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2023-04-30-accounts

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

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 2023

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 APRIL 2023

Contents Pages
Report of the Trustees and Directors 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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 28 APRIL 2023

The trustees and directors present their annual report and accounts for the year ended 28 April 2023.

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 Mr C Gilligan The Lady J Smith (Appointed 20/05/2022) Rev W Stalker (Resigned 09/08/2022)

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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION

(COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 28 APRIL 2023

The Trustees, who are also the Directors of the charitable company, have pleasure in presenting their report together with the independently examined financial statements for the year ended 28 April 2023 in accordance with the Companies Act 2006 and the Statement of Recommended Practice (FRS102).

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 year on year continues to support all our tenants, adults with learning difficulties, elderly and disabled.

Our provision of furniture, food and clothing supports the most vulnerable in our community daily. The heat & retreat provision across two sites has been a haven for many people.

The charity’s vision from 2006 being ‘whole person care’ and practical, physical, social and mental has now been achieved for the benefit of the community with the introduction of our residential, daily and sessional nonclinical mental health project which was pioneered by the chief executive/founder.

The belief and support of the charity by commissioners, partners, patrons and the community is appreciated and valued.

This is our sixteenth year of the provision of three presents per child and full Christmas lunches for our most vulnerable families at Christmas.

The president, board members, patrons, ambassador and staff remain loyal, committed and supportive of the charity and the chief executive/founder whose dedication, vision, commitment daily 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 £321,116.

Reserves policy

The reserves are continuously assessed by the Trustees who work towards maintaining an appropriate level of unrestricted reserves to cover management and administration and support costs. With increased pressure on costs and resources, Trustees are mindful of changes and fluctuation in levels of reserves required going forwards considering increasing inflation.

Plans for the future

Our projects continue to give a very high level of social return.

Our plans for the future are to enhance our current services and to maintain the high level of delivery of the services we provide.

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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND DIRECTORS CONTD/....... FOR THE YEAR ENDED 28 APRIL 2023

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 Trustees and 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 Trustees and Directors should follow best practice and:

The Trustees and 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 Trustees and Directors are also responsible for safeguarding 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 (FRS102): Accounting and Reporting by Charities.

Approval

26/1/2024 | 9:20 AM GMT

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

Sharon Walker Trustee

Page 3

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF COMPASSION IN ACTION FOR THE YEAR ENDED 28 APRIL 2023

I report to the charity trustees on my examination of the accounts of the company for the year ended 28 April 2023, 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 Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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: 26/1/2024 | 9:33 AM GMT

Page 4

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 28 APRIL 2023

Notes
Income and endowments:
Income
and
endowments
from
generated funds
Voluntary income
2
Furlough claims
Grant income
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
2023
2023
2023
2022
£
£
£
£
-
63,997
63,997
159,054
-
-
-
-
-
827,000
827,000
755,835
-
890,997
890,997
914,889
-
809,076
809,076
692,311
-
-
-
-
-
809,076
809,076
692,311
-
81,921
81,921
222,578
48,890
239,195
288,085 65,507
48,890
321,116
370,006
288,085

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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) BALANCE SHEET FOR THE YEAR ENDED 28 APRIL 2023

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		 2023
£
£
149,968
228,620
-
(8,582)
220,038
370,006
321,116
48,890
370,006		 2023
£
£
149,968
228,620
-
(8,582)
220,038
370,006
321,116
48,890
370,006		 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
370,006 288,085
321,116
48,890		 239,195
48,890
370,006 288,085

For the financial year ended 28 April 2023 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)).

26/1/2024 | 9:20 AM 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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 28 APRIL 2023

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		 2023
£
111,476
(26,379)
-
85,097
143,523
228,620		 2022
£
147,698
(58,314)
-
89,384
54,139
143,523

Page 7

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 APRIL 2023

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: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2023

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
2023
2023
£
£
Donated facilities
-
-
Donations
-
63,997
-
63,997
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
5
TANGIBLE FIXED ASSETS
Fixtures &
fittings
2023
Cost
£
Brought forward
Adjustment
Additions
314,838
-
26,379
Disposals
-
Carried forward
341,217
Depreciation
Brought forward
164,355
Charge for the year
27,453
Carried forward
191,808
Net book value
At 28 April 2023
149,409
At 28 April 2022
150,483		 Restricted
Funds
Unrestricted
Funds
2023
2023
£
£
-
-
-
63,997		 Restricted
Funds
Unrestricted
Funds
2023
2023
£
£
-
-
-
63,997		 Total
Total
2023
2022
£
£
-
-
63,997
159,054
-
**63,997 **		 63,997
**159,054 **
2023
2022
£
£
3,120
2,400
2023
2022
4
4
15
8
19
12
Plant &
equipment
2023
Total
2023
£
£
3,560
-
-
318,398
-
26,379
-
-
341,217 3,560
344,777
164,355
27,453		 2,903
167,258
98
27,551
191,808 3,001
194,809
149,409 559
149,968
150,483 657
151,140

Page 9

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 APRIL 2023

6
DEBTORS: Amounts falling due within one year
2023
2022
£
£
Other debtors
-
65
Prepayments
-
-
-
65
7
CREDITORS: Amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
3,120
2,400
Taxation and social security
102
-
Other creditors
5,360
4,243
8,582
6,643

8
RECONCILIATION OF
FUNDS
As at 28
April 2022
Income
Expenditure
As at 28
April 2023
Unrestricted funds
239,195
890,997
(809,076)
321,116
Restricted funds
48,890
-
-
48,890
£288,085
£890,997
(£809,076)
£370,006
9
DIRECTORS REMUNERATION
No directors remuneration was paid during the year.
10
CASH USED IN OPERATING ACTIVITES
2023
2022
£
£
Net movement in funds
81,921
222,578
Add back
(Increase) / Decrease in debtors
65
(65)
Increase / (Decrease) in creditors
1,939
(98,252)
Depreciation
27,551
23,437
111,476
147,698		 2023
2022
£
£
-
65
-
-
-
65
2023
2022
£
£
3,120
2,400
102
-
5,360
4,243
8,582
6,643

Page 10

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

MANAGEMENT INFORMATION

FOR THE PERIOD ENDED 28 APRIL 2023

DocuSign Envelope ID: 8D97F721-5F22-43C2-B554-03BD78AE1DA4

COMPASSION IN ACTION (COMPANY LIMITED BY GUARANTEE) DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 28 APRIL 2023

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 profit for the year		 Total
2023
Total
2022
£
£
827,000
755,835
63,997
159,054
-
-
890,997
914,889
139,890
168,972
359,385
241,378
20,225
3,994
11,263
2,600
7,525
3,831
34,319
35,215
29,271
25,576
6,140
5,835
11,356
10,118
6,666
4,091
3,485
811
44,346
46,201
2,660
808
3,750
5,460
3,384
4,761
24,333
37,601
9,834
29,268
18,814
28,621
5,952
3,700
17,654
3,603
5,264
3,957
3,065
1,439
1,051
751
6,119
6,057
27,551
23,437
809,076
692,311
81,921
222,578

Page 11