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2022-03-31-accounts

RED ROSE RECOVERY LANCASHIRE

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

Company Number: 08302102 Charity Number: 1152474

RED ROSE RECOVERY LANCASHIRE

CONTENTS

Page
Trustees’ Annual Report 2
Statement of Trustees’ Responsibilities 9
Auditors Report 10
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

The Trustees are pleased to present their annual report for the year ended 31[st] March 2022.

The financial statements have been prepared in accordance with the charity’s trust deed, the Charities Act 2011 and 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 published (FRS 102) (as amended for accounting periods commencing from 1[st] January 2019).

OBJECTIVES AND ACTIVITIES

The charitable company’s objectives are spec ifically restricted to the following for the community in Lancashire and the North of England:

Red Rose Recovery Lancashire (RRR) provides community-based opportunities for exoffenders and people in recovery. Our pro vision recognises and builds on beneficiaries’ gifts and skills, creating a positive environment for individuals, often viewed negatively, to move forward. Red Rose Recovery Lancashire can help people take up activities that contribute to – their further development and to the life of their local communities sometimes feeling a sense of worth and achievement for the first time. Red Rose Recovery Lancashire employs a staff team, including some in recovery, based in community settings and hosted within local voluntary groups across Lancashire and the North.

Our core work involves coaching service users in addiction by utilising the skills of individuals with lived experience who deliver therapeutic support. We work in hospitals, in the community, in criminal justice settings and within primary care environments where our work is most effective.

When planning our activities for the year, the trustees have considered the Charity Commission's guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Lancashire County Council Recovery Infrastructure Organisation (RIO)

Lancashire User Forum

Our online “Lancashire User Forum ( LUF) Lounge Live” continued to spread content in 2021 across multiple digital platforms such as Facebook, Twitter, YouTube and our Website reaching tens of thousands of people.

After a hugely successful, almost two years, resulting in 98 weekly episodes featuring life stories, music, takeovers, a huge and wide-ranging number of professionals and partners from

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

all over our sector and so much more, the LUF Lounge Live ended on 26th February 2022, as we re-focused efforts into shifting back into face-to-face events.

In 2021/22 the LUF Lounge engaged with 36,986 people with over 100,000 minutes watched online.

Referrals and Engagement

1,582 referrals were received into our core RIO service against a target of 600.

We had 21,063 recorded engagements with members, delivered 1,695 project and group sessions of which facilitated 15,305 attendances and achieved 35,247 soft outcomes for the individuals whom which we supported.

Visit: www.redroserecovery.org.uk/annual-review-2021-22

Volunteers and Members

Of those referrals engaged with, 23 became registered as lead volunteers and supported into roles providing 5,130 volunteer hours with an economic value of £45,708, contributing to local communities, neighbourhoods, and well-being.

Membership numbers grew significantly once again, from 2,300 to 3,991 over the year.

Projects

Unfortunately, due to Covid-19, opportunities to provide community support were significantly restricted. RRR did however, where possible and safe, deliver the following across the course of the financial year:

Groups

All of our groups aim to bring people together, to reduce isolation and connect people. Some are structured, some are more relaxed and fun. Some are educational and others just to let people talk about what issues are affecting them each day. It is run by a mix of staff and volunteers and has incorporated the following:

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

Contracts

Section 136 Community Peer Intervention Service - Commissioned to provide a reactive peer intervention service which supported detained or at risk of detention individuals and reduces the number of repeat Section 136 detentions in the Pennine area. RRR recruited a dedicated team of lived experience peer support workers, who on alert of the referral or detention, will attend the ‘place of safety’ to support the in dividual on a 1-2-1 basis, building a personal relationship built on shared experience, visible recovery, and professional knowledge.

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

Leaders with Lived Experience - Funding which allowed RRR to expand our training delivery offer. Upskilling and developing individuals with lived experience into community leaders.

Health Befriending Service - A short term, high impact project looking to support local CMHT’s across the ICP. An integrated service with L ancashire South Council FT, providing lived experience peer support to beneficiaries struggling with their mental health.

Liaison and Diversion, Guild Lodge and Reconnect - The success of the pilot programme in 2020 led to the commissioning of a service roll out across 12 Lancashire and South Cumbria police stations in 2021 alongside being contracted to provide similar peer-based support within in Prisons across the county (Reconnect) and a Secure Medical Unit in Preston (Guild Lodge).

RRR staff engage with those in the cells arriving for court, whilst in prison or whilst on inpatient wards and seek to engage and reintegrate them into community activities away from crime.

Re-Connect - Funding secured to deliver our Leadership training programme to beneficiaries across Lancashire.

Universal Grant - Funding by Public Health to increase and improve our out of hours provision and support, as well as the creation of a new role focusing on the prevention of individuals reoffending by diverting away from the criminal justice system into treatment and community services.

Offender Personality Disorder Recovery Pathway Service - Funding provided by HMPPS to provide peer support to individuals identified as having a personality disorder, residing in prisons, secure units or the community.

Changing Futures - Changing Futures is a national 3 year, £64 million programme aiming to – improve outcomes for adults experiencing multiple disadvantage including combinations of homelessness, substance misuse, mental health issues, domestic abuse and contact with the criminal just ice system.

In December 2021 RRR were awarded the sub-contract for a Lived Experience Team operating across East Lancashire.

Client Support Service - Peer Support service commissioned to engage and support some of the most complex and disadvantaged individuals within our communities.

FINANCIAL REVIEW

Total income in the year was £1,031,345 (2021: £984,817) of which £255,241 (2021: £401,811) related to funding for projects upon which restrictions are placed.

Total expenditure in the year was £998,392 (2021: £632,687), leaving a surplus for the year of £32,953 (2021: surplus £352,130).

At 31[st] March 2022 the charitable company’s reserves stood at £ 724,113 (2021: £691,160) of which £33,172 (2021: £34,738) represented restricted funds.

RISK ASSESSMENT

The major risks faced by Red Rose Recovery are identified on a risk register which is periodically reviewed by the board of trustees. We believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient funds in the event of adverse conditions. The trustees have also examined other operational risks faced by the charity, and we confirm that we have established systems to mitigate, where possible, any significant risks.

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

RESERVES POLICY

It is the policy of the charitable company to maintain unrestricted funds, which are free reserves at a level to cover redundancy provision and six months’ running costs should no further funding be secured. Any surplus over this minimum is used to fund new ventures and to cover other contingencies that may emerge.

As at the end of the financial year the unrestricted funds totalled £688,487 (£653,708 net of tangible fixed assets). The charitable company requires £40,118 for redundancy provision and £370,793 for six months’ running costs, (total £ 410,911).

This would leave an excess in unrestricted reserves of approximately £277,576 (2021: £499,512), some of which has been designated by the trustees as below:

2022 2021
£ £
Delivery and expansion of services across Lancashire 40,000 40,000
Investment into externally sourced professional training to
upskill growing number of staff members		 20,000 20,000
Investment into social housing 80,000 150,000
Investment into employee health and wellbeing initiatives
and/or services		 20,000
Investment into our local communities, building capacity for
smaller recovery organisations via a community wealth - 50,000
building approach
Funding for additional office space to accommodate growing
number of staff members		 60,000 15,000
---------- -----------
Total 220,000 275,000
====== ======

PLANS FOR FUTURE

The charitable company’s strategic three year forward view, taking into account its track record over the past three to five years has placed it in a strong position, such that it continues to look at accessing future contract opportunities and longer-term projects to increase its capacity in delivering to and supporting vulnerable people and marginalised groups.

We are currently reviewing or submitting proposals for the following:

CMHT and S136 pilots delivered in 2022. The new contracts will cover East Lancashire, North Lancashire and South Cumbria and see the addition of 28 members of Mental Health Lived Experience Peers.

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

If successful, the collective total of bids is significant and will provide significant growth opportunities into 2022/23. Scoping further opportunities and submitting further proposals during the year is ongoing work and remains a strategic priority.

Opportunities to further develop partnerships continue in order to support collaborative bids as these emerge. Examples include our work with Lancashire and South Cumbria Integrated Care System, Lancashire and South Cumbria Foundation Trust, the Calico Group, CGL, Lancashire Constabulary and the National Probation Services.

We also continue to develop opportunities outside of our main commissioned geographical area and trading opportunities outside of recovery.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The organisation is a charitable company limited by guarantee, incorporated on 21[st] November 2012 (company number 08302102) and registered as a charity (charity number 1152474) on 18[th] June 2013.

The Governing Instruments under which the charitable company operates comprise the Memorandum and Articles of Association dated 21[st] November 2012. Anyone over the age of 18 can become a member. The charitable company ’s Board of Trustees are also its directors.

Members are elected at the Annual General Meetings of the members of the charitable company, with casual vacancies being filled as required by the Board of Trustees in accordance with the Charity’s Articles of Association. The Board meets regularly throughout the year and attends to all strategic and operational matters.

RED ROSE RECOVERY LANCASHIRE TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Name Red Rose Recovery Lancashire
Company Number 08302102
Charity Number 1152474
Registered Office St Wilfrids Building,
Fox Street,
Preston,
England,
PR1 2AB
Trustees Steven Brown (Appointed 21stMarch 2022)
Jennifer Clare Ellison
Derek Fredricks (Appointed 21stMarch 2022)
Robert Head (Appointed 21stMarch 2022)
John Richmond (Treasurer)
Neil Smith
Sarah Walsh (Appointed 21stMarch 2022)
Amanda Webster (Vice Chair)
Thomas Woodcock (Chair)
Managing Director Michael Wearden
Professional Advisers
Auditors Louise Casey ACA
BWM Chartered Accountants
Tempest, Suite 5.1, 12 Tithebarn Street
Liverpool L2 2DT
Accountants Liverpool Charity and Voluntary Services (LCVS)
151 Dale Street,
Liverpool,
L2 2AH
Bankers The Co-Operative PLC
P O Box 250,
Skelmersdale,
Lancashire WN8 6WT

Signed on behalf of the Board of Trustees

………………………….

Thomas Woodcock Trustee and Chair 30/01/2023 Date: ……………………..

RED ROSE RECOVERY LANCASHIRE STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Trustees should follow best practice and:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements have been prepared in accordance with the charity’s trust deed, the Charities Act 2011 and 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 published (FRS 102) effective 1[st] January 2019.

By Order of the Board

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John Richmond Trustee and Treasurer

St Wilfrids Building, Fox Street, Preston, England, PR1 2AB

30/01/2023

Date: ……………………………………

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF RED ROSE RECOVERY LANCASHIRE

Opinion

We have audited the financial statements of Red Rose Recovery Lancashire (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF RED ROSE RECOVERY LANCASHIRE

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 our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF RED ROSE RECOVERY LANCASHIRE

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.

Comparative information

The corresponding figures presented in the financial statements were unaudited.

The extent to which the audit was considered capable of detecting irregularities, including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statement s to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF RED ROSE RECOVERY LANCASHIRE

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Casey ACA (Senior Statutory Auditor) for and on behalf of BWM ......................... 30.01.2023 Chartered Accountants Statutory Auditor Tempest Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

RED ROSE RECOVERY LANCASHIRE STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31[ST ] MARCH 2022

Notes Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
Income and endowments
from:		 £ £ £ £
Donations and legacies 3a 1,720 - 1,720 320
Charitable activities 3b 815,446 255,241 1,070,687 984,497
Other trading activities 3c 2,036 - 2,036 -
------------- ------------- ------------- -------------
Total income 819,202 255,241 1,074,443 984,817
------------- ------------- ------------- -------------
Expenditure on:
Raising funds 64 - 64 -
Charitable activities 4 784,619 256,807 1,041,426 632,687
------------- ------------- ------------- -------------
Total expenditure 784,683 256,807 1,041,490 632,687
------------- ------------- ------------- -------------
Net income/(expenditure), Net
Movement in funds		 34,519 (1,566) 32,953 352,130
Total funds brought forward 11,12 656,422 34,738 691,160 339,030
------------- ------------- ------------- -------------
Total funds carried forward 10-12 690,941 33,172 724,113 691,160
======= ======= ======= =======

The notes on pages 17 to 28 form part of these accounts.

All the above amounts relate to continuing activities of the charitable company.

RED ROSE RECOVERY LANCASHIRE BALANCE SHEET AS AT 31[ST] MARCH 2022

Company Number 08302102

BALANCE SHEET AS AT 3 1ST MARCH 2022
Notes 31st March 2022 31st March 2021
£ £ £ £
Fixed assets
Tangible fixed assets 5 2,454 2,714
Current assets
Debtors 6 95,041 17,438
Cash at bank and in hand 760,805 702,682
------------- -------------
855,846 720,120
Current liabilities
Creditors: amounts falling
due within one year		 7 (134,187) (31,674)
------------- -------------
Net current assets 721,659 688,446
------------- -------------
Total assets less current
liabilities		 724,113 691,160
======= =======
Funds:
Unrestricted funds 10, 11 690,941 656,422
Restricted funds 10, 12 33,172 34,738
------------- -------------
724,113 691,160
======= =======

These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime an d in accordance with FRS102 SORP.

The Trustees, who are the Directors of the company, acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

30/01/2023

Approved by th e Board on ……………………… , and signed on their behalf by:

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Thomas Woodcock Director and Chair

John Richmond Director and Treasurer

RED ROSE RECOVERY LANCASHIRE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST] MARCH 2022

Notes 31st March 2022 31st March 2022 31st March 2021
Cash flows from operating £ £ £ £
activities
Cash generated from operations 14 60,685 367,955
Investing activities
Purchase of tangible fixed assets (2,562) (-)
---------- ----------
Net cash generated from/ (used)
in investing activities		 (2,562) (-)
Net cash generated from
financing activities - -
---------- ----------
Net increase/(Decrease) in cash
and cash equivalents		 58,123 367,955
Cash and cash equivalents at
beginning of year		 702,682 334,727
------------ ------------
Cash and cash equivalents at end
of year		 760,805 702,682
======= =======
Represented by:
31st March 2022 **31st ** March 2021
£ £ £ £
Cash at bank and in hand 760,805 702,682
======= =======

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

1. Limited Liability

The charity is a company limited by guarantee. Each member’s liability is limited to £5.

2. Accounting Policies

Basis of accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements have been prepared in accordance with the c harity’s trust deed, the Charities Act 2011 and 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 published (FRS 102) as amended for accounting periods commencing from 1[st ] January 2019 and Charities Act 2011 and the Companies Act 2006.

The accounts are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the accounts, the Trustees have a reasonable expectation that the charitable company has adequate reserves to continue in operational existence for the foreseeable future. The Trustees are confident that the levels of liquidity and free reserves will not affect the charity’s operations. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

Fund accounting

Unrestricted general funds are the charitable company ’s f ree reserves available for the T rustees to apply in accordance with the charitable company’s charitable objectives. Funds are designated where they are held for specific purposes.

Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure for the purposes is charged to the fund.

Income recognition

All income is recognised once the charitable company has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations and legacies comprise of donations, and which are recognised in the accounts when received, with the exception of known legacies which are accounted for when their receipt is certain.

Income from charitable activities is recognised on an accrual’s basis except for grants receivable, which are recognised on the date on which their unconditional payment is confirmed by the donor.

Other trading activities relates to all fundraising events and is recognised when the amounts are certain.

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

Expenditure recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accrual’s basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor.

Expenditure on charitable activities relate to the operation of the charitable company comprising of direct charitable expenditure to meet the objectives of the charitable company. Support and governance costs relate to the management and operation of the organisation and also compliance with constitutional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charitable company.

Fixed assets

Capital expenditure of £500 and above is stated in the balance sheet at cost less accumulated depreciation. Depreciation is provided to write off the cost of each asset over its expected useful life as below:

Computer 20% per annum straight line basis Motor Vehicle 20% per annum straight line basis

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The charitable company has elected to apply the provisio ns of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company ’s contra ctual obligations expire or are discharged or cancelled.

Taxation

Income and gains are exempt from taxation as they are received and applied for charitable purposes only. The charitable company benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

Pension

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independently administered funds.

Contribution payments are charged to the SOFA. Any amounts not paid are shown in accruals as a liability in the balance sheet

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when there is a clear decision or commitment to terminate the employment or provide such termination benefits.

Leases

Payments made under operating leases, including any lease incentives received, are charges to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed

Critical accounting estimates and judgements

In the application of the charitable company ’s accounting policies, the T rustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

3. Income and endowments

3. Income and endowments
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
a. Donations and Legacies £ £ £ £
Donations 1,720 - 1,720 320
===== ===== ===== =====
Income from donations and legacies for 2021 related wholly to unrestricted funds.
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
b. Charitable activities £ £ £ £
Contract income 802,529 - 802,529 565,527
ESF Community Grant - 10,816 10,816 3,605
Healthier Lancashire and South
Cumbria		 - 56,000 56,000 -
H M Prison Probation - 8,250 8,250 -
Human Kind- Collective Voice - - - 18,949
Julia Hans Rausing Grant - - - 31,999
Lancashire Covid-19
Community support fund		 - - - 4,998
Lloyds - - - 29,180
Minds Matter- Mind - - - 47,875
National Lottery Community
Fund (Digital Recovery)		 - - - 26,165
National Lottery Community
Fund (Leaders with lived - 24,064 24,064 24,064
experience)
National Lottery Community
Fund - Reaching Communities		 - 156,111 156,111 168,988
Police & Crime Commissioner - - - 45,988
Training and consultancy 12,917 - 12,917 17,159
----------- ----------- ------------ ------------
815,446 255,241 1,070,687 984,497
====== ====== ======= ======
Income from charitable activities in 2021 comprised £582,686 for unrestricted funds and
£401,811 related to restricted funds.
c. Other trading activities £ £ £ £
Fundraising 2,036 - 2,036 -
===== ===== ===== =====

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

4. Expenditure on Charitable Activities

Direct Support &
Charitable Governance Total Total
Expenditure Costs 2022 2021
£ £ £ £
To provide advice, information,
training, and support to offenders
and those in recovery from addiction		 667,185 374,241 1,041,426 632,687
and their families
======= ======= ====== ======
a.Analysed as follows:
2022 2021
Direct charitable expenditure: £
 £
Staff salaries costs 497,023 252,131
Pension 11,273 7,526
Redundancy 1,667 -
Project and events expenses 139,353 75,914
Consultancy and HR fees 14,426 16,567
Volunteer expenses 3,261 1,941
Books 182 -
------------ ------------
667,185 354,079
------------ ------------
Support & Governance costs: £ £
Staff salaries costs 181,440 193,976
Pension 6,491 5,052
Travel expenses 6,285 11,423
Staff expenses 22,815 -
Printing, stationery, and postage 4,316 4,321
Telephones and internet 16,759 12,101
Computer support and software costs 17,240 11,364
Rent 12,814 10,507
Repairs and cleaning 255 7,184
Recruitment 5,093 -
Insurance 10,364 9,480
Subscriptions and membership fees 5,403 478
Staff training and development 780 4,837
Website Database - 2,656
Equipment hire 506 -
Advertising and marketing 864 1,595
Professional fees 56,048 -
Legal fees 18,075 -
Pension charges 396 -
Bank charges 125 -
Companies House - 130
Accountancy fees 1,350 1,000
Audit fees 4,000 -
Depreciation 2,822 2,504
------------ ------------
374,241 278,608
------------ ------------
Total expenditure on charitable activities 1,041,426 632,687
====== ======

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

£256,807 (2021: £364,221) of the above expenditure relates to restricted funding.

b.Staff Costs 2022 2021
£ £
Gross salaries and wages 636,705 417,922
Social security costs 41,758 28,185
Pension costs 17,764 12,578
Redundancy 1,667 -
------------ ------------
697,894 458,685
======= =======

c . Particulars of employees:

The average staff employed in the year was 33.7 (2021: 23.2) equivalent on the basis of fulltime as follows:

2022 2021
Charitable activities 30.2 16.9
==== ====
No employee received emoluments of more than £60,000 during the year.

The Trustees, being also the Directors of the charitable company, are not remunerated for their services and are not included in the above number of employees.

No out-of-pocket expenses were reimbursed to Trustees in the year (2021: £nil).

5. Tangible fixed assets

angible fixed assets
Motor Total
Computer Vehicle
Cost £
 £
 £
Balance at 1stApril 2021 523 12,000 12,523
Additions in the year 2,562 - 2,562
--------- --------- ---------
Balance at 31stMarch 2022 3,085 12,000 15,085
--------- --------- ---------
Accumulated Depreciation
Balance at 1stApril 2021 209 9,600 9,809
Charge for the year 422 2,400 2,822
--------- --------- ---------
Balance at 31stMarch 2022 631 12,000 12,631
--------- --------- ---------
Net book value at 31st March 2022 2,454 - 2,454
===== ===== =====
Net book value at 31st March 2021 314 2,400 2,714
===== ===== =====

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

6. Debtors
2022 2021
£ £
Trade debtors 90,012 17,438
Other debtors 5,029 -
----------- -----------
95,041 17,438
====== ======
7. Creditors: amounts falling due within one year
2022 2021
£
 £
Trade creditors 600 1,911
Accruals 48,947 1,000
Tax & Social Security 9,323 9,415
Pension 80 -
Deferred Income (note 8) 75,237 19,348
----------- -----------
134,187 31,674
====== =====
8. Deferred Income
2022 2021
£ £
Balance at 1stApril 2021 19,348 47,052
Amount deferred in the year 75,237 19,348
Amount released to incoming resources (19,348) (47,052)
----------- -----------
Balance at 31st March 2022 75,237 19,348
====== ======
9. Financial Instruments
2022 2021
£ £
Carrying amount of financial assets:
Debt instruments measured at costs 855,840 720,120
====== ======
Carrying amount of financial liabilities:
Measured at cost 49,627 2,911
====== ======

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

10. Analysis of Net Assets between Funds

2022 Tangible Net current Total
fixed
assets assets
Unrestricted Funds £ £ £
General Fund 1,895 683,440 685,335
Blackburn with Darwin charging futures 559 5,047 5,606
------------ ------------ ------------
2,454 688,487 690,941
Restricted Funds
Minds Matter- Mind - 10,280 10,280
National Lottery Community Fund
(Leaders with lived experience)		 - 22,262 22,262
National Lottery Community Fund -
Reaching Communities		 - 630 630
------------ ------------ ------------
- 33,172 33,172
------------ ------------ ------------
Total Funds 2,454 721,659 724,113
======= ======= =======
2021 Tangible Net current Total
fixed
assets assets
Unrestricted Funds £ £ £
General Fund 314 634,383 634,697
Lancashire County Council BRIC Funds - 21,725 21,725
------------ ------------ ------------
314 656,108 656,422
Restricted Funds
Bowland Charitable Trust -
Omega Project		 2,400 - 2,400
Minds Matter- Mind - 10,280 10,280
National Lottery Community Fund
(Leaders with lived experience)		 - 22,058 22,058
------------ ------------ ------------
2,400 32,338 34,738
------------ ------------ ------------
Total Funds 2,714 688,446 691,160
======= ======= =======

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

11. Unrestricted Funds

Movements in the year

Funds Income Expenditure Transfers Funds
2022 at start of at year
the year end
£ £ £ £ £
General Fund 634,697 594,898 (544,260) - 685,335
Blackburn with
Darwin charging - 124,304 (118,698) - 5,606
futures
Lancashire County
Council BRIC Funds		 21,725 100,000 (121,725) - -
----------- ----------- ------------- ------------- -----------
656,422 819,202 (784,683) 690,941
====== ====== ======= ======= ======
Movements in the year
Funds Income Expenditure Transfers Funds
2021 at start of at year
the year end
£ £ £ £ £
General Fund 253,598 244,923 (37,288) 173,464 634,697
Lancashire County
Council BRIC Funds		 80,632 338,083 (231,178) (165,812) 21,725
----------- ----------- ------------- ------------- -----------
334,230 583,006 (268,466) 7,652 656,422
====== ====== ======= ======= ======

General Fund is used to finance the charitable company’s general activities as outlined in the Trustees’ Report.

Lancashire County Council BRIC Funds are held specifically to be applied against future projects.

Transfers from restricted to unrestricted funds represent the management fees on external projects.

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

12. Restricted Funds

Restricted Funds
Movements in the year
2022 Funds at Income Expenditure Transfers Funds
start of at year
the year end
£ £ £ £ £
Bowland Charitable Trust -
Omega Project		 2,400 - (2,400) - -
ESF Community Grant - 10,816 (10,816) - -
Healthier Lancashire and
South Cumbria		 - 56,000 (56,000) - -
H M Prison Probation - 8,250 (8,250) -
Minds Matter- Mind 10,280 - (-) - 10,280
National Lottery Community
Fund (Leaders with lived 22,058 24,064 (23,860) - 22,262
experience)
National Lottery Community
Fund - Reaching Communities		 - 156,111 (155,481) - 630
----------- ----------- ------------- ------------- -----------
34,738 255,241 (256,807) - 33,172
====== ====== ======= ======= ======
Movements in the year
2021 Funds at Income Expenditure Transfers Funds at
start of the year end
year
£ £ £ £ £
Bowland Charitable Trust - Omega
Project
4,800		 - (2,400) - 2,400
ESF Community Grant - 3,605 (3,605) - -
Human Kind- Collective Voice - 18,949 (18,949) - -
Julia Hans Rausing Grant - 31,999 (31,999) - -
Lancashire Covid-19 Community
support fund		 - 4,998 (4,998) - -
Lloyds - 29,180 (26,196) (2,984) -
Minds Matter- Mind - 47,875 (32,927) (4,668) 10,280
National Lottery Community Fund
(Digital Recovery)		 - 26,165 (26,165) - -
National Lottery Community Fund
(Leaders with lived experience)		 - 24,064 (2,006) - 22,058
National Lottery Community Fund -
Reaching Communities
-		 168,988 (168,988) - -
Police & Crime Commissioner - 45,988 (45,988) - -
----------- ----------- ------------- ------------- -----------
4,800 401,811 (364,221) (7,652) 34,738
====== ====== ======= ======= ======

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

Transfers from restricted to unrestricted funds represent the management fees on external projects.

These are monies given to the charitable company to be spent at the discretion of the Board of Trustees for specific charitable purposes.

Bowland Charitable Trust – Omega Project- to provide and co-ordinate volunteers to work on the OMEGA project, which aims to take volunteers with experience in the criminal justice system and provide them with training and experience working on a building renovation in East Lancashire – This project ended in autumn 2017.

ESF Community Grant- Contribution towards the community re-connect programme.

Healthier Lancashire and South Cumbria- Contribution to support community engagement and training through peer support.

Human Kind- Collective Voice- Contribution towards costs incurred shifting the whole organisation to remote working and PPE due to covid-19 and increase service user demand.

H M Prison Probation- Contribution towards peer-based support

Julia Hans Rausing Grant- Contribution towards supporting general infrastructure and primary activities of the organisation.

Lancashire Covid-19 Community support fund- Contribution towards project Hope and Beyond, provide all the relevant support and training needed due to the COVID-19 outbreak.

Lloyds- Contribution towards consultancy support to develop and implement a marketing & comms strategy, create a new website, rebrand and staff costs.

Minds Matter -Mind- Contribution towards a programme to provide people on low level mental health, support.

National Lottery Community Fund (Digital Recovery)- Contribution towards recruiting additional staff members the sourcing of IT equipment and software.

National Lottery Community Fund (Leaders with lived experience)- to contribute to staff costs, some overheads and equipment on the Lancashire Recovery Support and Community Development project.

National Lottery Community Fund - Reaching Communities- to contribute to staff costs, some overheads and equipment on the Lancashire Recovery Support and Community Development project.

Police & Crime Commissioner- Contribution towards running a programme to help people with a history within the criminal justice system.

13. Operating Lease Commitments

Financial commitments under non-cancellable operating leases relating to a photocopier lease and annually property lease Hyndburn Voluntary and Community Resource Centre, lease payments of 2 months’ notice required, and YMCA Lancaster this will result in the following payments falling due at 31[st] March 2022.

RED ROSE RECOVERY LANCASHIRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

2022 2021
Land & Building
Operating leases which expire: £
 £
Due within 1 year 5,743 5,743
2022 2021
Photocopier
Operating leases which expire:
Due within 1 year 675 -
Due in 1 to 2 years 675 -
Due in 2 to 5 years 1,519 -
------------ ------------
8,612 5,743
======= =======
14. Cash Generated from operations.
2022 2021
£ £
Surplus for the year
 32,953 352,130
Adjustments for:
Depreciation
 2,822 2,504
Movements in working capital:
(Increase)/Decrease in debtors (77,603) 37,679
Increase/(Decrease) in creditors 102,513 (24,358)
------------- -------------
Cash (used in)/generated from
operations		 60,685 367,955
======== ========

15. Contingent Liabilities

The charitable company did not have any contingent liabilities at 31[st] March 2022 (2021: none).

16. Related Party Transactions

There were no material related party transactions during the year which require disclosure (2021: none).

17. Remuneration of key management personnel

The remuneration paid to the senior management team, who are considered to be the key management personnel was: £153,328 (2021:142,316)

18. Guarantees

As at 31[st] March 2022, 9 members had given a guarantee of £5 each in the event of the charitable company winding-up; total: £45 (2021: 5 members £25).

RED ROSE RECOVERY LANCASHIRE DETAILED STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31[ST] MARCH 2022

2022 2021
INCOME £ £
Grant Income 255,241 401,811
Contract income 802,529 565,527
Training and consultancy 12,917 17,159
Donations 1,720 320
Fundraising 2,036 -
----------- -----------
Total Income 1,074,443 984,817
----------- -----------
EXPENDITURE
Raising Funds
Fundraising costs 64 -
----------- -----------
Charitable activities
Staff salary costs 678,463 446,107
Redundancy 1,667 -
Pension 17,764 12,578
Project and events expenses 139,353 75,914
Staff expenses 22,815 -
Consultancy and HR service fees 14,426 16,567
Volunteer expenses 3,261 1,941
Website database - 2,656
Travel expenses 6,285 11,423
Printing, stationery, and postage 4,316 4,321
Telephones and internet 16,759 12,101
Computer support and software costs 17,240 11,364
Rent 12,814 10,507
Repairs and cleaning 255 7,184
Books 182 -
Recruitment costs 5,093 -
Insurance 10,364 9,480
Subscriptions and membership fees 5,403 478
Staff training and development 780 4,837
Equipment hire 506 -
Advertising and marketing 864 1,595
Professional fees 56,035 -
Legal fees 18,075 -
Pension charges 396 -
Bank charges 125 -
Companies House 13 130
Accountancy fees 1,350 1,000
Audit fees 4,000 -
Depreciation 2,822 2,504
----------- -----------
Total expenditure on charitable activities 1,041,426 632,687
------------ ------------
Total Expenditure 1,041,490 632,687
------------ ------------
Net income for year 32,953 352,130
======= =======

(This page does not form part of the statutory financial statements)