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2023-03-31-accounts

PRIDE OF SEFTON

Report and Financial Statements

Year ended 31 March 2023

Company Number: 07020791 Charity Number: 1144393

Pride of Sefton

Report and Financial Statements for the year ended 31 March 2023

Contents

Page(s):
3 Directors, Trustees and Advisors
4 Chair's Statement
5 - 7 Report of the Trustees
8 Trustees Responsibilities in Relation to the Financial Statements
9 - 11 Independent Auditor's Report
12 Statement of Financial Activities
13 Statement of Financial Position
14 Statement of Cash Flows
15 - 25 Notes Forming Part of the Financial Statements

Pride of Sefton

Directors, Trustees and Advisors for the year ended 31 March 2023

Directors and trustees

The directors of the charitable company (the "Charity") are its trustees for the purpose of charity law. The trustees serving during the year and since the year end were as follows.

Name

James Brett Non-executive - Chair William McGarry Non-executive Chris Walker Non-executive Keith Lloyd Non-executive (resigned 4 May 2022) Tracey Liggett Executive Ian Fazakerley Executive Registered number Company number: 07020791 Charity number: 1144393 Company secretary and registered office Marcus Evans Pride of Sefton The Sovini Group Unit 1 Heysham Road Liverpool L30 6UR Auditor BDO LLP 5 Temple Square Temple Street Liverpool L2 5RH Principal solicitors Weightmans LLP 100 Old Hall St Liverpool L3 9QJ Bankers Royal Bank Of Scotland Merseyside Cheshire & North Wales, Corporate Banking 1 Dale Street Liverpool L2 2PP

Page 3

Pride of Sefton

Chair's Statement

for the year ended 31 March 2023

The Pride of Sefton has been providing boat trips to underprivileged and disabled people as well as educational trips for the local community for over 35 years. These trips are financed through a combination of donations, grants and commercial trips, which are made available to the general public.

The trustees continue to review and consider the future activities of the charity. During the last two years the charity has submitted and been awarded a number of Heritage and National Lottery grants, which have enabled us to carry out essential repairs and maintenance on the Boat and make a number of improvements to our operational processes. These have been essential to the ongoing success and have helped us to improve the overall accessibility and availability of our boat trips. With the support of our extremely flexible and supportive volunteers, we have been able to expand our service offer and increased the volume of trips that we are able to provide. The charity take its responsibilities to its staff, volunteers and customers extremely seriously and continues to prioritise their safety and the quality of their overall boat trip experience.

We remain focussed on the achievement of our aims and objectives, appreciating the positive impact that our trips have on the mental and physical health and wellbeing of our customers. This inspires us to want to do more and reach new groups of society that would benefit from our unique experiences. We remain focussed on addressing these challenges, as we continue to improve and expand our service offer and service delivery methods.

We believe that we are in a strong position to continue to grow and demonstrate the social value outcomes that we create, both the charity and individually our customers. We believe that 2023 and beyond, will bring new and exciting opportunities for the charity which we intend to harness, whilst navigating the new operating environment in which we now work.

James Brett (chair of the trustees) 17 August 2023

Page 4

Report of the Trustees for the year ended 31 March 2023

Pride of Sefton

The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ending 31 March 2023, which are also prepared to meet the requirements for a trustees’ report and accounts for Companies Act 2006 purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS 102) (effective 1 January 2019).

Our purposes and activities

The objects of Pride of Sefton are to promote the education and recreation of persons living in the Borough of Sefton by providing a narrow boat, such persons having need to those facilities by reason of youth, age, infirmity or disablement, poverty or social economic circumstances. In considering the objectives and activities, the trustees' have considered Charity Commission guidance on Public Benefit to ensure that the charity continues to meet it's Public Benefit requirements.

Governing documents

The Pride of Sefton is a registered charity (Charity Number 1144393) governed by its Memorandum and Articles of Association dated 16 September 2009 (amended on joining the Sovini group on 8 July 2016). It is registered with the Charity Commission and is also a Company Limited by Guarantee (Company Number 07020791). The charity is a subsidiary of Sovini Charities Limited, a charitable holding company. It is also a subsidiary of Sovini Limited which remains the ultimate parent undertaking.

Key achievements and performance

The main focus of the Pride of Sefton is the provision of boat trips to underprivileged and disabled people as well as educational trips for the local community of Sefton. Where feasible these trips are financed through a combination of donations and grants. The Pride of Sefton also raise money by hiring out the boat on a commercial basis to third parties, including members of the general public.

During the current year the Charity's financial performance resulted in a deficit of £10,967 relating to unrestricted funds (2022: £5,504 surplus), £4,859 deficit relating to restricted funds (2022: £10,765 deficit), resulting in an overall deficit of £15,826 (2022: £5,261 deficit). This performance is reflective of increased boat hire income and a review of our operating activities to reduce expenditure, however also includes a non-recurring loss on disposal of assets of £3,477. We have utilised historic grant funding throughout the current year, and expect to receive further grant income in financial year 23/24.

Structure, governance and management

The Board of Trustees also forms the Executive Committee who are responsible for any appointments of staff who are responsible for the day-to-day running of the charity. Pride of Sefton is managed and governed by the trustees' who hold regular board meetings and agenda items include finance, health and safety and other operational reports.

Charity Governance Code

The Charity Governance Code is designed as a tool to support continuous improvement. The Board, having reviewed the Code's key principles, considers its governance structure and arrrangements to be appropriate for the nature of the Charity's operations, and as such has decided not to formally adopt the Code. The Board does however regularly revisit the Code's key principles to ensure that the highest standards of governance are maintained.

Financial review

Income for the year totalled £25,688 (2022: £48,212) of which £nil (2022: £30,860) related to funding activities upon which restrictions are placed. Expenditure totalled £41,514 (2022: £53,473), resulting in a deficit of £15,826 (2022: £5,261). At 31 March 2023, the trust's reserves stood at £62,013 (2022: £77,839) of which, fixed assets (narrow boat) represented £56,508 (2022: £61,407).

Our pricing policy

Our pricing policy reflects our strategy of enabling all within our community, whatever their means, to take part in our activities. Concessionary tickets are available to eligible persons.

Investment powers and policy

The trustees, having regard to the liquidity requirements of operating the boat, have kept available funds in an interest-bearing deposit account and seek to achieve the best possible rate of interest on these deposits.

Page 5

Report of the Trustees for the year ended 31 March 2023 (continued)

Pride of Sefton

Reserves policy

The Trustees aim to maintain free reserves in unrestricted funds at a level which equates to at least three months of operational charitable expenditure: a target of approximately £6,126 based on budgeted indirect expenditure for the next financial year (2023-24). The charity's free reserves currently stand at £1,160 (2022: £6,548) and the trustees have retained access to a £20,000 revolving credit facility should the need ever arise. The trustees consider that this level will provide sufficient funds for short-term solutions until the long-term ones are established in the events of:

Future Prospects

During the coming years the charity plans to review and where possible expand its service offer to customers. The safety and health of our staff, volunteers and customers is paramount, and a particular focus will be on ensuring that our service offer considers and accommodates the needs of our broad and more vulnerable customers. We continue to scrutinise and reduce where possible our operating costs, so that we can reinvest these savings to extend our charitable work and the number of trips and educational experiences that we can fulfil. As well as maximising where possible, the availability of grant and other donations.

Financial instruments

Credit risk

Credit risk is the risk of financial loss to the charity if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. The following financial institutions were used and the credit ratings were acceptable to the trustees'.

----- Start of picture text -----
|||||| |---|---|---|---|---| |Rating at|Balance at|Rating at|Balance at| |31 March 2023|31 March 2023|31 March 2022|31 March 2022| |£|£| |RBS|P-1/A-1/F1|16,612|P-1/A-1/F1|19,791| |16,612|19,791|

----- End of picture text -----

Liquidity risk

Liquidity risk arises from the charity’s management of working capital and any finance charges and principal repayments on debt instruments. It is the risk that the charity will encounter difficulty in meeting it's financial obligations as they fall due.

Rolling cash flow projections are prepared regularly, together with the value of the charity’s cash investments. At the end of the financial year, these projections indicated that the company expected to have sufficient liquid resources to meet it's obligations under all reasonably expected circumstances.

Cash flow interest rate risk

The company is not currently exposed to cash flow interest rate risk from borrowings at variable rate.

Page 6

for the year ended 31 March 2023 (continued)

Pride of Sefton

Report of the Trustees

Risk and uncertainty

The main risks, to which the charity is exposed, as identified by the trustees, have been considered and systems have been established to mitigate those risks.

This strategy comprises:

Going concern

In the final quarter of 2022/23 trustees reviewed the latest budget forecasts to ensure that we could continue to support our operations, including the ongoing application and use of grant assistance. This is in addition to the availability of £20,000 Revolving Credit Facility with Sovini Commercial Limited (another Sovini Group partner) which, remains undrawn.

Our marketing campaign remains in place, to raise awareness of the positive benefits that our boat trips have on individuals mental and social wellbeing. We also continue to review our pricing strategy, to offset the impact of rising costs and fuel increases and set realistic (but challenging) performance targets.

Post year end the boat suffered an engine failure which has required an engine replacement for £13,000. This replacement was funded by a donation received post year end so has not impacted existing reserves or required drawdown from the £20,000 revolving credit facility. Due to this £3,200 of trips included in deferred income at year end (note 17) have been refunded post year end. Our forecast performance for 2023/24 has been restated for this major repair and remains viable, but to give assurance over the ongoing viability of the charity we have a legally binding letter of support from ultimate parent company Sovini Limited.

As such, we remain confident that the Pride of Sefton has adequate resources to continue in operational existence for the foreseeable future and has adopted the going concern basis in preparing these financial statements.

Auditors

All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The trustees are not aware of any relevant audit information of which, the auditors are unaware.

Approval

In preparing this report, the trustees' have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Signed on behalf of the trustees'.

James Brett (chair) 17 August 2023

Page 7

Pride of Sefton

Trustees Responsibilities in Relation to the Financial Statements for the year ended 31 March 2023

Trustees responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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/Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 8

Pride of Sefton

Independent Auditor's Report for the year ended 31 March 2023

Independent Auditor’s Report to the members of Pride of Sefton

Opinion

In our opinion the financial statements:

We have audited the financial statements of Pride of Sefton (“the Charitable Company”) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

Page 9

Pride of Sefton

Independent Auditor's Report for the year ended 31 March 2023

Independent Auditor’s Report to the members of Pride of Sefton (continued)

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations to be Charities SORP (FRS 102), Charities Act 2011, Companies Act 2006 and Charity Commission for England and Wales (Charity Commission) regulations.

The Charitable Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation.

Page 10

Pride of Sefton

Independent Auditor's Report for the year ended 31 March 2023

Independent Auditor’s Report to the members of Pride of Sefton (continued)

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be income recognition around year end and management override of controls.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Anderson (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Liverpool, UK

Date: 17 August 2023

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Page 11

Pride of Sefton

Statement of Financial Activities for the year ended 31 March 2023

----- Start of picture text -----
Note Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds Funds Funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Income
Donations and legacies 4 5,220 - 5,220 4,750 - 4,750
Income from charitable activities 5
Boat hire 20,401 - 20,401 12,600 - 12,600
Grants received - - - - 30,860 30,860
Investment income 6 67 - 67 2 - 2
Total income 25,688 - 25,688 17,352 30,860 48,212
Expenditure
Expenditure on charitable activities 7 36,148 1,889 38,037 11,848 41,625 53,473
Loss on disposal of intangible asset 15 507 2,970 3,477 - - -
Total expenditure 36,655 4,859 41,514 11,848 41,625 53,473
Net expenditure and net movement in funds for the year (10,967) (4,859) (15,826) 5,504 (10,765) (5,261)
Reconciliation of funds
Total funds brought forward 67,461 10,378 77,839 61,957 21,143 83,100
Current year (10,967) (4,859) (15,826) 5,504 (10,765) (5,261)
Total funds carried forward 56,494 5,519 62,013 67,461 10,378 77,839
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 15 to 25 form part of these financial statements.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 August 2023.

James Brett (chair of trustees, on behalf of the trustees) 17 August 2023

Page 12

Pride of Sefton

Statement of Financial Position as at 31 March 2023

----- Start of picture text -----
Company number: 07020791
Note 2023 2022
£ £
Fixed assets
Tangible fixed assets 14 56,508 61,407
Intangible fixed assets 15 - 3,783
56,508 65,190
Current assets
Debtors 16 1,361 4,135
Cash at bank and in hand 16,612 19,791
17,973 23,926
Current liabilities
Creditors: amounts falling due within 1 year 17 12,468 11,277
Net current assets 5,505 12,649
Total assets less current liabilities 62,013 77,839
Net assets 62,013 77,839
The funds of the charity
Unrestricted funds 19 56,494 67,461
Restricted funds 19 5,519 10,378
Total funds 62,013 77,839
----- End of picture text -----

The notes on pages 15 to 25 form part of these financial statements.

The accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 August 2023.

James Brett (chair of trustees, on behalf of the trustees)

17 August 2023

Page 13

Pride of Sefton

Statement of Cash Flows for the year ended 31 March 2023

----- Start of picture text -----
Note 2023 2022
£ £
Cash flows from operating activities
Net movement in funds (15,826) (5,261)
Add back depreciation/amortisation charge 10 5,205 5,345
Deduct interest income shown in investing activities 6 (67) (2)
Decrease/(Increase) in debtors 16 2,774 (3,320)
Increase in creditors 17 1,191 5,121
Loss on disposal of intangible asset 15 3,477 -
Cash (used in)/generated by operating activities (3,246) 1,883
Cash flows from investing activities
Interest income 6 67 2
Purchase of tangible assets 14 - (1,329)
Cash generated by/(used in) investing activities 67 (1,327)
(Decrease)/Increase in cash and cash equivalents (3,179) 556
Cash and cash equivalents at beginning of year 19,791 19,235
Cash and cash equivalents at end of year 16,612 19,791
----- End of picture text -----

The notes on pages 15 to 25 form part of these financial statements.

Page 14

Pride of Sefton

Notes Forming Part of the Financial Statements

for the year ended 31 March 2023

INDEX OF NOTES

General notes

1 Legal status
2 Accounting policies
3 Judgements in applying accounting policies and key sources of estimation uncertainty
Statement of Financial Activities related notes
4 Income from donations and legacies
5 Income from charitable activities
6 Investment income
7 Analysis of expenditure on charitable activities
8 Summary analysis of expenditure and related income for charitable activities
9 Analysis of governance and support costs
10 Net expenditure for the year
11 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
12 Staff numbers
13 Corporation taxation
Statement of Financial Position related notes
14 Tangible fixed assets
15 Intangible fixed assets
16 Debtors
17 Creditors: amounts falling due within one year
18 Deferred income
19 Analysis of charitable funds
20 Analysis of net assets between funds
21 Controlling party and related party transactions

Page 15

Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

1 Legal status

Pride of Sefton is a registered charity in England, number 1144393 and a limited company by guarantee, number 07020791, the company was established on 16 September 2009.

2 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared 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 (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Pride of Sefton meets the definition of a public benefit entity under FRS 102.

Going concern

In the final quarter of 2022/23 trustees reviewed the latest budget forecasts to ensure that we could continue to support our operations, including the ongoing application and use of grant assistance. This is in addition to the availability of £20,000 Revolving Credit Facility with Sovini Commercial Limited (another Sovini Group partner) which, remains undrawn.

Our marketing campaign remains in place, to raise awareness of the positive benefits that our boat trips have on individuals mental and social wellbeing. We also continue to review our pricing strategy, to offset the impact of rising costs and fuel increases and set realistic (but challenging) performance targets.

Post year end the boat suffered an engine failure which has required an engine replacement for £13,000. This replacement was funded by a donation received post year end so has not impacted existing reserves or required drawdown from the £20,000 revolving credit facility. Due to this £3,200 of trips included in deferred income at year end (note 17) have been refunded post year end. Our forecast performance for 2023/24 has been restated for this major repair and remains viable, but to give assurance over the ongoing viability of the charity we have a legally binding letter of support from ultimate parent company Sovini Limited.

As such, we remain confident that the Pride of Sefton has adequate resources to continue in operational existence for the foreseeable future and has adopted the going concern basis in preparing these financial statements.

Income

Income is recognised when services have been rendered regardless of when cash is received, using the accruals method of accounting, deferring income relating to services not fulfilled in the period.

Voluntary income is recognised when receivable, as in the case of the third party donations, upon receipt by the charity. Investment income comprises bank interest received and is recognised when credited to the bank account.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Restricted funds are donations that the donor has specified are to be solely used for particular areas of the charity's work.

Page 16

Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

2 Accounting policies (continued)

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs that support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes.

Tangible fixed assets

Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on basis as follows:

----- Start of picture text -----
||| |---|---| |Asset Category|Economic Useful Life (years)| |Plant and equipment|10| |Narrow boat - boat|25| |Narrow boat - solar panels|10|

----- End of picture text -----

Intangible fixed assets

Costs directly attributable to the development of computer software are capitalised as intangible assets only when technical feasibility of the project is demonstrated, there is an intention and ability to complete and use the software, the costs can be measured reliably and it is capable of generating future economical benefits. Such costs include purchases of materials and services and payroll-related costs of employees directly involved in the project. Research costs are recognised as an expense when incurred.

Amortisation of intangible fixed assets

Amortisation is charged so as to write off the cost of computer software assets less their residual value over their estimated useful lives, using the straight-line method. Adjustments will be made for any impairment.

----- Start of picture text -----
||| |---|---| |Asset Category|Economic Useful Life (years)| |Computer software|10|

----- End of picture text -----

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 17

Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

2 Accounting policies (continued)

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Other key sources of estimation uncertainty

• Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

• Intangible fixed assets

Intangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

4 Income from donations and legacies

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|||| |---|---|---| |Donations|2023|2022| |£|£| |Donations|5,220|254| |Donated services|-|4,496| |5,220|4,750|

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The income from donations and legacies was £5,220 (2022: £254) of which £5,220 was unrestricted (2022: £254) and £nil was restricted (2022: £nil). Income from donated services was £nil (2022: £4,496) of which £nil was unrestricted (2022: £4,496).

5 Income from charitable activities

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|||||| |---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Income from charitable activities| |Boat income|20,401|-|20,401|12,600| |Grants received|-|-|-|30,860| |Total income from charitable activities|20,401|-|20,401|43,460|

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6 Investment income

Investment income of £67 (2022: £2) arises from money held in interest-bearing deposit accounts.

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

7 Analysis of expenditure on charitable activities

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|||| |---|---|---| |2023|2022| |£|£| |Salary costs (note 11)|11,933|16,830| |Employee and board expenses|765|1,794| |Licences and mooring fees|2,452|2,280| |Boat fuel|2,402|1,685| |Repairs and maintenance|2,056|9,910| |Travel expenses|548|404| |-| |Advertising and marketing|4,958| |Insurance|940|314| |Professional fees|9,913|8,876| |Sundry expenses|1,623|877| |Depreciation|4,899|4,887| |Amortisation|306|458| |Interest payable|200|200| |Total|38,037|53,473|

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Expenditure on charitable activities was £38,037 (2022: £53,473) of which £36,148 was unrestricted (2022: £11,848) and £1,889 was restricted (2022: £41,625).

8 Summary analysis of expenditure and related income for charitable activities

This table shows the cost of the charitable activities and the sources of income directly to support those activities.

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|||| |---|---|---| |2023|2022| |£|£| |Costs|(38,037)|(53,473)| |Boat hire|20,401|12,600| |Grants received|-|30,860| |Net cost funded from other income|(17,636)|(10,013)|

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9 Analysis of governance and support costs

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Refer to the table below for the basis for apportionment and the analysis of support and governance costs.

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|||||| |---|---|---|---|---| |Support and governance costs|Basis of apportionment|General|Governance|Total| |support|function| |£|£|£| |Salaries, wages, board and related costs|Allocated based on time|11,933|-|11,933| |Accountancy and governance services|Governance|-|2,040|2,040| |Total|11,933|2,040|13,973|

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

10 Net expenditure for the year

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|||| |---|---|---| |2023|2022| |£|£| |This is stated after charging| |Depreciation|4,899|4,887| |Amortisation|306|458| |Fees payable to the company’s auditor for the audit of the company’s annual accounts (VAT inclusive)|2,040|1,800|

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11 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

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|||| |---|---|---| |2023|2022| |£|£| |Salaries and wages|11,558|15,953| |Social security costs|204|571| |Pension costs|171|-| |11,933|16,524|

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No employees had employee benefits in excess of £60,000 (2022: £nil). The charity trustees were not paid nor received any other benefits from employment with the charity in the period (2022: £nil). Trustees were reimbursed travel expenses during the period of £nil (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil). Key management personnel are deemed to be the Trustees of the charity.

12 Staff numbers

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|||| |---|---|---| |2023|2022| |Number|Number| |Operational|1|2| |1|2|

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13 Corporation taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

14 Tangible fixed assets

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||||| |---|---|---|---| |Plant &|Narrow Boat|Total| |Equipment| |£|£|£| |Cost| |As at 1 April 2022|1,193|119,970|121,163| |As at 31 March 2023|1,193|119,970|121,163| |Depreciation| |As at 1 April 2022|1,172|58,584|59,756| |Charge for period|21|4,878|4,899| |As at 31 March 2023|1,193|63,462|64,655| |Net book value| |As at 31 March 2023|-|56,508|56,508| |As at 31 March 2022|21|61,386|61,407| |15 Intangible fixed assets| |Software|Total| |£|£| |Cost| |As at 1 April 2022|4,585|4,585| |Disposals|(4,585)|(4,585)| |As at 31 March 2023|-|-| |Depreciation| |As at 1 April 2022|802|802| |Charge for period|306|306| |Disposals|(1,108)|(1,108)| |As at 31 March 2023|-|-| |Net book value| |As at 31 March 2023|-|-| |As at 31 March 2022|3,783|3,783|

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

16 Debtors

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|||| |---|---|---| |2023|2022| |£|£| |Trade debtors|588|750| |Other debtors|331|2,472| |Prepayments and accrued income|442|913| |1,361|4,135|

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Amounts owed by group undertakings are interest free and payable on demand.

17 Creditors: amounts falling due within one year

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|||| |---|---|---| |2023|2022| |£|£| |Trade creditors|160|600| |Accruals & deferred income|10,643|9,480| |Taxation and social security|93|161| |Amounts owed to group undertakings|1,412|660| |Other creditors|160|376| |12,468|11,277|

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Amounts owed to group undertakings are interest free and payable on demand.

18 Deferred income

Deferred income comprises future-dated boat hire sales and deposits to be released in the period when the hire takes place.

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||| |---|---| |£| |Balance as at 1 April 2022|7,680| |Amount released to income earned from charitable activities|(7,520)| |Amount deferred in period|8,160| |Balance as at 31 March 2023|8,320|

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19 Analysis of charitable funds

Analysis of movements in unrestricted funds

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||||||| |---|---|---|---|---|---| |Balance|Income|Expenditure|Transfers|Funds| |1 April 2022|31 March 2023| |£|£|£|£|£| |General fund|67,461|25,688|(36,655)|-|56,494| |67,461|25,688|(36,655)|-|56,494| |Balance|Income|Expenditure|Transfers|Funds| |1 April 2021|31 March 2022| |£|£|£|£|£| |General fund|61,957|17,352|(11,848)|-|67,461| |61,957|17,352|(11,848)|-|67,461|

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

19 Analysis of charitable funds (continued)

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||| |---|---| |Name of unrestricted fund|Description, nature and purposes of the fund| |General fund|The total reserves after allowing for all designated funds.|

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Analysis of movements in restricted fund

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||||||| |---|---|---|---|---|---| |Balance|Income|Expenditure|Transfers|Funds| |1 April 2022|31 March 2023| |£|£|£|£|£| |Girdlers|1,120|-|(800)|-|320| |Sefton Council Education|150|-|(150)|-|-| |23 Foundation|41|-|(41)|-|-| |-|-| |Big Lottery: Waterways to Recovery|4,040|(765)|3,275| |-|-|-| |Big Lottery Fund - Stage 1|2,970|(2,970)| |-|-| |Big Lottery Fund - Stage 2|2,057|(133)|1,924| |-|-| |10,378|(4,859)|5,519| |Balance|Income|Expenditure|Transfers|Funds| |1 April 2021|31 March 2022| |£|£|£|£|£| |Girdlers|2,000|-|(880)|-|1,120| |Sefton Council Education|955|-|(805)|-|150| |Mona Duggan Bequest|525|-|(525)|-|-| |Elizabeth O'Donnell|50|-|(50)|-|-| |23 Foundation|824|-|(783)|-|41| |Culture Recovery Fund for Heritage|925|3,210|(4,135)|-|-| |-|-| |Big Lottery: Waterways to Recovery|9,864|(5,824)|4,040| |PH Holt Foundation|-|9,750|(9,750)|-|-| |-|-| |Big Lottery Fund - Stage 1|6,000|(3,030)|2,970| |-|-| |Big Lottery Fund - Stage 2|17,900|(15,843)|2,057| |-| |21,143|30,860|(41,625)|10,378|

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Name of restricted fund Description, nature and purposes of the fund

Girdlers

Funding is to provide educational boat trips for schools.

Sefton Council Education

Grant is to fund education for boat crew training of employees and volunteers.

Mona Duggan Bequest A donation acquired by bequest from Mona Duggan towards free trips for those from deprived backgrounds or those who have suffered trauma.

Elizabeth O'Donnell Funding secured in form of donation from customer, to be used to fund further trips. PH Holt Foundation Funding for trips, training and the project co-ordinator post Big Lottery Fund Funding for trips, crew training and contribution to a new booking system/promotion. 23 Foundation Grant to fund day to day repair and maintenance costs. Culture Recovery Fund for Heritage Funding for project co-ordinator, part time development co-ordinator, Covid-19 personal protective equipment and associated training for skippers.

Big Lottery: Waterways to Recovery

Funding for crew training and the provision of 26 trips in support of men's mental health.

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Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

20 Analysis of net assets between funds

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||||| |---|---|---|---| |Unrestricted|Restricted|Total| |funds|funds| |£|£|£| |Fixed assets|55,334|1,174|56,508| |Debtors|1,361|-|1,361| |Cash at bank and in hand|12,267|4,345|16,612| |Other net current liabilities|(12,468)|-|(12,468)| |Net assets at 31 March 2023|56,494|5,519|62,013| |Unrestricted|Restricted|Total| |funds|funds| |£|£|£| |Fixed assets|60,913|4,277|65,190| |Debtors|4,135|-|4,135| |Cash at bank and in hand|13,690|6,101|19,791| |Other net current liabilities|(11,277)|-|(11,277)| |Net assets at 31 March 2022|67,461|10,378|77,839|

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21 Controlling party and related party transactions

Related party transactions with group subsidiaries

The ultimate controlling party of the group is Sovini Limited – Co-operative and Community Benefit Society.

• Sovini Limited

During the year, Pride of Sefton had transactions with its ultimate parent entity Sovini Limited. Pride of Sefton incurred corporate service charges of £7,860 (2022: £5,359). Sovini Limited have also recharged expenses of £286 (2022: £243) and purchased 4 trips for £640 (2022: £nil). Included within creditors are amounts owed to Sovini Limited of £1,328 (2022: £88).

• Sovini Charities Limited

During the year, Pride of Sefton received £4,770 in unrestricted donations from its parent Sovini Charities Limited (2022: £nil).

• One Vision Housing Limited

During the year, Pride of Sefton had transactions with its subsidiary One Vision Housing Limited. Pride of Sefton recharged £450 (2022: £1,218 recharges received) to One Vision Housing Limited which was expensed to the income and expenditure statement, purchased 6 trips for £960 (2022: £nil) and received an unrestricted donation of £nil (2022: £1,800). During the year the Pride of Sefton impaired its bespoke booking system designed by One Vision Housing at a charge of £3,477 (2022: £nil) after charging amortisation of £306 (2022: £nil) to the income and expenditure statement. Included within creditors are amounts owed to One Vision Housing Limited of £84 (2022: £572).

• Sovini Commercial Limited

During the year, Pride of Sefton incurred loan interest of £200 (2022: £200) on their undrawn £20,000 loan facility with Sovini Commercial Limited.

• Sovini Property Services Limited

During the year, Pride of Sefton had transactions with its subsidiary Sovini Property Services Limited. Pride of Sefton incurred recharges of £370 (2022: £283) from Sovini Property Services Limited.

Page 24

Pride of Sefton

Notes Forming Part of the Financial Statements for the year ended 31 March 2023 (continued)

21 Controlling party and related party transactions (continued)

During the year, Pride of Sefton had transactions with its subsidiary Sovini Trade Supplies Limited. Sovini Trade Supplies purchased 2 trips for £320 (2022: £nil).

Page 25