## Project Freedom Ltd
Charity number 1151778
A Company limited by guarantee number 8413978
Annual Report and Financial Statements
for the year ended 31 December 2022
## Project Freedom Ltd
## Annual Report and Financial Statements
for the year ended 31 December 2022
|**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 charity has seen growth and success in many of our projects, especially in the area of mentoring. Like many other organisations, though, we have also been adversely affected this year both by the after affects of COVID and by the rise in the cost of living.
We continue to support and encourage those who volunteer in our shops as well as those involved in our projects.
## Charity shops
The two charity shops have begun to pick up slowly after the COVID lock-down. We continue to offer mentoring to the volunteers working in our shops and have seen some remarkable transformation and growth in individuals' lives.
We ensure our volunteers have a decent lunch allowance on the days they volunteer, so they have at least one good meal a day.
Working together with other local organisations, churches and food-banks, we have been able to provide food hampers for families we have contact with who are struggling to provide food for themselves in the present economic climate.
## Mentoring
We have maintained a mentoring service which has seen some notable successes. We have developed collaboration networks with other charities in the rehabilitation process and this has had encouraging results.
Through regular emotional and social support, our team has seen individuals reach a sustained period of freedom from addiction.
As in previous years, our numbers are not high but we have developed a process of staying with the individual for the medium / long term, in order to help them to develop a new lifestyle, free from addiction.
## Mobile Skatepark “Ramp Riders”
The skatepark has remained in storage since COVID with groups not yet returning, probably due to the lack of funding for events. With insufficient request for bookings it has not warranted paying the cost of insurance.
## Developing Accommodation above the shop in Muirhead Avenue East
We have finished the refurbishment of the flat above the Liverpool shop and it is now ready for a tenant. The refurbishment been a long procedure with many twists and turns – as is often the way with building works.
We bought the building some years ago and the first floor was in a state of destitution before we began the refurbishment project.
We hope to get a good return on our investment as the renovations have increased the value of the property and we now have another income source for the charity.
## Working with other charities / organisations
We have collaborated with other charities on a number of occasions over the course of the year. In the mentoring of people with addictions, we have networked with a charity with similar aims as our own. We were supporting individuals towards freedom from their addictions. This has been a successful project on a variety of levels. It was good to collaborate with another charity and the working together led to good results for the mentorees.
We partnered with a new charity to send some of the surplus clothes from our charity shops to a very deprived area of Africa. We supplied the clothing and contributed towards the shipping costs and the other charity arranged the shipment. The most needed clothing was baby clothes and women's dresses and we understand over 100 people were helped and that the clothes made a real difference to the community in Africa. We appreciated being able to dispose of clothing we were unable to sell in such a positive way.
2
## Project Freedom Ltd
## Future Plans
The coming year, 2023, will be a significant one for us as a charity as several trustees are reaching the point of retirement. With the reduction of income during the COVID lockdown and the lack of operation of the mobile skatepark, we are reassessing the success of the charity regarding its social and rehabilitation output. The need around us has changed and we are developing new ways to support people.
Next year will be a key year for us as we reassess how to move forward stronger and more efficient.
## 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 2022 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 2022.
**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 2022 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
6
## Project Freedom Ltd Statement of Financial Activities
## (Including Income & Expenditure Account) for the year ended 31 December 2022
|Notes
2022
Unrestricted
funds
£
**Income from:**
Income from donations
(4)
360
Income from charitable activities
(5)
46,250
Other incoming resources
(6)
-
Bank interest
-
**Total incoming resources**
46,610
**Resources expended**
Charitable activities
(7)
56,875
**Net incoming / (outgoing) resources**
(10,265)
**Transfers between funds**
-
**Net movement in funds**
(10,265)
**Reconciliation of funds**
**Total funds as at 1 January 2022**
48,468
**Total funds as at 31 December 2022**
(7a)
38,203|2022
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-|2022
Total
funds
£
360
46,250
-
-
46,610
56,875
(10,265)
-
(10,265)
48,468
38,203|2021
Total
funds
£
19,241
38,180
581
-|
|---|---|---|---|
||||58,002|
||||62,103|
||||(4,101)
-|
||||(4,101)
52,569|
||||48,468|
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.
7
## Project Freedom Ltd
## Charity number 1151778
## A Company limited by guarantee number 8413978 Balance sheet
## as at 31 December 2022
|2022
Unrestricted
**Fixed Assets**
£
Tangible Assets
(10)
31,398
**Total fixed assets**
31,398
**Current Assets**
Debtors and prepayments
(11)
-
Cash at bank and in hand
(12)
6,805
**Total current assets**
6,805
**Current liabilities:**
**amounts falling due within one year**
Creditors (due within one year)
(13)
-
**Total current liabilities**
-
**Net Assets**
38,203
**Funds of the charity**
Restricted Funds
-
Unrestricted funds
38,203
**Total Funds**
(15)
38,203|2022
Restricted
£
-
-
-
-
-
-
-
-
-
-
-|2022
Total
£
31,398
31,398
-
6,805
6,805
-
-
38,203
-
38,203
38,203|2021
Total
£
25,073|
|---|---|---|---|
||||25,073|
||||-
23,396|
||||23,396|
||||-|
||||-|
|||||
||||48,469|
||||-
48,468|
||||48,468|
The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 December 2022
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
8
## Project Freedom Ltd STATEMENT OF CASH FLOWS
## FOR THE YEAR ENDED 31 December 2022
|**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 2022**
**Total cash as at 31 December 2022**|2022
Total
£
(10,265)
1,045
-
-
-
(9,220)
(7,370)
-
(16,590)
23,395
6,805|2021
Total
£
(4,101)
1,045
-
-
-|
|---|---|---|
|||(3,056)|
|||(26,118)|
|||-|
|||(29,174)
52,569|
|||23,395|
The notes on pages 10 to 17 form an integral part of these accounts.
9
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
## **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 2022
## **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.
11
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
|**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
£
360
-
-
360
2022
Unrestricted
funds
£
46,250
-
46,250
Unrestricted
funds
£
-
-|Restricted
funds
£
-
-
-
-
2022
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-|Total
funds
£
360
-
-
360
2022
Total
funds
£
46,250
-
46,250
Total
funds
£
-
-|Total
funds
£
380
8,097
10,764|
|---|---|---|---|---|
|||||19,241|
|||||2021
Total
funds
£
34,827
3,353|
|||||38,180|
|||||Total
funds
£
581|
|||||581|
12
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
## 7 **Expenditure of charitable activities**
|2022
Unrestricted
funds
**_Direct Costs_**
£
Transport & driver
4,864
Shop costs
890
Premises
10,933
Admin costs
113
Volunteer expenses
525
Contractors
27,760
Phone, Internet and postage
577
Insurance
3,974
Van Running Cost
755
General Expenses
2,662
Repairs & Maintenance
2,100
Depreciation
1,045
Governance Costs
(8)
677
**Total resources expended**
56,875|2022
Unrestricted
funds
**_Direct Costs_**
£
Transport & driver
4,864
Shop costs
890
Premises
10,933
Admin costs
113
Volunteer expenses
525
Contractors
27,760
Phone, Internet and postage
577
Insurance
3,974
Van Running Cost
755
General Expenses
2,662
Repairs & Maintenance
2,100
Depreciation
1,045
Governance Costs
(8)
677
**Total resources expended**
56,875|2022
Restricted
funds|2022
Total
funds|2021
Total
funds|
|---|---|---|---|---|
||£
4,864
890
10,933
113
525
27,760
577
3,974
755
2,662
2,100
1,045
677
56,875|£
-
-
-
-
-
-
-
-
-
-
-
-
-
-|£
4,864
890
10,933
113
525
27,760
577
3,974
755
2,662
2,100
1,045
677
56,875|£
10,222
1,372
16,042
414
1,269
22,024
596
4,167
3,134
599
491
1,045
728|
|||||62,103|
13
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
|**8**
**Governance Costs**
Independent Examiners' fee
Annual Return Fee
Administration & Fees
**9**
**Staff costs and numbers**
Gross salaries
Social security costs|2022
£
450
-
227
677
2022
£
-
-
-|2021
£
300
328
100|
|---|---|---|
|||728|
|||2021
£
-
-|
|||-|
There were no employees during the period under review.
14
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
|**10 **
**11 **
**12 **
**13 **|**Tangible assets**
**Cost**
At 1 January 2022
Additions
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for year
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021
**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
£
£
£
46,771
67,580
1,236
7,370
-
-
54,141
67,580
1,236
21,698
67,580
1,236
1,045
-
-
22,743
67,580
1,236
31,398
-
-
25,073
-
-
2022
£
-
-
-
2022
£
5,665
1,284
(144)
6,805
2022
£
-
-
-|Total
£
115,587
7,370|
|---|---|---|---|
||||122,957|
||||90,514
1,045|
||||91,559|
|||||
||||31,398|
|||||
||||25,073|
||||2021
£
-
-|
||||-|
||||2021
£
16,377
7,163
(144)|
||||23,396|
||||2021
£
-
-|
||||-|
15
## Project Freedom Ltd
## Notes to the accounts
## for the year ended 31 December 2022
## **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 2022**
**Total funds as at 31 December 2022**|2022
£
360
46,250
-
-
46,610
56,875
(10,265)
-
(10,265)
48,468
38,203
Unrestricted|2021
£
19,241
38,180
581
-
58,002
62,103
(4,101)
-
(4,101)
52,569
48,468
Funds|2022
2021
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Restricted Funds|2022
2021
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Restricted Funds|
|---|---|---|---|---|
|||||-|
|||||-|
|||||-
-|
|||||-
-|
|||||-|
16