**Registered number: 07810580 Charity number: 1150369** 

## **HEADROW MONEY LINE** 

**(A company limited by cuarante ) TRUSTE S' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021** 



## HEADROW MONEY UNE (A company limited by suarantee) 

## **CONTENTS** 

||Page|
|---|---|
|Rrne and admini details o the Company,**i**Trus an advsr|1|
|Trsees' rpor|**2-5**|
|Independent audir's r an the fnancal semn|**6-9**|
|Stement of fnncial aces|10|
|Balance she|11|
|Staemen o csh faw|**12**|
|No t the fnandal s nt|**13-22**|





## **HEADROW MONEY UNE** 

## **(A company limited by guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

**Trustees N Rhodes, Chair J Burr (resigned 31 October 2020) N canwell (appointed 1 September 2021) J Cross (resigned 1 September 2021) R Goldthorpe J Hook (resigned 30 September 2021) I Mills C Smyth (resigned 3 March 2021) Company reptered number 07810580 Charity registered number 1150369 Registered office Unit F Second Floor Westminster Buildings 31 New York Street Le ds West Yorkshire L52 70T Independent auditor BHPLLP Chartered Accountants 1st Floor Mayesbrook House Redvers Close Le ds L5166QY** 

**Page 1** 



## **HEADROW MONEY LINE** 

## **(A mmpany limited by guarantee)** 

**TRUSTEES' REPORT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

**The trustees present their annual report together with the audited financial statements of the Company for the 1 October 2020 to 30 September 2021. The Annual report serves the purposes of both a trustee ' report and a directo ' report under company law. The trustees conflnn 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 charit es 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 omit ed.** 

## _**ObJectlves and actMtif!s**_ 

## **a. Policies and objectives** 

**The principal objectives of the company are to provide acces 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 pubric benefit, induding the guidance 'Public benefit: running a charity (PB2)'.** 

## _**Achlewments and perfotmance**_ 

## **a. Main achievements of the Company** 

**Throughout the year 527 new loans have been issued with a financial value equivalent to £324,800. Covld 19 continued to impact lending levels throughout the year. In spite of this reduced activity the level of trading deficit was contained at a modest level, reflecti111 the sound finaricial and business model adopted by the company for the last decade.** 

**Pagel** 



## HEADROW MONEY LINE 

## **(A company limited by guarante )** 

**TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## _**Rnandalreview**_ 

## **a. Golnc concem** 

**Since Its inception Headrow Money Line has cooperated with Leeds City Credit Union under a Common Purpose Agreement. Inter alia this Agreement specifies that Leeds City Credit Union will assess applications and, where appropriate, issue loans and collect repayments on behalf of Headrow Money Une.** 

**Following the year end Headrow Money Line received an indication from Leeds City Credit Union that it planned to terminate the Convno Purpose Agreem nt and, subsequently, a letter from Leeds Qty Credit Union giving six months' notice of termination was received. The Directors of Headrow Money Line were not consulted regarding this decision, and were disappointed by this decision, and the significant Impact this has on the operations of Headrow Money Une.** 

**The termination of the Common Purpose Agreement brings to an end a decade of successful collaboration between Headrow Money Line and Leeds City Credit Union. This collaboration has benefitted many citizens of Leeds who are financially exduded by mainstream financial services businesses, and** in **parallel has strengthened the financial position of both collaborating partners. The collaboration has also supported the policies to alleviate financial exclusion adopted by Leeds Oty Council, who have been great supporters of Headrow Money Line throughout Its existence.** 

**Headrow Money Une has no employees and cannot function without the supp()f't of an existing financial services busines . On receipt of the indication of termination of the Common Purpose Agreem nt Headrow Money Line instructed an Immediate pause to the issuing of any further new loans. Subsequently, a proposal has been received from Leeds City Credit Union to extend the notice period for a further six months to January 2023, to facilitate the collection of outstanding loans. This proposal has been agreed in principle by both parties, subject to the agreement of acceptable terms and conditions.** 

**In parallel Headrow Money Line has explored the possibility of entering into a similar Common Purpose Agreement with other existing financial services companies, Including other CDFls, to enable the underlying business to continue. However, despite our best efforts, as a Volunteer Board, it does not** seem **realistic that we will be able to dedicate what could be considerable effort in finding another partner.** 

**The Directors consider that Headrow Money Line wHI be able to meet Its financial oblf&ations as they fall due provided that a satisfactory extension arrangement is made with Le ds City Credit Union around the collection of remaining debtor balances. The Directors consider that such an arrangement is in the financial Interest of Le ds City Credit Union and Leeds City Council, both of whom are major creditors of Headrow Money Line. Having reviewed the relevant guidance, the Directors have prepared the accounts on a basis other than going concern as a result of the pause that has been placed on the primary activities of the business.** 

**The Directors have reviewed the assets and liabilities of the Company as at the balance sheet date. The Directors do not consider that there has been any change to the legal terms attaching to the repayment of medium term loans payable by the Company as at 30 September 2021, and these loan balances are presented In the balance sheet based on the repayment terms included in the underlying loan agreements.The Company will have to use some of Its reserves to cover the cost of winding down operations in the future, dependent on the outcome of discussions with potential future financial service partners. The directors have considered the current operations of the Company and do not consider that any such expenditure would be material to the financial sta ements, therefo no provis on has been made in these financial statements for such potential future costs.** 

**Page3** 



## **HEADROW MONEY UNE** 

## **(A company Hmlted by guarante )** 

**TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEP1EMBER 2021**_ 

**The Directors have reviewed the loan balances induded as assets at the balance sheet date for any required further provision. Based on the average loan term of the outstanding debtor book and, subject to the agreement of terms for collection of the balances through to January 2023, the Directors do not consider that any further provisions for bad and doubtful debts is required, over and above that included in these financial statements.** 

## **b. Reserves pol cy** 

**The policy in place is to ensure that the charity holds a capital ratio of between 10%-2°'6 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 2021 was 65.74%, well in excess of the policy requirements.** 

**As at the year ended 30 September 2021, the free reserves held by the charity were £1 02,491 (2020: £108,072).** 

## 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, with the key risk areas detailed above.** 

## _**Structu , gm,emance 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.** 

## **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 As ociation.** 

## **c. Organisational** structure **and decision•maklng policies** 

**The Board of Truste s 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 Common Purpose Agreement in place which governs the perfonnance of Leeds City Credit Union and the extent of their deferred authority. As set out above, notice of termination of this Agreement has been issued by Leeds City Credit Union.** 

d. Policies adopted for **the induction** and trainin1 **of** trustees 

**The Trustees undertake whatever training they consider appropriate for them to fulfil their responsibilities.** 

**Page4** 



## **HEADROW MONEY LINE** 

## **(A company limited by parante )** 

**TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

**Statement of truste ' 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 Klngdoin Aa:ountlng Standards (United Kingdom Generally Accepted Accounting Practice).** 

**Company law requires the trustees to prepare financial statements for each financial . 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 flnanclal statements on the going concern basis unles It is inappropriate to presume that the Company will continue in business.** 

**The trustees are responsible for keeping adequate accounting recOf'ds that are sufficient to show and explain the Company's transactions and disdose 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.** 

## **Disclosure of information to auditor** 

**Each of the person who are trustees at the time when this Trustees' report Is approved has confirmed that:** 

- **so far as that truste 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 its 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:** 


**N Rhodes (Chair of Trustees)** 

**Date: \O� Z.o2.2** 

**Pages** 



(A (oMp•ry UTh*•d
INDEPENDWAVDtroRS REP￿T0 THE MEMBERS OF HEADROW MIXIEY UNE
W• hm athltted tr finandd sta￿M￿nts ol H••Jru* Un• (the WiwAable for th• y •thd
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requlrements that ar• relmnt to ow audlt of the Ilnandal stvtern￿ In the Unll¢d Ktn8dry the FlnarKI
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**HEADROW MONEY LINE (A company limited by guarante )** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEADROW MONEY LINE (CONTINUED)** 

## **other Information** 

**The other Information comprises the Information included in the Annual report other than the financial statements and our Auditor's report thereon. The trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.** 

## **We have nothing to report in this regard.** 

**Opinions on other matters presatbed 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 (incorporating the directors' report) for the financial year for which the financial statements are prepared is consisten  with the financial statements.** 

- **• the directors' report has been prepared In accordance with applicable legal requirements.** 

**Matters on which we are required to report by exception** 

**In the light of our knowledge and understanding of the charitable company and Its environment obtained in the course of the audit, we have not identified material missta ements in the Directors' report.** 

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

- **adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or** 

- **the financial statements are not In agreement with the accounting records and returns; or** 

- **• certain disdosures of trustees' remuneration specified by law are not made; or** 

- **we have not received all the information and explanations we require for our audit; or** 

- **the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions In preparing the Trustees' report and from the requirement to prepare a Strategic report.** 

**Page7** 



**HEADROW MONEY UNE (A company limited by guarantee)** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEADROW MONEY LINE (CONTINUED)** 

## **Responsiblllties of trustees** 

**As explained more fully In the Trustees' responsibilities statement, the truste s (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 sta ements that are fre 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 truste s 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 o whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that indudes 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 sta ements.** 

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

**We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry In which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion,** 

**We focussed on laws and regulations, relevant to the charitable company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of the charitable company minutes and both legal and consultancy expenses.** 

**There are inherent limitations in the audit procedures desaibed and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.** 

**As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material missta ement due to fraud.** 

**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.** 

**PageB** 



INDEpENDENT￿ID¥YO1S REPORTTOTHE MEMBERS OF HEADROW MONEY UNE (CONnNUEDI
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srATEMEKf OF HNA14CL4LAcfMTIES IINCORPORATING INCOME AND EXPENDtruRE P£COUNT)
Total
Don•tlons and I￿a¢*I
164531
169,742
169.742
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15.2111
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LANCE SHEET
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P4e 12

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P•y 14

## **HEADROW MONEY LINE** 

## **(A company limited by 1uarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **1. Accounting policies (continued)** 

## _**1.B 8on'owlngs**_ 

**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 betwe n the proceeds, net of transaction costs, and the amount due on redemption being recognised as a char1e 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.** 

## _**1.9 F1nandol lnstn1ments**_ 

**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.** 

## _**1.10 Fund aa:ounting**_ 

**General funds are unrest[r] icted funds which are available for use at the disaetion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.** 

## **Z. Critical accounting estimates and areas of Judgment** 

**Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expecta ions 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 1.6.** 

**Pagels** 



Totsl
T¢)tsi
funds
GAnts
Al Income from and l¥•r1•5w4s ufffe5blct•d kn th• wkwye4r.
Totsl
fvndj
121,X
IW31
PaiE 16

(A **company** limited **by guarantee)** 

## HEADROW MONEY UNE 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **5. Analysis of expenditure on charitable actMties** 

## _**Summary by fund type**_ 

||Unrced<br>fn<br>**201**|**Tol**<br>**fnds**<br>**2021**|**Tol**<br>**funds**<br>**2020**|
|---|---|---|---|
||**£**|**£**|**£**|
|**Audit and accountancy f s **|**12,928**|**1928**|**7,0**|
|**Bad and doubtul debt**|**51,224**|**5122**|**6,331**|
|**Profssional**f|**2,025**|2|**3,503**|
|**LCCUf s **|**42,496**|**4**|**5,5**|
|**Bank interest payable**|**18,111**|**18111**|**19,399**|
|**Conference csts**|||**5**|
|**Contribution towards IT development costs**|||**25,0**|
||**126,784**|**16,7**|**169,742**|



## **All expenditure on charitable activ ties was unrestricted In the prior year.** 

## **6. Auditor's remuneration** 

|**Adi's rmuron**|||
|---|---|---|
||**221**|**2020**|
||£|**£**|
|**Fees payable to the Cmpany's auditor for**the**audit of**the**Company's annual**<br>**accounts**|**8,4**|**5,250**|
|**Fees payable to**the**Company's auditor in respect ot**|||
|**All non-audit srics not induded above**|**2,0**|**1,750**|



## **7. Trustees' remuneration and expenses** 

**During the year, no trustees received any remuneration or other benefits (2020 - £NIL).** 

**During the year ended 30 September 2021, no trustee expenses have been Incurred (2020 -£NIL).** 

**Page17** 



## **HEADROW MONEY LINE** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **8. Debtors** 

|||**2021**|**2020**|
|---|---|---|---|
||||£|
||**_D wi� yr_**|||
||**Amounts owed by relatd entities**|**122,18**|**59,238**|
||**Loan balances**|11|**231,165**|
|||**276,373**|**290,403**|
|**9.**|**Cdir: Aoun falllq due wiin one yar**|||
|||**2021**|**2020**|
|||£|£|
||**Amount owed to related entities**|**211**|**19,871**|
||**Accruals and deferred income**|**18,329**|**7,0**|
|||**39,519**|**26,871**|



## **10. Creditors: Amounts falliq due after more than one year** 

||**2021**|**2020**|
|---|---|---|
||£|£|
|**Other loans**|**24,**|**245,0**|
|**Amounts owed to related entites**|**139,35**|**16,455**|
||**38,35**|**405,455**|



**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 5.5 years by instalments. Interest is payable at a rate of 69' per annum.** 

**Page 18** 



## **HEADROW MONEY LINE** 

## **(A company tlmlted by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

**11. Statement of funds** 


**----- Start of picture text -----**<br>
Statement  of  funds - current year<br>Bal nce at30<br>Balance at I  September<br>OclDber 2020  Income  Expenditure  2021<br>£  f.  £<br>Unremkted funds<br>Reserves  1oa,on  Ul,203  (U&,784)  102,491<br>Statement of funds - prtor year<br>Balance at<br>Balance at 1  30 September<br>October  2019  Income  Expenditure  2020<br>£  £  £<br>Unratrlt:tN funds<br>Reserves  113,283  164,531  (169,742)  108,072<br>**----- End of picture text -----**<br>


## **12. Analysis of net assets betw en funds Analysis of net assets between funds - current year** 


**----- Start of picture text -----**<br>
Unrestricted  Total<br>funds<br>funds<br>2021  2021<br>£  £<br>current assets  526,368  526,368<br>Creditors due with n one year  (423,Bn)  (423,877)<br>Toto/  102,491  102,491<br>**----- End of picture text -----**<br>


**Page 19** 



## **HEADROW MONEY UNE** 

## **(A company limited by 1uarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **1[2.] Analysis of net as ets betwe n funds (continued)** 

## **Analysis of net assets between funds - prior year** 

||**Aalysis o ne ass betn funds - pror year**|||
|---|---|---|---|
|||**Unresicd**<br>**funds**|**Tol**<br>**fnds**|
|||**2020**|**2020**|
|||**£**|**£**|
||**Current assets**|**50,398**|**540,398**|
||**Creditors due within one year**|**(26,871)**|**(26,871)**|
||Creditors**due in**more**than one year**|**(405,455)**|**(405,455)**|
||**_Totl_**|**108,072**|**108,072**|
|1.|Renciliaton o ne moement In fnds**to**ne csh**fow**fm**operng**ac<br>es|||
|||**2021**|**2020**|
||||**£**|
||**Net expenditure fr the year (as per Statement of Financial Activities)**|**(5,581)**|**(5,211)**|
||**_AdJusf_**|||
||**D/(increase) in debtor**|**(4)**|**(46,850)**|
||**Decrease in creditors**|**(8,49)**|**(14,999)**|
||**lmpainent losses**|**6,394**|**67,055**|
||**Finance cos**|**18,111**|**19,399**|
||_Net c pv b oer a_<br>_i_|**18,111**|**19,394**|
|1|**Analysis of csh and csh equivalen**|||
|||**2021**|**2020**|
||||**£**|
||**Cash in hand**|**249,95**|**249,995**|
||**_Total cs an cs euiln_**|**249,995**|**249,995**|



**Page20** 



## **HEADROW MONEY LINE** 

**(A company** limited **by 1uarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **15. Analysls of changes In net debt** 


**----- Start of picture text -----**<br>
AUD<br>At10ctober  September<br>2020  2021<br>£<br>£<br>Cash at bank and in hand  249,995  249,995<br>Debt due after 1 year  (245,000)  (245,000)<br>4,995  4,995<br>**----- End of picture text -----**<br>


## **16. Related party transactions** 

**During the period the charity had no loans outstanding from any Trustee.** 

**a The charity incurred management charges from Leeds City Credit Union Limited (which is considered related party on the basis that It shares key management personnel) of £42,496 (2020: £54,504). In the prior year, 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 £24,677 (2020: £54,677) within a members account of the Credit Union, amounts totalling 67,507 (2020: £4,561) were owed by** Leeds **City Credit Union Limited to Headrow Money Line and the charity also had a loan outstanding with them of £160,548 (2020: £180,326). Interest was payable on this loan of £10,222 (2020: £11,510).** 

**Page 21** 



## **HEADROW MONEY UNE** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_ 

## **17. Post balance sheet events** 

**Since it's Inception Headrow Money Une has cooperated with Leeds City Credit Union under a Common Purpose Agreement. Inter alla this Agre ment specifies that Le ds City Credit Union wilt assess applications and, where appropriate, Issue loans and collect repayments on behalf of Headrow Money Line.** 

**Following the year end Headrow Money Line received an indication from Leeds City Credit Union that it planned to terminate the Common Purpose Agreement and, subsequently, a letter from Leeds City Credit Union giving six months' notice of termination was received. The Directors of Headrow Money Line were not consulted regarding this decision, and were disappointed by this decision, and the significant impact this has on the operations of Headrow Money Line.** 

**Headrow Money Line has no employees and cannot function without the support of an existing financial services business. On receipt of the indication of termination of the Common Purpose Agreement Headrow Money Line Instructed an Immediate pause to the issuing of any further new loans. Subsequently, a proposal has been received from Leeds City Credit Union to extend the notice period fur a further six months to January 2023, to facilitate the collection of outstanding loans. This proposal has been agreed in principle by both parties, subject to the agreement of acceptable terms and conditions.** 

**in parallel Headrow Money Line has explored the possibility of entering into a similar Common Purpose Agre ment with other existing financial services companies, including other CDFis, to enable the underlying business to continue but has not been successful in this regard. Having reviewed the relevant guidance, the Directors have prepared the accounts on a basis other than going concern as a result of the pause that has been placed on the primary actiVities of the business. However, despite our best efforts, as a Volunteer Board, It does not seem realistic that we will be able to dedicate what could be considerable effort in finding another partner.** 

**The Directors have reviewed the assets and liabilities of the Company as at the balance sheet date. The Directors do not consider that there has been any change to the legal terms attaching to the repayment of medium term loans payable by the Company as at 30 September 2021, and these loan balances are presented in** _**the**_ **balance sheet based on the repayment terms included In the underlying loan agreements. The Company may have to use some of some Its reserves to cover the cost of winding down operations in the future, dependent on the outcome of discussions with potential future financial service partners. The Directors have considered the current operations of the Company and do not consider that any such expenditure would be material to the financial statements, therefore no provision has been made in these financial statements for such potential future costs.** 

**The Directors have reviewed the loan balances included as assets at the balance sheet date for any required further provision. Based on the average loan term of the outstanding debtor book and, subject to the agre ment of terms for collection of the balances through to January 2023, the Directors do not consider that any further provisions for bad and doubtful debts is required, over and above that included in these financial statements.** 

**Page22**