2023-03-31-accounts - Red Rose Recovery Lancashire

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Trustees' Annual Report	Trustees' Annual Report
Statement ofTrustees'	Responsibilities
Auditors Report
Statement of Financial	Activities
Balance Sheet
Statement ofCash Flows
Notes to the Financial	Statements

Trustees		Steven Brown
		Jennifer Clare Ellison Derek Fredricks				(Resigned	1"November 2023)
		Robert Head
		John Richmond	(Treasurer)
		Neil Smith
		Sarah Walsh
		Amanda Webster		(Vice Chair)
		Thomas Woodcock			(Chair)
Secretary		Michael Wearden				(Appointed	23'4 June 2023)
Managing	Director	Michael Wearden
Auditors		Louise Casey ACA
		BWM Chartered		Accountants
		Tempest, Suite 5.1, 12Tithebarn				Street
		Liverpool L2 2DT
Accountants		Liverpool Charity		and Voluntary		Services (LCVS)
		151 Dale Street,
		Liverpool,
		L2 2AH
Bankers		The Co-Operative P0 Box250,			PLC
		Skelmersd ale,
		Lancashire WN8		6WT

			Notes	Unrestricted	Restricted	Total	Total
				Funds	Funds	Funds	Funds
				2023	2023	2023	2022
Income and endowments
from:
Donations and legacies			3a	4,687		4,687	1,720
Charitable activities			3b	2,193,551	361,888	2,555,439	'l,070,687
Other trading activities			3c	3,887		3,887	2,036
Total income				2„202,125	361,888	2,564,013	1,074,443
Expenditure on:
Raising funds				119		119	64
Charitable activities				1,832,692	348,872	2,181,564	1,041,426
Total expenditure				1,832,811	348,872	2,181,683	1„041„490
Net income, Net Movement funds		in		369,314	13,016	382,330	32,953
Total funds brought	forward		'l2,13	690,941	33,172	724,113	691,160
Total funds carried	forward		11-13	1„060,255	46,188	1,106,443	724,113

RED ROSE RECOVERY	RED ROSE RECOVERY	RED ROSE RECOVERY	LANCASHIRE	LANCASHIRE		Company	Number	08302102
BALANCE SHEET		AS AT 3 IsT MARCH		2023
			Notes	31"March	2023	31"INarch		2022
Fixed assets							F	F
Tangible fixed assets					78,375			2,454
Current assets
Debtors				254,160		95,04'I
Debtors due more year	than one			13,500
Cash at bank and	in hand			1,075,717		760,805
				1,343,377		855,846
Current liabilities
Creditors: amounts due within one year		falling		(315,309)		(134,187)
Net current assets					1,028,068			721,659
Total assets less liabilities	current				1,106„443			724,113
Funds:
Unrestricted funds			11,12		1,060,255			690,941
Restricted funds			11,13		46,	188		33,172
					1,106,443			724„113

		Notes	31"March	2023	31"March	2022
Cash flows from operating activities			E		F
Cash generated from operations		17		395,818		60,685
Investing activities
Purchase oftangible fixed assets			(80,906)		(2,562)
Net cash (used) in investing activities				(80,906)		(2,562)
Net cash generated from
financing activities
Net increase in cash and equivalents	cash			314,912		58,123
Cash and cash equivalents beginning ofyear	at			760,805		702,682
Cash and cash equivalents ofyear	at, end			1,075,717		760„805
Represented by:
			31"March	2023	31"March	2022
				E		F
Cash at bank and in hand				1„075,717		760,805

3. Income and endowmen	ts
				Unrestricted	Restricted	Total		Total
				Funds	Funds	Funds	Funds
				2023	2023	2023		2022
a. Donations and Legacies				F	f
Donations				1,787		1,787		1,720
General grants				2,900		2,900
				4,687		4,687		1,720
Income from donations and		legacies for 2022 related			wholly to unrestricted funds.
				Unrestricted	Restricted	Total		Total
				Funds	Funds	Funds	Funds
				2023	2023	2023		2022
b. Charitable activities								E
Armed Forces Covenant Fund	Trust				9,500	9,500
Contract income				2,145,641		2,145,641	802,529
ESFCommunity Grant							10,816
Healthier Lancashire and Cumbria	South						56,000
H M Prison Probation								8,250
Lancashire County Council					251,888	25'I,888
Lancashire County Council—					500	500
Warm space
National Lottery Community
Fund (Leaders with lived							24,064
experience)
National Lottery Community Fund - Reaching Communities Training and consultancy				47,910	100,000	47,910 100,000	12,917 156,111
				2,193,551	361,888	2,555„439	1,070,687
Income from charitable activities			in	2022 comprised	f815,446 for	unrestricted	funds	and
6255,241 related to restricted		funds.

6255,241 related	to restricted fu	nds.
		Unrestricted	Restricted	Total	Total
		Funds	Funds	Funds	Funds
		2023	2023	2023	2022
c.Other trading	activities
Fundraising		2,137		2,137	2,036
Sponsorship		'I,750		1,750
		3„887		3,887	2,036

				Direct	Support &
				Charitable	Governance	Total	Total
				Expenditure	Costs	2023	2022
				F			E
To provide	advice,	information,
training, and support and those in recovery			to offenders from	1,517,989	663,575	2,181,564	1,041,426
addiction and their		families
a.Analysed as	follows:
				2023	2022
Direct charitable expenditure:
Staff salaries costs				1,310,522	497,023
Pension				38,611	11,273
Redundancy					1,667
Project and	events	expenses		145,453	139,353
Consultancy	and HR		fees	18,163	14,426
Volunteer expenses				4,462	3,261
Equipment				750
Books				28	182
				1,517,989	667,185

				2023	2022
Support 8 Governance		costs:		f	F
Staff salaries costs				305,757	181,440
Pension				8,780	6,491
Travel and subsistence				24,053	6,285
Health plan				5,575
Staff expenses				93,276	22,815
Staff clothing				7,658
Printing, stationery,	and	postage		8,545	4,316
Utilities				10,460
Telephones and internet				45,398	16,759
Computer support	and software		costs	18,197	17,240
Rent				23,225	12,814
Repairs and premises expenses				33,627	255
Recruitment expenses				10,549	5,093
Insurance				14,135	10,364
Subscriptions and	membership		fees	16,384	5,403
Staff training and development				7,513	780
Equipment hire				1,223	506
Advertising and marketing				2,341	864
Professional fees				3,935	56,035
Sundry expenses				3,370
Legal fees				4,420	18,075
Pension charges					396
Bank charges					'I25
Companies House				13	13
Bad debts written	off			1,306
Accountancy fees				2,500	1,350
Audit fees				6,350	4,000
Depreciation				4,985	2,822
				663,575	374,241
Total expenditure activities	on charitable			2,181,564	1,041,426

	f348,872 (2022:F256,807) of the	above expenditure rela	tes to restri
b.	Staff Costs	2023	2022
		F	F
	Gross salaries and wages	1,506,931	636,705
	Social security costs	109,348	41,758
	Pension costs	47,391	17,764
	Redundancy		1,667
		1,663,670	697,894

Particulars ofemployees:
The average staff employed	in the	year was	86.2 (2022:	33.7) and	equivalent		on the basis of
full-time as follows:
			2023	2022
Charitable activities			76.3	30.2
One employee received emoluments of more than f70,000 during					the year.
The Trustees, being also the Directors ofthe 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		(2022:	anil).
Tangible fixed assets
			Motor	Fixture &		Office		Total
	Computer		Vehicle	Fittings		Equipment
Cost		E
At 1"April 2022		3,085	12,000					15,085
Additions	22,126		46,188	7,472		5,120		80,906
Balance at 31"March 2023	25,211		58,188	7,472		5,120		95,991
Accumulated
Depreciation At 1"April 2022		631	12,000					12,631
Charge for the year		3,245		956			784	4,985
Balance at31"March 2023		3,876	12,000	956			784	17„616
Net book value at31" March 2023	21,335		46,188	6,516		4,336		78,375
Net book value at 31" Ilarch 2022		2,454						2,454

6.	Debtors
					2023	2022
	Trade debtors				209, 'I 83	90,012
	Prepayments				7,741
	Other debtors				2,689	5,029
	Accrued income				34,547
					254,160	95,041
7.	Debtors due more than one			year
					2023	2022
	Other debtors				13,500
	Other debtors consists		of lease deposits of213,500.
8.	Creditors: amounts		falling	due within one year
					2023	2022
	Trade creditors				22,820	600
	Accruals				66,047	48,947
	Tax 8 Social Security					9,323
	Pension					80
	Deferred Income	(note	8)		226,442	75,237
					315,309	134,187
9.	Deferred income
					2023	2022
					F	E
	Balance at 1"April 2022				75,237	19,348
	Amount deferred	in the year			226,442	75,237
	Amount released	to incoming		resources	(75,237)	(19,348)
	Balance at31"INarch		2023		226,442	75,237

					2023	2022
					F
Carrying	amount	offinancial		assets:
Debt instruments		measured	at	costs	1,343,376	855,846
Carrying	amount	offinancial		liabilities:
Measured	at cost				88,867	58,950

1.Analysis	of	Net Assets between	Net Assets between	Funds
		2023		Tangible	Net current	Total
				Fixed	assets
				Assets
Unrestricted		Funds
General Fund				31,740	994,770	1,026,510
Blackburn futures	with	Darwin charging		447	33,298	33,745
				32,187	1,028,068	1,060,255
Restricted	Funds
Lancashire	County		Council	46,188		46,188
				46„188		46,188
Total Funds				78,375	1,028,068	1,106,443

			2022			Tangible fixed	Net current Assets		Total
Unrestricted			Funds			Assets			f
General	Fund					1,895	683,440		685,335
Blackburn futures		with	Darwin	charging		559	5,047		5,606
						2,454	688,487		690,941
Restricted Funds
Minds Matter-			Mind				10,280		10,280
National (Leaders		Lottery Community Fund with lived experience)					22,262		22,262
National Reaching		Lottery Community Communities			Fund-		630		630
							33,172		33,172
Total Funds						2,454	721„659		724,113
12.Unrestricted			Funds
							Movement	in	the year
						Reserves	Income	Expenditure		Reserves
			2023			at start of				at year
						the year				end
									E	P
General		Fund				685,335	1,721,185		(1,380,010)	1,026,510
Blackburn with Darwin futures				charging		5,606	480,940		(452,801)	33,745
						690,941	2,202,125		(1,832,811)	1,060,255
							Movement	in	the year
						Reserves	Income	Expenditure		Reserves
			2022			at start of				at year
						the year				end
										E
General		Fund				634,697	594,898		(544,260)	685,335
Blackburn with Darwin futures				charging			'I24,304		(118,698)	5,606
Lancashire County Council Funds					BRIC	21,725	100,000		(121,725)
						656,422	819„202		(784,683)	690,941
						-26-

13.Res	tricted Funds
					Movement	in the year
				Reserves	Income	Expenditure	Reserves
	2023			at start of			at year
				the year			end
Armed Forces Covenant		Trust Fund			9,500	(9,500)
Lancashire County Council					251,888	(205,700)	46, 'I 88
Lancashire County Council space			—Warm		500	(500)
Minds Matter- Mind				10,280		(10,280)
National (Leaders	Lottery Community Fund with lived experience)			22,262		(22,262)
National Reaching	Lottery Community Communities		Fund—	630	100,000	(100,630)
				33,172	361,888	(348,872)	46,188
					Movement	in the year
				Reserves	Income	Expenditure	Reserves
	2022			at start of			at year
				the year			end
				F			E
Bowland Project	Charitable Trust	—Omega		2,400		(2,400)
ESF Community Grant					10,816	(10,816)
Healthier Cumbria	Lancashire and	South			56,000	(56,000)
H M Prison Probation					8,250	(8,250)
Minds Matter- Mind				10,280			10,280
National (Leaders	Lottery Community Fund with lived experience)			22,058	24,064	(23,860)	22,262
National Reaching	Lottery Community Communities		Fund—		156,111	(155,481)	630
				34,738	255,241	(256,807)	33172

This will result in the following financiai com	mitments:
	2023	2022
Land & Building		F
Operating leases which expire:
Due within 1 year	37,882	1,982
Due in 1 to 2 years	35,900	3,761
Due in 2 to 5 years	82,050
Due more than 5 years	65,625
	221,457	5,743
Photocopier
Operating leases which expire:
Due within 1 year	675	675
Due in 1 to 2 years Due in 2 to 5 years	675 844	675 1,519
	2,194	2,869
	223,651	8,612

		2023	2022
Surplus for the year		382,330	32,953
Non cash adjustments	for:
Depreciation		4,985	2,822
Iiovements in working	capital:
(Increase)/Decrease in	debtors	(172,619)	(77,603)
Increase/(Decrease) in	creditors	181,122	102,513
Cash (used in)/generated from operations		395,818	60,685