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2021-12-31-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 1 T O 3 1 S T D E C E M B E R 2 0 2 1

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

contents

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 2021

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 2021 to 31 December 2021.

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 2021 to 31 December 2021 were:

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

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

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.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

trustees' annual report

Activity sessions

We also started recording further data on how our work empowers our trainees across the five key areas of: living space, use of time, selfconfidence, social life & coping mechanisms. For example, in 2021, 156 trainees were empowered to make tangible progress in using time and 107 trainees were empowered to make tangible progress in their self-confidence.

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H A N D C R A F T E D Financial Statements 1st January - 31st December 2021

trustees' annual report reopening after national lockdown

At the start of 2021, the UK went into another national lockdown. Due to the acute effect of this on individuals who are already extremely socially isolated, we remained dedicated to supporting our trainees in whatever way possible. Our workshops were able to remain open in part, with restricted capacity and several safety regulations in place. As the roadmap out of lockdown began to be rolled out, we experienced a great influx of trainees, with 79 new starters in the month of March alone.

NEW and developing PARTNERSHIPS

Throughout 2021, we continued to build upon some of our existing strong partnerships such as with Re-f-use Cafe in Chester-le-Street. We have worked closely with the community cafe to provide our trainees with a progression route from our training kitchen into volunteering opportunities within the hospitality sector. For the first time this year we have also partnered with Re-f-use to host a 'Restaurant Night', which gives our trainees the experience of cooking for paying customers.

We also built a strong partnership with Chowdene Church, Gateshead, who generously funded a new recycled plastics enterprise within our Gateshead Hub.

women's groups launched

In March 2021 we launched Women's Groups across all our locations for women who may benefit from femaleonly activity sessions, most of whom come from a background of domestic abuse. The groups began with 11 women, and by December had grown to 46 individuals. This has formed a part of our overarching aim of providing even better support to our trainees fleeing domestic violence. This year all of our staff undertook specialist training on spotting signs of domestic abuse and supporting those affected.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

trustees' annual report Cont.

Our screen-printing enterprise

In 2020 we began a new enterprise in our Durham hub by introducing screen-printing garments into our offer of activities. We began the year with a hope to take custom screen-printing orders from other organisations, in order to offer an ethical alternative to other screen printing enterprises. This hope came true throughout 2021 with several new partnerships, including the Xtreme Character Challenge, which is an extreme outdoor experience that challenges body, mind and soul. For this one partnership alone, we have printed over 400 t-shirts throughout the year.

We have also brought back our 'A Hope and A Future' hoodies for the second year in a row. We gifted 250 of our trainees and residents a high-quality, hand-printed hoodie for Christmas. Our trainees are often seen wearing these garments in our hubs, which has further built a community feeling within Handcrafted. We have printed over 1000 pieces of clothing in 2021 alone for different organisations.

Remote slow cooker courses

In order to adapt to Covid-19 regulations and continue offering training we developed a remote slow cooker course, providing participants with a free slow cooker, ingredients and instructions for a four week course. Between January and April, 38 single parent families had completed the remote cooking course. Throughout the year we delivered over 100 slow cooker remote courses.

31 people back into work or volunteering

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

trustees' annual report Cont.

care leavers

In 2021 we began to support even more individuals who are below the age of 25 and are transitioning out of the care system. By the end of 2021, we were engaging 39 young care leavers and had three additional young care leaver residents. Our Care Leavers Coordinator continued to form an important part in carving out how Handcrafted can best cater our work to support young care leavers, liaising with Young People's Advisors to develop our multi-agency approach to care leaver support. Throughout the year we carried out over 650 support visits to care leavers alone.

Under the government’s kickstart scheme for SMEs, we will were also able to offer 6-month work placements to four individuals who are ages between 16-24 and currently on Universal Credit. This was an exciting opportunity to support some of our care leavers in gaining confidence and professional skills.

meeting the housing demand

By the end of 2021, we had 34 houses, with 43 residents. This was a big increase of 10 properties since the previous year. We were able to involve some of our trainees in the process of renovating some of these properties into stable homes for others. These have been used to provide individuals who were homeless or at risk of homelessness with a stable home, that they are empowered to renovate, decorate or make furniture for, to give them a real sense of ownership. We are continuing to grow and we expect to be able to house more people in 2022.

34 Houses 40 residents

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

trustees' annual report Cont.

winning new 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 turn their own lives around.

Developing a strategic plan

As we near our 10th anniversary, we have been reflecting upon the future direction of Handcrafted and what areas of our work we would like to adapt and scale up within the next five years. This has felt particularly pressing with the rapid rise in demand for our work across all of our locations. With the expansion of our staff team, trainees and number of training contracts we are now in a good position to dream big about the future.

In October we set up set up several meetings to hear the input of trustees, staff and trainees on how they envision the future of Handcrafted. We worked with an external consultant to analyse and summarise the feedback that we have received and we will be releasing our 5-Year Strategic Plan in early 2022.

150% increase in those attending regularly

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

trustees' annual report Cont.

plans to expand into underserved areas

As an organisation we always aim to support those who have been the most marginalised in society. The economic shock-waves of the pandemic have been acutely felt in the most deprived areas of the country, including the whole of the North East. Throughout 2021, we have looked into expanding into East and South Durham, as these areas are mostly made up of small pit villages, and face greater isolation.

This was also influenced by our strong partnerships with referrers, who have given us an insight into the lack of support services in these regions. We have set up a pilot hub in Murton, where we have started to offer woodwork sessions once a week. These sessions have demonstrated that there is a clear need for our support within East Durham and we continue to look for ways to develop our work in this area. We are currently in the process of setting up a similar pilot hub in South Durham.

Alongside our plans to expand to underserved areas, we have also been looking into moving our current Gateshead Hub, as in 2021 we outgrew our workshop space with the rising demand for our support. We have identified Deckham as an area of Gateshead which has acutely felt the economic shockwaves of 2021 and lacks sufficient support services.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

trustees' annual report Cont.

The shakespeare pub

We began to look for a new space for our Gateshead Hub earlier in 2021 as we began to outgrow our previous workshop. This was also partly due to a rapid rise in the number of trainees within our Women's Group, which was set up in March 2021.

We partnered with Green Pastures to purchase an old pub in Deckham, and we received the keys in November. This is an exciting opportunity that will allow us to rapidly scale up our work in Gateshead and meet the rising demand for our support.

Deckham is an area with great untapped potential for community engagement, with many families having been in the area for generations. The area experiences high levels of deprivation and crime, and lacks community services. The Shakespeare pub, which will soon be our Gateshead Hub, was previously known for attracting criminal and anti-social behaviour. We plan on converting this space to offer a great variety of services to the community in Deckham. These would include: a workshop, training kitchen, community cafe, food & hygiene banks, and four self-contained flats. We want to offer a huge variety of services to be able to offer wraparound support to all our trainees.

In line with our core values, we want to develop opportunities that can empower local residents. Within our food bank, this will look like giving those who take food parcels the opportunity to come back to our training kitchen, take part in a cooking session and contribute meals back into the community fridge.

The finishing of the upstairs, which will hold our four selfcontained flats, will be a priority in the renovation process as there is always a pressing need for safe and supported housing. We would like to prioritise these flats to be used by young care-leavers and individuals fleeing domestic abuse.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

trustees' annual report Cont.

Connor's story

Connor is 23 years old and was born and raised in Deckham, an area of Gateshead which we are hoping to move into. He is kindhearted, soft-spoken, and positive, but when asked about growing up in Deckham, he does not shy away from stating the blunt reality of his experience:

It was during his childhood when Connor started to battle serious anxiety and he became more and more socially isolated, preferring his own space “because it was less chaotic”. He first heard about Handcrafted in September 2021 from a friend who also started to come along to the workshop.

On his first day, Connor experienced an “initial wave of anxiety”, a feeling which calmed down once he realised how welcoming the hub really was. He finished his first day project – a chopping board – and decided that same day that he would definitely be coming back. Since then, he has worked on several other projects and is currently in the process of making an electric guitar.

While he is happy that he has developed new skills in woodwork, he’d say the best thing he has gained from coming to Handcrafted is a newfound confidence and how his mental health has improved.

“This hub is a little beacon of light. It gives people hope. It gives people something to do and to put energy into something creative”

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

trustees' annual report Cont.

our women's groups throughout 2021

It has always been a priority for us to create an environment within our workshops where our female trainees feel comfortable and welcomed. Throughout the last couple of years it has been encouraging to see how the number of our male and female trainees began to balance out as at our start the majority of our trainees were male.

However, in 2021 we were keen to develop our work with vulnerable women even further. We wanted to find new ways to support women who may benefit from our training, but would find a mixed-gendered space a barrier to accessing the support that we offer. We set up Women's Groups in all of our locations in March for individuals who would benefit from female-only support. Most of the women who have attended these groups this year come from a background of domestic and/or sexual abuse. These groups have become a special place within the wider Handcrafted community and the women have created a strong support network for themselves.

As an organisation we have developed new partnerships with female refuges and other organisations to reach the most marginalised women in society. In September, every member of staff took part in specialised external training in order to increase the awareness and understanding of domestic abuse across the whole of Handcrafted. We look forward to finding even more ways of how we can best support our female trainees as we head into the new year.

“ They have turned my life around. I am a confident, sassy lady now, with a whole new Handcrafted family whom I love with all my heart. I owe everything to this organisation. Thank you for getting me back to being a worthwhile human.”

“Basically, to me it is just like a big family and a major support group. No matter what help you need everybody is there to help.”

– Women’s Group trainee joined in March 2021

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

trustees' annual report Cont.

Capturing our impact

Throughout 2021 we continued to develop our impact measurement system. We have continued to make use of our custom designed database to record every interaction with our trainees, embedding processes to ensure that we record the empowerment of our trainees across five key areas: Living Space, Using Time, Social Life, Self Confidence & Coping strategies. We have been using this data to draw up a bigger picture of the impact of our work and the 'distance travelled' in each of these areas by our trainees. At referral, we now identify the relevant areas of need, then we measure Four Stages of empowerment in each area: Entering, Engaging, Applying and Extending. Our 2021 data has shown many encouraging signs for the impact our work is having:

In 2021, 156 trainees were empowered to make tangible progress in using time and 119 made tangible progress in social life.

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

FINANCIAL REVIEW

Incoming Resources totaled £834,038 and expenditure was £798,958. The movement in funds arising in this financial period was a net surplus of £35,080 – which left unrestricted funds of £152,919 at 31st December 2021.

Reserves policy

The trustees aim to keep sufficient working reserves to cover at least two months of committed expenditure. At 31st December 2021, unrestricted reserves were £152,919, 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 strategic plan for the next five years 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 the 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 2021

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, 23rd September 2021

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

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 2021, 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 Chartered Institute of Management Accountants.

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.

Lisa Gibbons ACMA Independent Examiner Date: 23rd September 2021

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

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 2021

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, 23rd September 2021

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Financial Statements 1st January - 31st December 2021

H A N D C R A F T E D

notes to the financial statements 1.accounting 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 £500 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:

Equipment - 10% to 33% straight line per annum Property - 2% straight line per annum

20 NOTES TO THE FINANCIAL STATEMENTS I VOLUNTARY INCOME 2021 2021 Unrestrlcted Restricted fund5 funds Totsl funds Totsl fund5 2(r21 Donations Donations-glft alded Donations-not glft alded Gift aid recovered Grants 21,827 9.501 5,457 128,637 21,827 9,501 30￿31 12,652 289 165,568 294,20 338,027 Total voluntsry Intome 165A22 165.568 330.9 381.499 3. COSTS OF CHARITABLE ACTIVITIES 2021 Unrestrlcted Restrirted funds funds Total funds Totsl funds 2021 Wages and salarle Soclal securlty Penslon Contrlbutlon Rent & Rates Contracted out 5er4i 216,981 22,632 160.412 377,393 22,632 10,708 ,934 209,556 11,404 7,281 104.862 87￿09 2,831 72,561 273 .934 Equipment Materlals Protective Clothing Insurance ,967 206 58,907 206 7.961 19,697 10,104 utilities Travel & Subslstence Furnishing5 Printing & Stationery Training Depreciation Sundry expenses Totsl 22,767 11,9 22,767 11,900 1.290 746 1.215 299 746 19,044 21,442 1,5CM) 597.789 189.(K12 19,1)14 21942 786.791 17,4n 12,299 566.371

21 NOTES TO THE FINANCIAL STATEMENTS 4. STAFF COSTS AND EMOIUMENTS 2021 Wage5 and salari Social security Pension Totsl stsff costs and emoluments 77.393 22,632 10,708 410.733 209.556 11,4 7.281 228.241 2021 Number 18 Number io Project workers Administrative Total average number of staff li & TANGIBLE FIXED ASSETS Equlpment Land & Building5 2021 Total 2021 2021 Cost At ljanuary 2021 Addltlons Disp05a15 At al December 2021 2Ckq.328 87,092 (91,887) 199.5a3 294.396 115.431 (123,3471 28,339 (31,460) 86.947 Depreclatlon At ljanuary 2021 Charge forthe Disp05a15 At 11 December 2021 48,748 15,049 (31.460) 31137 6.481 3,995 {1,247) 55.229 19,CtsM 132,7071 41.566 Net l>ook value At 31 December 2021 At 31 December2020 54,610 41,320 I￿,304 197,847 244,914 239.167

22 HANDCRAFTED Financial Statements 1st January- 31st December 2021 NOTES TO THE FINANCIAL STATEMENTS 6. DEBTORS 2021 Gift ald recoverable Trade debtors Total 1,041 31,183 32.224 29,n6 30,197 7. CREDITORS: AMOUNTS FAILING DUE WITHIN ONE YEAR 2021 2020 Trade credltors Concessionary loans othertaxation & social securlty Deferred Income Total 15,363 43,125 4,367 39.962 62,855 48,617 8. LONG TERM CREDITORS 2021 2020 Conce55ionary Loan5 due in 1-2year5 Concesslonary Loans due In 2-5 years Conce55ionary Loans due in over5 years Deferred Income Total 39,(K)2 8,661 89,816 43,125 44,7 92,780 137,479 180,605

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H A N D C R A F T E D

Financial Statements 1st January - 31st December 2021

notes to the financial statements

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 (2020: none).