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2021-04-30-accounts

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

Company Registration No 06883717 (England and Wales)

COMPASSION IN ACTION

(COMPANY LIMITED BY GUARANTEE)

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 APRIL 2021

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2021

Contents Pages
Directors’ report 1 - 3
Independent examiners report 4
Statement of financial activities 5
Balance sheet 6
Cash flow statement 7
Notes to the financial statements 8 – 10
Detailed income and expenditure account 11

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT FOR THE PERIOD ENDED 28 APRIL 2021

The directors present their annual report and accounts for the period ended 28 April 2021.

Reference & Administrative Details

The Charity: Compassion in Action Charity number: 1135920 Company registration number: 06883717 Address: 9 & 17 Oaklands Road Lowton Warrington WA3 2LA

DIRECTORS

Miss S Walker Rev W Stalker Mr C Gilligan

CHIEF EXECUTIVE

Mrs P Gilligan

INDEPENDENT EXAMINERS

CHW Accounting Ltd ICAEW Chartered Accountants Bedford House 60 Chorley New Road Bolton BL1 4DA

PRINCIPAL BANKERS

NatWest Bank plc 32 Market Street Leigh WN7 1DX

Page 1

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT FOR THE PERIOD ENDED 28 APRIL 2021

Our Aims and Objectives

Objectives and activities

The principal activity of the Charity is the relief or prevention of poverty, to prevent social exclusion and support individuals experiencing social crises.

Achievements & performance

Compassion in Action’s Community Village of inclusion for the benefit of the people continues to flourish.

Our emotional wellbeing project has grown from strength to strength and continues to prove to be a muchneeded service which we have now expanded from day to day provision to a short term stay social crisis provision which enhances our current service and continues to be beneficial for the people and our borough.

With sincere thanks to an amazing team at Compassion in Action we continued our welfare reform provision throughout COVID 19.

The president, board members, patrons and staff remain loyal, committed, and supportive of the charity and all the projects.

The chairman of the board congratulated and thanked the CEO/Founder whose vision, commitment and dedication on a daily basis has enabled the Charity to grow from strength to strength from humble beginnings starting as a coffee morning in a church hall.

Financial review

Review of the transactions and financial position

The principal source of income in the year was grants and donations. The charity has received grants from a wide range of sources and is grateful for each one. At the balance sheet date the charity had a fund of restricted reserves of £48,890 and unrestricted reserves of £16,617.

Reserves policy

The reserves are not yet at the level the trustees would wish. The trustees would like to see unrestricted reserves at an appropriate level to cover management and administration and support costs and will be working towards achieving this level of reserves over the next few years.

Plans for the future

Our projects continue to give a very high level of social return and opportunities to partner with commissioners, companies, and organisations for the benefit of the community.

Our plans for the future are to enhance our current services and to maintain the high level of social return.

Structure, Governance and Management

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 21 April 2009. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Each member of the company has guaranteed to contribute to the company’s assets, if required, an amount not exceeding £10.

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DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT CONTD/....... FOR THE PERIOD ENDED 28 APRIL 2021

Recruitment and appointment of directors

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the company. Under the requirements of the Memorandum and Articles of Association the directors are required to retire by rotation. Appointment of directors is by the charity in general meeting or by the directors.

Responsibilities of directors

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the directors should follow best practice and:

The directors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. The Directors are also responsible for safe-guarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent examiners

CHW Accounting Ltd were appointed as the charitable company’s independent examiners during the year.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities and in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

Approval

4/4/2022 | 1:42 PM BST This report was approved by the directors on ………………………….. and signed on their behalf.

Sharon Walker Trustee

Page 3

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF COMPASSION IN ACTION FOR THE PERIOD ENDED 28 APRIL 2021

I report to the charity trustees on my examination of the accounts of the company for the period ended 28 April 2021, which are set out on pages 5 to 10.

Responsibilities and basis of report

As the charity’s trustees of the company (and also its directors for the purposes of the company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2001 Act’). In carrying out my examination I have followed the Directors given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s report

Since the company’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 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:

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 accounts to be reached.

I Orgill FCCA Bedford House 60 Chorley New Road Bolton BL1 4DA

DATE: 5/4/2022 | 9:30 AM BST

Page 4

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 28 APRIL 2021

Notes
Income and endowments:
Income
and
endowments
from
generated funds
Voluntary income
2
Furlough claims
Donations
Total income and endowments
Expenditure on:
Charitable activities
Other costs
Total expenditure
Net movement in funds
Reconciliation of funds
8
Total funds brought forward
Total funds carried forward		 Restricted
Unrestricted
TOTAL
TOTAL
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
-
142,792
142,792
120,503
6,670
-
6,670
-
40,000
320,000
360,000
325,000
46,670
462,792
509,462
445,503
11,600
293,760
287,294
294,562
-
155,003
157,222
161,110
11,600
448,763
460,363
455,672
35,070
14,029
49,099
(10,169)
13,820
2,588
16,408 26,577
48,890
16,617
65,507
16,408

There are no recognised gains or losses in the period other than those included in the Statement of Financial Activities.

The Statement of Financial Activities has been prepared on the basis that all operations are continuing.

Page 5

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) BALANCE SHEET FOR THE PERIOD ENDED 28 APRIL 2021

Notes
TANGIBLE FIXED ASSETS
5
CURRENT ASSETS
Cash at Bank
Debtors
6
CREDITORS
Amounts falling due within one year
7
NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted Funds
8
Restricted Funds
TOTAL CHARITY FUNDS		 2021
£
£
116,263
54,139
-
(104,895)
(50,756)
65,507
16,617
48,890
65,507		 2021
£
£
116,263
54,139
-
(104,895)
(50,756)
65,507
16,617
48,890
65,507		 2020
£
£
114,653
11,189
-
(109,434)
(98,245)
16,408
2,588
13,820
16,408		 2020
£
£
114,653
11,189
-
(109,434)
(98,245)
16,408
2,588
13,820
16,408
65,507 16,408
16,617
48,890		 2,588
13,820
65,507 16,408

For the financial year ended 28 April 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The Financial Statements on pages 5 to 10 have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2015) – (Charities SORP (FRS102)).

4/4/2022 | 1:42 PM BST Approved by the board of directors on …………………………… and signed on their behalf by:

Sharon Walker Trustee

Company Registration No 06883717

Page 6

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED 28 APRIL 2021

Note
Cash flows from operating activities
Net cash used in operating activities
10
Cash flows from investing activities
Purchase of tangible fixed assets
Cash flows from financing activities
Increase (decrease in cash and cash
equivalents in the year
Cash and cash equivalents at the
beginning of the year
Total cash and cash equivalents at the
end of the year		 2021
£
63,462
(20,512)
-
42,950
11,189
54,139		 2020
£
10,238
(5,894)
-
4,344
6,845
11,189

Page 7

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2021

1. STATEMENT OF ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with the items which are considered material to the Charity's affairs.

Basis of preparation of the financial statements

The accounts have been prepared under the Historical Cost Convention, as modified by the revaluation of freehold property and the inclusion of fixed asset investments at market value, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2015) – (Charities SORP (FRS102)) and the Companies Act 2006.

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

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income and endowments

Grants received and invoiced income is accounted for on the accruals basis.

Voluntary income and donations are accounted for as received by the charity.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.

Resources expended

Resources expended are included in the accounts on an accruals basis, inclusive of any VAT.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and events for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs allocated with meeting the constitutional and statutory requirements of the charity including the independent examiner’s fee.

All costs are allocated between the expenditure categories of the SOFA on the basis designed to reflect the use of the resource.

Value Added Tax

Value Added Tax is not recoverable by the company and as such is included in the relevant costs in the Statement of Financial Activities.

Page 8

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2021

Tangible Fixed Assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Plant and equipment 15% reducing balance Fixtures and fittings 15% reducing balance Computer equipment 33% on cost

2
VOLUNTARY INCOME
Donated facilities
Donations		 Restricted
Funds
Unrestricted
Funds
Total
Total
2021
2021
2021
2020
£
£
£
£
-
-
-
-
-
142,792
142,792
120,503
-
142,792
142,792
120,503
3
NET INCOMING RESOURCES FOR THE YEAR
Independent Examination Fees
4
INFORMATION ON EMPLOYEES
The average monthly number of employees, calculated on a full time
equivalent basis, analysis by function was:
Administration
Charitable activities		 2021
2020
£
£
2,000
5,400
2021
2020
4
4
5
4
9
8
TANGIBLE FIXED ASSETS
Cost
Brought forward
Adjustment
Additions
Disposals
Carried forward
Depreciation
Brought forward
Charge for the year
Carried forward
Net book value
At 28 April 2021
At 28 April 2020		 Fixtures &
fittings
2021
Plant &
equipment
2021
Total
2021
£
£
£
236,012
-
20,512
3,560
-
-
239,572
-
20,512
-
-
-
256,524
3,560
260,084
122,268
2,651
124,919
18,766
136
18,902
141,034
2,787
143,821
115,490
773
116,263
113,744
909
114,653

5 TANGIBLE FIXED ASSETS

Page 9

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2021

6
DEBTORS: Amounts falling due within one year
2021
2020
£
£
Other debtors
-
-
Prepayments
-
-
-
-
7
CREDITORS: Amounts falling due within one year
2021
2020
£
£
Accruals and deferred income
4,800
5,400
Taxation and social security
1,943
1,971
Other creditors
98,152
102,063
104,895
109,434

8
RECONCILIATION OF
FUNDS
As at 28
April 2020
Income
Expenditure
As at 28
April 2021
Unrestricted funds
2,588
462,792
(448,763)
16,617
Restricted funds
13,820
46,670
(11,600)
48,890
£16,408
£509,462
(£460,363)
£65,507		 2021
2020
£
£
-
-
-
-
-
-
2021
2020
£
£
4,800
5,400
1,943
1,971
98,152
102,063
104,895
109,434

9 DIRECTORS REMUNERATION

No directors received remuneration during the year.

10
CASH USED IN OPERATING ACTIVITES
Net movement in funds
Add back
Increase / (Decrease) in debtors
Increase / (Decrease) in creditors
Depreciation		 2021
2020
£
£
49,099
(10,169)
-
-
(4,539)
1,247
18,902
19,160
63,462
10,238

Page 10

Docusign Envelope ID. 732F2CBC-19EE4EFC-B730-197048965585 MANAGEMENT INFORMATION FOR THE PERIOD ENDED 28 APRIL 2021

DocuSign Envelope ID: 732F2CBC-19EE-4EFC-B730-197048965585

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 28 APRIL 2021

Income and endowments from:
Grants
Donations
Furlough claims
Total income and endowments
Expenditure on:
Community projects
Wages
Employers national insurance
Pension
Insurances
Rent
Light, heat and utilities
Telephone
Printing, postage and stationery
Computer costs
Entertaining
Repairs and refurbishments
Donations
Motor expenses
Travelling expenses
Food and catering
Volunteer expenses
Legal & professional
Advertising & marketing
Staff training
Accountancy
Uniforms
Bank charges
Sundry
Depreciation
Total expenditure
Net (deficit) / profit for the year		 Total
2021
Total
2020
£
£
360,000
325,000
142,792
120,503
6,670
-
509,462
445,503
101,580
37,948
176,576
194,354
7,402
2,023
9,512
1,965
3,753
3,637
21,009
24,608
23,479
22,590
5,029
4,825
7,507
7,872
3,601
3,928
27
1,181
30,215
26,620
-
-
3,158
29
7,188
445
17,145
48,631
23,854
17,618
3,810
3,600
75
2,810
3,600
1,270
336
6,641
280
812
1,158
1,107
5,815
7,350
18,902
19,160
460,363
455,672
49,099
(10,169)

Page 11