Registered number: 07810580 Charity number: 1150369 ## **HEADROW MONEY LINE** **(A company limited by guarantee)** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020** ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## CONTENTS ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 5| |**Independent auditor's report on the financial statements**|6 - 8| |**Statement of financial activities**|9| |**Balance sheet**|10| |**Statement of cash flows**|11| |**Notes to the financial statements**|12 - 21| ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ |**Trustees**|J Burr(resigned 31 October 2020)| |---|---| ||J Cross,Chair| ||I Mills| ||N Rhodes| ||C Smyth| ||R Goldthorpe(appointed 14 November 2019)| ||J Hook(appointed 14 November 2019)| ||T Pouncey (resigned 12 February2020)| |**Company registered**
**number**
07810580
**Charity registered number**
1150369
**Registered office**
Unit F Second Floor Westminster Buildings
31 New York Street
Leeds
West Yorkshire
LS2 7DT
**Independent auditor**
BHP LLP
Chartered Accountants
1st Floor
Mayesbrook House
Redvers Close
Leeds
LS16 6QY|| Page 1 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## TRUSTEES' REPORT _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ The trustees present their annual report together with the audited financial statements of the Company for the year 1 October 2019 to 30 September 2020. The Annual report serves the purposes of both a trustees' report and a directors' report under company law. The trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. ## _**Objectives and activities**_ ## **a. Policies and objectives** The principal objectives of the company are to provide access to affordable credit and other financial services to individuals who are excluded from mainstream financial services and to provide advice and training in relation to money and debt management. To achieve these objectives the company makes loans to individuals whose alternative would have been to borrow from high cost lenders. In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. ## _**Achievements and performance**_ ## **a. Main achievements of the Company** Throughout the year 734 new loans have been issued with a financial value equivalent to £440,700. Even with the challenges Covid-19 presented in the second half of the financial year the charity was able to breakeven and make a contribution of £25,000 towards the development of an improved IT platform that will enable our members to access our products and services via a mobile app and deliver a more efficient member journey overall. It is through the continued development in our products and services over the next 12 months as well as promotions and campaigns to educate and bring awareness to the effects of borrowing from other alternative sources that may lead our members to financial difficulties. Page 2 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## _**Financial review**_ ## **a. Going concern** The Trustees have considered the consequences of COVID-19 and other events and conditions, and it has determined that they do not create a material uncertainty that casts significant doubt upon the charity’s ability to continue as a going concern and will be regularly reviewed as the pandemic continues its global impact and what ongoing implications this may have on our local economy. For this reason they continue to adopt the going concern basis in preparing the financial statements. The key financial risks facing the charity are the risk of bad debts and lower income. In the current economic climate and considering the market in which the charity operates, the risk is expected to remain high over the coming year. To manage and mitigate the impact of this, new products are continually under review to improve our commercial and social presence as well as developments in technology to allow ease of access to our products and facilities allowing greater flexibility for our members and an overall improved experience. For this reason the Trustees continue to adopt the going concern basis in preparing the financial statements. ## **b. Reserves policy** The policy in place is to ensure that the charity holds a capital ratio of between 10%-20% with 20% being the optimum holding. The Trustees aim to have sufficient available reserves to facilitate the efficient operation of the company. The capital ratio at the 30th September 2020 was 46.75%, well in excess of the policy requirements. As at the year ended 30 September 2020, the free reserves held by the charity were £108,072 (2019: £113,283). ## **c. Principal risks and uncertainties** The Board of Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate the exposure to the major risks. ## _**Structure, governance and management**_ ## **a. Constitution** Headrow Money Line is registered as a charitable company limited by guarantee and was set up by its Articles of Association dated 14 October 2011. The company is constituted under its Articles of Association dated 14 October 2011 and is a registered charity number 1150369. The principal object of the company is to relieve poverty, financial hardship and distress for the public benefit Page 3 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **Structure, governance and management (continued)** ## **b. Methods of appointment or election of trustees** The minimum number of Trustees is three and there is no maximum number of Trustees. The Board may appoint persons as a Trustee, either to fill a vacancy, or as an additional member. Trustees are appointed and removed in accordance with Articles 26 and 27 of the Articles of Association. ## **c. Organisational structure and decision-making policies** The Board of Trustees administers the company. The Trustees of the company at the year end are detailed on page 2. The Board meets regularly during the year, The Trustees have appointed a third party, Leeds City Credit Union, to carry out the day to day administrative tasks of the company. There is a service agreement in place which governs the performance of Leeds City Credit Union and the extent of their deferred authority. ## **d. Policies adopted for the induction and training of trustees** The Trustees undertake whatever training they consider appropriate for them to fulfil their responsibilities. ## **Statement of trustees' responsibilities** The trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. 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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP (FRS 102); - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **Disclosure of information to auditor** Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that: - so far as that trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and - that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. ## **Auditor** The auditor, BHP LLP, has indicated his willingness to continue in office. The designated trustees will propose a motion reappointing the auditor at a meeting of the trustees. Approved by order of the members of the board of trustees and signed on their behalf by: ## Jeremy Cross Jeremy Cross (Feb 17, 2021 11:59 GMT) ................................................ ## **J Cross** Trustee Date: Feb 17, 2021 Page 5 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEADROW MONEY LINE ## **Opinion** We have audited the financial statements of Headrow Money Line (the 'charitable company') for the year ended 30 September 2020 which comprise the Statement of financial activities, the Balance sheet and the related notes, 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). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 30 September 2020 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Page 6 **(A company limited by guarantee)** ## **HEADROW MONEY LINE** ## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEADROW MONEY LINE (CONTINUED) ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual report, 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. In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - the charitable company has not kept adequate accounting records; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. Page 7 **(A company limited by guarantee)** ## **HEADROW MONEY LINE** INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEADROW MONEY LINE (CONTINUED) ## **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** 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: 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 trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable Company's trustees 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Mike Jackson (Feb 17, 2021 12:39 GMT) **Michael Jackson (Senior statutory auditor)** for and on behalf of **BHP LLP** Chartered Accountants 1st Floor Mayesbrook House Redvers Close Leeds LS16 6QY Date: Feb 17, 2021 Page 8 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ |**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**20,000**
**144,531**
**164,531**
**169,742**
**169,742**
**(5,211)**
**113,283**
**(5,211)**
**108,072**|**Total**
**funds**
**2020**
**£**
**20,000**
**144,531**
**164,531**
**169,742**
**169,742**
**(5,211)**
**113,283**
**(5,211)**
**108,072**|Total
funds
2019
£
-
175,123| |---|---|---|---| ||||175,123| ||||146,475| ||||146,475| ||||| ||||28,648| ||||84,635
28,648| ||||113,283| The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 12 to 21 form part of these financial statements. Page 9 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** REGISTERED NUMBER: 07810580 ## BALANCE SHEET _AS AT 30 SEPTEMBER 2020_ |**Note**
**Current assets**
Debtors
9
Cash at bank and in hand
16
Creditors: amounts falling due within one year
10
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more than
one year
11
**Total net assets**
**Charity funds**
Unrestricted funds
13
**Total funds**|**290,403**
**249,995**
**540,398**
**(26,871)**|**2020**
**£**
**513,527**
**513,527**
**(405,455)**
**108,072**
**108,072**
**108,072**|310,608
250,000
560,608
(21,999)|As restated
2019
£
538,609
538,609
(425,326)
113,283
113,283
113,283| |---|---|---|---|---| The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: ## Jeremy Cross Jeremy Cross (Feb 17, 2021 11:59 GMT) ## **J Cross** (Chair of Trustees) Date: Feb 17, 2021 Page 10 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## STATEMENT OF CASH FLOWS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
15
**Cash flows from investing activities**
**Net cash provided by investing activities**
**Cash flows from financing activities**
Interest paid
**Net cash used in financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
16|**2020**
**£**
**19,394**
**-**
**(19,399)**
**(19,399)**
**(5)**
**250,000**
**249,995**|2019
£
264,392
**-**
(14,392)
**(14,392)**
**250,000**
-
250,000| |---|---|---| The notes on pages 12 to 21 form part of these financial statements Page 11 **(A company limited by guarantee)** ## **HEADROW MONEY LINE** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **1. General information** Headrow Money Line is a charitable company in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity's operations and principal activities are to provide access to affordable credit and other financial services to individuals who are excluded from mainstream financial services and to provide advice and training in relation to money and debt management. ## **2. Accounting policies** ## _**2.1 Basis of preparation of financial statements**_ The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. ## _**2.2 Going concern**_ Prior to approving the accounts, the Trustees are required to undertake a review of the business, to assess whether there are any significant doubts over the company's ability to continue as a going concern. As part of this review, the Trustees have considered current and forecast trading and cash flows (for at least the next 12 months from signing the accounts). The ongoing impacts of the Covid-19 pandemic have been factored into the Trustees’ considerations around going concern, particularly regarding the impacts on income generation and exposure to bad debts in different potential scenarios. Taking into account the strength of the company’s balance sheet and the structure and nature of the funding available to the company, and after giving due consideration to all factors which are deemed relevant, the Trustees consider it appropriate to continue to adopt the going concern basis in preparing the financial statements The Trustees consider that there were no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of the assets held by the charity, however in order to maintain this the charity recognises the need for continued investment in products, system development and marketing to continue to serve and reach its members. Page 12 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **2. Accounting policies (continued)** ## _**2.3 Income**_ Loan interest receivable; Interest on both loan to individuals and loans to banks (i.e. cash and cash equivalents held on deposit with other financial institutions) is recognised using the effective interest method and is calculated and accrued on daily basis. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. ## _**2.4 Expenditure**_ All expenditure is recognised once there is a legal or constructive obligation to that expenditure, its probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources. ## _**2.5 Taxation**_ The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## _**2.6 Debtors**_ Trade and other debtors are recognised at the transaction price, less any impairment. Prepayments are valued at the amount prepaid net of any discounts due. A provision of 100% is made for all loans made more than one year in arrears. A provision of between 10% and 90% is made for all loans between 1 and 12 months in arrears. The Board have reviewed the provisioning policy at the year end and are satisfied that it reflects the experience on loan book arrears over the past 5 years and therefore, they have concluded that the year end provision is adequate. ## _**2.7 Cash and cash equivalents**_ Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 13 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **2. Accounting policies (continued)** ## _**2.8 Borrowings**_ Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. ## _**2.9 Financial instruments**_ Loans to individuals are financial assets with fixed to determinable payments and are not quoted in active market. Loans are recognised when cash is advanced to individuals and measured at amortised cost using the effective interest method. Loans are derecognised when the right to receive cash flows from the asset have expired, usually when all amounts outstanding have been repaid. ## _**2.10 Fund accounting**_ General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. ## _**3. Critical accounting estimates and areas of judgment**_ Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to the bad debt provision on loans balances and the basis of this is set out in note 2.6. ## **4. Income from donations and legacies** |**Unrestricted**|**Total**|Total| |---|---|---| |**funds**|**funds**|funds| |**2020**|**2020**|2019| |**£**|**£**|£| Page 14 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **4. Income from donations and legacies (continued)** |Grants
**Income from charitable activities**
Interest income
Total 2019|**20,000**
**Unrestricted**
**funds**
**2020**
**£**
**144,531**
175,123|**Unrestricted**
**funds**
**2020**
**£**
**20,000**
**Total**
**funds**
**2020**
**£**
**144,531**
175,123|**Total**
**funds**
**2020**
**£**
-| |---|---|---|---| ||||Total
funds
2019
£
175,123| ||||| ## **5. Income from charitable activities** Page 15 **(A company limited by guarantee)** ## **HEADROW MONEY LINE** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **6. Analysis of expenditure on charitable activities** ## _**Summary by fund type**_ |**Unrestricted**
**funds**
**2020**
**£**
Audit and accountancy fees
**7,000**
Bad and doubtful debts
**60,331**
Professional fees
**3,503**
LCCU fees
**54,504**
Contribution towards IT development costs
**25,000**
Loan interest payable
**19,399**
Conference costs
-
Bank interest payable
**5**
**169,742**
Total 2019
146,475
**7.**
**Auditor's remuneration**
Fees payable to the Company's auditor for the audit of the Company's annual
accounts
Fees payable to the Company's auditor in respect of:
All non-audit services not included above|**Total**
**funds**
**2020**
**£**
**7,000**
**60,331**
**3,503**
**54,504**
**25,000**
**19,399**
**-**
**5**
**169,742**
146,475
**2020**
**£**
**5,250**
**1,750**|Total
funds
2019
£
7,020
65,588
1,512
57,027
-
14,392
936
-| |---|---|---| |||146,475| |||2019
£
4,600
1,250| ## **8. Trustees' remuneration and expenses** During the year, no trustees received any remuneration or other benefits (2019 - £NIL). During the year ended 30 September 2020, no trustee expenses have been incurred (2019 - £NIL). Page 16 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **9. Debtors** |**_Due within one year_**
Amounts owed by related entities
Loan balances|**2020**
**£**
**59,238**
**231,165**
**290,403**|As restated
2019
£
41,287
269,321| |---|---|---| |||| |||310,608| ## **10. Creditors: Amounts falling due within one year** |Amounts owed to related entities
Accruals and deferred income|**2020**
**£**
**19,871**
**7,000**
**26,871**|As restated
2019
£
18,489
3,510| |---|---|---| |||| |||21,999| Page 17 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **11. Creditors: Amounts falling due after more than one year** |Other loans
Amounts owed to related entities|**2020**
**£**
**245,000**
**160,455**
**405,455**|As restated
2019
£
245,000
180,326| |---|---|---| |||| |||425,326| The other loan, which is from Leeds City Council, is repayable on 30 November 2023. Interest is payable annually and is charged at a rate of 3.22% per annum. Amounts owed to related entities are repayable over 7.5 years by instalments. Interest is payable at a rate of 6% per annum. ## **12. Prior year adjustments** During the preparation of the financial statements in the current year, it was identified that amounts of £47,339 which had been netted off against Creditors in the prior year ought be shown as Debtors to better reflect the nature of the balance. This has therefore been restated in the comparatives of these financial statements. It was also identified that included within Creditors falling due within one year, was a loan repayable by instalments over a number of years. This has therefore been restated in the comparatives of these financial statements to split the creditor between amounts falling due within one year and amounts falling due after one year. Page 18 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ |**13.**
**Statement of funds**
**Statement of funds - current year**
**Balance at 1**
**October 2019**
**£**
**_Unrestricted funds_**
Reserves
**113,283**
**Statement of funds - prior year**
Balance at
1 October
2018
£
**_Unrestricted funds_**
Reserves
84,635
**14.**
**Analysis of net assets between funds**
**Analysis of net assets between funds - current period**
Current assets
Creditors due within one year
Creditors due in more than one year
**_Total_**|**Income**
**£**
**164,531**
Income
£
175,123|**Expenditure**
**£**
**(169,742)**
Expenditure
£
(146,475)
**Unrestricted**
**funds**
**2020**
**£**
**540,398**
**(26,871)**
**(405,455)**
**108,072**|**Balance at 30**
**September**
**2020**
**£**
**108,072**
Balance at
30 September
2019
£
113,283
**Total**
**funds**
**2020**
**£**
**540,398**
**(26,871)**
**(405,455)**
**108,072**| |---|---|---|---| Page 19 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **14. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior period** |Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Unrestricted
funds
2019
£
560,608
(21,999)
(425,326)
113,283|Total
funds
2019
£
560,608
(21,999)
(425,326)| |---|---|---| |||113,283| ## **15. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income/expenditure for the period (as per Statement of Financial Activities)
**_Adjustments for:_**
Decrease/(increase) in loan balances
Increase/(decrease) in creditors
Impairment losses
Finance costs
**_Net cash provided by operating activities_**|**2020**
**£**
**(5,211)**
**(46,850)**
**(14,999)**
**67,055**
**19,399**
**19,394**|2019
£
28,648| |---|---|---| |||43,592
112,172
65,588
14,392| |||| |||264,392| ## **16. Analysis of cash and cash equivalents** |Cash in hand
**_Total cash and cash equivalents_**|**2020**
**£**
**249,995**
**249,995**|2019
£
250,000| |---|---|---| |||| |||250,000| Page 20 ## **HEADROW MONEY LINE** ## **(A company limited by guarantee)** ## NOTES TO THE FINANCIAL STATEMENTS _FOR THE YEAR ENDED 30 SEPTEMBER 2020_ ## **17. Analysis of changes in net debt** |Cash at bank and in hand
Debt due after 1 year|**At 1 October**
**2019**
**£**
**250,000**
**(245,000)**
**5,000**|**Cash flows**
**£**
**(5)**
**-**
**(5)**|**At 30**
**September**
**2020**
**£**
**249,995**
**(245,000)**
**4,995**| |---|---|---|---| ## **18. Related party transactions** During the period the charity had no loans outstanding from any Trustee. The charity incurred management charges from Leeds City Credit Union Limited (which is considered a related party on the basis that it shares key management personnel) of £54,504 (2019: £57,027), amounts totalling £20,000 were received in relation to a contribution towards the impact of COVID-19 and £25,000 was contributed to the Credit Union towards the development of an improved IT platform. As at the year end Headrow Money Line held £54,677 (2019: £24,677) within a members account of the Credit Union, amounts totalling £ 4,561 (2019: £22,662) were owed by Leeds City Credit Union Limited to Headrow Money Line and the charity also had a loan outstanding with them of £180,326 (2019: £198,815). Interest was payable on this loan of £11,510 (2019: £8,612). Page 21