Reglstered number: 08979945 Charity number: 1159854 FAIR WAYS FOUNDATION (A Company Llmited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024
FAIR WAYS FOUNDATION (A Company Limited by Guarantse} CONTENTS Page Reference and Admlnistratlve Detall8 of the Company, It8 Trusts•8 and Advl8er8 Trustees, Report Independent Audltors, Report on the Flnancial Statsmonts Consolidated Statement of Flnanclal Actlvltle8 Con801idated Balance Sh80t Company Balance Sheot Con8olldated Statsment of Cash Flows Notes to the Flnanclal Ststements 8-12 13 14 15 16 17-33
FAIR WAYS FOUNDATION IA Company Limited by Guarantse) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2024 Trustees Ms Diana Cr88, Trustee Mr Adrian Fry, Trustee Ms Ann8 Segall, Twst8e Company regl8tsred number 08979945 Charlty reglstered number 1159854 Regl8tered offlce Bulldlng 1000 Western Road Portsmouth P06 3EN Company Secretary Mr Malcolm Rule Independent audltor8 A2ets Audit Services Ashcombe Court Woolsack Way Godalming GU71LQ Banker8 Unity Trust Bank Nine Brindley Place Birmingham 812HB Page 1
FAIR WAYS FOUNDATION (A Company Limlted by Guarantse) TRUSTEES. REPORT FOR THE YEAR ENDED 31 OCTOBER 2024 The Trustees present their annual report together with the audtted financial statements of the Company for the 1 November 2023 to 31 October 2024. The Annual Report serves the purpos8s of both a Trustees, report and a directors, report under company law. The Trustees confimi that the Annual Report and financial statements of the charilable company comply with the current statutory requirements, th8 rèquirements of the charitable companls goveming document and the provisions of the Statement of Recommended Practice (SORPI applicable to charitiés preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102) (effectiV8 1 January 2019). ObJoctive8 and a¢tlvitie8 a. Pollcle8 and obJectlva8 In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charty Commission relating to public benefit, induding the guidance 'Public benefit: running a charity IPB2)'. The objectives of the Charty are to create long t8rm financial stability and good governan¢8 and to be a good landlord. The Charity primarily supports the activities of Fair Ways Communty Benefit Society (FWCBS), children's services charity. The objéctives closely align with those of FWCBS: Raise the standards acro$$ health care, Social care and education, - Reach more Young People and support them a¢ro$s a range of serrfices, and Change the Perceptions of Young People in Care b. Strategi08 for achlevlng obJectlv•• The Charity holds the key assets used by Falr Ways Community Benefil Society (FWCBS). These Include propertles utilised by FWCBS for which rents are charged in accordance with the leases in place. A8 r8POrted in last y8arfs Trustees, Report, a review was commlssioned in 2023 to consider the merger of Falr Ways Foundation and Fair Ways Community Benefit Socety to present the organisation as a single charity to avoid confusion in the target markets and provide better efficiencies and economies of scale. This work has progressed well in 2024 to make this a reality. Followlng the review. the Trustees were of the opinion that the Charitable Objects of Fair Ways Foundation would be better achieved by the Iransfer of Its Charitable Undertakings to FWCBS. This will result in all exisling assets and liabilities being transferred, Legal and prof8s$ional advisors were appointed to ensure the necessary regulatory compliance was achieved and discussions have laken place with landlords and lenders. At the end of 2024, the work was drawing to onclusion,. no barriers to Ihe merger have arisen, Charity Commission approval has been received and the formal transfer of assets and liabilitiés of Fair Ways Foundation to FWCBS is expected to conclude in early 2025. Page 2
FAIR WAYS FOUNDATION (A Company Llmited by Guarantse) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Stratsgic rnport Achievements and perfomiance a. Maln achlevements of the Company The Trustees continué to have an active interest in the performance and progress of Falr Ways Community Benefit Society (FWCBS). The Trustees commend the efforts of all staff In FWCBS for the performance of the organisation. Key themes are noted a8 follows: Financial Performance: The ¢losure of Alh8lstan Pla¢8, the mental health residential home, together with the downturn in fostering placements led lo a challenging financial 8nvironment in 2023-24. The Foundation was pleased to support FWCBS with a £250k grant to support ihe conversion of Athelstan Place in to a Residential Family Centre. Propety Development: Trustees have actively considered the further development of Fair Way8 estale to prioritising the expansion and refurbishment of several existing assets lo increase capacty and deliver servlc88 to a greater number of Children and young p80pIe. During 2023-24 the Foundation sold its property in Bournemouth and used the prowds to fund the £250k grant to FWCBS lo support the opening of a R8sidenlial Family Centre in Soulhampton. The Foundation acquired a previously lea$8d property in Portsmouth, used for Supported Living in order to secure the finanaal viability of the service. b. Quallty of 88NIco8 The Charity considers it is paramount that FWCBS delivers a high standard of ¢ar8 and educ2tion to all service us8rs. FWCBS has robust internal quality audits and health and safety pro¢8sses in place to ensure these high standards are achieved. During the year to 31 October 2024 all regulatory standards were met or exceedèd. The trustees were pleased to note that all Fair Ways regulated services achieved a Good or Outstanding rating. c. Revlew of actlvltle8 During the year the Board met regularty lo review how best to fulfil the Foundation's obje¢tlv8s which included the ongoing work to merge with CBS. d. Fundraislng acllvities and Income generation The Charity does not employ fundraisers. e. Investment policy and perfomiance The Trustees continued to look for and act on opportunities to invest in the acquisition of properties suitable for the provision of services to support the charitable adivities of the Charity. Page 3
FAIR WAYS FOUNDATION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Strategic report Icontinuad) Flnancial review In 2023-24 income was £581 k compared to £538k for the pVIouS year. ExpendItU was £975k in 2023-24 compared to £575k in the previous year. Overall, there was a net d8ficit of £395k In 202&24 compared to a net déficit of £37k in the previous year. A £250k grant was awarded to FWCBS in 2023-24; no grants were awarded in the previous year. Income for the year was malnly from rents charged to Fair Ways Community Benefit Society in their provision of care and education for vulnerable children, young people and families. AS well as th8 £250k grant awarded to FWCBS (mentioned above>, expenditure for the year induded £200k for rents paid to third party landlords bèfore passing that rent on to Fair Ways CBS,. interest costs on loans (£323k) and legal and professional, audit, accounting and insurance costs <£131 k). There was also a £12k managem8nt fee paid to FWCBS for central support ServIS provided to the Foundation. Expenditure is stated after accounting for 8 £95k loss on the revaluation of the Stoneham Lan8 propety owned by Catral Ltd and a £77k profit on the Sale of the 8oumemouth property. The Foundation does not 8mploy any staff. a. Re8eNe8 poII¢y Fair Ways Foundation reviews its Reserves Policy regularly Including an annual revlew by Trustees. The pollcy is slructured such that th8 Foundation can maintain its Reserves al a sufficient level to ensure long temi flnancial 8UStainability including protection against the risks that hav8 been identified. This Reserves Policy sets out the target free reseNes level btheen a mlnlmum and maximum range and the key principles by which the Foundation will manage any excesses or deficits compar8d to the tsrget. The aim is to strike th8 appropriale balance btheen ensuring a sustainable financial position and using the Foundation's funds to fulfil the charitable objectives. Free reserves represent unrestricted general funds and so exclude endowment funds, restricted funds and fund8 thal have been designated by Trustees. The free reserves also exclude any funds that could only be realised by disposing of fixed assets held for charitable use. For the purposes of this reserve policy, Fair Ways Foundation free reseNes are Identrfied a8 Its total cash balan¢e8. The Reserves Policy is aligned with the Foundation's Strategy approved by Trustees. This included recognition thal the Foundation does not intend on making any significant grants in the foreseeable future. In 2023124 the policy was to maintain free reserves of between £234k and £468k. The purpose of the reserve is lo ensure that the FOndatIOn can be confident of meeting its short-lerm loan obligalions with Unity Bank. The range is calculat8d based on a minimum of 6 months and a maximum of 12 months loan repayments. The Foundalion's actual cash reserves at 31 October 2024 was £166k. This was below the target range. Given the planned transfer of assets and liabilrties to FWCBS, Trustees do not consider this a cause for concem. Page 4
FAIR WAYS FOUNDATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 b. Going con¢em As explained on page 2, the Trustees 8xpecl to see the assets and liabililies of Fair Ways Foundation transfer to Fair Ways CBS during Ihe financial year ending 31 October 2025. Th8 Trustees consider that under both the historical cost basis and the break-up basis of accounting, the financial position of the company rémains consistent, and the financial statèments reflect the realisation of the Foundation's assets and discharge of its liabilities through to anli¢ipated ¢losur8. c. Princlpal rl$ks and uncortalntie8 The principal risks lo the Charity, for the year in question are considered to be local authorlty cost constraints that could impact the services provided by FWCBS and the risk of damage to that organisation's excellent reputation in the provision of services to children and young people. Thè Trustees are satisfied that the principal and other risks are mitigated appropriately though the implementation of FWCBS risk strategy. Within the Charity the principal risk is considered to be the financial stability of the charty and ensure that the quality of the estate held remains fit for purpose. d. Finan¢lo1 rf8k management obje¢tiVeS ond pollcle8 The Charity maintains a ¢autious policy of developing services and building reserves. The Reserves Policy has an underlying principle to maintain an appropriate level of res8rves in relation to its recurring expenditure. Slructurei goveman¢o and management a. Con8tltutlon Fair Ways Foundation is a company limited by guarantee governed by a Deed of Governance dated 20 October 2014 and by its M8morandum and Articles of Association dated 4 April 2014. It is regislered as a charity with the Charity Commission, registered charity number 1159854. b. Method8 of appolntment or election of Tru8tee8 Trustee8 determln8 the skill set and experience requlred for an eff8Ctive board, and search for suilable candidates, using external advertising and recruitment agencies when appropriate. Candidates are interviewed, references taken and are subject to DBS checks prior to appointment for an initial temi of 3 years which can on election be extended for a further 3 and then a final 3 years. c. Organigational structure and decl8lon4naking pollcle The Trustees meet quarterly lo review information prepared by management and other relevant documentation presented to them and make any decisions required. d. Polici08 adopted forthe Induction and tralnlng of Trustees All Trustees are given a bespoke induction Urse tailored to add to their prior experien. Further opportunities for continuing professional development courses as a Trustee are also provided. In the year considerable work was undertaken to further develop the indudion prosseS for new trustees. Page 5
FAIR WAYS FOUNDATION (A Company Limited by Guarantsel TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Structurei gov8rnan¢e and managemènt (continued) e. Pay pollcy for Trustees All Trustees give of their lime freely and are not remunerated. f. Related party relatlon8hlp8 The Charity has Trustees In common with, provldes grants to, and owns premises operated by Fair Ways Community Benefit Soci8ty. which provides high quality social care and èducation services. g. Tru8tse8' Indèmnltles The Trustees are Vered by a qualifyin9 third-party indemnity policy. This policy was in place for all Trustees for the whole of the financial year. Plans for futurn perlod8 Durtng 2024 the Trustees have progressed work to merge Fair Ways Foundalion with FWCBS. The Trustees had prevlously commissioned a detailed review to merge Fair Ways Foundallon and Fair Ways Communty Benefit Society, on the basis that pr6S8nting the organisation as a single charity will avold nfuSIon in the target markets and provide better efficiencies and economies of Scale. Following the review the Trustees are of the opinion that the Charitsble Objects of Fair Ways Ft)undalion would be b6tt8r achieved by the transfer of 118 Charitable Undertakings to Fair Ways Community Benefit Society. This will result in all exisling assets and liabilities being transferr8d. Work is progressing well with legal advisors, landlords and lenders and expectations are that such a transfer will be completed prior to 31 October 2025. Engagomènt wlth employees and employment of tho di82bled The Charty does not have any direct employees. The Charity supports FWCBS equal opportunities policy and long-eylablished fair employment practices in the recruitment, selection, retention and training of disabled staff. Page 6
FAIR WAYS FOUNDATION (A Company Limlted by Guarantee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 OCTOBER 2024 ststement of Trustees, responsibllltlos The Trustees {who are also the directors of thè Company for the purposès of company law) are responsible for preparing the Trustees, Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requlres the Trustèes to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and falr view of Ihe stale of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expendilure, for that period. In preparing these financial statements, the Trusteès are required to: 8elect suitsble accounting policies and th8n apply them consistently., ob$8rve the methods and principles of the Charities SORP (FRS 102); make judgements and accounting estimates that are reasonable and pwd8nt', state whelhèr applicable UK Accounting Standards (FRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that th8 Group wlll continue in business. The Trustees are responsible for keeping adequate accountlng records that are Sufficlenl to show and explain the Group and the Company's transactions and disclose with reasonable aGcuracy at any lime the financial position of the Group and the Company and 8nable them to ensure that the financial statements Comply with the Companies Act 2006. They are also responsible for safeguarding the assels of the Group and the Company and hence for taking r8asonable steps for the prevention and detection of fraud and other irregularities. Disclosure of Inforniatlon to auditorn Each of Ihe persons who are Trustees al the tim8 when this Trustees, Report is approved has confimied that: 80 far as that Trustee is aware, there is no relevant audlt Information of which the charitable group's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. Aud5tor8 The auditors, Az8ts Audit servi5, hav8 indicated their willingness to continue in office. The designated Trust8es will propose a motion reappointing the auditors at a meeting of the Trustees. Approv6d by order of the members of the board of Trustees on 20 March 2025 and signed on their behalf by.. Ms A Segall (Chair of Trustees) Page 7
FAIR WAYS FOUNDATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FAIR WAYS FOUNDATION Oplnlon We have audited the financial statements of Fair Ways Foundation (the 'parent charitable company) and its subsidiaries (th8 'group') for the year ended 31 October 2024 which compri58 the Consolidated Statement of Financial A¢trvilies, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Stalement of Cash Flows and the rèlated notes, including a summary of 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 Ihe UK and Republic of Ireland, (United Kingdom Generally Acc8Pted Accounting Pradice). In our opinion the financial statements.. giv8 a true and fair view of the state of the Group's and of the parent charitable companvs affairs as al 31 October 2024 and of the Group's incoming sOUrceS and application of r8$ources, includlng its income and expenditure for Ihe year then ended; have b8an properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice; and have been prepared In accordance wlth the requirements of the Companle$ Act 2th)6. Ba858 for oplnlon 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 Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of th8 financial statements in the United Kingdom, including the Financial Reporting Council'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 provid8 a basls for our opinion. Empha818 of matter- flnancial 8tatement8 prepared on a ba8ls other than golng concem In forming our opinion on the financi81 statements, which is not modified, we have constdered the adequa¢y of the disclosures made in note 2.2 of the financial statements concerning the use of a basis of preparation other than on a going concern basis. Tha basis of preparation adopted reflects the companies, decision to cease Ihe activities and to realise its assets and discharge its liabilities. Accordingly, the financial statements have been prepared on a basis other than going concern as described in nole 2,2. Page 8
FAIR WAYS FOUNDATION (A Company Llmited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FAIR WAYS FOUNDATION {CONTINUED) Other Infomiatlon Th8 other information comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. Thè Trustees are r8sponsible for the other infomiation ¢onlained within the Annual Report. Our opinion on the financial statements do8s not cover the other information and, except to the extent otherwise explicitly stated in our report. we do nol express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materialty misstated. If we identify such material Inconsistencies or apparent material misstatements, we are required to determin8 whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclud8 that there is a material misstatement of this other information. we are required to report that fact. We have nothing lo report in this regard. Oplnlon on ¢)th8r matters pr88cribed by tho compani Act 2006 In our opinlon, based on the work undertaken in the course of the audit: the information given in the Truslees. Report, which includes the Dlreclors, Report and the Strategic Report for th8 financial year for which the finandal statements are prepared, is consistent with the finan¢lal statements. the Trustees, Report, which includes the Directors, Report and the Slrat8gic Report, have been prepared in accordance with applicable legal requirements, Matter8 on whlch we are requlred to report by exceptlon In the Iht of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report including the Slrategic Report. We have nothlng to report In respect of the following matters in relatlon to which the Companies Act 2006 requires us to report to you if, in our opinion.. the parent charitable company has not kept adequate and sufflcient accountlng records, or returns adequate for our audit have not be8n received from branches not visited by us,. or the parent charitable company financial statements ar8 not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are nol made., or we have not received all the information and explanations we require for our audit. Page 9
FAIR WAYS FOUNDATION (A Company Limited by Guaranteel INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FAIR WAYS FOUNDATION (CONTINUED) Responsibllltie8 of tru8tee8 As explained mor8 fulty in the Trustees, Responsibiliti88 Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the finan¢ial statements and for being satisfied that they give a Iwe and fair view, and for such intemal control as the Trustees delermine is necessary lo enable the preparation of financial stalements that are free from malerial misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees ar8 responsible for assessing the Group's and the parent charitable companls ability to continue as a going concern, disclosing, as applicable, matters relat8d to going concem and using the going Concern basis of accounting unless the Trustees either intend to liquidate th8 Group or the parent charitable company or lo cease operations. or have no realistic alt8mative but to do so. Page 10
FAIR WAYS FOUNDATION (A Company Llmited by Guarantee INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FAIR WAYS FOUNDATION (CONTINUED) AuditorB' re8pon$ibilitie8 for the audlt of the financial statements Our obj8¢1iv8s are to obtain reasonable assurance about wheth8r the financial statements as a whol8 are free from material misstatement, whether due to fraud or error, and to issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assuran, but is not a guarantee that an audit conducted in accordanc8 with ISAS (UK) will always detect a material misstatemant whan it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. Extent to whlch the audlt was consldored capable of detscting irregularltle8, Includlng fraud Irregularities, including fraud. are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregulariti8s, including fraud. The extent to which our pro¢edur8s ar& capab18 of detecting irregularities, including fraud is detailed below.. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framèwork applicable and how the entity is complying with that framèwork. Based on this understanding, we identify and assess the risks of material misslatemenl of the financial statements, whether due to fraud or error, design yd perform audit procadur8S responsive to those risks, and obtain audit evidence that is Sltfficient and appropriate lo provide a basls for our opinion. This indudes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the rlsk of irregularities and nonwcompliance with laws and regulations, Includlng fraud, we designed prOdureS which included.. Enquiry of management and those charged with govemance around actual and potentlal litigation and claims as well as actual, suspected and alleged fraud.. Assessing the extant of compliance with the laws and regulations considered to have a dir8Ct material effect on the financial statements or the operalions of the company through enquiry and inspection., Reviewing financial statament disclosures and testing to supporting documentation lo assess compliance with applicable laws and regulations., Performing audit work over the risk of management bias and override of Controls, including testing of Journal entries and other adjuslmenls for appropriateness, evaluating thè bLtsiness rationale of significant transactions outside the normal course of buslness and reviewing accounting estimates for indicators of potenllal bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including Ihose18ading to a material misstatement in the financial statements or non-¢omplian¢e with regulation. This risk increases Ihe more Ihat complianc8 Wlth a law or regulation is removed from the events and transactions reflected in the financial stalemenls, as we will be less likely to b8com8 awar8 of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion. omission or misrepr8s8ntation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors, Report. Page11
FAIR WAYS FOUNDATION IA Company Limited by Guarantse) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FAIR WAYS FOUNDATION (CONTINUED) Use of our rnport This report is made solely to the charitable compan51s members, as a body, in accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 80 that we might stste to the charitabl8 companvs members those matters we are required to stale to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law, we do nol accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audlt work, for this report, or for the opinions we have formed. Davld Lawronce {Senlor Statutory Audltor) for and on behalf of Azets Aud6t Sèrvlces Ashcombe Court Woolsa¢k Way Godalmlng GU71LQ 25 March 2025 Page 12
FAIR WAYS FOUNDATION IA Company Limited by Guarantse) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2024 Unrestricted fund8 2024 Total fund8 2024 Total funds 2023 Note Income from: Donations and legacies Investments Other income 25 538,365 37 580,582 580,582 Total Income 580,582 580,582 538,427 Expenditure on: Charitable activities 975,104 975,104 575,486 Totsl expendlture 975,104 975,104 575,486 Net movoment In funds 1394,522) (394,522) (37,059) Reconclllatlon of lund8: Total funds brought forward Net movement in funds 2,290,107 (394,522) 2,290,107 (394,522) 2,327, 166 (37,059) Total fund8 carrled loard 1,895,585 1,895,585 2,290,107 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 17 to 33 form part of these financial statements. Page 13
FAIR WAYS FOUNDATION (A Company Limited by Guaranteel REGISTERED NUMBER: 08979945 CONSOLIDATED BALANCE SHEET AS AT 31 OCTOBER 2024 2024 Notè 2023 Fixed assets Intsngible assets Tangible assets Investments 10 11 12 351,489 4,589,829 401, 702 4,651, 182 4,941,326 Curront a88ets 5,052.892 Debtors Cash at b8nk and in hand 13 585,741 179,452 762,506 263,978 765,193 1,026,484 Credltor8.' amounts falling due wlthin one year 14 (1,264,532) (238,634) Net currnnt Ilabllltle81088ets (499,339) 787,830 Total a88ets1988 current Ilabllltl88 Creditors.. amounts falling due after more than one year 4,441,987 5,840, 742 15 12,546,402) (3,550,835) Net a880ts excludlng pen81on a88et 1,895,585 2,290, 107 Total not a880ts 1,895,585 2,290, 107 Charfty fund8 Unrestricted funds 17 1,895,585 2,290,107 Total fund8 1,895,585 2,290, 107 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees on 20 March 2025 and signed on their behalf by: Ms A Segall The notes on pages 17 to 33 form part of these financial ststsmenls. Page 14
FAIR WAYS FOUNDATION (A Company Limited by Guarante0} REGISTERED NUMBER: 08979945 COMPANY BALANCE SHEET AS AT 31 OCT08ER 2024 2024 2023 Note Flxed assets Tangible assets Investments 3,909.829 834,145 3,876,182 834,145 12 4,743,974 4, 710,327 Current a880ts Debtors Cash at bank and in hand 13 618,201 165,862 812,504 199,996 784,063 1,012,500 Creditors.. amounts falllng due withln one year 14 (1,216,818) {223,652) Net curront liobllltlos l a88ets (432,753) 788, 848 Total as8Ots le88 current Ilabllitle• 4,311,221 5,499, 175 Creditors.. amounts falling due after more than one year 15 (2,152,402) (3, 105, 635) Totsl net as8ets 2,158,819 2,393, 540 Charlty funds Unrestricted funds 17 2,158,819 2,393,540 Total funds 2,158,819 2,393,540 Th8 Companrfs net movement in funds for the year was £{234,721) (2023- £41.676). The Trustees acknowledg8 their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees on 20 March 2025 and signed on their behalf by: Ms A Segall The notes on pages 17 to 33 form part of t se financial ststemenls. Pag8 15
FAIR WAYS FOUNDATION (A Company Limited by Guarantse) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2024 2024 2023 Cash flows from oporatlng activltleg Net cash us8d in operating activities 274,872 367, 101 Ca8h flows from financlng a¢tlvltlo8 Cash Infiows from new borrowing Repayments of borrowing Interest paid 210,000 1245,9121 (177.626) (323,286) (281, 049) Net cash used In flnanclng actlvltles {359,198) (458,675) Change In cash and Cash equlvalent8 in the year Cash and cash equivalents at Ihe beglnning of the year (84,526 263,978 (91,5741 355,552 Cash and ¢a8h equlvalent8 at the ond of the year 179,452 263, 978 The notes on pages 17 to 33 form part of these financial slatemenls Page 16
FAIR WAYS FOUNDATION IA Company Llmited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Gèneral Infomiation The Charity is a private company limited by guarantee (Company registered number 08979945 and Charity registered number 1159854) registered in England and Wales. The registered office is Building 1000, Western Road, Portsmouth. P06 3EN. Accountlng pollcle8 2.1 Ba¥18 of preparatlon of flnanclal Statements The financial stat8m8nts have been prepared in accordan with Ihe Charities SORP (FRS 102) A¢counting and Reporting by Charities: Statement of Recomm8nd8d Practice applicable to Charitiès preparing their accounts in accordanc8 With the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20191, thè Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. Fair Ways Foundation meets the definilion of 8 public benefit entity under FRS 102. Assets and liabilities are initially rècognised at historical cost or transaction value unless otheise stated in the relevant accounling policy. The Consolidated Statement of Financial Activities {SOFA) and Consolidated Balanc8 Sheet ¢onsolldate the financial statements of the Company and ils subsidiary undertaking. The results of the Subsidiary are consolidated on a Ilne by Ilne basls. The Company has taken advantage of the exemptlon allowed und8r section 408 of the Companies Act 2006 and has not presented ils own Stat8menl of Financial Aclivities in these financial stst8ments. 2.2 Golng concorn During the year, the Trustees progressed their plans to Iransf8r thè assets and liabilities of Fair Ways Foundation to Fair Ways Communty Benefit Society which they aim to complete before 31 Octob8r 2025. The Trustees consider that under both the historical cost basis and the break-up basis of accounting, the financial position of the company remains consistent, and the financial statem8nls reflect the realisation of the Foundation's assels and discharge of its liabilities through to anticipaled closure. 2.3 Income All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax re¢overabl8 in r81ation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Page 17
FAIR WAYS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Accounting pollcles (continued) 2.4 Expenditure Expenditure is recognised once there Is a legal or conslructive obligation to transfer economic benefit to a third paty, il is probable that a transfer of economic benefits will be required in sèttlèmént and the amount of the obligation can be measured reliably. Expenditure is classified by activty. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attribulable lo a single activty are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributabl8 to a single activity are apportioned belween those activities on a basis consistent wilh the use of resources. Central staff cosls are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Support costs ar8 those costs incurred directty in 8UPPOrt of expenditure on the objects of the Group and include project manag8menl Carried out at headquarters. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements. Charitable activities and Governan costs are costs incurred on the Group's operations, including support costs and costs relating to the governance of the Group apportioned to charitable activities. Expenditure on charitable adivities is incurred on directly undertaklng the activities which further the Group's obje¢lives, as well as any associated support Gosts. Grants payabl8 are Charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as 8xp8nditure when the conditions attaching are fulfilled. Grants offered subject to conditlons which have not been met at the year end are noted as Comrnitment, but not accru8d as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Intanglble a88et8 and amorti8atlon Goodwill generated at Group level represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of Ihe Group's share of Ihe identifiable assets and liabilities of the acquiree al the dale of acquisition. Goodwill Is amortised on a straight-line basis to the consolidated statement of financial activities over its estimated useful economic life of ten years. 2.6 Tanglble flxed assets and deprociation Tangible fixed assets costing £250 or more are capitalised and recognised when future economic b8n8fits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assels are initially recognised at cost. After recognition. under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed assel into its intended working wndilion should be included in the measurement of cost. Page 18
FAIR WAYS FOUNDATION (A Company Llmited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Accounting pollcles Icontlnued) 2.6 Tangible fixed assets and depreciatlon (contlnued) DepCiatIon is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreclatlon is provided on the following basis.. Nll Freehold propety 2.7 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value al the Balance Sheet date, unless the value cannot be measured reliably in which case il is measured at cost less impairment. Investment gains and losses, whether realis8d or unrealised, are combined and presented as 'Gainsl(Lossesl on investments, in the Consolidated Statemant of Financial Activities. Investments In subsidiaries are valued at cost less provision for impairment. 2.8 Dobtorn Trade and other debtors are recognised at the settlement amount after any trade dls¢ount offered. Prepayments are valued at the amount prepaid net of any trade discounts due, 2.9 Cash at bank and In hand Cash at bank and in hand in¢lud8s cash and short-lemi highly liquid investments with a short malurity of three months or less from the date of acquisition or opening of th8 deposit or similar account. 2.10 Llablliti08 and provlslon8 Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past evenl, il is probable that a transfèr of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipales It will pay to settl8 the debt or th8 amount it has received as advanced payments for the goods or seiceS it must provide. Provisions are measuréd at the best estimate of the amounls required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discountèd at the prevtax discount rate thal reflects the risks specific to the liability. The unwinding of the discount is r8cognised in the Consolidated Statement of Financial Activities as finan cost. 2.11 Flnancial In$trum8nts The Group only has financial assets and financial liabilitiés of a kind that qualify as basic financial instruments. Basic financial inslruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interesl method. Page 19
FAIR WAYS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 A¢countlng policies {eontinued) 2.12 Fund accounting G6neral funds are unrestrlcted funds which are available for usè at the discretion of the Trustees in furtheran of the general objectives of the Group and which have nol been designated for other purposes. Inveslment income, gains and losses are allocated to Ihe approprlate fund. crftlcal accountlng estlmatO8 and area8 of Judg8mgnt Estimates and judgements are continually evaluated and are based on historical experience and othér factors, including expectations of future events that a believed to be reasonable under the circumstances. Critical accx)unting estimates and assumptions: The Group and Company makes estimates and assumptions concerning the future, The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a Significanl risk of causing a material adjustment to the carrylng amounts of assets and liabilltles within the next financlal year are dlscu8sed b810w. In¢ome from donatlon8 and legac5 Unre8tricted fund8 2024 Total funds 2024 Donations Unrestiict8d funds 2023 Total fvnds 2023 Donations 25 25 Page 20
FAIR WAYS FOUNDATION IA Company Llmited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Investment income Unrnstricted funds 2024 Total funds 2024 Rental Income 580,582 580,582 Unrestricted funds 2023 Total funds 2023 Rental income 538,365 538,365 Analys18 of grant8 Grants to Instltution8 2024 Total funds 2024 Total funds 2023 Grants, Direct costs 250,000 250,000 Anaty818 of expendlture on charltabla actlvltles Summary by fund type Unre8trlcted fund8 2024 Totsl 2024 Direct costs 975,104 975,104 Page 21
FAIR WAYS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Analy818 of expendlture on charitable acllvltle8 (contlnued) Summary by fund type {contlnuod) Unrestncted funds 2023 rot81 2023 Dre c08ts 575,486 575,486 Analy818 of expenditure by actlvltie8 Actlvltle8 undertaken directly 2024 Grant funding of a¢tlvltl88 2024 Support Costs 2024 Total fund8 2024 Dlrect costs 250,040 250,000 475,064 975,104 Actiw'ties und8rt8ken dir8cNy 2023 Support osts 2023 Total funds 2023 Direct costs 225,395 350,091 575,486 Analysi8 of dlrect ¢ost8 Total funds 2024 Aetlvitle8 2024 Other direct costs relating lo rent (£199,827) and goodwill amortisation {£50,213) 250,040 250,040 Page 22
FAIR WAYS FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Analy819 of expendlture by activitle8 {contlnued) Anatysis of dlrect Costs (contlnued) Total funds 2023 Activitiès 2023 Other direct costs relating to rent {£175,182) and g¢)odwlll amortlsallon (£50,213) 225,395 225,395 Analysis of support ¢08t8 Total funds 2024 Actlvltle8 2024 Other support costs including £323,286 of loan interest and £131,144 of governance costs 475,064 475,064 Total funds 2023 Activilies 2023 Other support costs Including £281,049 of loan interest and £62,025 of governan costs 350,091 350, 091 Auditorn, remuneratlon 2024 2023 Fees payable to the Companvs audilor for the audit of the Companys annual accounts 9,200 8, 750 Fees payable to the Companls audilor in resped of.. All non-audit services nol included above 3,000 3,500 Page 23
FAIR WAYS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 10. Intsngible assets Group Goodwlll Cost At 1 November 2023 502,128 At 31 October 2024 502,128 Amort18atlon At 1 November 2023 Charge for the year 100,426 50,213 At 31 October 2024 150,639 Not book valua At 31 October 2024 351,489 At 31 October 2023 401, 702 Page 24
FAIR WAYS FOUNDATION IA Company Limited by Guarantsol NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 11. Tangiblè flxed a86ets Group Freehold property Co8t or valuation At 1 November 2023 Additions Disposals Impairment 4,651,182 313,926 (280,279) 195,000) At 31 October 2024 4,589,829 Net book value At 31 October 2024 4,589,829 At 31 October 2023 4,651,182 Company Freehold property Cost or valuatlon At 1 November 2023 Additions Disposals 3,876,182 313,926 {280,2791 At 31 October 2024 3,909,829 Net book value At 31 Octob6r 2024 3,909,829 At 31 October 2023 3,876,182 Page 25
FAIR WAYS FOUNDATION {A Company Limited by Guarantso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 12. Flxed a88et investments Investmonts In 8ubsldiary Companies Group Cost or valuatlon Al 1 November 2023 3,035,030 At 31 October 2024 3,035,030 Impalmient At 1 Nov8mber 2023 3,035,022 At 31 October 2024 3,035,022 Net book valu• At 31 October 2024 At 31 October 2023 Page 26
FAIR WAYS FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 12. Flxed asset Investments {continued) Investments 8ub81dlary companies Company Cost or valuatlon At 1 November 2023 3,869,187 At 31 October 2024 3,869,167 Impalmlant At 1 November 2023 3,035,022 At 31 October 2024 3,035,022 Not book value At 31 October 2024 834,145 At 31 October 2023 834, 145 Prlnclpal 8ub8ldlarl08 The following was a subsidiary undertaking of the Company: Name Company number Prlnclpal actlvlty Cla88 of share8 Holdlng Catral Limited 07869713 Letting and operating Ordinary of real estate 1000/0 The financial results of the subsidiary for the year were: Name Income Expondlture ProfiU(Loss) I Surplusl (Deficitl for the year Nèt a880t8 Catral Limited 62,715 (172,303) (109,588) 219,414 Page 27
FAIR WAYS FOUNDATION {A Company Limited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 13. Debtor8 Group 2024 Group 2023 Company 2024 Company 2023 Due wlthln one year Amounts owed by group undèrtakings Amounts owed by related parties Other debtors Called up share capital not paid Prepayments and accrued income 32.500 548,892 50, 038 728,892 2,511 648,892 728,892 2,511 40 31,063 40 38,809 36,809 31,063 585,741 762,506 618,201 812,504 Amounts owed by group undertakings are un$Ured, interest fr88 and rep8yable on demand. 14. Credltor8: Amount8 falllng due wlthin one year Group 2024 Group Company 2023 2024 Company 2023 Bank loans Other creditors Accruals and deferred income 1,158,779 960 104,793 156,811 3,248 78,575 1,148,779 146,811 2,288 74,553 68,037 1,264,532 238, 634 1.216,816 223,652 Page 28
FAIR WAYS FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 OCTOBER 2024 15. Creditors: Amounts falllng duè after more than one year Group 2024 Group 2023 Company 2024 Company 2023 Bank loans 2,546,402 3,550,635 2,152,402 3,105, 635 Included wlthin the above are amounts falllng due as follows.. Group 2024 Group 2023 Company 2024 Company 2023 Between one and two years Bank loans 468,928 1,151,663 458,928 1,141,663 Between two and flve yèar8 Bank loans 1,491,991 1, 542,144 1.107,991 1, 107,144 Over flve years Bank loans $85,483 856,828 585A83 856,828 The aggr8gate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is.. Group 2024 Group 2023 Company 2024 Company 2023 Payable or repayable by instalments Payable or repayable other than by Instalments 185,177 456,522 185,177 456, 522 400,306 400,306 400,306 400,306 585,483 856,828 585,483 856,828 Th8 bank loans ar8 repayable over 10 years and interest is charged al bank base rate plus 3 - 40/0. Th8 bank loans have a fixed and floating charge over freehold propety of th8 Group and Company. Page 29
FAIR WAYS FOUNDATION (A Company Limited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 16. Financial Instruments Group 2024 Group 2023 Company 2024 Comp8ny 2023 Flnanclal a88ets Flnancial asset$ measured at amortlsed cost 179,452 266,529 165,862 205,207 Group 2024 Group 2023 Company 2024 Con7pany 2023 Financial Ilabllltles Financial liabilrtl8s measured at amortiS8d ¢ost 3,706,141 3.710,694 3,301,182 3,254, 734 Flnancial assets measured at amortlsed cost comprise cash at bank, trade and other debtors. Financial Ilabilities measured at amorti8ed c08t comprlse Ir8de and other creditors and bank loans. 17. Statement of fund8 Statement of fund8 - current year Balance at 1 Novèmber 2023 Balance at 31 October 2024 Income Expendlture Unre8trietsd fund• General Funds- all fvnds 2,290,107 580,582 (975,104) 1,895,585 Statement of funds - prlor year Balance a¢ 1 November 2022 Balance at 31 October 2023 Incon7e Expenditure Unregtrlcted funds General Funds - all fijnds 2,327,166 538,427 (575,486) 2,290, 107 Page 30
FAIR WAYS FOUNDATION {A Company Llmited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 18. Analysi8 of net assets between funds Analysis of net a88et8 between funds - current year Unr88trlcted funds 2024 Totsl funds 2024 Tanglble fixed assets Inlangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 4,589,829 351,489 4,589,829 351,489 765,193 765,193 11,264,532) {1,264,5321 (2,548,402) {2,546,402} Total 1,895,585 1,895,585 Analy$l8 of net a88ats between funds - prlor year Unrestrfcted funds 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Fixed asset investments Currenl assets Credltors due within one year Creditors due in more than on8 year 4,651,182 401,702 4,651, 182 401,702 1,026,484 1,026,484 (238, 634) (238, 634) (3,550,635) (3, 550, 635) Total 2,290, 107 2,290, 107 Page 31
FAIR WAYS FOUNDATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 19. Reconclllation of net movement In funds to net cash flow from operating actlvltles Group 2024 Gmup 2023 Not expenditure for the period (as p8r Statement of Financial Activities) 1394,522) (37,059) Adjustments for: Amortisation charges Decrease in debtors Increase in creditors Interest paid Freehold propety impaimienl 50,213 176,765 23,930 323,286 95,000 50,213 23,886 49,012 281,049 Net cash provlded by operatlng actlvitleg 274,672 367, 101 20. Anatysl8 of rA8h and cash equlvalents Group 2024 Group 2023 Cash in hand 179,452 263,978 Total ca8h and cash equlvalent8 179,452 263,978 21. Analy818 of changes In net debt At1 November 2023 Cash flows At31 October 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 283,978 (84,526) 179,452 (156,811} (1.001,968) {1,158,779) {3,550,635) 1,004,233 {2,546,4021 13,443,468} 182,261) {3,525,729) Page 32
FAIR WAYS FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 22. Operatlng lease commitments At 31 October 2024 the Group and the Company had commitm8nts lo make future minimum lease payments under non-cancellable operating leases as follows.. Group 2024 Group 2023 Company 2024 Company 2023 Not later than 1 year Laler than 1 year and not later than 5 years Later than 5 years 221,848 887,393 562,581 199,827 865,371 784,429 221,848 887,393 562,581 199,827 865,371 784,429 1,671,822 1,849, 627 1,671,822 1,849,627 23. Related party tran8actlon8 Rèlated party transactions between Group companies have not b8en disciosed in accordance with section 33 of FRS 102. The Charity has Trusle&s in common with, provides grants to, and owns premises operated by Fair Way8 Community Benefit Society, which provides high quality social care and education services including school and foster placements, residential thildren's homes, a post 16 s8rvice and a family assessment centre. The Trustees were not paid or in receipt of any other benefits from employment with the Society or ils subsidiary in the year. No Trust8es were reimburséd for travel expenses and no trustees were r8imbursed for IT costs in the current and prior year. No Trust8e received payment for professional or other seNices supplied lo the Society. Page 33