## **Free The Way**
**Charity No. 1107435**
**Company No. 05024637**
**Trustees' Report and Unaudited Accounts**
**31 March 2025**
**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|15|
|Detailed Statement of Financial Activities|16 to|17|
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 2025.
## **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
## **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 2025
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 2025.
## **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 2025
Page 4
**Free The Way Statement of Financial Activities**
## **for the year ended 31 March 2025**
|**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**
**2025**
**£**
1,255
60,099
6
291,768|**Restricted**
**funds**
**2025**
**£**
-
-
-
40,474|**Total funds**
**2025**
**£**
1,255
60,099
6
332,242|**Total funds**
**2024**
**£**
1,070
35,125
6
325,347|
|---|---|---|---|---|
||353,128
326,624|40,474
20,937|393,602
347,561|361,548
348,905|
||326,624
-|20,937
-|347,561
-|348,905
-|
||26,504
-|19,537
-|46,041
-|12,643
-|
||26,504|19,537|46,041|12,643|
||26,504
95,410|19,537
-|46,041
95,410|12,643
82,767|
||121,914|19,537|141,451|95,410|
Page 5
**Free The Way Summary Income and Expenditure Account**
## **for the year ended 31 March 2025**
|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**|**2025**
**£**
393,596
6
393,602
331,508
16,053
347,561
46,041
46,041|**2024**
**£**
361,542
6|
|---|---|---|
|||361,548|
|||336,344
12,561|
|||348,905|
|||12,643|
|||12,643|
Page 6
**Free The Way Balance Sheet**
## **at 31 March 2025**
|**Company No.**
**05024637**
**Notes**
**2025**
**£**
**Fixed assets**
Tangible assets
11
75,723
75,723
**Current assets**
Cash at bank and in hand
51,860
51,860
**Creditors:**Amount falling due within one year
12
13,868
**Net current assets**
65,728
**Total assets less current liabilities**
141,451
**Net assets excluding pension asset or liability**
141,451
**Total net assets**
141,451
**The funds of the charity**
**Restricted funds**
13
Restricted income funds
19,537
19,537
**Unrestricted funds**
13
General funds
121,914
121,914
**Reserves**
13
**Total funds**
141,451|**2024**
**£**
57,762|
|---|---|
||57,762
41,697|
||41,697
(4,049)|
||37,648
95,410|
||95,410|
||95,410|
||-|
||-
95,410|
||95,410|
||95,410|
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 2025 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 2025
And signed on its behalf by:
C. Darvell Trustee 31 March 2025
Page 7
**Free The Way Statement of Cash flows for the year ended 31 March 2025**
|**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
(Decrease)/Increase 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|**2025**
**£**
46,041
16,053
(332,248)
(17,917)
(288,071)
(34,014)
332,248
298,234
-
10,163
41,697
51,860
51,860
51,860|**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|
Page 8
**Free The Way Notes to the Accounts**
## **for the year ended 31 March 2025**
- 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**
|**Income and endowments from:**
Donations and legacies
Charitable activities
Investments
Other
**Total**
**Expenditure on:**
Other
**Total**
**Net income**
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**
4
**Income from donations and legacies**
5
**Income from charitable activities**|**Unrestricted**
**funds**
**2024**
**£**
1,070
-
6
325,347
326,423
348,905
348,905
(22,482)
46,785
24,303
24,303
71,107
95,410
**Unrestricted**
**£**
1,255
1,255
**Unrestricted**
**£**
1,160
58,939
60,099|**Restricted**
**funds**
**2024**
**£**
-
35,125
-
-
35,125
-
-
35,125
(46,785)
(11,660)
(11,660)
11,660
-
**Total**
**2025**
**£**
1,255
1,255
**Total**
**2025**
**£**
1,160
58,939
60,099|**Total funds**
**2024**
**£**
1,070
35,125
6
325,347|
|---|---|---|---|
||||361,548
348,905|
||||348,905|
||||12,643
-|
||||12,643|
||||12,643
82,767|
||||95,410|
||||**Total**
**2024**
**£**
1,070|
||||1,070|
||||**Total**
**2024**
**£**
-
35,125|
||||35,125|
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|**Unrestricted**
**£**
291,768
291,768|**Unrestricted**
**£**
6
6
**Restricted**
**£**
40,474
40,474|**Total**
**2025**
**£**
6
6
**Total**
**2025**
**£**
332,242
332,242|**Total**
**2024**
**£**
6|
|---|---|---|---|---|
|||||6|
|||||**Total**
**2024**
**£**
325,347|
|||||325,347|
||||||
||**Unrestricted**
**£**
94,455
12,301
162,359
16,053
24,383
17,073
326,624
of £60,000.|**Restricted**
**£**
-
-
-
-
20,937
-
20,937
**2025**
**£**
16,053
**2025**
70,280
70,280|**Total**
**2025**
**£**
94,455
12,301
162,359
16,053
45,320
17,073
347,561|**Total**
**2024**
**£**
117,728
10,275
165,575
12,561
32,024
10,742|
|||||348,905|
|||||**2024**
**£**
12,561
**2024**
89,768|
|||||89,768|
||||||
Page 13
**Free The Way Notes to the Accounts**
## 11 **Tangible fixed assets**
|**Cost or revaluation**
At 1 April 2024
Additions
At 31 March 2025
**Depreciation and**
**impairment**
At 1 April 2024
Depreciation charge for the
year
At 31 March 2025
**Net book values**
At 31 March 2025
At 31 March 2024
12 **Creditors:**
amounts falling due within one year
Other taxes and social security
Accruals
13 **Movement in funds**
**Restricted funds:**
**Restricted income funds:**
_Total_
**Unrestricted funds:**
**General funds**
**Total funds**|**At 1 April**
**2024**
-
-
95,410
95,410|**2025**
**£**
(17,900)
4,032
(13,868)
**Incoming**
**resources**
**(including**
**other**
**gains/losses**
**)**
**£**
40,474
40,474
353,128
393,602|**£**
126,513
34,014
160,527
68,751
16,053
84,804
75,723
57,762
**Resources**
**expended**
**£**
(20,937)
(20,937)
(326,624)
(347,561)|**£**
126,513
34,014|
|---|---|---|---|---|
|||||160,527|
|||||68,751
16,053|
|||||84,804|
|||||75,723|
|||||57,762|
|||||**2024**
**£**
1,500
2,549|
|||||4,049|
|||||**At 31**
**March**
**2025**
**£**
19,537|
|||||19,537|
|||||121,914|
|||||141,451|
Page 14
**Free The Way Notes to the Accounts**
## 14 **Analysis of net assets between funds**
|14 **Analysis of net assets between funds**||||
|---|---|---|---|
|Fixed assets
Net current assets
15 **Reconciliation of net debt**
Cash and cash equivalents
Net debt|**Unrestricted**
**funds**
**£**
75,723
46,191
121,914
**At 1 April**
**2024**
**£**|**Restricted**
**funds**
**£**
-
19,537
19,537
**Cash flows**
**£**|**Total**
**£**
75,723
65,728|
||||141,451|
||||**At 31**
**March**
**2025**
**£**|
||41,697|10,163|51,860|
||41,697
41,697|10,163
10,163|51,860|
||||51,860|
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 2025**
|**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**
**2025**
**£**
1,255
1,255
1,160
58,939
60,099
6
6
291,768
291,768
353,128
70,280
24,175
94,455
12,301
12,301
119,715
19,881
10,518
9,827
2,418
162,359
16,053
670
2,034
1,876
396|**Restricted**
**funds**
**2025**
**£**
-
-
-
-
-
-
-
40,474
40,474
40,474
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total funds**
**2025**
**£**
1,255
1,255
1,160
58,939
60,099
6
6
332,242
332,242
393,602
70,280
24,175
94,455
12,301
12,301
119,715
19,881
10,518
9,827
2,418
162,359
16,053
670
2,034
1,876
396|**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|
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**
**Net income before other**
**gains/(losses)**
Other Gains
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|460
758
12,856
5,333
40,436
1,740
14,611
722
17,073
326,624
326,624
-
26,504
26,504
-
26,504
95,410
121,914|-
-
20,937
-
20,937
-
-
-
-
20,937
20,937
-
19,537
19,537
-
19,537
-
19,537|460
758
33,793
5,333
61,373
1,740
14,611
722
17,073
347,561
347,561
-
46,041
46,041
-
46,041
95,410
141,451|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|
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