Company registration number.. 06706212 Charity registration number= 1135828 The Friendship Circle (UK) (A company limited by syuarantee) Annual Report and Financial Sialernents for the Year Ended 31 December 2024
The Friendship Clrcle (UK) Contents Reference and Administrative Details Trustees, Rcport 2to9 Statement of Trustees, Responsibilities 10 Independent Examinels Report Sialement of Financial Activities 12 Balance Sh¢et 13 Notes to the Financial Statements 14to21
The Friendshfip Clrcle (UK) Reference and Administrative Details Trustees Rabbi Anthony Joel Jaffe Rabbi David Jaffe Mr Philip Pink Mr Tiniothy Dempsey Mr Jercmy Coleman Mrs Ziona Handler PrlnclpAI Offlce 72 Singleton Road Salford M7 4LU Reglstered Offlce Suite 5. 4th Floor 3 Universal Square Devonshire Street North Manchcster M126JH CompAny ReglstrAdon Number 06706212 Charlty Reglstratlon Number 1135828 Bankers Royal Bank of Scotland ALTRINCHAM Bolton Cusiomcr Service Centre PO Box 2027 Parklands De Havilland Way Honvi¢h BL6 4YU Independent Examlner Gordon Levy BA. FCA Chartered Accountant Gordon Levy Limited Suite 5. 4th Floor 3 Universal Square Devonshire Strcet North Manchcstcr, M12 6JH Page I
The Friendship Circle (UK) Trustees, Report The trustees. who arc directors or company secretary for the purposcs of company law, present the annual report logeiher with Ihc financial statements of the charitable company for Ihe year ended 31 December 2024. Reference and administrative details Reference athd adtninistrative detsils are shown in the schedule of members of the board and professional advisers on pa¥¢ l of the financial statements. Trustees The trustees who served the chariry during the period were as follows.. Rabbi Anthony Joel Jaffe Rabbi David Jaffe Mr Philip Pink Mr Tiniothy Dempsey Mr Jeremy Coleman Mrs Ziona Handler Structure* govern&nee and man4%ement Naiure ofgovernlng dncumenÉ Memorandiim and Articles of Association incorporated 24 September 2008 as amended by special resolution registered at Companies House on 12 FebNary 2012. Recruilnient and appoinlnient oftruslees Appointment by Trust¢¢s Organisalional slruclure Company limited by guarantee Page 2
The Friendshlp Cfircle (UK) Trustees, Report Objectives and aCtItIeS Objec¢s and aims Summary of the Objects of the Charity as set out in the governing docuinent Object I To proniore, for the benefit of the inl)abitants of Greater Manchester and thc surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of theiT youth. age, inflrmity or disablement, financial hardship or social and economic circumstanccs or for the public al large in the interests of social welfare and with Ihc objccl of improving the condition of lifc of Ihc said inhabitants. Object 2 To promote ¥en¢rdl charitable purposes for Ihe benefit of the Community of Greater Manchestcr and the Suound]ng area, and to provide relief from financial hardship and social andlor economic disadvantage and to advance the cducation of its residents of all ages and in particular lo provide opporwnilies for the aforetnentioned re%idenls to participate fully in the life of ihe comn)unity in ways which address and alleviare social and economic disadvantage. Page 3
The Frfiendship Circle (UK) Trustees, Report Mission Statement The Friendship Circle's mission is io.. Enhance the lives of Jewish People with Disabilities through empowering, encouraging and facilitating.. Friendship Social inclusion, a sensc of belonging & integrltion into thc community Engagement with Jewish life and practice Maximising their contribuiion to society - Ac¢ess lo opportunity This is achieved through providing opportunities irt.. Spott. fitness, healih and wellbeing Social & recreational Skills & hobbies Self- advo¥a¢y Teen provision Jewish life & observance Communiry integration - One to one buddy programme Eniotional and practical support Volunle¢rin8 Disability eduLalion Employment Demographlcs The Friendship Circle provides support io children and adults with mild to moderate learning disabilities, including conditions such as Down Syndrome, Autism, and physical disabilities like cerebral palsy. Currently, we have 183 members who benefit from our programmes. Geographieally, 560/0 of our members reside in Prestwich, 8th/0 in WhitefieldlBury, 280/0 in Salfordlcrumpsall, with the remaining memb¢rs living in other areas of Manchest¢r. Our members, ages range from 7 to 88 years, with the largest age group being between 26 and 50, representing 500/0 of our beneficiaries. The remaining members are evenly distributrd a¢ross three age categories.. children (0-18), post-teens {19-25), and individuals aged 51 and over. Page 4
The Friendship Circle (UK) Trustees, Report Chief Executive Officer Statement This year the charity has concentrated on strengthening our core services. expanding our reach, and maintaining financial siability in a challenging economic environment. Weekly activities, creative classcs, fitncss sessions. and inclusive ouiings have grown in variety and have seen increased participation and engagement. The launch of lh¢ Girls Teen Club, cxpansion of our Disability Education Programme, and the success of our first Open Mic Night have further empowered our members and raised communiry awareness. We have taken deliberate steps to strengthen operations by recruiting new staff into the programme Icam as wcll as outsourcing our HR function. Th¢se changes allow the tcam to focus mor¢ fully on service delivery while ensuring wc rcrnain compliant and w¢ll mana¥ed. Jewish life continues to be a key part of our programme, with consistent activities around Shabbat and Yom Tov, synagogue partnersl)ips, and home-based support for members unable io attend in person. Our efforts io build community connections and reducc i501ation remain a high prioriry. On the financial side, we have mpAintained a stable position while managing rising costs. Thc success of our nialch-fijnded crowdfunding campaign was a major acl)ievement. signifiLantly increasing both income and donor engagement. We continue to plan CareIlY for the year ahead, especially in light of expected cost increases, coupled with a ¢hallenging fundraising climate. Looking forward. we will relaunch our Employment Scheme with a more targeted approach. rther expand our teen provision, and deliver a landmark Birthright volunieering trip to Israel, all reinforcing our ongoing commiinienl io providing Meaning1, life affirniing oppominities for our n)en)bers. l extend my deepest thanks lo our staff, voluntcers, donors, and trustees. Your collective support continues to makc The Friendship Circle a trnly transforniarive force. Page 5
The Friendship Clrcle (UK) Trustees, Report Programme Updgte The focus of The Friendship Circle's programme (cam this year has been on fos*ring organic grOth and ensuring the sustainability of ow services. To strengthen our team and further support our operations, we welcomed two new staff members al the end of last year. These additions have already proven invaluable in etthancing our capacity to deliver our wide-ranging aciivities. Programme Overvlew Our weekly activities and classes are carefully designed to cater lo diverse interests and tastes. ensuring broad appeal across our membership base. These activirics spai) a variety of areas, from arts and creative NNTiting to fitncss-focused progranmnes, such as football, dance. and yoga. Among these, our arts-based classes (art, singing> and creative writing} have proven to be the most popular, with an average allendancc of16 members per session. The teani continuously faces the challenge of keeping members engaged, and we are comrnilted to refreshing our offerings regularly to maintain inleresi. This year, we introduced ex¢iLin8 a¢liviiies such as Beekeeping and Axe Throwing, which have been well received by participants. Parties and outings are well loved, altraeiing 50 members or more. Approximatcly 400/0 of our members attend weekly, with a dedicatcd group of individuals alndIng ai leasi tliree times a week. For many of these members, The Friend%hip Circle provides a much_needed sense of purpose and direction. En8ag¢menr has notably increased this year as we encourage our members lo slep out of their conifort zones, take on new challenges. and embrace personal growth. all of which foster greater self-confidenc¢. Key Acblevements Glrls Teen Club: Building on the success of the Boys Teen Club, which began in 2018, we launched the Girls Teen Club in 2023. This initiative has successfiilly broubihi together young girls with disabilities and their peers, offering a platforni for social inieraction, personal development, and friendship. The weekly sessions, which currently cater to 12 8irls, have been well_received by both the pai'ticipants and their families, wilh par¢nls reporting significant improvem¢nts in rheir daughters, confid¢nce and well-being. D15ablllty Educatlon In Schools Programme: This initiative continues thrive within Manchesler's Jewish Primary Schools. With five schools now participating-one of which joined this year-the programme encoiirages children lo reflect on issues of disabiliry and inclusion, challenging societal stereotypes. The activc involvement of The Friendship Circle members in these sessions helps to create a lasting impact, beneficing both the students and the beneficiaries. Engagement In Jewlsh Llfe: The Friendship Circle's commitment to Jewish lif¢ and learning remains at the heart of our mission. During cvcry Yorntov, we offer a full programmc of activit1¢5 that allow members 10 connect with key Yesh traditions. Our steadfast dedication ensui'es that no onc is alone during these important times. For example, during Chanukah, we hosted nightly activities and arranged for volunteers to visit 80 niembers al home lo light the menorah together. Wc also facilitated shad Shabbat scrvices with Heaton Park and The Shrubberies Synagogues and held a special Havdalah ceremony with South Manchester Synagogues. furthcr strengthening our sense of community. Yomtov Paeks: In addition to in-person activities, we provide Yorntov Packs to all members, ensuriThg that even those unable to attcnd cvcnts in person feel the wamiih and support of The Friendship Circle during these special times. One to One Buddy Programme: Finding matches for our on¢-tO-one buddy scheme remains an ongoing challenge due to the high level of cotnmitment required from volunteers. However, impressively, the numbers grcw by 23Q/o in 2024. Page 6
The Friendship Cirele (UK) Trustees, Report Incluslve Travel Opportunltles: A rnajor highlight of this year was our 2-day ovemight trip to London, where 15 members and volunteers visited landmarks such as Camden. Tower Bridge, and Buckingham Palace. as well as enjoying a personalized tour of the Houses of Parliatnent. These fully supported and inclusivc trips provide lasting memories and experiences for our members. Open Mic Nlght.. Wc hosted our firsl-ever Opcn Mic Night in conjunction with our 'Stories and Strides" crearive Tl[lng workshop sessions. This event, attended by nearly l 00 people. provided a powerful plaiforni for self-expression through music. poctry, dnd storyielling, helping participants to boosi their Confidence and self_esleem. Fltness and Wellbeing Programme: Our filncss and wellbeing programme has expanded this ycar to include activities that enhance members, physical, mental, and emotional health. These sessions covercd a range of important topics, includin8 sexual health, menial health, stress management. and mindfulncss. Support During the COStr-Llv1ng Crtsls: With the support of a grant from Bury Council. we were able to run a series of Drop-ln Surgeries, providing practical assistance to our members in navigating the challenges posed by the ongoing cost of living crisis. Member5hlp Growth: Over the course of the year, 13 new members have joined The Friendship Cir¢lc, many of wliom live indcpendenily in the community and receive little or no support from other serviLes. Additionally. our teen provision has Seen significant gromrth. reinforcing the importanee of our service5 for this demographic. Volunteerlng and Communlty Integratlon: Volurtleerin¥ is a cornersione of The Friendship Circle's operations. We welcomed 32 new volunteers in 2024, mostly through referrals and cornmunity nettvorking. further strengtlicning our presence and Credibility within the local comniunity. The Friendship Circle's volunteer nenvork encompasses all generations. We actively promote teenage volunteering and 240/0 of our volunteers are undei. 20. 240/0 are between the ages of 31 & 51 and 210/0 are over 60. This l)ighli81)ts th¢ far-r¢aching impact the charity has in the community. Goals for the Future Employment S¢heme Relaunch: In 2022, we launched an Einployment Scheme, successfvlly placing 10 beneficiaries in employment. However, long-temi job retention and suppon proved challenging. This year, w¢ will relaunch the schcme, adopting a more person•centred approach rhat aligns job opportunities with each individual's strcngths, aspirntions, and necds. While the numbers will start small, we anticipate gradual growth as we rcfine our appro&ch and increase the resources available for job coaching and support. Safeguardlng Revlew: W¢ have initiaied a comprehensive review of our safeguarding processes and proLedures lo ensure they remain robusL compliant, and fit for purpose. This process will continue throughout 2025. Blrtbrlght Volunteerlng Trlp: A landmark event for the organisation ivill be our fully accessible Birthright volunteering trip to 15fdel, aimed al mcmbers aged 21-45. This trip will allow our members to engage with the Jewish homeland and its people whilc making meaningful contributions the community. Teen Club Expanslon: We plan to extend the rcach of our Teen Club, with additiorkal engagement initiatives for farnilies and also hope to sel up a new club for the 18-25-year-olds. as a bridge io our adult provision. Shabbat Together: Wc aim to expand our Shabbat Together programme, engoging more synagogues and fostering greater community unity through shared Shabbat experiences. We look forward to continuing our work and expanding the impact of The Friendship Circle as we strive to offer lifc-changing oppOrnitIeS for individuals with disabilities in our community. Page 7
The Friendship Circle (UK) Trustees, Report Flnanclxl Revlew The Friendship Circle has maintained strong financial stability throughout a challenging and unpredictable economic environment. Despite rising costs, parlicularly in staffing and resources, our disciplined financial management has ensured the charity's long-lemi financial security. Flnanclml Management and Strategic Planning Our financial health has been upheld through tight budgetary control, regular reviews of cash flow forecasts, and careful financial planning. Trustees continuously evaluate the charity'5 short-, medium-. and long-term objectives in relation to financial planning, ensuring that all actions serve the best interests of the organisation and its beneficiaries while remaining aligned with our broader mission. In instances of exceptional spending outside regular operational costs, systems and checks are in place to manage fvnds approprialcly? cnsurin8 prudent financial stewardship and due diligence. Expendlture Overvlew In 2024. total expenditure was £535,839, compared to £478.907 in 2023. A significant poriion of this increase is attributable to staff costs, a5 Staff are central ro delivering our services. To maintain (he highest service provision, two new staff mcmbers were recNited in late 2023, bolstering our programme delivery. Additionally. a new fundraising ieam member was hired to help meet our ¥rowin¥ fundraising targets. The charity also faced substantial rises in insurance and electiicity costs. Furth¢miore, we outsourccd our HR function lo a professional provider to enswc compliance with poliLies and procedures while enabling the management team to focus on their core responsibilities. Income Overvlew The Friendship Circle generated a total income of £620.945 in 2024 (2023.. £444,827). A highlight of this period wa5 our highly successful online 'match-nded" crowdfunding ¢ampai8n in Sepleiiiber, which raised almost £415,000. Nearly half of this inconie came from OUT top-tier donors, who generously agreed to match contributions during the cainpaign. On the day of the evenr alone, we raised £205.000. This campaign significantly expanded our fundraising reach across Manchester and beyond. We received tremetidous communal supporti particularly froin local Jewish schools and synagogues, who helped build a solid foundation for the ¢ainpaigi)'s success. Our loyal volunteers also playcd an instrurnental role in driving the campaign and maximizing lis impact in the community. An encouraging result of the canipaign was that 350/0 of donations came from new donors, indicating a growing base of supporters for the charity. In addition lo the ci'owdfunding campaign, the chariiy raised funds through a variety of challenge evertis and donations from individuals, mtlny of whoni coniribuled in celebration of significant milesloncs such as 'big birthdays., Wc also rcceived smaller but valuable contributions from a small group of donois with standing orders. Grant funding in 2024 came from Bury Council and, mosi significantly. from the Lortery Fund, which supported our Skills for Life programme. Reserves and Future Plxnnlng The chariiy's reserves policy iargels maintaining res¢rYes equal lo 4-6 months of operational expenditure. While we ended the year with reserves above this thrget, Ihc approved budget for 2025 forccasts a deficit of £127,000. We expect that, as the fundraising Cyclc progresses. our reserves will retym to their nornial levels in line with our policy. Trustees acknowledge the forecasted imbalan¢e betwecn income and expenditure in 2025. However, the chariry's fvndraising strategy is designed to address this gap, with a strong focus on increasing ndraising income. Given the unpredictable nature of voluntary donations. we have tsken a cautious approach in forecasting the income for 2025? particularly following the success of our major crowdfundinby campvAign. Page 8
The Friendshlp Circle (UK) Trustees, Report Revenue Dlverslflcatlon and Sustalnablllt), Nearly one-lhird of The Friendship Circle's income is derived from our loyal patrons, and we are decply grateful for their ongoing commirmeni to tlie cause. The remaining fijnds come from smaller donations withiTh the conimunity, Theneraied through various fundraising events and sponsored challenges. To ensure the continu¢d sustainability of our services, wc are dedicated to nurturing relationships with our high-lcvcl donors. We aim to demonstrate the ongoing impact of their contributions, fostering an extended commitnient through our Patron Scheme. Furtherniore, we will coniinue engage with our coryorate partners, offering theni the opportuniry lo sponsor programmes and invest in the charity. We are also exploring new ways to engage corporare parthers, expanding our reacli and support base. Additionally, we aim (o s(rcngthcn our relationship with lower-level donors by growing our portfolio of siandin8 orders. We also plan 10 iniroducc new fundraising avenues lo suppori Ihe charity's mission and cnsurc its financial healih in the years lo come. Key Upcomlng Fundralslng Events One of the key fundraising highlights of 2025 will be our flagship Inclusive Fashion Show. We are eager to build on the success of prcvious years, further developing the event to cngage the Community, attract new supporters, and raise SIlfICant funds for our programmes. Wc also plan to host a series of fundraisin8 'Evenings with Friends" lo generate fvrther income alongside irialling a fundraising padel tournament. This events, along with planned challenges, will be crucial in bridging ihe gap bctwcen our projccied inconie and expendimre for the upcoming year. "Tlie Art of Nature" art exhibition, featuring artwork from our weekly art classes, will serve as an cxcellcnl opportunity to enhance our profile wiihin the com]nunity. Expendlture 2025 Costs are expect¢d lo rise further in 2025 with the proposed govemmental in¢reas¢s in utilities and PAYE. Additional staff are also needed to support the 18-25 teen provision. However. despite these increases, The Friendship Circle remains committed to diversifying ils income Sireanis and enhancinu its financial sustainabiliry. By continuing to niirture relationships wilh our donors, exploring new fundraising avenues, and focusing on prudent financial management, we are confident that Ihe charity will continue to fulfil its mission and provide essential services io those in need. Reappolntment of Independent examlner Gordon Levy, Chartered Accountant, has been re-appointed as independcnt cxaminer foc the ensuing year. The annual report was approved by Ihe tThsiees of the chariry on 2 September 2025 and signed on its behalf by.. Mr Philip Pink Trustee Mr Timothy Dempsey Trnstee Page 9
The Frlendship Circle (UK) Statement of Trustees, Responsibilities The trustees (who are also the directors of The Friendship Circle (UK) for the purposes of company law) are responsible for preparing the trustees, report and the financial statements in accordance with the Unitcd Kmgdom Accounting Standards (United Kingdorn Generally A¢cepted Accounting Praciice) and applicable law and regulations. Company law requires the trnStecs lo prepare financial statements for each financial year. Under company law the trustees niust not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs ol. the charitable company and of its incoming resourees and application of resources, including its income and expenditure, for that period. In preparing these financial statements, (he trustees are required to.. select suitable accounting policies and apply them ¢onsistenily' Obsce the methods and principles in the Charities SORP. make Judgements and estimates that are reasonable and prudeni. state whether applicable UK Accouniing Stsndards l)ave been followed, subject to any material deparmres disclosed and explained in the financial statements,. and prepare the financial staiemLnts on the going concern basis unless it is inappropriate lo presume that the charitable company will conlinlie in business. The ituslees are responsible for keeping adequa accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy al any lime the financial position of the charitable cotllpany and enable them io ensure that the financial sialenienls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for ihe prevention and detection of fraud and other irregularities. Approved by the trnsiees of the charity on 2 September 2025 and signed on ifs behalf by.. Mr Philip Pink Trustee Mr Timothy Dcmpsey Trustee Page 10
The Frlendship Circle (UKI Independent Examiner's Report to the trustees of The Friendship Circle (UK) I report on the accounts of the charity for the year ended 31 De¢ember 2024 which are set out on pages 12 to 21. Respective respojjsibilltles of trustee5 and examiner The trustees (who are also the direciors of thc company for the purposes of company law) are responsible for the preparation of the accounts. The trustees ¢onsid¢r thai an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent exaniination is needed. The charity's gross ineome exceeded £250.000 and l am qualified to undettske the cxamination by being a qualified member of ICAEW. Having satisfied myself thai the charity is not subject to audit under company law and is eligible for independeni examination. Èt is my responsibility lo: examine the accounts under section 145 of the 2011 Act,. lo follow the procedurcs laid down in the general Directions given by the Charity Commission under section 145151{b) of the 201 l Aci. and to state whether particular matters have come to my attention. B&s15 of Independent exsmlner's report My exaniiE]ation was carricd out in accordance wilh (hc general Dire¢tions given by the Chariiy Commission. An examination includes a review of ihe a¢¢oiinling records kept by the charity and a comparison of the accounts presented with those records. li also includes consideration of any unusual items or disclosures in the accounts, and Seeking explai)ations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as lo whciher the accounts present a 'true and fair view, and Ihc rcport is limited to those matters set out in the sraiement below. Independent examlner's statement In conneliion with my examination, no matter has come lo my attention.. (l } which gives me reasonable cause Lo believe that in any material respeci ihe r¢quirements-. lo keep accouniing records in accordance with scction 386 of the Coinpanies Act 2006., and 10 prepai'c accounts which accord with the accounting records, comply with the accouniing requirements of section 396 of the Companies Act 2006 and ivith the methods and principles of the Statement of Recomnicnded Practice.. Accounting and Reporting by Charities have not been met,. or {21 to which, in my opinion, atienlion should be drawn in order to enable a proper undcrstanding of the accounts to be ached. Gordon Levy BA, FCA Chartered Accountant ICAEW Gordon Levy Liniited Suite 5, 4th Floor 3 Universal Square Dcvonshire Street North Manchcster, M12 6JH 2 September 2025 Pagell
The Frlendship Clrcle (UK) Statement of Financial Activities for the Year Ended 31 December 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Total 2024 Note Income And Endowments from: Donations and legacies Investment income Other income 599.675 3,049 17,6?] 599,675 3,649 17,621 Total Income 620.945 620.945 Expendliure on: Charitable activities {535,839) 535,839) Total Expenditure 535,839 535,839 Net income 85,106 85,106 Net mov¢ment in funds 85,106 85.106 Reeonclllatlon of tsndl Total ndS brought fonvard 252.167 252,167 Total funds carried fonvard 10 337.273 Unrestrictcd funds 337.273 TotAI 2023 Note Income and Endowments from: Donations ai)d legacies Investment income Other income 409,128 2,440 33,259 409,128 2,440 33,259 Total Income 444,827 444,827 Expendlture on: Charitable activities 478,907 478,907 Total Expcnditure 478.907 478,907 Net expenditure 34,080 34,080 Net movement in fvnds {34,0801 {34,080) Reconc511atloD of funds Total funds broughi forward 286,247 286.247 Toial fvnds carricd forward io 252,167 252,167 All of the charity's activities dcrive from continuing operations during the above two periods. The fimds breakdown is shown in note l O. Page 12
The Friendship Circle (UK) (Registration number: 06706212) Balance Sheet as at 31 December 2024 2024 2023 'ote Current assets Debtors Cash at bank and in hand 94 337,179 252.167 337,273 252,167 Funds of the chArlty: Unre5trlcted Incorne funds Unrestricted funds 337,273 252,167 Total funds 10 337,273 252,167 For thc financial year ending 31 December 2024 the charity was entitled io cxemplion from audii under section 477 of the CoTnpanies Aci 2006 relating to small companies. Directors, responsibilities-. The member5 have not required the ¢hariry to obtain an aLidit of its accounts for the year in question in accordance with section 476.. and The direcltsrs acknowledge rheir responsibilities for complying with the requirements of the Act with respect lo aceouniing records and the preparaiion of accounts. These ac¢ouniS have been prepared in accordance with the provisions applicable to Companies subject to the small companies regime. The financial statements on pages 12 to 21 were approved by the trustees, and authorised for issue Ort 2 Septeinber 2025 and signed on their behalf by: Mr Philip Pink Trustee Mr Timothy Dempsey TNstee Page 13
The Friendshlp Clrcle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 I Charity status The chariry is a chariry limid by guarantee and consequenily does not have share capital. Each of the tnjstees is liable lo contribute an amount noi exceedingr £ l O towards the assets of the charity in the event of liquidation. 2 A¢countlng policles Summary of slgnlflcant accountlng pollcle5 and key accounting estinjates The priiicipal accounting policies applied in the preparation of thcse financial statements are set out below. These policies have been eonsislently applied to all the years presented, unless otherwise stated. Statement of compllance The financial statements have been prepared in accordance with Accounting and Reporting by Chariries.. S¢ai¢ment of Recoinniended Practice applicable to charities preparing ilieir accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive l January 2015) - {Charities SORP IFRS 102)), the Financial Reporting Standard applicablc in the UK and Republic of Jreland (FRS 1021 and the Companies Act 2006. BASIS of preparatlon Thc Fricndsliip Circle (UK) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at higtorical cost or transaction valiie unless otherwise stated in the relevant accounting policy notes. Golng concern The Irustccs consid¢r that there are no mat¢rial un¢ertainlies about the charity's ability to continue as a Boing concern nor any significant areas of unccrtainty that affect the canying value of assets held by the charity. Exemptlon from preparlng a cash flow statement Thc cliarity oplcd to carly adopt Bulletin I published on 2 February 2016 and have therefore not included a cash flow statemeni in these financial statements. Income and endowments All income 15 rccognised once the ¢harity has entiilcmcnt to thc incomc. it is probable that the income will be rcccivcd and the amount of the income receivable Can bc measured reliably. Donatioiis and legacies Donations ar¢ r¢¢ognised when the charity has becn notified in writing of both th¢ amount and scttlcment dale. In the event (hal a donation is subject to conditions that require a Icvel ot performance by the charity before the charity is cntiilcd to the fid5, the income is deferred and not recognised until either those conditions are fvlly mel, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in thc reporting period. Grants receivable Grants arc recogniscd when thc charity has an entitlement lo rhe ndS and any conditions linked to the grants have been mel. Where perforniance Conditions are attached to the grant and are yet to be mel the income is recognised as a liability and included on the balance sheet as deferred inromc to be released. Page 14
The Friendship Clrcle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 Investmenl incoNie Dividends are recognised on¢e the dividend has been declared and notification has been received of the dividend duc. Expendlture All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the aniount Can be measured reliably. All cosis are allocated (o thc applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. other support eost% are allocated based on Ihe spread of staff cosis. Charitable activities Charitable expenditure comprises those costs incuri'ed by the chariry in the delivery of its activities and services for lis beneficiaries. It includes both costs that can be allo¢aled directly to such activities and those costs of an indirect narnre necessary io suppori them. Support costs Support costs include ceniral n¢t10nS and havc bccn allocated lo aciivity cosl caiegories on a basis consistent with the use of rcsources. for example. allocating property cosis by floor areas, or per capits. staff Costs by the time spenr and oiher costs by their usage. Governance costs Tliese include tlie costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic managcmcnt and trustees, meetings and reimbLirs¢d expenses. Taxation The ¥hariry is considercd to pass the tests set out in Paragraph I Schedule 6 of the Finan¥e Act 2010 and thercfore it meets the definition of a charitable company for UK corporation tax PLirposes. Accordingly, thc chariry is potentially exempt from taxation in respect of income or capital gain5 received within ¢ategories covered by Chapier 3 Parl I l of thc Corporation Tax Act 2010 or Scclion 256 of the Taxation of Chargeable Gains Act 1992, 10 the extent rhal such incon)c or gains are applied exclusively to charitable purw>ses. Trade debtors Trade debtors are amounts due frorn customers for merchandise sold or servi¢¢s perfornied in the ordinary course of business. Trade debtors #re re¢ognised initially at the transaction price. They are subsequently measured &1 amortised cost using the effectiv¢ inieresi merhod, less provision for irnpairnient. A provision for thc impairment of trade debtors is established when there is objective evidenc¢ that the charity will not be able to collect all amounts due according to the original ternis of the re¢eivables. Cash alld cxsh equlvalents Cash and cash ¢quivalcnts compiise ca5b oll hand and ¢all deposits, and other short-term highly liquid investrnenls that are readily convertible to a knothry) amount of cash and are subject (o an insignificant risk of change in value. Page 15
The Friendshlp Circle (UK) Notes to the Finaneial Statements for the Year Ended 31 December 2024 Borrowings Interest-bearing borrowings are initially recorded ai fair value, net of transaction costs. Interest-bearing borrowings arc subsequcntly carried ai amortised cost, Ivith the differcn¢e bettvecn the proceeds. nei of transaction costs, and thc amount due on redemption being recognised as a charge to the Statcment of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of thc cffective interest method and is included in interest payable and similar charges. Borrowings are classified as CUJTent liabilities unless the ¢harity has an unconditional right to defer settlement of the liabiliry for at Icasi twelve nionths after the reporting dale. Fund structure Unresiri¢ted income funds are general funds that are available for use at the ttustees, discretion in furtherance of the objcctii'es of the charity. Flnanclol Instruments Clossificailon Financial assets and financial liabilities are reeognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instsuments are classified according to tlie substance of the contracrual arrangenients cniered into. An equiry instrumeni is any coniract thai evidcnces a residual intere8( in the a5sers of the charity after deducting all of its liabiliiies. Recognition and niea.furemeni All financial asseis and liabilities are initially me&sured at transaction price (including transaction costs), except for those finan¢ial asseis classified as al fair value d)rough profit or loss, which &re initially measured at fair value (wliich is nomially the transaction price excludin¥ transaciion costs), unless the arrangement consiitutes a financing transaction. If an aangement coi)slitutes a financing iransaction, the finai)cial asset or financial liability is measured ai the present valuc of the future paymcnts discounted at a market rate of intcrcst for & similar debi instrument. Financial assets and liabilities are only offset in the statement of financial position whcn, and only when tliere exists a legally enforceable right to Sct off the recognised aniounts and the charity intends either to settle on a nel basis, or to realise the asset and settle the liability simulthneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire OT are settlcd, b) the charity transfers to another party substantially all of the risks and rewards of owiership of the financial asset, or c) the charity, despitc having reuined some, but not all, significant risks And rcwards of ownership. has transfcrrcd control of the asset to anothcr party. Financial liabilities are derecognis¢d only when the obligation specified in the contract is discharged, cancelled or expires. Page 16
The Friendship Circle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 Debi instruiveh15 Debi insttuments which meet the following conditions are subsequenily measured at amortised cost using the effeciive interesi method.. lal The contractual return to the holder is (i) a fixed amount,. (li) a positive fixed rate or a positive variable rate- or (iii) a combination of a positive or a nc¥ativc fixcd ratc and a positive variable rate. Ibl The contract may provide for repayinents of the principal or the return to the holder {but not both) to be linked lo a single relevant observable index of general price inflation of thc cUencY in whi¢h the deb¢ instrument is denominated. provided such links are not leveraged. (c) The contract may provide for a deterniinable variation of the return io the holder during the life of the insltumenl, provided that lil thc ncw ratc satisfies condition (a) and the variation is not contingent on future events other than ( l ) a change of a contractual variable rate'121 lo prolecr ihe holder against credit deterioration of the issuer; 131 changes in levies applied by a Central bank or arising from changes in relevant taxation or law. or lill the new rate is a tnarkel raie of interest and satisfies condition (a). {dl Thcrc is no contractual provision that could, by its lernis, result in the holder losin8 the principal amount or any InreSt attributable to (he ellent period or prior periods. (el Conlracttial provisions that pemiit the issuer to prepay a debi instrunient or permit the holder lo pul il back lo the issuer before marurity arc not contingent on future events, other ihart to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or io proiect the holder or issuer against changes in Icvies applied by a central bank or arising from changes in relevant caxation or law. (n Contractual provisions may perniit the extension of the iern) of the debi instwnienl, provided that the remrn to the holder and any other Contracal provisions applicable during th¢ extended terni satisfy the conditions of paragraplis (a) to (c). Dcbt instrumenls that are classified as payable or receivable widiin one year on initial recogniiion and which nieet the above conditions are n)easured at the undiscounted aniount of the cash or other consideration expected to be paid or received, net of iinpairment. With the exception of Some hedging instrnments, other debt instwments not meeting these conditions ar¢ Ineasured at fair value through profit or loss, Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less inipairnienl. Investments Investments in non-¢onvertible preference sharcs and non-puttable ordinary or preference shares (where shares arc publicly traded or their fair value is rcliably measurablc) are measured at fair value through profit or loss. Where fair value cannot be rneasured reliably, investments are measured ai cost less impairnjent. Investments in subsidiarie& and associates are measured at cost less inipaimient. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, Cost is measured by reference lo the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. Page 17
The Friendship Circle (UK) Notes to the Financi21 Statements for the Year Ended 31 December 2024 Derivativefinaneial Instrumenls The charity uses derivaiive financial insmjments to reduce exposure to foreign exchange risk and interest rate movements. The charity does noi hold or issue derivative fLnancial instruments for speculative purposes. Derivaiives are initially recognised at fair value at the date a derivative ¢ontra¢t is cntered into and are subscqucntly rcmeasured to their fair value at ¢ach rcporting date. The resulting gain or loss is recognised in sratement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which eveni ihe timing of the recognition in sl8temeni of financial activities depends on the nature of the hedge relationship. Fair value measurement The best evidence of fair value is a quoted pri¢¢ for an identical assei in an active market. Whcn quoted prices are unavailable, the price of a recent transgAciion for an identical asset Provides evidence of fair valuc as long as there has not been a significant change in economic circumstsnces or a significant lapse of time since the transaction look placc. If the Inarkct is not active and recent transactions of an idenii¢al asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. 3 Income from donatlons and legaclts Unreslri¢ted funds TotAI 2024 Total 2023 General t)onations and legacies,. Donations Gift aid reclaimed Grants. in¢luding capital grants,. Granis from other charities 529,069 45,948 529,069 45,948 370,588 28,242 24,658 24,658 10,298 599,675 599,675 409128 4 Investment Income Unrestrleted funds Total 2024 Tot81 2023 General Interest receivable and similar income. Interest receivable on bank deposits 3,649 3,649 2,440 Page18
The Friendship Cfircle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 5 OtheT Income Unrestricted funds Total 2024 Total 2023 General Programme income Recharges 17,621 17,621 15,062 18,197 17,6?] 17,621 33,259 6 Expendlture on charilAble ¥ctlvltles Unrestrlcted funds Total 2024 Total 2023 General Note Activities undertaken dire¢ily Allocated support costs 517,123 18.716 517,123 18,716 446,329 32,578 535,839 Atdvlty undertaken dlrectly 535,839 478.907 Total 2024 Total 2023 Wages & salarie5 Staff trainin8 Rent & rates Utilities Office expcnses Office relocation expenses Con)puter & IT Jnsurance Printing, postage & delivery Fundraising & marketing Programme exp¢nses Loan inrerest Professional fees & consultancy Bank Charges 323,682 3,484 23,708 3,791 8.244 323,682 3,484 23,708 3,791 8,244 277,374 3,829 13,900 6,209 8,838 14,159 soo 3,390 2,872 34,001 98.081 785 14,490 479 963 7.147 3,428 31,756 109,521 963 7,147 3,428 31,756 109,521 19,621 494 19,621 494 535,839 535,839 478,907 Includcd in Wage5 & salaries are wages and salories relating to Programme expenses. Page 19
The Friendship Circle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 7 Trustees remuneration and expenses During the year the charity made the following transactions with tnjstees.. Mrs Mirellle Lyons Mrs Mireille Lyons received remuneration of £46,000 {2023.' £36.800) during the year. Mrs Lyons rcccived the above mentioned remuneration in hcr capacity as head of fund raising and opcrations of the charity. Mrs Lyons resigned as a trnslee on 31 December 2023. The remuneration was paid under the power in the Charities Act 2011. 8 StAff costs The nionthly average nuniber of pcrsons (including senior management team) employed by the charity during the year expressed as full iiine equivalents was as follows.. 2024 2023 Totsl employees No employee received emoluments of niore ihan £60.000 during the year. 9 Debtors 2024 Other debtors 94 Page 20
The Friendship Circle (UK) Notes to the Financial Statements for the Year Ended 31 December 2024 10 Funds Balance at 31 December 2024 BAlanee at I January 2024 Incomlng resources Resources expended Unrestrlcted funds O¢neral 1252,167 620,945 535,839 337,273 Balance at 31 December 2023 Balance at I January 2023 IDcomlng resources Resources expended Unrestrleted funds Gerteral 286.247) (444,827) 478.907 252,167 I l Analysls of net assets between funds Unrestrlcted funds General Total funds cuent assets 337.273 337,273 12 AnAlysls of net funds At l January 2024 At 31 December 2024 C*5h Ilow Cash at bank and in hand 252,167 85,012 94 337,179 94 Current asset investments Ne( debt 252,167 85.106 337,273 Page 21