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2022-04-30-accounts

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

Company Registration No 06883717 (England and Wales)

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE)

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 APRIL 2022

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 APRIL 2022

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: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT FOR THE YEAR ENDED 28 APRIL 2022

The directors present their annual report and accounts for the year ended 28 April 2022.

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 (Resigned 9 August 2022) Mr C Gilligan The Lady J Smith

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: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

(COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT FOR THE YEAR ENDED 28 APRIL 2022

COMPASSION IN ACTION

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 continues to support all our tenants and community on a daily basis. Our community village of inclusion has offered ‘Heat and Retreat’ for everyone who is struggling with the current crisis and have offered support at all 3 sites.

Our emotional wellbeing project has proven to be a much needed service with over 5,000 people on the books for day to day therapeutic counselling which has highlighted the need for our non clinical therapeutic short stay. The two services achieve the ‘Whole Person Care’ vision of the charity and support is ongoing within the charity.

The welfare reform provision continues to help our most vulnerable families in the community. Our christmas project was a huge success and helped 504 families with christmas lunch and 854 families with 3 presents per child.

The president, board members, patrons, ambassador and staff remain loyal, committed and supportive of the charity. The CEO/founder whose dedication and commitment on a daily basis enables the charity to grow from strength to strength.

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 £239,195.

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.

Page 2

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DIRECTORS’ REPORT CONTD/....... FOR THE YEAR ENDED 28 APRIL 2022

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

24/2/2023 | 3:27 PM GMT

This report was approved by the directors on ………………………….. and signed on their behalf.

Sharon Walker Trustee

Page 3

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF COMPASSION IN ACTION FOR THE YEAR ENDED 28 APRIL 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 28 April 2022, 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: 27/2/2023 | 8:43 AM GMT

Page 4

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28 APRIL 2022

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
2022
2022
2022
2021
£
£
£
£
-
159,054
159,054
142,792
-
-
-
6,670
-
755,835
755,835
360,000
-
914,889
914,889
509,462
-
692,311
692,311
287,294
-
-
-
157,222
-
692,311
692,311
460,363
-
222,578
222,578
49,099
48,890
16,617
65,507 16,408
48,890
239,195
288,085
65,507

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: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) BALANCE SHEET FOR THE YEAR ENDED 28 APRIL 2022

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		 2022
£
£
151,140
143,523
65
(6,643)
136,945
288,085
239,195
48,890
288,085		 2022
£
£
151,140
143,523
65
(6,643)
136,945
288,085
239,195
48,890
288,085		 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 **
288,085 65,507
239,195
48,890		 16,617
48,890
288,085 **65,507 **

For the financial year ended 28 April 2022 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)).

24/2/2023 | 3:27 PM GMT 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: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 28 APRIL 2022

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		 2022
£
147,698
(58,314)
-
89,384
54,139
143,523		 2021
£
63,462
(20,512)
-
42,950
11,189
54,139

Page 7

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 APRIL 2022

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: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2022

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
Restricted
Funds
Unrestricted
Funds
2022
2022
£
£
Donated facilities
-
-
Donations
-
159,054
-
159,054
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		 Restricted
Funds
Unrestricted
Funds
2022
2022
£
£
-
-
-
159,054		 Total
Total
2022
2021
£
£
-
-
159,054
142,792
-
**159,054 **		 159,054
**142,792 **
2022
2021
£
£
2,400
2,000
2022
2021
4
4
8
5
12
9
5
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 2022
At 28 April 2021		 Fixtures &
fittings
2022
Plant &
equipment
2022
Total
2022
£
£
£
256,524
-
58,314
3,560
-
-
260,084
-
58,314
-
-
-
314,838
3,560
318,398
141,034
2,787
143,821
23,321
116
23,437
164,355
2,903
167,258
150,483
657
151,140
115,490
773
116,263

Page 9

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

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
2022
2021
£
£
Other debtors
65
-
Prepayments
-
-
65
-
7
CREDITORS: Amounts falling due within one year
2022
2021
£
£
Accruals and deferred income
2,400
4,800
Taxation and social security
-
1,943
Other creditors
4,243
98,152
6,643
104,895

8
RECONCILIATION OF
FUNDS
As at 28
April 2021
Income
Expenditure
As at 28
April 2022
Unrestricted funds
16,617
914,889
(692,311)
239,195
Restricted funds
48,890
-
-
48,890
£65,507
£914,889
(£692,311)
£288,085		 2022
2021
£
£
65
-
-
-
65
-
2022
2021
£
£
2,400
4,800
-
1,943
4,243
98,152
6,643
104,895

9 DIRECTORS REMUNERATION

No directors remuneration was paid during the year.

10
CASH USED IN OPERATING ACTIVITES
Net movement in funds
Add back
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Depreciation		 2022
2021
£
£
222,578
49,099
(65)
-
(98,252)
(4,539)
23,437
18,902
147,698
63,462

Page 10

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

MANAGEMENT INFORMATION

FOR THE PERIOD ENDED 28 APRIL 2022

DocuSign Envelope ID: F42B0CE4-1444-4541-9E18-ABCA4C3FE9C4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 28 APRIL 2022

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
2022
Total
2021
£
£
755,835
360,000
159,054
142,792
-
6,670
914,889
509,462
168,972
101,580
241,378
176,576
11,263
2,600
7,402
2,023
3,831
3,753
35,215
21,009
25,576
23,479
5,835
5,029
10,118
7,507
4,091
3,601
811
27
46,201
30,215
808
-
3,384
4,761
3,158
29
37,601
17,145
29,268
23,854
3,700
17,654
3,603
3,810
3,600
75
3,957
336
1,439
280
751
1,158
6,057
5,815
23,437
18,902
692,311
460,363
222,578
49,099

Page 11