Free The Way
Charity No. 1107435
Company No. 05024637
Trustees' Report and Unaudited Accounts
31 March 2024
Free The Way Contents
| Pages | ||
|---|---|---|
| Trustees' Annual Report | 2 to 3 | |
| Independent Examiner's Report | 4 | |
| Statement of Financial Activities | 5 | |
| Summary Income and Expenditure Account | 6 | |
| Balance Sheet | 7 | |
| Statement of Cash flows | 8 | |
| Notes to the Accounts | 9 to | 14 |
| Detailed Statement of Financial Activities | 15 to | 16 |
Page 1
Free The Way Trustees Annual Report
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2024.
REFERENCE AND ADMINISTRATIVE DETAILS
Company No. 05024637
Charity No. 1107435
Registered Office
37 Church Street Seaham County Durham SR7 7EJ
Directors and Trustees
The Directors of the charitable company are its Trustees for the purposes of charity law.
The following Directors and Trustees served during the year:
L. Anderson
C. Darvell
A. Elliwell
P. Scholes
- T. Welch
==> picture [298 x 86] intentionally omitted <==
Company Secretary
S. Robb
Accountants
Brewster & Co (NE) Ltd 5a Station Terrace East Boldon Tyne & Wear NE36 0LJ
OBJECTIVES AND ACTIVITIES
The purpose of the charity as set out in its governing document is to provide accommodation, support and development programmes to help recovering addicts into independent living.
ACHIEVEMENTS AND PERFORMANCE
Page 2
Free The Way Trustees Annual Report
Free the Way has gone from strength to strength, with 25 new service users being introduced to the intensive housing support and day care element
Free The way has increased the outreach support for those in move on stage. Progressing a further 4 individuals in to move on accommodation. We now 22 individuals in move on houses still accessing support. In September Free the Way acquired and staffed a new incubation house. This house is staffed 24/7 and allows for those new to our service to have intensive supervised support for the first 30 days allowing a concentrated period of observation and support to be issued.
In terms of service user success stories. Free The Way has seen 1 service user secure housing through Believe Housing (durham county council) and a further 10 access the waiting list for social tenancy. 3 service users have re-entered full time employment. With 11 more taking up external volunteering positions across the charitable sector.
One service user is now currently progressing through an 8-week rail maintenance course with a promise of employment at the end. Whilst another has completed the course and is now in full time employment within the rail network maintenance service.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to 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 charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).
Signed on behalf of the board
L. Anderson Trustee 31 March 2024
Page 3
Free The Way Independent Examiners Report
Independent Examiner's Report to the trustees of Free The Way
I report to the charity trustees on my examination of the financial statements of Free The Way for the year ended 31 March 2024.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
As the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in accordance with section 386 of the 2006 Act ; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
C.T.Brewster ICAEW Brewster & Co (NE) Ltd 5a Station Terrace East Boldon Tyne & Wear
NE36 0LJ 31 March 2024
Page 4
Free The Way Statement of Financial Activities
for the year ended 31 March 2024
| Notes Income and endowments from: Donations and legacies 4 Charitable activities 5 Investments 6 Other 7 Total Expenditure on: Other 8 Total Net gains on investments Net income 9 Transfers between funds Net income before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2024 £ 1,070 - 6 325,347 |
Restricted funds 2024 £ - 35,125 - - |
Total funds 2024 £ 1,070 35,125 6 325,347 |
Total funds 2023 £ 2,565 68,092 2 297,719 |
|---|---|---|---|---|
| 326,423 348,905 |
35,125 - |
361,548 348,905 |
368,378 354,271 |
|
| 348,905 - |
- - |
348,905 - |
354,271 - |
|
| (22,482) 46,785 |
35,125 (46,785) |
12,643 - |
14,107 - |
|
| 24,303 | (11,660) | 12,643 | 14,107 | |
| 24,303 71,107 |
(11,660) 11,660 |
12,643 82,767 |
14,107 68,660 |
|
| 95,410 | - | 95,410 | 82,767 |
Page 5
Free The Way Summary Income and Expenditure Account
for the year ended 31 March 2024
| Income Interest and investment income Gross income for the year Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the year Net income before tax for the year Net income for the year |
2024 £ 361,542 6 361,548 336,344 12,561 348,905 12,643 12,643 |
2023 £ 368,376 2 |
|---|---|---|
| 368,378 | ||
| 344,171 10,100 |
||
| 354,271 | ||
| 14,107 | ||
| 14,107 |
Page 6
Free The Way Balance Sheet
at 31 March 2024
| Company No. 05024637 Notes 2024 £ Fixed assets Tangible assets 11 57,762 57,762 Current assets Cash at bank and in hand 41,697 41,697 Creditors:Amount falling due within one year 12 (4,049) Net current assets 37,648 Total assets less current liabilities 95,410 Net assets excluding pension asset or liability 95,410 Total net assets 95,410 The funds of the charity Restricted funds 13 Restricted income funds - - Unrestricted funds 13 General funds 95,410 95,410 Reserves 13 Total funds 95,410 |
2023 £ 44,817 |
|---|---|
| 44,817 39,990 |
|
| 39,990 (2,040) |
|
| 37,950 82,767 |
|
| 82,767 | |
| 82,767 | |
| 11,660 | |
| 11,660 71,107 |
|
| 71,107 | |
| 82,767 |
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 31 March 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 31 March 2024
And signed on its behalf by:
C. Darvell Trustee 31 March 2024
Page 7
Free The Way Statement of Cash flows for the year ended 31 March 2024
| Cash flows from operating activities Net income per Statement of Financial Activities Adjustments for: Depreciation of property, plant and equipment Dividends, interest and rents from investments Increase/(Decrease) in trade and other payables Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Dividends, interest and rents from investments Net cash from investing activities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Components of cash and cash equivalents Cash and bank balances |
2024 £ 12,643 12,561 (325,353) 1,060 (299,089) (25,506) 325,353 299,847 - 758 39,990 40,748 41,697 41,697 |
2023 £ 14,107 10,100 (297,721) (2,168) |
|---|---|---|
| (275,682) (15,188) 297,721 |
||
| 282,533 | ||
| - | ||
| 6,851 | ||
| 32,939 | ||
| 39,790 | ||
| 39,990 | ||
| 39,990 |
Page 8
Free The Way Notes to the Accounts
for the year ended 31 March 2024
- 1 Accounting policies
Basis of preparation
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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
-
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
-
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
-
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
-
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
-
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
-
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 9
Free The Way Notes to the Accounts
Expenditure
-
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
-
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
-
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
-
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
-
Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Freehold investment property
Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.
Stocks
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 10
Free The Way Notes to the Accounts
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.
Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.
All exchange differences are are taken into account in arriving at net income/expenditure.
Leased assets
Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.
Assets held under finance leases are depreciated in the same way as owned assets.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
2 Company status
The company is a private company limited by guarantee and consequently does not have share capital.
Page 11
Free The Way Notes to the Accounts
3 Statement of Financial Activities - prior year
| 3 Statement of Financial Activities - prior year |
|||
|---|---|---|---|
| Income and endowments from: Donations and legacies Charitable activities Investments Other Total Expenditure on: Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 4 Income from donations and legacies 5 Income from charitable activities |
Unrestricted funds 2023 £ 2,565 56,432 2 297,719 356,718 346,778 346,778 9,940 9,940 9,940 61,167 71,107 Unrestricted £ 1,070 1,070 Restricted £ - 35,125 35,125 |
Restricted funds 2023 £ - 11,660 - - 11,660 7,493 7,493 4,167 4,167 4,167 7,493 11,660 Total 2024 £ 1,070 1,070 Total 2024 £ - 35,125 35,125 |
Total funds 2023 £ 2,565 68,092 2 297,719 |
| 368,378 354,271 |
|||
| 354,271 | |||
| 14,107 | |||
| 14,107 | |||
| 14,107 68,660 |
|||
| 82,767 | |||
| Total 2023 £ 2,565 |
|||
| 2,565 | |||
| Total 2023 £ 41,446 26,646 |
|||
| 68,092 |
Page 12
Free The Way Notes to the Accounts
6 Income from investments
| 7 Other income 8 Other expenditure Employee costs Motor and travel costs Premises costs Amortisation, depreciation, impairment, profit/loss on disposal of fixed assets General administrative costs Legal and professional costs 9 Net income before transfers This is stated after charging: Depreciation of owned fixed assets 10 Staff costs Salaries and wages No employee received emoluments in excess of £60,000. |
Unrestricted £ 6 6 Unrestricted £ 325,347 - 325,347 |
Total 2024 £ 6 6 Total 2024 £ 325,347 - 325,347 |
Total 2023 £ 2 |
|---|---|---|---|
| 2 | |||
| Total 2023 £ 296,119 1,600 |
|||
| 297,719 | |||
| Unrestricted £ 117,728 10,275 165,575 12,561 32,024 10,742 348,905 2024 £ 12,561 2024 89,768 89,768 |
Total 2024 £ 117,728 10,275 165,575 12,561 32,024 10,742 348,905 |
Total 2023 £ 132,473 12,627 159,524 10,100 27,007 12,540 |
|
| 354,271 | |||
| 2023 £ 10,100 2023 100,712 |
|||
| 100,712 | |||
Page 13
Free The Way Notes to the Accounts
11 Tangible fixed assets
| Cost or revaluation At 1 April 2023 Additions At 31 March 2024 Depreciation and impairment At 1 April 2023 Depreciation charge for the year At 31 March 2024 Net book values At 31 March 2024 At 31 March 2023 12 Creditors: amounts falling due within one year Other taxes and social security Accruals 13 Movement in funds At 1 April 2023 Restricted funds: Restricted income funds: 11,660 Total 11,660 Unrestricted funds: General funds 71,107 Total funds 82,767 14 Analysis of net assets between funds Fixed assets Net current assets |
Incoming resources (including other gains/losses) £ 35,125 35,125 326,423 361,548 |
2024 £ 1,500 2,549 4,049 Resources expended £ |
£ 101,007 25,506 126,513 56,190 12,561 68,751 57,762 44,817 Gross transfers £ (46,785) (46,785) 46,785 - Unrestricted funds £ 57,762 37,648 95,410 |
£ 101,007 25,506 |
|---|---|---|---|---|
| 126,513 | ||||
| 56,190 12,561 |
||||
| 68,751 | ||||
| 57,762 | ||||
| 44,817 | ||||
| 2023 £ 440 1,600 |
||||
| 2,040 | ||||
| At 31 March 2024 £ - |
||||
| - | ||||
| - (348,905) (348,905) |
||||
| - | ||||
| 95,410 | ||||
| 95,410 | ||||
| Total £ 57,762 37,648 |
||||
| 95,410 |
Page 14
Free The Way Notes to the Accounts
15 Reconciliation of net debt
| Reconciliation of net debt | |||
|---|---|---|---|
| Cash and cash equivalents Net debt |
At 1 April 2023 £ |
Cash flows £ |
At 31 March 2024 £ |
| 39,990 | 1,707 | 41,697 | |
| 39,990 39,990 |
1,707 1,707 |
41,697 | |
| 41,697 |
16 Related party disclosures Controlling party
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 15
Free The Way Detailed Statement of Financial Activities
for the year ended 31 March 2024
| Income and endowments from: Donations and legacies Charitable activities Investments Other Total income and endowments Expenditure on: Employee costs Salaries/wages Temporary staff Motor and travel costs Vehicles - General costs Premises costs Rent Rates Light, heat and power Premises repairs and maintenance Other premises costs General administrative costs, including depreciation and amortisation Depreciation of Bank charges Equipment expensed General insurances Postage and couriers |
Unrestricte d funds 2024 £ 1,070 1,070 - - - 6 6 325,347 - 325,347 326,423 89,768 27,960 117,728 10,275 10,275 130,711 19,805 10,870 1,729 2,460 165,575 12,561 298 840 663 561 |
Restricted funds 2024 £ - - - 35,125 35,125 - - - - - 35,125 - - - - - - - - - - - - - - - - |
Total funds 2024 £ 1,070 1,070 - 35,125 35,125 6 6 325,347 - 325,347 361,548 89,768 27,960 117,728 10,275 10,275 130,711 19,805 10,870 1,729 2,460 165,575 12,561 298 840 663 561 |
Total funds 2023 £ 2,565 |
|---|---|---|---|---|
| 2,565 | ||||
| 41,446 26,646 |
||||
| 68,092 | ||||
| 2 | ||||
| 2 | ||||
| 296,119 1,600 |
||||
| 297,719 | ||||
| 368,378 100,712 31,761 |
||||
| 132,473 | ||||
| 12,627 | ||||
| 12,627 | ||||
| 122,200 13,530 11,383 10,583 1,828 |
||||
| 159,524 | ||||
| 10,100 249 1,098 1,074 142 |
Page 16
Free The Way Detailed Statement of Financial Activities
| Software, IT support and related costs Stationery and printing Sundry expenses Telephone, fax and broadband Legal and professional costs Accountancy and bookkeeping Consultancy fees Other legal and professional costs Total of expenditure of other costs Total expenditure Net gains on investments Net income Transfers between funds Net income before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
390 802 23,632 4,838 44,585 1,751 8,444 547 10,742 348,905 348,905 - (22,482) 46,785 24,303 - 24,303 71,107 95,410 |
- - - - - - - - - - - - 35,125 (46,785) (11,660) - (11,660) 11,660 - |
390 802 23,632 4,838 44,585 1,751 8,444 547 10,742 348,905 348,905 - 12,643 - 12,643 - 12,643 82,767 95,410 |
540 1,197 17,910 4,797 |
|---|---|---|---|---|
| 37,107 | ||||
| 1,660 10,075 805 |
||||
| 12,540 | ||||
| 354,271 | ||||
| 354,271 - |
||||
| 14,107 - |
||||
| 14,107 - |
||||
| 14,107 | ||||
| 68,660 | ||||
| 82,767 |
Page 17