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2020-12-31-accounts

H A N D C R A F T E D P R O J E C T S C O M P A N Y N O . 7 8 8 4 7 4 0 C H A R I T Y N 0 . 1 1 4 6 1 8 8

T R U S T E E S ' A N N U A L R E P O R T A N D F I N A N C I A L S T A T E M E N T S F O R T H E P E R I O D 1 S T J A N U A R Y 2 0 2 0 T O 3 1 S T D E C E M B E R 2 0 2 0

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

contents

Trustees'annual report 2
Statement of the Trustees'responsibilities 15
Independent examiner's report 16
Statement of financial activities(incorporating the income and 17
expenditure account)
Balance sheet 18
Notes to the financial statement 19

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report

The Trustees, who are also Directors for the purposes of company law, present their report and the unaudited financial statements of the charity for 1 January 2020 to 31 December 2020.

reference and administrative details

Name of the company: Handcrafted Projects Company registration number: 7884740 Charity number: 1146188

Principal office: Unit 7, Skillion Business Park, Littleburn Industrial Estate, Langley Moor, DH7 8HG

the trustees

The Trustees who served the company during the period 1 January 2020 to 31 December 2020 were:

Paul Morley Dan Northover Norman Urwin Richard Alty Mark Buttanshaw Eileen Brady

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report

structure, governance and management

Handcrafted Projects was incorporated on 16 December 2011 with company registration number 7884740. The governing documents are the memorandum and articles of association of the company. The company was registered as a charity on 1 March 2012 with charity number 1146188.

The subscribers to the Company’s Memorandum of Association were the first members of the Charity. Membership is open to other individuals or organisations who apply to the charity in the form required by the Directors and who are approved by the Directors.

All Trustees give their time voluntarily and receive no benefit from the charity. No expenses were reclaimed by the Trustees from the charity during the period.

public benefit

Our main activities and who we help are described throughout in this report, our objectives are laid out below. All our charitable activities are undertaken to further our charitable purposes for the public benefit. The Trustees have had regard to the Charity Commission's guidance on public benefit throughout the period when deciding on the activities of the charity. Objectives

1) To promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society. For the purpose of this clause “socially excluded” means being excluded from society, or parts of society, as a result on one of the following factors: unemployed; financial hardship; old age; substance abuse or dependency including alcohol and drugs and poor education or skills attainment.

2) The relief of unemployment for the benefit of the public in such ways as may be thought fit, including assistance to find employment.

3) The relief of financial hardship by providing people with goods and services which they could not otherwise afford through lack of means.

4) The advancement of the Christian faith for the benefit of the public.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report

In 2020, we supported 265 trainees through our regular training, support and housing, with a daily average of contact with 28 people per day.

Durham - 104 trainees engaged

Gateshead - 70 trainees engaged Chester-le-Street - 91 trainees engaged.

In addition, from March -June we supported 249 individuals through daily meal deliveries, support visits and outreach calls.

Where our gathered activity sessions decreased in number, we increased our number of outreach calls and home visits.

----- Start of picture text -----
750
Outreach Calls
500 Home Visits
250
0
Jan-Mar Jul-Sep Oct-Nov
activity chart
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H A N D C R A F T E D Financial Statements 1st January - 31st December 2020

trustees' annual report

March to july

Responding to the National Lockdown

As the Covid-19 crisis worsened in the UK, we made the decision to close the workshop, in line with government guidance on educational settings and gathered activity. We began to devise our strategy for remaining in contact with our workshop regulars and residents, as well aiming to reach out to more individuals in the community. We have always worked with the most isolated people across the North East, and in this time of extreme isolation, this was more important than ever.

Partnering with refuse on meal delivery

We partnered with Re-f-Use café in Chester-le-Street to prepare meals for those who we had been working with before the pandemic, which we delivered every weekday. Many of the ingredients for these meals were diverted away from landfill through Re-f-Use’s work with supermarkets to tackle food waste. Delivering the meals offered an opportunity to support people on the doorstep, simply with a friendly face, a chance to talk through the difficulties of lockdown, or access practical support with anything from housing maintenance to benefits claims.

rapid growth across the north east

In the first week alone, we delivered 183 meals. We began to contact referrers, offering this service to anyone who was facing extreme isolation and needed support accessing food. Our net of food distribution grew as we received referrals from further afield and became aware of more people struggling to get enough healthy food or to keep mental health on an even keel. Thanks to the help of our supporters and volunteers, we delivered out to areas from the Tyne down to Newton Aycliffe, and from Consett across to the Durham Coast.

12,554 meals served to 330 people

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report Cont.

In addition to the existing, pre-Covid community we have had contact with through our housing and activity hubs, we began strategising to meet the huge demand for ongoing support needs of new referrals. We reviewed the support that people were looking for and found that:

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report Cont.

As we changed our ways of working throughout the year, remaining in contact with these individuals remained a top priority and we began to help them connect with our usual activities in the workshops and through home visits.

JULY - re-opening the workshops

Towards the end of June, we began to scale down our meal deliveries and food parcels as restrictions began to lift. We prepared to open our workshops in Durham, Chester-le-Street and Gateshead in July and it was fantastic to get back to being creative and working together, with social distancing and safety guidelines in place. We were also able to welcome new faces to the workshop who we had met through the meal deliveries, bringing them into our creative communities, sharing food and conversation throughout the day and forming new friendships.

Throughout the summer, we continued to work under new conditions and offered meaningful, therapeutic activities, holistic support, and confidence-building to as many people as we could. We’ve adapted the workshop space to accommodate as many people as possible, but social distancing has continued to limit the numbers we are able to have in one session at a time. We have therefore continued to offer support visits to individuals across the region, providing intensive mental health support, practical help with housing maintenance, and always aiming to empower our trainees to take positive steps forward for themselves.

As we were growing, we spent some time restructuring as an organisation, creating a ‘hub’ structure, with each workshop operating as its own project with a hub manager, administrator, and support workers. Each location then manages its own activities, support and housing.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report Cont.

sarah's story

During the first lockdown, Sarah was struggling with anxiety and did not leave her flat for four months. This was a period of extreme isolation and it really impacted her mental health. Her social prescriber had heard about Handcrafted’s meal deliveries and doorstep support and had got in contact. This was at the time that we were beginning to scale down the food support and start opening the workshops again. Sarah’s social prescriber visited to see what we were all about, then came back the next week with Sarah herself.

"...i felt really safe here..."

“At first I came in through supported transport. After a while, I started coming in on the bus, which was a really big step for me at the time. I felt really safe here, safe emotionally, and it was good to see other people and there’s good banter. I’d never done woodwork before, but Rob and Graham help break it down into small tasks and I learn new things every week.”

"...the thing i'm most proud of..."

“The thing I’m most proud of is my sewing box, which I made to store allsorts of equipment and spools of thread. When I finished that, it felt amazing, to go from having no skills in woodwork to make something that I can use myself and be proud of.”

"...best day of the week..."

After Sarah’s sessions with her social prescriber ended, Handcrafted support staff took over and now offer Sarah support through home visits and outreach calls. Sarah told us it’s been good to have some structure throughout the second and third lockdowns and that when she found out we were able to stay open and she could attend one session a week she was over the moon. “Honestly, the day I come to Handcrafted is the best day of the week.”

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report Cont.

ben's story

We met Ben shortly after he came out of prison. His life had been completely uprooted and his anxiety and mental health had led him to a point where he no longer wanted to live. At his lowest point, after he had written a letter to say goodbye to his loved ones, Ben remembered that he had been given the number for a charity which he was told would help him readjust as he came to terms with the new life he found so overwhelming. Ben reached out.

Whilst he immediately presented as competent and creative in the workshop, his ongoing challenges made the rest of Ben's life a constant battle: he felt constantly paranoid that people were staring at him; the sound of a bus idling on the street corner was enough to make him turn around and go home; the prospect of visiting a new place or encountering a busy environment was overwhelming. He needed a place to belong and a place where he knew he was accepted.

"...helping me to deal with my social anxiety..."

As he persevered and continued to attend the workshop, Ben found that the time and space which he found at the Gateshead Hub was impacting the rest of his life. He wrote that, 'It gets me out of the house, I'm meeting friendly people ... I'm learning new skills ... helping me to deal with my social anxiety.'

Ben has found a safe place in the Gateshead hub. He volunteers to help with jobs in the workshop. He talks to and laughs with other trainees. He has cooked meals for vulnerable trainees and residents during lockdown, and in spite of his ongoing battles, Ben is beginning to find the confidence and a context to re-engage with his naturally generous and kind character.

"...change my life..."

He said, 'Whilst I still have dark moments, for the most part they have been less intense. And I remember that, as hard as these times are, it took me to be in a very dark place to reach out and give me the motivation to try and change my life for the better.'

*names of trainees have been changed to protect their identity.

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Financial Statements 1st January - 31st December 2020

H A N D C R A F T E D

trustees' annual report Cont.

NEW PARTNERSHIPS

In the autumn, we formed a partnership with Durham Winter Night Shelter, who provide emergency rough sleeping provision when the temperature drops. The shelter found a fixed space in St Nic’s Youth Centre in Durham town centre but needed to ensure that this accommodation did not put their guests at risk from Covid-19.

We worked with them to develop six individual ‘pods’ which meant each guest had their own private room to sleep in. These pods were designed and built in our Durham workshop, with the help of two of our trainees who had previously been rough sleepers and had accessed the Night Shelter’s services. These trainees now have stable housing, and they enjoyed the opportunity to give back to both organisations which had helped them in the past.

NEW ENTERPRISES

The autumn also saw the launch of our enterprises in each of our hubs. In Durham, we began to introduce screen-printing garments into our offer of activities. This enabled us to launch a ‘wear and share’ campaign, where ethical, fairwear hoodies were handprinted with our logo and the message of ‘A Hope and A Future’. These hoodies completely sold out and this enabled us to gift 150 trainees and residents a high-quality, hand-printed hoodie for Christmas.

We hope to expand this screen-printing enterprise into 2021 and begin to take custom screen-printing orders from other organisations, in order to offer an ethical alternative to other screen-printing enterprises.

In Chester-le-Street, as part of our ongoing partnership with Re-fuse cafe, our trainees got involved in our 'Rubbish Pickles' production. The team made a great variety of pickles, chutneys and jams, as well as gift boxes made from reclaimed wood.

26 people back into work or volunteering

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

trustees' annual report Cont.

care-Leavers

Throughout 2020, we have expanded our work with care-leavers through the meal deliveries, remote support and supported housing. Joe joined the team as our Care-Leavers’ Co-Ordinator, organising the holistic support for care-leavers and working with Young People’s Advisor’s to connect more care-leavers with our services. By December, 9 of our residents were care-leavers 100% of these individuals were not relapsing or reoffending.

At Christmas, we ran a project delivering Christmas gift boxes to care-leavers, with fun gifts as well as items which help with self-soothing.

second lockdown

As the second lockdown was announced, we knew we wanted to take the lessons learnt from earlier in the year and improve on the delivery of our wraparound support under tighter restrictions. We paused our gathered activities and identified individuals with the most urgent needs and planned how we could best support them.

For some this meant attending the workshop in a smaller group for one session a week. In Chester-le-Street, the trainees enjoyed helping to give back to the community by making sweet treats such as scones and biscuits for staff to deliver to other trainees and residents at home. We delivered food and craft activities to people at home, and this offered an opportunity to continue to support those who had been attending the workshops.

By the end of November, we had more than doubled our monthly support visits to 338 visits in one month.

100% of trainees not reoffending

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Financial Statements 1st January - 31st December 2020

H A N D C R A F T E D

trustees' annual report Cont.

winning new Training contracts

We have been fortunate to secure training contracts across all of our hubs, to deliver training to vulnerable, unemployed or inactive adults in carpentry and catering. These have enabled us to help trainees grow their confidence and skills and remove barriers to employment.

Through this funding we have offered holistic support both in the workshops and at home, engaging with each individual’s needs and empowering them to make positive steps to improve their mental health, build their CVs and stabilise their lives.

winning excellence awards

We are delighted to announce that our housing project won the Homeless Link Excellence Award for Social Enterprise of the year! This is authentic recognition for the work that some of our residents have done throughout the year in creating a better life for themselves and others, turning derelict houses into quality homes.

meeting the housing demand

By the end of 2020, we had 24 houses, with 30 residents. We also were able to purchase two more houses which has helped us to build some more financial sustainability for the future. Both have become a home to people in need and our new residents are empowered to renovate, decorate or make furniture to give them a real sense of ownership. We are continuing to grow and we expect to be able to house more people in 2021.

24 Houses 30 residents

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Financial Statements 1st January - 31st December 2020

H A N D C R A F T E D

trustees' annual report Cont.

SHOLA AMEOBI BECOMES PATRON

The Newcastle United star Shola Ameobi has been appointed as the patron of Handcrafted, having supported us for a number of years. He was drawn to Handcrafted because we engage with individuals who have experienced real setbacks, to offer the practical training, support and housing that can empower them to turn their lives around.

“I got through some of my low points because of I had a community of people who believed in me and who always gave me a second chance when I slipped up,” he explains, “and so I want to help people who have had some of the hardest starts and the biggest setbacks to get back on their feet.”

“I think what’s really beautiful about Handcrafted is that they use what is already available to the trainees and don’t try and shoehorn anyone into boxes. They help individuals see their potential and show them that they are valued. And then they use resources like food that would go to waste and wood that has been reclaimed and make valuable things out of that, too.”

“Being a black man, and a black kid in Newcastle, growing up I was always told: ‘You’re not this’, or ‘You’re not that.’ But that’s created a resilience in me. Adversity moulds us into who we are and we can use that in a positive way, that’s what I’m trying to teach my young kids. And that’s what Handcrafted are trying to do too.”

fUTURE PLANS to keep growing and developing

Under the government’s kickstart scheme for SMEs, we will be able to offer 6-month work placements to individuals who are ages between 16-24 and currently on Universal Credit. These individuals will be offered placements across our hubs such as working on our enterprises and our housing renovations.

We are continuing to develop the hubs into 2021, expanding our housing and support provision, with a particular focus of Covid-19 recovery in our community. We will work in line with government guidance to re-open our workshops to full capacity, and with this we aim to expand our women’s provision. Not only will this provide opportunity for vulnerable women to engage in a range of activities including carpentry, cookery and crafts, but will also provide opportunities for peer support in a safe and welcoming environment.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

FINANCIAL REVIEW

Incoming Resources totaled £712,293 and expenditure was £579,328. The movement in funds arising in this financial period was a net surplus of £132,965 – which left unrestricted funds of £94,405 at 31st December 2020.

Reserves policy

The trustees aim to keep sufficient working reserves to cover at least two months of committed expenditure. At 31st December 2020, unrestricted reserves were £94,405, which is sufficient to cover three months of committed expenditure including Wages and Salaries, Social Security, Pension Contributions, Rent & Rates, Insurance and Loan Repayments.

The trustees have put in place a detailed action plan to sustain the level of reserves at between two and four months of committed expenditure. This will be achieved by maintaining revenue streams from property renovation and rental, and developing new revenue streams from enterprise projects and delivering accredited qualifications.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees, who are also the Directors for the purposes of company law, are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and UK Accounting Standards.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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.

small Companies' provisions

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Signed on behalf of the Trustees

Daniel Northover, Trustee, 21st June 2021

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HANDCRAFTED PROJECTS

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st December 2020, which are set out on pages 17 to 23.

Respective responsibilities of trustees and examiner

As the charity’s trustees of the Company (who are also the directors of the company for the purposes of 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 for this year 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 2011 Act”).In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act.

independent examiner's statement

The company’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants of England and Wales

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

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.

Sam Clarke ACA Independent Examiner Date: 21st June 2021

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

statement of FINANCIAL ACTIVITIES (Incorporating the income and expenditure account)

for the period 1 january 2020 to 31 december 2020

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The notes on pages 19 to 23 form part of these financial statements.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

Balance sheet as at 31 december 2020

The notes on pages 19 to 23 form part of these financial statements. The trustees are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The trustees acknowledge their responsibilities for:

1)ensuring that the company keeps adequate accounting records which comply with section 386 of the Act; and

2)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year of its profit or loss for the financial year in accordance with the requirements of section 393, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008). These financial statements were approved by the members of the committee on 21st June 2021 and are signed on their behalf by:

Dan Northover, Trustee, 21st June 2021

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

notes to the financial statements

1.account policies

Basis of accounting

These financial statements are prepared on a going concern basis, under the historic cost convention, and in compliance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) Section 1A - Small Entities and applicable standards in the UK. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

As a small entity, the charity has taken advantage of the exemption available to it under FRS 102 Section 1A – Small Entities whereby it is not required to publish its statement of cash flows.

The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1.

Incoming resources

Voluntary income comprises donations and grants where no goods or services are expected in return. The income is recognised on a receivable basis in the relevant fund.

Incoming resources from charitable activities comprises grants given to the charity in exchange for particular goods or services. Income is recognised as the charity earns the right to the consideration by its performance of the service. Where income is received in advance of performance its- recognition is deferred and included in creditors. Where entitlement occurs before income is received the income is accrued.

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Fixed assets

Purchased assets with a useful economic life and initial cost exceeding £100 are capitalised. All other purchased assets are expensed. All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

notes to the financial statements

2. Voluntary income

3. costs of charitable activities

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

notes to the financial statements

4. staff costs and emolulments

5. tangible fixed assets

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

notes to the financial statements

6. debtors

7. creditors: amounts falling due within one year

8. creditors: amounts falling due in more than one year

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2020

notes to the financial statements

9. Restricted funds

10. related party transactions

From 13th April 2018 the charity has a four-year lease on a two-bed property that is owned by Daniel and Abigail Northover. The property is used to provide supported accommodation to the beneficiaries of the charity. The lease is at a peppercorn rate of £1 per annum to ensure there is no financial benefit derived by Daniel Northover as a trustee of the charity.

From 11th October 2020 the charity has a four-year lease on a one-bed property that is owned by Janet and Graham Buttanshaw, parents of Mark Buttanshaw. The property is used to provide supported accommodation to the beneficiaries of the charity. The lease is at a below market rate of £2,400 per annum.

This is in accordance with the Articles of Association and advice sought from the Charity Commission.

No other trustees received any remuneration in the year or any reimbursement of expenses incurred in carrying out their duties (2019: none).