Project Freedom Ltd
Charity number 1151778
A Company limited by guarantee number 8413978
Annual Report and Financial Statements
for the year ended 31 December 2021
Project Freedom Ltd
Annual Report and Financial Statements
for the year ended 31 December 2021
| Contents | Page |
|---|---|
| Trustees' Annual Report | 2 to 5 |
| Independent Examiner's Report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of Cash Flows | 9 |
| Notes to the accounts | 10 to 17 |
Prepared by the Greater Merseyside Community Accountancy Service
1
Project Freedom Ltd
Trustees' report
Review of progress and achievements
The year has brought development in some areas of the charity's activities and positive change in others. In general Project Freedom has continued with its activities in Charity Shops, Mentoring and development of a flat above one of our shops.
The Charity Shops were in lockdown from January to April with a limited team of volunteers coming in on a rota basis, ensuring social distancing. The time was useful for internal and household projects in the shops.
A number of our volunteers and clients were very vulnerable and isolated during lock-down and many struggled with bereavement and mental health problems. The management team were involved with regular phone calls, zoom and video calls, door-step deliveries and drive-way chats. This outreach was very much appreciated.
In some cases mental health problems have lingered throughout the year and the management team and trustees have been involved with staff mentoring on a longer term. As the months went on however the picture has gradually returned to normal.
The three Charity Shops continue to provide furniture and household items to people needing emergency rehousing or setting up a flat after a period of homelessness. The goods we stock in the shops to provide customers with reasonably priced items of clothing, furniture, toys, etc come from generous donations from the public and from house clearances.
Our transport team also carry out removals, collections and deliveries.
We continue our M entoring programme offering a one-off session or continuing meeting up with individuals as long as the clients feel the need for support. We have seen over 100 clients over the course of the year.
Flat Renovation . We are renovating the first floor above the Liverpool shop in Muirhead Avenue East and have made significant progress with this project. The premises were in a very poor state of repair and work has had to be done in all areas of building, electrics, plumbing, etc. It is now coming together and we hope to have the flat available in 2022.
The Skate park hasn't been used in 2021 due to Covid and has been in storage throughout. We have plans to overhaul the equipment in 2022 and see what our options are for the future.
Achievements. Helping volunteers and clients through the Covid pandemic we would consider our greatest achievement in 2021. We feel we provided a significant level of care and support in very testing times. Many faced bereavements, isolation, mental health problems and addiction relapses. Despite the challenges we feel relations between the staff team have deepened thanks to management care and support.
In September 2020 we appointed an Executive Manager for the charity and she has developed positive new strategies and practices in many areas. She has developed improvements for the running of the shops, driven forward the progress on the flat development and introduced a new accounting system. The trustees would like to thank Abi Smith for her commitment and energy in all she has done for Project Freedom and especially for supporting clients and volunteers with such care during lockdown.
As always we wish to say a huge Thank You to our 22 volunteers. Thank you for your commitment each day and for the welcome you give to customers. We would not been able to function without you, thank you very much.
We were sorry to say goodbye to Shelly Huang who stepped down from being a trustee at the beginning of the year. Shelley supported Project Freedom with financial advice and experience over several years.
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Project Freedom Ltd
Reserves Policy
The trustees are currently reviewing the adequacy of the charity's reserves. The trustees are confident that reserves are sufficient to enable the charity to continue meeting its stated aims and objectives. The aim of the charity is to hold the minimum equivalent of three months running costs. For the financial year ending 31 December 2021 this would equate to £15,094.
Risk Management
The trustees have assessed the major risks to which the charity is or may be exposed, and in particular those related to the operations and financing of the charity. It is satisfied that by reviewing its policies, procedures and systems regularly it is mitigating its exposure to major risks.
Statement of Directors' responsibilities
Company law requires the directors to prepare financial accounts for each 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 charity for that period. In preparing those financial statements, the trustees are required to:
select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business;
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Board on and signed on behalf of the directors by:
David Calland Trustee
3
Reference and Administrative Details
Project Freedom Ltd
Charity number 1151778
A Company limited by guarantee number 8413978
The trustees,who are the directors of the company for the purposes of company law, are pleased to present their report and financial statements together with the independent examiner's report for the year ended 31 December 2021.
Name Position Dates Liz Perera Secretary David Calland Chair Gustaf du Plessis Treasurer David Richard Hoos
Method of appointment
Members of the board of trustees, who are the directors for the purpose of company law and trustees for the purpose of charity law who served during the year are set out above. The trustees meet monthly and receive reports from management to manage their charity's affairs.
Registered address
15-17 Bridge Street Earlestown Newton-Le-Willows WA12 9BE
Bankers
Barclays Bank PLC Lloyds Bank PLC 48B - 50 Lord Street PO Box 1000 Liverpool Andover L2 1TD
Governing document
The organisation is a charitable company limited by guarantee, incorporated 21 February 2013 company number 08413978. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
Registered as a Charity on 25th April 2013 number 1151778
Objects of the organisation
To advance the christian faith for the benefit of the public. The relief of the physical and mental sickness of persons in need, primarily by reason of addiction to substances.
To assist in advancing education of persons by developing their mental, physical and moral capabilities.
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" primarily means being excluded from society, or parts of society, as a result of unemployment, financial hardship, youth, substance abuse or dependancy, poor educational or skills attainment, or as a result of being a member of a socially or economically deprived community.
4
Reference and Administrative Details
Project Freedom Ltd
Charity number 1151778
A Company limited by guarantee number 8413978
Independent Examiner
Jane Williams Greater Merseyside Community Accountancy Service Beacon Building College Street St Helens WA10 1TF
Approval
This report, which has been prepared in accordance with the provisions in theCompanies Act 2006 relating to small companies, was approved by the trustees on and signed on their behalf by:
5
Independent Examiner's report to the trustees of Project Freedom Ltd
I report on the accounts of the charity for the year ended 31 December 2021 set out on pages 7 to 17
Respective responsibilities of the Trustees and examiner
The charity's trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
q examine the accounts under section 145 of the 2011 Act;
q to follow the procedures laid down in the general directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
q state whether particular matters have come to my attention.
Basis of Independent examiner's statement
My examination was carried out in accordance with the general Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
1) which gives me reasonable cause to believe that in any material respect the requirements:
q to keep accounting records in accordance with section 386 of the Companies Act 2006; and
q to prepare accounts which accord with the accounting records and to comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met; or
2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Jane Williams MAAT Greater Merseyside Community Accountancy Service Beacon Building College Street St Helens WA10 1TF
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Project Freedom Ltd
Statement of Financial Activities (Including Income & Expenditure Account) for the year ended 31 December 2021
| Notes 2021 Unrestricted funds £ Income from: Income from donations (4) 19,241 Income from charitable activities (5) 38,180 Other incoming resources (6) 581 Bank interest - Total incoming resources 58,002 Resources expended Charitable activities (7) 62,102 Net incoming / (outgoing) resources (4,100) Transfers between funds - Net movement in funds (4,100) Reconciliation of funds Total funds as at 1 January 2021 52,569 Total funds as at 31 December 2021 (7a) 48,469 |
2021 Restricted funds £ - - - - - - - - - - - |
2021 Total funds £ 19,241 38,180 581 - 58,002 62,102 (4,100) - (4,100) 52,569 48,469 |
2020 Total funds £ 51,742 41,253 350 - |
|---|---|---|---|
| 93,345 | |||
| 60,546 | |||
| 32,799 - |
|||
| 32,799 19,770 |
|||
| 52,569 |
The above statement includes all gains and loses recognised during the year. All activities are regarded as continuing.
Comparative figures for the previous year by fund type are shown in Note 15. The Notes on pages 10 to 17 form an integral part of these accounts.
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Project Freedom Ltd
Charity number 1151778
A Company limited by guarantee number 8413978 Balance sheet
as at 31 December 2021
| 2021 Unrestricted Fixed Assets £ Tangible Assets (10) 25,073 Total fixed assets 25,073 Current Assets Debtors and prepayments (11) - Cash at bank and in hand (12) 23,396 Total current assets 23,396 Current liabilities: amounts falling due within one year Creditors (due within one year) (13) - Total current liabilities - Net Assets 48,469 Funds of the charity Restricted Funds - Unrestricted funds 48,469 Total Funds (15) 48,469 |
2021 Restricted £ - - - - - - - - - - - |
2021 Total £ 25,073 25,073 - 23,396 23,396 - - 48,469 - 48,469 48,469 |
2020 Total £ - |
|---|---|---|---|
| - | |||
| - 52,569 |
|||
| 52,569 | |||
| - | |||
| - | |||
| 52,569 | |||
| - 52,569 |
|||
| 52,569 |
The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 December 2021
the company was entitled to exemption from audit under section 477 of the Companies Act 2006, and
the members have not required the company to obtain an audit of its accounts for the year in question in . accordance with section 476 of the Act
the trustees acknowledge their responsiblities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts
The notes on pages 10 to 17 form an integral part of these accounts.
These accounts, which have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies, were approved by the trustees on and signed on their behalf by:
Elizabeth Perera Director / Trustee
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Project Freedom Ltd
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 December 2021
| Cash flows from operating activities: Net income/(expenditure) per SOFA Depreciation Investment income (Increase)/decrease in debtors (5) Increase/(decrease) in creditors Cash flows from investing activities Capital (6) Net increase/(decrease) in cash: Total cash as at 1 January 2021 Total cash as at 31 December 2021 |
2021 Total £ (4,100) 1,045 - - - (3,055) (26,118) - (29,173) 52,569 23,396 |
2020 Total £ 32,799 - - - (675) |
|---|---|---|
| 32,124 | ||
| - | ||
| - | ||
| 32,124 20,445 |
||
| 52,569 |
The notes on pages 10 to 17 form an integral part of these accounts.
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Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
1 Basis of preparation
These accounts (financial statements) have been prepared under the historical cost convention,
-
1.1 with items recognised at cost or transaction value, unless otherwise stated in the relevant note(s), in accordance with:
-
(a) The Charities Act 2011
-
(b) The Companies Act 2006
-
(c) The Financial Reporting Standard applicable in the UK and the Republic of Ireland: FRS 102
-
(d) Accounting & Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS 102) (effective January 2015)
-
1.2 The charity meets the definition of a public benefit entity as defined by FRS 102
-
1.3[The][trustees][consider][that][there][are][not][material][uncertainties][about][the][charity's][ability][to] continue as a going concern.
2 Accounting Policies
2.1 Fund accounting
(a) Unrestricted funds are those that can be expended at the discretion of the trustees in the furtherance of the objects of the charity.
(b) Restricted funds are those that may only be used for specific purposes. Restrictions arise when specified by the donor, or when funds are raised for specific purposes.
- (c) The purposes of the funds are shown in Note 7a.
2.2 Income
-
(a) Income is recognised and included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the income; receipt is probable; and the monetary value can be measured with sufficient reliability.
-
(b) Where income has related expenditure (e.g. shop), the income and related expenditure are reported gross in the SOFA.
-
(c) Bank interest is recognised when credited to the account.
-
(d) Gift Aid, where appropriate, is recognised in the same accounting period as the donation to which it relates.
(e) Income, which is subject to conditions that the charity has yet to fulfil, or which is specifically for use in a future accounting period, is treated as deferred income.
2.3 Expenditure and liabilities
-
(a) Expenditure is recognised on the accruals basis.
-
(b) The charity is not registered for VAT, thus all costs are shown inclusive of VAT charged.
-
(c) Liabilities are recognised as soon as there is a legal or constructive obligation to pay out resources.
(d) Governance costs include the costs of preparation and examination of the statutory accounts, the cost of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.
10
Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
2.4 Tangible Fixed Assets
(a) Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £250. They are valued at cost or, if gifted, at their value on receipt. Rates of depreciation
Buildings: 25yrs straight line basis to nil Motor Vehicles & Skate Park: 20% straight line basis to nil Computers & Equipment: 20% straight line basis to nil
2.5 Debtors (a) Debtors are recognised at the settlement amount due. (b) Prepayments are valued at the amount prepaid. 2.6 Cash
(a) Cash comprises bank deposits repayable on demand and any short-term highly liquid investments with a maturity date of three months or less from the date of acquisition or opening of the deposit or similar account.
2.7 Creditors
(a) Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount, usually the invoice amount.
(b) Accrued charges are normally valued at their settlement amount.
2.8 Taxation
The charity is not liable to income tax or capital gains tax on its charitable activities.
3 Transactions with trustees and related parties
No trustees received any remuneration or expenses during the accounting period.
Owing to the nature of the charity's activities and the composition of the board of trustees (being drawn from local statutory and voluntary organisation), it is inevitable that transactions will take place with organisations in which a trustee may have an interest. All transactions in which a trustee may have an interest are conducted at arm's length and in accordance with the charity's financial regulations and expenditure procedures. No transactions were indentified which should be disclosed under FRS 102.
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Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
4 Income from donations
| 4 Income from donations |
||||
|---|---|---|---|---|
| Grants & donations St Helens MBC: COVID Support Grants Liverpool CC: COVID Support Grants 5 Income from charitable activities Shop Income Other income & grants 6 Other Incoming resources from charitable activities Miscellaneous income |
Unrestricted funds £ 380 8,097 10,764 19,241 2021 Unrestricted funds £ 34,827 3,353 38,180 Unrestricted funds £ 581 581 |
Restricted funds £ - - - - 2021 Restricted funds £ - - - Restricted funds £ - - |
Total funds £ 380 8,097 10,764 19,241 2021 Total funds £ 34,827 3,353 38,180 Total funds £ 581 581 |
Total funds £ 2,880 37,528 11,334 |
| 51,742 | ||||
| 2020 Total funds £ 41,253 - |
||||
| 41,253 | ||||
| Total funds £ 350 |
||||
| 350 |
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Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
7 Expenditure of charitable activities
| 2021 Unrestricted funds Direct Costs £ Transport & driver 10,222 Consultancy Fees - Shop costs 1,372 Premises 16,042 Admin costs 414 Volunteer expenses 1,269 Professional fees - Contractors 22,024 Phone, Internet and postage 596 Insurance 4,167 Van Running Cost 3,134 General Expenses 599 Repairs & Maintenance 491 Depreciation 1,045 Governance Costs (8) 728 Total resources expended 62,102 |
2021 Unrestricted funds Direct Costs £ Transport & driver 10,222 Consultancy Fees - Shop costs 1,372 Premises 16,042 Admin costs 414 Volunteer expenses 1,269 Professional fees - Contractors 22,024 Phone, Internet and postage 596 Insurance 4,167 Van Running Cost 3,134 General Expenses 599 Repairs & Maintenance 491 Depreciation 1,045 Governance Costs (8) 728 Total resources expended 62,102 |
2021 Restricted funds |
2021 Total funds |
2020 Total funds |
|---|---|---|---|---|
| £ 10,222 - 1,372 16,042 414 1,269 - 22,024 596 4,167 3,134 599 491 1,045 728 62,102 |
£ - - - - - - - - - - - - - - - - |
£ 10,222 - 1,372 16,042 414 1,269 - 22,024 596 4,167 3,134 599 491 1,045 728 62,102 |
£ 14,363 3,000 1,751 11,322 40 2,225 260 - 1,304 3,875 2,280 - 18,688 - 1,438 |
|
| 60,546 |
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Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
| 8 Governance Costs Independent Examiners' fee Annual Return Fee Administration & Fees 9 Staff costs and numbers Gross salaries Social security costs |
2021 £ 300 328 100 728 2021 £ - - - |
2020 £ 675 13 750 |
|---|---|---|
| 1,438 | ||
| 2020 £ - - |
||
| - |
There were no employees during the period under review.
14
Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
| 10 11 12 **13 ** |
Tangible assets Cost At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 Debtors and prepayments Debtors Prepayments Cash at bank and in hand Current Account 1 Current Account 2 Cash in hand Creditors and accruals Creditors Accruals |
Motor Vehicles Computers & Buildings & Skate Park Equipment £ £ £ 20,653 67,580 1,236 26,118 - - 46,771 67,580 1,236 20,653 67,580 1,236 1,045 - - 21,698 67,580 1,236 25,073 - - - - - 2021 £ - - - 2021 £ 16,377 7,163 (144) 23,396 2021 £ - - - |
Total £ 89,469 26,118 |
|---|---|---|---|
| 115,587 | |||
| 89,469 1,045 |
|||
| 90,514 | |||
| 25,073 | |||
| - | |||
| 2020 £ - - |
|||
| - | |||
| 2020 £ 8,667 44,046 (144) |
|||
| 52,569 | |||
| 2020 £ - - |
|||
| - |
15
Project Freedom Ltd
Notes to the accounts
for the year ended 31 December 2021
15 Comparative income and expenditure by fund type
| Income from: Income from donations Income from charitable activities Other incoming resources Bank interest Total incoming resources Expenditure on: Charitable activities Net incoming / (outgoing) resources Transfers between funds Net movement in funds Reconciliation of funds Total funds as at 1 January 2021 Total funds as at 31 December 2021 |
2021 £ 19,241 38,180 581 - 58,002 62,102 (4,100) - (4,100) 52,569 48,469 Unrestricted |
2020 £ 51,742 41,253 350 - 93,345 60,546 32,799 - 32,799 19,770 52,569 Funds |
2021 2020 £ £ - - - - - - - - - - - - - - - - - - - - - - Restricted Funds |
2021 2020 £ £ - - - - - - - - - - - - - - - - - - - - - - Restricted Funds |
|---|---|---|---|---|
| - | ||||
| - | ||||
| - - |
||||
| - - |
||||
| - |
16