FREEDOM NETWORK INTERNATIONAL
FINANCIAL STATEMENTS
FOR
31 DECEMBER 2020
Company Number 6256996 Charity Number 1122937
FINANSURE LTD
2 Sheppard Street, Brymbo, Wrexham, LL11 5FF
FREEDOM NETWORK INTERNATIONAL
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
| CONTENTS | PAGES |
|---|---|
| Charity information | 1 |
| Directors’ report | 2 to 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 to 13 |
Page 1
FREEDOM NETWORK INTERNATIONAL
CHARITY INFORMATION
| Company number | 6256996 |
|---|---|
| Charity number | 1122937 |
| Registered working names | DFN UK |
| Freedom Network South Asia | |
| Freedom Network UK | |
| Dignity Freedom Network | |
| Directors | Mr Gary Sloan (Chairman) |
| Dr Joseph D’Souza | |
| Mr Paul Sands | |
| Mr Martin Young | |
| Mr Kumar Swami | |
| Mrs Santosh Rai | |
| Registered office | 8 Hearn Court |
| Stafford | |
| Staffordshire | |
| ST17 9QN | |
| Independent Examiner | Mr L HowsonMAAT |
| Accountants | Finansure Limited |
| 2 Sheppard Street | |
| Brymbo | |
| Wrexham | |
| LL11 5FF | |
| Bankers | Nat West Bank |
| Shrewsbury Corporate Office | |
| Suite 5, Prospect House | |
| Belle Vue Road | |
| Shrewsbury | |
| SY3 7NR | |
| Solicitors | Wrigleys |
| 19 Cookridge Street | |
| Leeds | |
| LS2 3AG |
Page 2
FREEDOM NETWORK INTERNATIONAL
DIRECTORS ’ ANNUAL REPORT
YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Directors
The following were members of the Board of Directors during the whole of the period unless stated otherwise:
Mr Gary Sloan (Chairman) Mr Joseph D’Souza Mr Paul Sands Mr Kumar Swamy Mr Martin Young Mrs Santosh Rai
The Directors, who are also Trustees for the purposes of Charity Law, present their report and the financial statements for the year ended 31[st] December 2020. These financial statements comply with statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities SORP (FRS 102) effective January 2019.
Currently we have seven experienced and committed Directors, and we are actively seeking to recruit new ones to ensure that we have the right balance of skills. Only the Members have power to appoint new Directors.
Constitution
Freedom Network International is a company limited by guarantee and a registered charity.
OBJECTIVES AND ACTIVITIES
The charitable objects of the company are:
-
to promote for the public benefit the enforcement of human rights and the sound administration of human rights law and practice throughout the world in accordance with the relevant legal jurisdiction(s);
-
to advance education about human rights and to cultivate a public sentiment in favour of human rights;
-
to promote racial and religious harmony, equality and diversity by providing educational resources and information to promote better awareness of the causes and consequences of a world where racial and religious harmony, equality and diversity do not exist;
-
to advance education throughout the world;
-
to relieve poverty and sickness, particularly amongst victims of natural or other kinds of disaster, particularly by the provision of funds or equipment to individuals or organisations who are themselves or work with those in need.
Page 3
FREEDOM NETWORK INTERNATIONAL
DIRECTORS ’ ANNUAL REPORT
YEAR ENDED 31 DECEMBER 2020
Principal Activities Undertaken
The principal activities carried out by Freedom Network International are:
-
(1) Raising the awareness of human rights and justice issues by educating the public and lobbying Government and other agencies.
-
(2) Supporting a number of other issues where justice and human rights issues are involved:
-
(a) education projects amongst the most needy
-
(b) support for social and community infrastructure.
-
(3) The promotion and support of projects involved with the care, upbringing and establishment in life of young people.
The Directors confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit when reviewing the charitable objectives and aims of Freedom Network International, as well as in planning future activities.
ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS
Refer to the separate directors’ report which was submitted to Charity Commission along with these financial statements.
FINANCIAL REVIEW
The financial results are shown in the SOFA on page 6. Total income for the year was £697,094 (2019 - £594,542). The main source of income was donations and grants along with Gift Aid reclaimed totalling £697,061 (2019 - £593,850).
Total expenditure was £675,988 (2019 - £602,838). The main area of expenditure was grants to charities in India totalling £505,649 (2019 - £397,406).
– This left a surplus of £21,106 for the year (2019 deficit of £8,296). At the year-end the charity held reserves of £76,205 of which £5,400 were restricted.
Page 4
FREEDOM NETWORK INTERNATIONAL
DIRECTORS’ ANNUAL REPORT
YEAR ENDED 31 DECEMBER 2020
Reserves
It is the policy of the Board to build up reserves which are sufficient to enable smooth running of the day-to-day activities of the charity, which is approximately £60,000.
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts.
This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006.
31st August 2021
This report was approved by the Board on ……………………………………… and is signed on its behalf by
Gary Sloan Chairman & Director
Page 5
FREEDOM NETWORK INTERNATIONAL
INDEPENDENT EXAMINER’S REPORT TO THE DIRECTORS
I report on the accounts of the charity for the year ended 31 December 2020, which are set out on pages 6 to 13.
Respective responsibilities of directors and examiner
The charity’s directors are responsible for the preparation of the accounts. The charity’s directors consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the accounts under section 145 of the Charities Act;
-
to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and
-
to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as directors concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
-
which gives me reasonable cause to believe that in any material respect the requirements:
-
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
-
• to prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
……………………………………… Dated: ……….……………………….2nd September 2021 L M Howson MAAT
Finansure Limited, 2 Sheppard Street, Brymbo, Wrexham, LL11 5FF
Page 6
FREEDOM NETWORK INTERNATIONAL
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)
YEAR ENDED 31 DECEMBER 2020
| Unrestricted | Restricted | Totals | Totals | ||
|---|---|---|---|---|---|
| Funds | Funds | 2020 | 2019 | ||
| Note | £ | £ | £ | £ | |
| INCOMING RESOURCES | |||||
| Donations & grants | 3 | 70,661 | 626,400 | 697,061 | 593,850 |
| Incoming resources from | |||||
| charitable activities: | |||||
| Literature and other sales | 33 | - | 33 | 692 | |
| ─── | ─── | ─── | ─── | ||
| TOTAL INCOMING RESOURCES | 70,694 | 626,400 | 697,094 | 594,542 | |
| ─── | ─── | ─── | ─── | ||
| RESOURCES EXPENDED | |||||
| Expenditure on charitable activities: | |||||
| Advancement of human rights education | 4 | 170,339 | 505,649 | 675,988 | 602,838 |
| ─── | ─── | ─── | ─── | ||
| TOTAL RESOURCES EXPENDED | 170,339 | 505,649 | 675,988 | 602,838 | |
| ─── | ─── | ─── | ─── | ||
| NET INCOME/(EXPENDITURE) | |||||
| FOR THE YEAR | (99,645) | 120,751 | 21,106 | (8,296) | |
| Transfers between funds | 118,233 | (118,233) | - | - | |
| ─── | ─── | ─── | ─── | ||
| Net movement in funds | 18,588 | 2,518 | 21,106 | (8,296) | |
| Balances brought forward | 52,217 | 2,882 | 55,099 | 63,395 | |
| ─── | ─── | ─── | ─── | ||
| Balances carried forward | 70,805 | 5,400 | 76,205 | 55,099 | |
| ─── | ─── | ─── | ─── |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
The notes on pages 8 to 13 form part of these financial statements.
Page 7
FREEDOM NETWORK INTERNATIONAL
BALANCE SHEET
31 DECEMBER 2020
| Note | 2020 | 2019 | |
|---|---|---|---|
| £ | £ | ||
| FIXED ASSETS | |||
| Tangible assets | 9 | 1 | 1 |
| CURRENT ASSETS | |||
| Debtors | 10 | 17,271 | 16,030 |
| Cash at bank and in hand | 187,704 | 113,600 | |
| ──── | ──── | ||
| Total Current Assets | 204,975 | 129,630 | |
| LIABILITIES | |||
| Creditors falling due within one year | 11 | (128,771) | (74,532) |
| ──── | ──── | ||
| Net Current Assets | 76,204 | 55,098 | |
| ──── | ──── | ||
| Net Assets | 12 | 76,205 | 55,099 |
| ──── | ──── | ||
| FUNDS | |||
| Unrestricted funds | 13 | 70,805 | 52,217 |
| Restricted funds | 13 | 5,400 | 2,882 |
| ──── | ──── | ||
| Total Funds | 76,205 | 55,099 | |
| ──── | ──── |
For the year ended 31 December 2020, the company was entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the accounts for the year by virtue of section 477, and no member or members have requested an audit pursuant to section 476 of the Act.
-
The directors acknowledge their responsibility for:
-
(i) complying with the requirements of the Act with respect to accounting records and the preparation of accounts, and
-
(ii) preparing accounts which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its net incoming or outgoing resources for the financial year in accordance with the requirements of the Act relating to financial statements, so far as applicable to the charity.
These financial statements have been prepared in accordance with the special provisions for companies subject to the small companies’ regime, and with the Financial Reporting Standard (FRS) 102.
31st August 2021
These financial statements were approved by the directors on ……………………………………… .., and are signed on their behalf by:
Gary Sloan Chairman & Director
The notes on pages 8 to 13 form part of these financial statements.
Page 8
FREEDOM NETWORK INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
The accounts have been prepared under the historic cost convention, and in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP), FRS 102 effective January 2019, applicable accounting standards and the Companies Act 2006. The particular accounting policies adopted by the Directors are described below:
(a) Fund accounting
-
Unrestricted funds are available for use at the discretion of the Directors in furtherance of the general objectives of the charity.
-
Designated funds are unrestricted funds that the Directors have set aside for specific purposes.
-
Restricted funds are subject to restrictions on their use, either imposed by the donor or included in the terms of an appeal.
(b) Incoming resources
Grants and donations received are accounted for when the charity is entitled to it and as soon as it is prudent and practicable to do so, generally the earlier of the date of notification or receipt. Grants that are specified for use in a later accounting period are deferred to that period.
(c) Resources expended
This includes costs of charitable activities, fundraising and governance expenditure.
-
Fundraising costs are costs incurred in motivating individuals and other organisations to donate to the work of the charity.
-
Direct charitable expenditure includes all expenditure directly related to the objects of the charity.
-
Governance comprises expenditure incurred in the management of the charity’s assets, organisational administration and compliance with constitutional and statutory requirements.
(d) Fixed Assets and Depreciation
Tangible fixed assets with a cost over £300 are stated at cost less depreciation.
Depreciation is provided in order to write-down the cost of tangible fixed assets over their estimated useful lives, using the following rates:
Computer equipment 33% reducing balance
Page 9
FREEDOM NETWORK INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
2. UNRESTRICTED AND RESTRICTED INCOME AND EXPENDITURE
Unrestricted funds relate to the general activities of the charity, including the hospitality house. Restricted funds relate to the activities of Dignity Freedom Network UK (DFN UK).
3. DONATIONS AND GRANTS
| DONATIONS AND GRANTS | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Unrestricted– FNI General | ||
| Grants from India | 12,200 | 36,600 |
| JRS grants | 10,226 | - |
| Other grants | 12,121 | - |
| UK work–general donations | 32,445 | 63,055 |
| Gift Aid tax recoverable | 3,669 | 12,945 |
| ─── | ─── | |
| Total unrestricted | 70,661 | 112,600 |
| Restricted– DFN UK | ||
| Donations: | ||
| - Education | 317,896 | 305,614 |
| - Trafficking prevention | 19,440 | 24,469 |
| - Slum projects | 25,000 | 25,000 |
| - Appeal funds | 145,211 | 29,174 |
| - Healthcare | 67,906 | 19,195 |
| - Economic empowerment | 504 | 45,243 |
| Gift Aid tax recoverable | 50,443 | 32,555 |
| ─── | ─── | |
| Total restricted | 626,400 | 481,250 |
| ─── | ─── | |
| Total donations and grants | 697,061 | 593,850 |
| ─── | ─── |
4. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Unrestricted– FNI General | ||
| Employment costs (see note 6) | 49,094 | 36,317 |
| Management costs | 65,368 | 93,902 |
| Marketing & communications | 19,247 | 24,923 |
| Travel & accommodation | 5,744 | 23,615 |
| Administration costs | 11,924 | 6,710 |
| Governance costs | 12,242 | 14,141 |
| Sponsorship development | 6,020 | 4,883 |
| Independent examiner’s fee | 700 | 700 |
| Depreciation | - | 241 |
| ─── | ─── | |
| Total unrestricted | 170,339 | 205,432 |
Page 10
FREEDOM NETWORK INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
4. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (continued)
| Restricted– DFN UK | ||
|---|---|---|
| Grants paid/expended (see note 5) | 505,649 | 397,406 |
| ─── | ─── | |
| Total charitable activities expenditure | 675,988 | 602,838 |
| ─── | ─── |
5. ANALYSIS OF RESTRICTED GRANTS PAID/EXPENDED
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Education costs (India) | 280,472 | 269,464 |
| Trafficking prevention (India) | 17,523 | 21,211 |
| Slum projects (India) | 20,750 | 21,250 |
| Appeal funds (India) | 126,330 | 27,587 |
| Healthcare (India) | 60,139 | 17,258 |
| Economic empowerment (India) | 435 | 40,636 |
| ─── | ─── | |
| 505,649 | 397,406 | |
| ─── | ─── |
6. EMPLOYMENT COSTS
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Salaries and wages | 50,856 | 34,397 |
| Employer’s pension contributions | 2,025 | 1,920 |
| Employer’s NIC contributions | (3,787) | - |
| ─── | ─── | |
| Total | 49,094 | 36,317 |
| ─── | ─── |
No employee received remuneration in excess of £60,000 during the year.
– The average number of employees during the year was six (2019 four). The average number of – full-time equivalent employees was three (2019 two).
Page 11
FREEDOM NETWORK INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
7. TRANSACTIONS WITH DIRECTORS AND RELATED PARTIES
No directors received remuneration during the year or were reimbursed for expenses incurred.
No directors made donations to the charity during the year.
The charity works closely with two partner charities in India which have one director in common – Dr Joseph D’Souza. Grants were made to these charities during the year as follows:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Operation Mercy India Foundation | 428,402 | 373,789 |
| Good Shepherd Church of India | 10,462 | - |
8. FIXED ASSETS
| Cost or Valuation At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for year Disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Computer equipment £ 724 - - 724 723 - - 723 1 1 |
Total £ 724 - - |
|---|---|---|
| 724 | ||
| 723 - - |
||
| 723 | ||
| 1 | ||
| 1 |
9. DEBTORS
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Income tax recoverable | 13,251 | 14,691 |
| Prepayments | 4,020 | 1,339 |
| ─── | ─── | |
| 17,271 | 16,030 | |
| ─── | ─── |
Page 12
FREEDOM NETWORK INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
10. CREDITORS: amounts falling due within one year
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Publicity and exhibitions | - | 10,250 |
| Accruals | 129,338 | 63,332 |
| Other creditors | (567) | 950 |
| ─── | ─── | |
| 128,771 | 74,532 | |
| ─── | ─── |
11. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Funds at 31 December 2020 represented by: Tangible fixed assets Current assets Current liabilities |
Restricted funds £ - 130,269 (124,869) 5,400 |
Unrestricted funds £ 1 74,706 (3,902) 70,805 |
Total £ 1 204,975 (128,771) |
|---|---|---|---|
| 76,205 |
12. STATEMENT OF FUNDS
| At 1 January | At 31 December | ||||
|---|---|---|---|---|---|
| 2020 | Income | Expenditure | Transfers | 2020 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds: | |||||
| General reserve | 52,217 | 70,694 | (170,339) | 118,233 | 70,805 |
| ──── | ──── | ──── | ──── | ──── | |
| Restricted funds: | |||||
| DFN UK | 2,882 | 626,400 | (505,649) | (118,233) | 5,400 |
| ──── | ──── | ──── | ──── | ──── | |
| Total funds | 55,099 | 697,094 | (675,988) | - | 76,205 |
| ──── | ──── | ──── | ──── | ──── |
DFN UK represents funds donated for the Dignity Freedom Network projects.
The transfer of funds out of DFN UK into the general reserve represents management fees on all gifts for India.