32,939 66,714
CREDITORS: Amounts falling due within one year 11 (4,008) (3,200)
------------------------------- -------------------------------
NET CURRENT (LIABILITIES)/ASSETS 28,931 63,514
-------------------------------- -------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 68,660 76,741
CREDITORS: Amounts falling due after more than
one year 12 -
-------------------------------------- -----------------------------------------
NET ASSETS 68,660 76,741
============================ ===========================
FUNDS
Restricted Funds
14 7,493 20,866
Unrestricted income funds 13 61,167 55,875
---------------------------------------- -------------------------------------
TOTAL FUNDS 68,660 76,741
============================= ===========================

The trustees are satisfied that the charity is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476(1) of the Act.

The trustees acknowledge their responsibilities for:

These financial statements were approved by the members of the committee on the 9[th] July 2022 and are signed on their behalf by:

Carl Darvell

Company Registration Number: 5024637

The notes on pages 9 to 13 form part of these financial statements.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in March 2005 (SORP 2005) and the Companies Act 2006.

Cash flow statement

The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the charity is small.

Resources expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises that result in payment being unavoidable.

Fixed assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Fixtures & Fittings - 10% straight line Motor Vehicles - 25% reducing balance

Incoming resources

Investment income is recognised on a receivable basis.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific conditions is recognised as earned (as the related goods or services provided). Grant Income included in this category provides funding to support centre activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

Funds structure

The trust has a number of restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose.

All other funds are restricted income funds.

Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability in the event of winding up is limited to £1.

2. VOLUNTARY INCOME

2. VOLUNTARY INCOME
Restricted Unrestricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £
Fees 4,000 4,000 -
Other 264,181 264,181 243,565
JRS 9,051 9,051 29,801
Grant for Business 10,000
Donations
General donations 2,321 2,321 1,300
Grants receivable
Durham County Council 14,500 14,500
Co-op 827 827 907
Lloyds 19,777
Help the Homeless 2,500 2,500
Lottery Fund Grant 29,677 29,677 29,096
Durham Housing Group 3,528
Greggs 40
James Trust 5,000
CDCF 12,949
Balinger 5,644 5,644
Barbour Trust 5,000 5,000
Arnold Clark 1,000 1,000
College 8,000 8,000
The Neighbourly Ltd 400
B & Q 4,800
Others 9,291
------------------------------------------------- ------------------------------------------------------- ----------------------------------------------- ----------------------------------------------
29,677 317,024 346,701 370,454
==================================== ========================================== ================================== ==============================
3. INVESTMENT INCOME
Unrestricted Total Funds Total Funds
Funds 2022 2021
£ £ £
Bank interest receivable - - -
======== ======== ========

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

4. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE

Restricted Unrestricted Unrestricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £
Operation of drop in centre 43,050
311,732 354,782 327,514
===================================== ===================================== ============================= ==============================
5. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE
Restricted Unrestricted Total Funds Total Funds
Funds Funds 2022 2021
£ £ £
Operation of drop in centre 43,050 311,732 354,782 327,514
================================ ======================================= ================================= ================================
6. GOVERNANCE COSTS
Unrestricted Total Funds Total Funds
Funds 2022 2021
£ £ £
Accountancy fees 1,420 1,420 1,330
Interest payable
Depreciation 8,582 8,582 5,073
------------------------------- ------------------------------- ----------------------------
10,002 10,002 6,403
====================== ====================== =====================
7. NET (OUTGOING)/INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
2022 2021
£ £
Depreciation 8,582 5,073
Operating lease costs:
- Other
=================== ================
8. STAFF COSTS AND EMOLUMENTS
Total staff costs were as follows:
2022 2021
£ £
Wages and salaries 137,661 87,918
Social security costs
----------------------------------------- -----------------------------------------
137,661 87,918
============================= ===========================
Particulars of employees:
The average number of employees during the year, calculated on the basis of full-time
equivalents, was as follows:
2022 2021
No
No
5 5

No employee received remuneration of more than £60,000 during the year (2021 - Nil).

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

9. TANGIBLE FIXED ASSETS

Fixtures & Motor
Fittings Vehicles Total
£ £ £
COST
At 1 April 2021 50,735 - 50,735
Additions 35,084 - 35,084
------------------------------------ ------------------------------------- ---------------------------------------
At 31 March 2022 85,819 - 85,819
=========================== ========================= =============================
DEPRECIATION
At 1 April 2021 37,508 37,508
Charge for the year 8,582 8,582
Disposal
--------------------------------------- ------------------------------------- ----------------------------------------
At 31 March 2022 46,090 - 46,090
============================= =========================== ============================
NET BOOK VALUE
At 31 March 2022 39,729 - 39,729
======================= =================== ====================
At 31 March 2021 13,227 - 13,227
======================= ==================== ====================
10. DEBTORS
2022 2021
£ £
Other Debtors - -
===================== ======================
11. CREDITORS: Amounts falling due within one year
2022 2021
£ £
Trade creditors - -
Taxation and social security 2,608 2,000
Hire purchase and finance lease agreements
Accruals 1,400 1,200
---------------------------------------- ------------------------------
4,008 3,200
============================ ====================
12. CREDITORS: Amounts falling due after more than one year
2022 2021
£ £
Hire purchase and finance lease agreements
================ ==============

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FREE THE WAY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

13. UNRESTRICTED INCOME FUNDS

Balance at Incoming Incoming Outgoing Balance at
1 April 2021
resources
resources
31
March 2022
£ £ £ £
General Funds 55,876 317,024 (311,733) 61,167
---------------------------------------- ------------------------------------------------ ------------------------------------------------------ ---------------------------------------
55,876 317,024 (311,733) 61,167
========================= ==========================v======= ================================= ========================
RESTRICTED INCOME FUNDS
Balance at Incoming Outgoing Balance at
1 April 2021
resources
resources
31
March 2022
£ £ £ £
Balinger - - - -
Lottery 9,794 29,677 (31,978) 7,493
Lloyds 11,072 - (11,072) -
------------------------------------ ---------------------------------------- --------------------------------------------- ------------------------------------
20,866 29,677 (43,050) 7,493
========================== ============================ ================================ =========================
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible
Net current
Long term
fixed assets
assets
liabilities Total
£ £ £ £
Unrestricted Income Funds 39,729
21,438
61,167
Restricted -
7,493
7,493
-------------------------------------- -------------------------------------- --------------- --------------------------------------
Total Funds 39,729
28,931
68,660
========================== ========================= ======== ===========================

14. RESTRICTED INCOME FUNDS

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

16. COMPANY LIMITED BY GUARANTEE

The charity is constituted under company law as a company limited by guarantee and does not have any share capital. The number of members is seven. Each member has guaranteed to contribute an amount not exceeding £1 in the event of the company being wound up.

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