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2021-03-31-accounts

Charity Registration No. 1108714

Company Registration No. 05077777 (England and Wales)

FAITHWORKS WESSEX

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

4 Brackley Close Bournemouth International Airport

Christchurch Dorset BH23 6SE

FAITHWORKS WESSEX

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr B Griffiths Mr C James Rev R Stamp (Appointed 1 June 2020) Mr N Stevens Mrs K Todd (Appointed 1 June 2020) Rev S Yetman

Charity number 1108714 Company number 05077777 Principal address Heron Court Road Winton Bournemouth Dorset BH9 1DE Registered office Heron Court Road Winton Bournemouth Dorset BH9 1DE Independent examiner Harrisons Chartered Accountants 4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

FAITHWORKS WESSEX

CONTENTS

Page
Trustees' report 1 - 11
Independent examiner's report 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 25

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their annual report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "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 2019).

Objectives and activities

Our Aims and objectives

Faithworks Wessex (FWW) is a registered charity working across the conurbation of Poole, Bournemouth, Christchurch and the surrounding area. Over Spring 2021, after the extraordinary Covid year, the Faithworks team ran a Brand Discovery process to refresh all internal stakeholders’ understanding of “our story” and how they told it.

So, this led to a refreshed way of describing the vision and mission that will be developed in 2021-22:

Why we exist: “We believe that no one should be alone on their journey out of crisis”

What we do: Faithworks is a local Christian charity that helps people “on the margins” to escape crisis and build resilience so that they never need go back into crisis. We run practical projects around food, finance, recovery, homelessness and lone parenting in urban Dorset. Our aim is to work with churches and partners to give integrated support to meet people’s immediate needs in crisis (red), to “walk alongside” them as they move away from crisis (amber), and then to help them re-imagine and find new purpose, resilience and hope (green)

How we go about it: 4 key words to describe our approach

As a faith-led organisation, FWW will always seek to act in accordance with our Christian ethos, which includes serving all regardless of their circumstances or beliefs. We are working with many partners, and are particularly successful in inspiring and enabling churches to identify and then meet the needs of their local communities.

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Charitable purposes

The charity’s purposes in the governance documents are:

“The relief of financial hardship, sickness or distress, particularly amongst the elderly, homeless, children and young people in care and those caring for a family member with a physical, mental or sensory disability, by the provision of information, advice and support and to provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need for such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their condition of life in particular through facilitating churches and Christians to work for the benefit of their local communities by addressing such issues of disadvantage, social exclusion and other areas of need for the public benefit in such parts of the United Kingdom as the directors from time to time may think fit.”

How our activities deliver public benefit

This report demonstrates the activities that the charity has provided in the past year, and how those have benefited some of the most vulnerable people in our community, thereby demonstrating the “public benefit” of the charity.

Achievements and performance

Responding to the Covid crisis

In this extraordinary year, people have not just needed practical help, they needed to know that someone was there cheering them on. Faithworks’ teams rolled up their sleeves, took on new safe ways of working, and imaginatively devised new ways of providing Creative Hope. The following sections highlight some of these different approaches:

A. Creative Hope … where food was needed:

Yes, we gave out huge amounts of crisis food not only at our foodbanks, but working with the Council to support the 100’s who came into temporary accommodation. But we wanted to help people become food resilient – so we gave out over 200 one-pot cookers. And we worked with our partners the Friendly Food Club to give out bags containing the exact ingredients to make the included recipe with a video on how to do it: it was so encouraging to see families sharing their joint efforts on social media, and loving the activity at the same time.

In all we gave out over 500 cook bags and recipe in a bag

“I was overwhelmed by the generosity of all that was given to me... my youngest son... just said “wow” when I opened the bag! Usually teenage boys manage a grunt so that was definite confirmation of his gratitude too and I know my eldest will be equally excited, especially when I tell him we can make our own pizza tonight with the recipe kit we have. Thank you again, I really do appreciate it so much and I feel really happy for the first time in a while because a big weight has been lifted.”

B. Creative Hope … where advice was needed:

It’s great to be practical, but we believe that people recover more strongly from crisis when they have people “walking alongside” them rather than being given another phone number to call. Even during the pandemic, our foodbanks have been changing shape, with a whole range of help available right there on-site – “Jimmy’s” opened in the centre of Poole, Blandford FB+ moved to a new multi-purpose centre at the URC church, and Christchurch FB+ is refurbishing this summer. In all cases, one of those extra services is our Community Money Advice (CMA) team – they helped people reduce their debt by over £80k this year; but their budget and debt advice is going to become ever more important.

“I can now happily say that we are completely debt free! If you had asked me a year ago I could never have imagined a way out of the darkness and fear of debt... and now we are free, with hope for the future” (CMA client)

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

C. Creative Hope … when feeling overwhelmed:

Addiction recovery is even harder when you can’t meet up with people or lose your routine. So as lockdown arrived, our FW Recovery team created a whole new Facebook group with events, talks, tips and help 3 times a day every day for the first lockdown. And although it sounds really simple, putting on a regular Recovery walk down on the beach front as soon as lockdown finished, became hugely important for many. With the addition of our Recovery Day each week, and a Recovery Course running in at least one church every week, we are heading towards our goal of purposeful recovery-focused activity every day.

32 people joined our Recovery walks – and nearly 700 followed our Revive Facebook resources

“The Faithworks Recovery project has given me the opportunity to get out the house. It's given me the opportunity to meet new people, new friends, a new lifestyle. It's helped me to regain my self-confidence, selfesteem. It's indescribable actually. It's been massive for me. I've actually managed to break the chain of addiction, it's actually gone that far. It's given me a whole new lifestyle, self-belief, inner peace.” (Darryl – not real name)

D. Creative Hope … when feeling shut-in:

We were so glad that over 400 people during the year were helped into temporary accommodation (TA); but boredom can start to eat away at people’s hope so threatening them remaining there. So the FW Homelessness team pivoted to finding ways to giving purpose to those in this TA: yes, we provided practical help such as a laundry facility, but we also developed Staysafe with a local church as a safe place for friendship, activity and purpose 3 days per week: one day it might be sorting out universal credit for someone just off the street after 6 years, another day it might be cooking together, and then, the group might be putting up the church’s Christmas decorations.

28 individuals stayed off the street by coming to Staysafe; and first 2 tenants into a move-on house

“You guys have been incredible, I don't know where I'd be without you. You put me in the right direction. Thanks to you people I am where I am. I've been blessed!” (Staysafe guest)

E. Creative Hope … when feeling alone:

Imagine what it is like to try to go shopping as a lone parent in the pandemic when we’re supposed to go alone – who looks after your children? These real life challenges led to a 100% increase in the number of families involved with our SMILE project. The on-line closed Facebook community became hugely important in sharing tips and encouragement; volunteers dropping off craft packs gave families things to do together; but the real joy came as lockdown eased and families could go out on little adventures together, knowing that people there understood what it had been like – 3 hours having a go at paddle-boarding kept people resilient for weeks.

“These 3 words are really big for me: Connect, Community, Courage. And they’re all inter-linked with each other. The more you have courage to come out and do things, the more you will connect with people and community” (SMILE project lead)

F. Creative Hope … when it feels your purpose had gone:

Once lockdown ended, we could start to make our dream of helping people into work, a reality. We expanded the opportunities for those in Temporary Accommodation by re-opening the carpentry workshop to make unique wooden products for the on-line Doorstop Shop; we created a “seed team” who learned basic gardening skills while making the gardens of older local people safe; and we backed it all with skills for life training in budgeting, H&S, etc. Meanwhile, a local businessman started to advise Poole Foodbank clients on how to turn their skills into little businesses – what better way to ensure that people never go back to crisis than helping them towards work

2 ex-homeless trainees got into employment; and nearly 40 older people and carers had safer gardens

“I came to know about Faithworks whilst I was a Sleepsafe guest a year or so a go. I then became a trainee on the Seed Team which I love. I go to the Recovery course, Walks and also Recovery Days. I also attend Staysafe. Faithworks has helped me overcome my addictions, has given me the confidence and purpose I needed in life. It has given me a hope for the future and I have met many friends on my journey through Faithworks. This list could go on!" (Trainee)

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Facilitating change through partnerships and influence

Our existing links with BCP Council and other partners led us to play a key role in 2 partnerships that were at the heart of the local area’s response to the pandemic:

We have also continued to support other Christian responses to those potentially in crisis such as the 2 Town Pastor teams in Bournemouth and Poole that have sought to operate as they could through this year.

Internal Response to Coronavirus

The Coronavirus pandemic affected all of Faithworks’ operations from mid-March 2020.

The trustees continued to focus on three specific risks:

A. The health and welfare of staff

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The changes invoked by Covid led the trustees to propose a review of both the way we describe what Faithworks is about and its story, plus also the comms channels that tell that story (especially refreshing the website). Local company Arc by Design were contracted using the strengthening the business Reaching Communities monies to run a Brand Discovery process which reported back in July 2021 – more details in 2021-22 review.

Financial review

Faithworks Wessex as a “Going Concern”

Despite financial challenges across the sector, FWW can demonstrate that it has been, and continues to be, managed in a financially sound way:

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy

As part of its Christian ethos, Faithworks Wessex (FWW) is committed to an openness and integrity with regard to its finances. Therefore, it seeks to ensure that it works within an appropriate level of financial reserves.

"Reserves" is taken to describe that part of a charity's funds that are freely available to fund its general operations and so is not subject to commitments, planned expenditure or other restrictions. Consequently, Reserves do not include endowment funds, restricted funds and designated funds.

In the Trustees’ view, the reserves should provide the charity with cover for redundancy and payment of its contractual requirements should the charity have to be wound up.

The trustees took the decision in 2020-21 to set a target of at least 3 months cover in every project, and to show that in the monthly reporting so that cash flow forecasts include that figure.

The trustees are confident that all projects will hold 3 months cover at the end of the current financial year.

Income & Funding

Total income grew markedly in 2020-21 by 64% to £1.2 million. This came from several areas:

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

We are enormously grateful to many foundations and trusts for their confidence in us in this exceptional year, included the following:

included the following:
The National Lottery Community Fund -
Reaching
Communities
Life Centres programme (yr. 2 of 3)		 £90,371
Dorset Community Foundation Covid
related
including
Foodbanks,
Storehouse white goods
£48,750
The National Lottery Community Fund –
Covid-19
Funding
FW homelessness; SMILE, Recovery, FW
CMA
£34,704
Valentine Community Trust Foodbanks, CMA, SMILE, BFB, FWH
helpline
£32,000
Tudor Trust Core inc. £2k for Staff welfare £27,000
Lloyds Foundation: Invest programme FWH training workshop (yr. 3 of 3) £25,000
Hospital of St Mary Magdalen Trust CFB, Faithworks CMA (C-church) £22,964
All Churches Trust CFB (capital); Storehouse £22,250
Talbot Village Trust CFB (capital) £22,000
RBS/NatWest Storehouse / Training centre £20,000
Co-op Foundation / Southern Coop SMILE, FW Homelessness £17,675
Alice Ellen Cooper Dean Charitable Foundation Storehouse, FWW Recovery £15,000
George Temperance Foundation FWW Recovery, STAR £13,750
Homeless Link (Homelessness Winter Fund) Staysafe £13,000
Incorporated Bournemouth Free Church Council FW Homelessness £10,000
Sovereign Housing CFB+ £9,400
Groundwork (Tesco) £8,416
People’s Health Trust SMILE £8,317
Beatrice Laing Trust FW Homelessness (year 2 of 3) £5,000
MJB Charitable Trust £5,000
Phillimore Trust £5,000

… plus many grants of £5k or less. We are grateful for every one.

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Expenditure

Expenditure this year was £773.7k, an increase of 45% compared to 2019-20.

The main changes in costs this year come from the following areas:

Fundraising costs continue to account for much less than 2% of total costs; equally Governance costs are also low at 4% of total spend.

Ongoing support costs (ie. not including one-off costs such as the moves of Poole and Blandford Foodbanks, and specific repairs to buildings) are constantly reviewed to identify alternatives to minimise spend. Although the core team is stronger, it is not adding significant extra cost. So, support costs at the end of March 2021 are less than 15% of total spend.

Overall

The exceptional giving means that at the end of the year there was a £796k surplus in total; and unrestricted reserves grew by 125% to £153k. However, the trustees recognise

Faithworks’ extraordinarily strong financial performance this year is underpinned by the growing reputation of the charity especially as it has responded to the pandemic; but the trustees also recognise that it also a testimony to God’s grace in the midst of such challenges.

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Risk management

The trustees now receive a risk management report every quarter to give focus to their discussion. Actions have been taken to mitigate risks in specific areas:

In addition, FW continues to mitigate “key person” risks:

Plans for future periods

- Aims for forthcoming year (2021 22)

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The charity is governed in accordance with its trust deed dated 18 March 2004 and amendments 13 January 2005 and 19 March 2008.

Trustee team

Ian Bromilow retired from both being a trustee and chair of trustees in November 2020. We are immensely grateful for his extraordinary wisdom, insight and leadership over the past 5 years, as the charity went through so many changes. We will miss his business acumen, his calm, and his encouragement to the staff as a regular visitor to the office.

The other trustees remained the same: Cliff James (treasurer), Ben Griffiths, Neil Stevens, Rev Sarah Yetman, Richard Stamp, Karen Todd.

The trustees decided to implement a shared leadership model, each taking a role rather than one individual becoming chair. For example, Karen Todd chaired the trustee meetings, Neil Stevens provided a sounding board for the CEO.

NB: Karen Todd as Managing Director of Simplicate was paid £3,600 for her marketing work with STAR – this was agreed by trustees in her absence.

Covid restrictions led to all trustee meetings moving on line; initially fortnightly, and latterly monthly business meetings from August 2020 have proved a successful model allowing strategic, financial and operational issues to be taken at each meeting, including a cash flow forecast and a review of at least one policy (to ensure that all are covered every 2-3 years).

In addition, an Operational sub-group consisting of the treasurer, Richard Stamp and the CEO and Business Support manager meet 4 times a year to review progress on actions, look at more detailed operational points and ensure that financial targets are being met.

A safeguarding sub-group chaired by Sarah Yetman (FW safeguarding trustee lead) also now meets 4 times a year, again with 2 trustees (Sarah and Neil) plus the CEO and Business Support manager; it uses the Charity Commission 10 point plan of good practice to review progress in creating a sound safeguarding culture and responding to cases.

The whole trustee body meets on-line to pray with the CEO every 2 weeks.

This year, at the strategy day, 2 trustee task and finish groups were set up to look at the future sustainability of the organisation as it came through Covid: one to look at structures, one to look at the focus of the charity. This led to a restructuring plan to be undertaken in stages through 2021-22 to especially build capacity in the core of the business. And in addition, a “brand discovery” process was designed for May 2021 to help us agree “the FW story” and how we should tell it (website revamp planned for 2021-22).

FAITHWORKS WESSEX

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr I Bromilow (Resigned 13 November 2020) Mr B Griffiths Mr C James Rev R Stamp (Appointed 1 June 2020) Mr N Stevens Mrs K Todd (Appointed 1 June 2020) Rev S Yetman

The trustees' report was approved by the Board of Trustees.

Mrs K Todd Trustee

10 December 2021

FAITHWORKS WESSEX

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF FAITHWORKS WESSEX

I report to the trustees on my examination of the financial statements of Faithworks Wessex (the charity) for the year ended 31 March 2021.

An independent examination has taken place instead of an audit (Regulation 31(f)) following an audit dispensation dated 16 November 2021 being granted under Regulation 34(3)(b) of the Charities (Accounts and Reports) Regulations 2008.

Responsibilities and basis of report

As the trustees of the charity (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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

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

Harrisons Chartered Accountants

4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

Dated: 10 December 2021

FAITHWORKS WESSEX

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
174,945
962,348
Charitable activities
4
25
65,788
Investment income
5
544
-
Total income
175,514
1,028,136
Expenditure on:
Charitable activities
6
90,675
683,054
Gross transfers
between funds
-
-
Net income for the year/
Net movement in funds
84,839
345,082
Fund balances at 1 April 2020
68,492
297,646
Fund balances at 31 March
2021
153,331
642,728		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
1,137,293
130,919
536,281
65,813
3,018
64,764
544
620
-
1,203,650
134,557
601,045
773,729
66,381
464,948
-
(4,000)
4,000
429,921
64,176
140,097
366,138
4,316
157,549
796,059
68,492
297,646		 Total
2020
£
667,200
67,782
620
735,602
531,329
-
204,273
161,865
366,138

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

FAITHWORKS WESSEX

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds		 2021
£
26,590
752,882
779,472
(1,640)		 £
18,227
777,832
796,059
642,728
153,331
796,059		 2020
£
10,671
341,679
352,350
(850)		 £
14,638
351,500
366,138
297,646
68,492
366,138

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 10 December 2021

Mr C James Trustee

Company Registration No. 05077777

FAITHWORKS WESSEX

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
17
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(11,496)
544		 £
422,155
(10,952)
411,203
341,679
752,882		 2020
£
(11,218)
620		 £
209,413
(10,598)
198,815
142,864
341,679

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Faithworks Wessex is a private company limited by guarantee incorporated in England and Wales. The registered office is Heron Court Road, Winton, Bournemouth, Dorset, BH9 1DE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

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

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

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 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 costs 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 between 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 are allocated on the portion of the asset’s use.

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 33% straight line Equipment 25% reducing balance Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Grants - organisations 74,516 638,810 713,326 88,577 422,299 510,876
Grants - individuals 100,429 323,538 423,967 42,342 113,982 156,324

The charity benefits greatly from the involvement of its many volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

Grants from organisations includes government grants of £3,370 in respect of the coronavirus job support scheme.

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Charitable
Activities
Charitable
Activities
2021
2020
£
£
Income from charitable activities
65,813
67,782
Analysis by fund
Unrestricted funds
25
3,018
Restricted funds
65,788
64,764
65,813
67,782
5
Investment income
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Interest receivable
544
620
6
Charitable activities
Charitable
Activities
Charitable
Activities
2021
2020
£
£
Charitable activity expenditure
570,190
383,331
Share of support costs (see note 7)
171,448
118,260
Share of governance costs (see note 7)
32,091
29,738
773,729
531,329
Analysis by fund
Unrestricted funds
90,675
66,381
Restricted funds
683,054
464,948
773,729
531,329		 Charitable
Activities
Charitable
Activities
2021
2020
£
£
Income from charitable activities
65,813
67,782
Analysis by fund
Unrestricted funds
25
3,018
Restricted funds
65,788
64,764
65,813
67,782
5
Investment income
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Interest receivable
544
620
6
Charitable activities
Charitable
Activities
Charitable
Activities
2021
2020
£
£
Charitable activity expenditure
570,190
383,331
Share of support costs (see note 7)
171,448
118,260
Share of governance costs (see note 7)
32,091
29,738
773,729
531,329
Analysis by fund
Unrestricted funds
90,675
66,381
Restricted funds
683,054
464,948
773,729
531,329		 Charitable
Activities
Charitable
Activities
2021
2020
£
£
Income from charitable activities
65,813
67,782
Analysis by fund
Unrestricted funds
25
3,018
Restricted funds
65,788
64,764
65,813
67,782
5
Investment income
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Interest receivable
544
620
6
Charitable activities
Charitable
Activities
Charitable
Activities
2021
2020
£
£
Charitable activity expenditure
570,190
383,331
Share of support costs (see note 7)
171,448
118,260
Share of governance costs (see note 7)
32,091
29,738
773,729
531,329
Analysis by fund
Unrestricted funds
90,675
66,381
Restricted funds
683,054
464,948
773,729
531,329
2021
£
570,190
171,448
32,091
773,729
90,675
683,054
773,729		 2020
£
383,331
118,260
29,738
531,329
66,381
464,948
531,329

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Support costs

Support costs
Governance costs
Analysed between:
Charitable activities		 Support
costs
Governance
costs
£
£
171,448
23,199
-
8,892
171,448
171,448
171,448
32,091		 2021
£
194,647
8,892
171,448
203,539		 Support
costs
Governance
costs
£
£
118,260
21,074
-
8,664
118,260
118,260
118,260
29,738		 2020
£
139,334
8,664
118,260
147,998

Governance costs includes payments to the independent examiners of £902 (2020- £858) .

8 Trustees

None of the trustees received any remuneration for their services or reimbursement of expenses during either the current or previous year.

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
27
2021
£
399,002
19,487
21,564
440,053		 2020
Number
25
2020
£
320,090
14,929
17,604
352,623

There were no employees whose annual remuneration was more than £60,000.

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

10
Tangible fixed assets
Fixtures and
fittings
Equipment Motor
£
£
Cost
At 1 April 2020
19,863
21,012
Additions
9,240
2,256
At 31 March 2021
29,103
23,268
Depreciation and impairment
At 1 April 2020
13,878
19,109
Depreciation charged in the year
3,806
2,413
At 31 March 2021
17,684
21,522
Carrying amount
At 31 March 2021
11,419
1,746
At 31 March 2020
5,984
1,904
11
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
12
Creditors: amounts falling due within one year
Accruals and deferred income		 vehicles
£
9,000
-
9,000
2,250
1,688
3,938
5,062
6,750
2021
£
24,850
1,740
26,590
2021
£
1,640		 Total
£
49,875
11,496
61,371
35,237
7,907
43,144
18,227
14,638
2020
£
9,434
1,237
10,671
2020
£
850

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

FOCUS
BCARS General
FW Home (Previously BCARS Get off the Streets)
BCARS Stay Off The Streets
Poole Foodbank
Money Matters
Christchurch Foodbank
Blandford Foodbank
Smile
Wimborne Foodbank
Town Pastors CHP
Conversations
Recovery
Life Centres
FOCUS
BCARS General
FW Home (Previously BCARS Get off the Streets)
BCARS Stay Off The Streets
Poole Foodbank
Money Matters
Christchurch Foodbank
Blandford Foodbank
Smile
Wimborne Foodbank
Town Pastors CHP
Conversations
Recovery
Life Centres
Blandford Life Centre		 Balance at
1 April 2020
£
897
4,251
48,708
10,217
35,376
11,346
25,154
30,973
7,261
35,062
12,054
12,905
7,034
56,408
297,646
Balance at
1 April 2019
£
(5,900)
-
7,365
-
26,105
10,096
13,324
22,176
360
20,441
12,596
3,395
650
41,672
5,269
157,549		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
1,166
(2,063)
19,707
(23,268)
60,724
(55,754)
138,361
(148,136)
130,793
(64,407)
29,342
(27,335)
171,190
(83,209)
73,749
(54,056)
36,318
(23,778)
149,169
(52,140)
5,086
(2,805)
-
(12,905)
49,722
(51,645)
162,809
(81,553)
1,028,136
(683,054)
Movement in funds
Incoming
resources
Resources
expended
£
£
26,567
(19,770)
-
(30)
203,755
(147,763)
1
(152)
36,832
(27,561)
42,338
(41,088)
54,586
(42,756)
32,009
(23,212)
21,782
(18,881)
32,484
(17,863)
3,388
(3,930)
16,946
(7,436)
37,745
(31,361)
70,620
(63,887)
21,992
(19,258)
(601,045)
(464,948)		 Balance at
March 2021
£
-
690
53,678
442
101,762
13,353
113,135
50,666
19,801
132,091
14,335
-
5,111
137,664
642,728
Balance at
1 April 2020
£
897
4,251
48,708
10,217
35,376
11,346
25,154
30,973
7,261
35,062
12,054
12,905
7,034
56,408
-
297,646

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13 Restricted funds

(Continued)

FOCUS. A restricted fund for the purpose of support of adult carers. Funded by local government - this ended at Dec 2019 and the fund is now closed.

BCARS General. A restricted fund for the purpose of assisting local churches help the homeless in the area.

FW Home (Previously BCARS Get Off The Streets ). A restricted fund for projects to help individuals who are rough sleeping in the area to move into more secure accommodation (including "Sleepsafe").

BCARS Stay Off The Streets. A restricted fund for projects to help individuals who are no longer on the street to gain skills, resilience, and self-confidence (including training workshops).

Poole Foodbank. A restricted fund for the purpose of running the food bank in the Poole area.

Money Matters. A restricted fund for the purpose of financial budget and debt counselling by volunteers.

Christchurch Foodbank. A restricted fund for the purpose of running the food bank in the Christchurch area.

Blandford Foodbank. A restricted fund for the purpose of running the food bank in the Blandford area.

Smile. A restricted fund for the purpose of support to lone parent families.

Wimborne Foodbank. A restricted fund for the purpose of running the food bank in the Wimborne area.

Town Pastors CHP. A restricted fund for the purpose of funding Town Pastors who patrol the town centres on weekend nights to provide support to those in need.

Conversations. A restricted fund for the purpose of funding grass roots community discussions in Poole and Bournemouth.

Recovery. A restricted fund for the purpose of running community addiction recovery services with local churches.

Life Centres. A restricted fund (Lottery funding) for the purpose of developing and working with local churches to put in place one-stop centres for crisis support across urban Dorset.

Blandford Life Centre. A restricted fund for the purpose of developing and working with local churches to put in place one-stop centres for crisis support in the Blandford area.

14 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
568
17,659
Current assets/
(liabilities)
152,763
625,069
153,331
642,728		 Total Unrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
18,227
501
14,137
777,832
67,991
283,509
796,059
68,492
297,646		 Total
2020
£
14,638
351,500
366,138

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

15 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 4,615 4,097

16 Related party transactions

Remuneration of key management personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The remuneration of key management personnel is as follows.

Aggregate compensation 2021
£
143,702		 2020
£
63,658
Other related party transactions

Neil Stevens, a trustee of the charity, is also a director at Prama. During the year funding totalling £nil (2020: £9,500) was received from Prama.

Sarah Yetman, a trustee of the charity, is also the vicar at St John's Church. During the year rent totalling £8,208 (2020: £1,560) was paid to St John's Church.

Karen Todd, a trustee of the charity, is also a director of Simplicate. During the year marketing services totalling £3,600 (2020: £nil) were purchased from Simplicate.

Trustee indemnity insurance of £334 (2020: £324) was paid during the year.

17
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase in creditors
Cash generated from operations		 2021
£
429,921
(544)
7,907
(15,919)
790
422,155		 2020
£
204,273
(620
6,660
(930
30
209,413

FAITHWORKS WESSEX

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

18 Analysis of changes in net funds
At 1 April 2020 Cash flowsAt 31 March 2021
£ £ £
Cash at bank and in hand 341,679 411,203 752,882
341,679 411,203 752,882