Charity registration number 1160997
SPARKS OF HOPE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
SPARKS OF HOPE
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr. M Gluck |
|---|---|
| Mr. B Muller | |
| Mr. Y Gluck | |
| Charity number | 1160997 |
| Principal address | 80b Darenth Road |
| London | |
| N16 6ED | |
| Independent examiner | Berish Hoffman ACA |
| Landau Morley LLP | |
| 325-327 Oldfield Lane North | |
| Middlesex | |
| UB6 0FX |
SPARKS OF HOPE
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 14 |
SPARKS OF HOPE
TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2021
The trustees present their annual report and financial statements for the year ended 30 June 2021.
Background
Sparks of Hope was originally the brainchild of a group of business colleagues, who observed the devastating effects on family life that unfortunately result from deprivation and poverty. Being also residents in one of the most deprived areas of London, they were in a position to scrutinise at close quarters the results of the prevalent unemployment and the failure of individuals without training or qualifications to find suitable work to support themselves and their families. Sparks of Hope was set up in 2015 to endeavour to tackle the underlying challenges and offer the appropriate support to strengthen families and support individuals with their requirements.
Sparks of Hope works with disadvantaged individuals in the Hackney area where poverty and unemployment levels are high. In 2012, Hackney had the highest number of working-age adults in the country receiving outof-work benefits. The borough was also ranked in 2010 as the second most deprived Local Authority in England.
University and college is a far off dream for many due to lack of funds, cultural/language barriers or inability to receive a scholarship. This leaves many capable, high achieving adults with no qualifications and little chance to achieve a well-paying job. This helps perpetuate the 'poverty trap’ creating a cycle of more children growing up in poverty without the chance to qualify in order to earn a respectable living.
Unemployment leads to severe poverty and deprivation, low confidence and self-esteem, increases in crime rates and family breakdowns.
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SPARKS OF HOPE
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Objectives and activities
The Charity is primarily concerned with the prevention and relief of poverty or financial hardship of individuals residing in North London by the provision to educate or train and give all the necessary support to families and individuals who are in deprivation due to their financial and economic circumstances, who are unable to generate a sustainable income and to enable them to become self-sufficient.
The Charity is also concerned with the relief of the physical and emotional sickness of people residing in North London by the provision of appropriate advice, support, referrals and counselling .
The Trustees have a vision of a “Strengthening Families Approach”. They would like to see parental resilience, social connections, concrete support in time of need, social and emotional competence of children and a good knowledge and understanding of parenting. They would like to work with specialist agencies within the community to ensure that every family is well-established and supported.
The objectives and activities of the charity during this fiscal year included:
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Working with other organisations to enable large families who are living in unsuitable conditions to find and move into larger but affordable premises.
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Referring individuals to specialist agencies to provide training to achieve employment skills.
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Public Awareness Campaign – raising the profile of issues, solutions, encouraging people to seek help and de-mystifying processes, assisting those moving on to independent living with their initial expenses to help them set up their lives and become financially secure, unimpeded by the burden of debt.
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A Peer Mentoring Forum – training will be offered to individuals to become a first point of contact on a variety of issues and support referrals between services.
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Working with teenagers to assist in them being able to regulate their behaviour and effectively communicate their feelings.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission general guidance on public benefit when reviewing the Charity's aims and objectives and in planning activities.
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SPARKS OF HOPE
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Achievements and performance
The trustees have continued with the approach of managing the daily operations of the charity with a working group. Their responsibilities involve assessing all applications for assistance; networking with specialist agencies who can support some of the enquiries received. Furthermore, they are responsible for the appointment of therapists that would support families in need. The working group are trained in Safeguarding, Health and Safety, GDPR and ensuring that all volunteers, therapists and staff have up to date DBS checks.
We focused this year on helping 36 low-income families with the following:
For those seeking a profession:
-Basic and advanced training courses in IT, bookkeeping, accounting, web knowledge
-For people with ESL (English as a second language) basic and advanced courses in English language
-Referrals and support in the process of accessing further higher education or training
-Careers guidance and support in job seeking, CV writing and interview skills
For entrepreneurs :
-Training and guidance in business management skills such as financial management, market research, marketing, HR
-Start-up businesses incubation, small scale loans and handholding through the beginning phase
We Worked with 54 teenagers to support them through their emotional turbulence and give them tools to communicate their feelings, encouraging a positive relationship with their family, teachers and peers.
An average of £126 was given per family supporting 52 individuals with grants relating to medical, clothing and extra support with academic studies.
The average grant was £158 supporting 12 married new couples with a grant to enable them to commence on
a healthy footing.
The expansion of our Strengthening Families Programme which resulted in 66 couples being supported. This allowed for couples to engage with therapists and attend parental workshops. This was a concrete source in time of need.
The Trustees would like to thank the working group for giving their time to consolidate the work of Sparks of Hope. We salute the Strengthen Families Programme that is offering parents the resilience needed to manage and bounce back from all types of challenges that emerge from daily life.
Despite the Covid 19 pandemic, income remained relatively strong with generous support from its donors. The Trustees continue to review the Charity’s operations as a result of the pandemic
Financial review
Details of the financial performance and position of the charity can be found on pages 6 and 7 .
At the year end, the Charity had a bank balance of £ 9,812 and held free reserves of £ 7,744 . The charity's reserves policy is to hold reserves equal to 3 months' expenditure and will continue to raise funds so that the charity has sufficient reserves to continue with its operations.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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SPARKS OF HOPE
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
Structure, governance and management
The charity was incorporated as a Charitable Incorporated Organisation (CIO) on 20 March 2015 and is governed by a Foundation document dated 20 March 2015.
The power to appoint new Trustees is vested in the present Trustees, who seek to appoint such individuals who can call on their specialist skills and competences, to assist the charity to meet its ends. They will be introduced to the workings of the charity by the existing trustees, and will of course be encouraged to study the various appropriate publications on trustees published by The Charity Commission.
The Trustees have regular quarterly meetings, to which certain competent individuals in the community are invited, who are also engaged in various aspects of community welfare, and who are consulted on the different cases that might arise, for their advice and opinion.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr. M Gluck
Mr. B Muller Mr. Y Gluck
The trustees' r eport was approved by the Board of Trustees.
Mr. M Gluck
Trustee Dated: 29 April 2022
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SPARKS OF HOPE
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SPARKS OF HOPE
I report to the trustees on my examination of the financial statements of Sparks of Hope (the charity) for the year ended 30 June 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Berish Hoffman ACA
Landau Morley LLP 325-327 Oldfield Lane North Middlesex UB6 0FX
Dated: 29 April 2022
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SPARKS OF HOPE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and legacies | 3 | 78,993 | 57,662 |
| Expenditure on: | |||
| Charitable activities | 4 | 82,314 | 47,670 |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (3,321) | 9,992 | |
| Fund balances at 1 July 2020 | 12,228 | 2,236 | |
| Fund balances at 30 June 2021 | 8,907 | 12,228 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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SPARKS OF HOPE
BALANCE SHEET
AS AT 30 JUNE 2021
| Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2021 £ 5,000 9,812 14,812 (7,068) |
2020 £ £ 1,163 8,000 15,713 23,713 (13,035) 7,744 8,907 8,907 8,907 |
£ 1,550 10,678 12,228 12,228 12,228 |
|---|---|---|---|
The financial statements were approved by the Trustees on 29 April 2022
Mr. M Gluck Trustee
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
1 Accounting policies
Charity information
Sparks of Hope is a registered charity in England and Wales and is registered as a charitable incorporated organisation (CIO). The address of the principal office is 80b Darenth Road, London , N 16 6ED .
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office equipment
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.8 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. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions 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 charity 's balance sheet when the charity 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
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Basic financial liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer 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 charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts 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, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
1 Accounting policies
(Continued)
1.10 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 the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees 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 ongoing 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.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 78,993 | 57,662 |
| Charitable activities | ||
| 2021 | 2020 |
|
| £ | £ |
|
| Therapy costs | 6,030 | - |
| Grant funding of activities (see note 5) | 53,636 | 30,030 |
| Share of support costs (see note 6) | 20,638 | 15,840 |
| Share of governance costs (see note 6) | 2,010 | 1,800 |
| 82,314 | 47,670 |
4 Charitable activities
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
5 Grants payable
| Grants to institutions: Yad Vochessed Association Shir Chesed Beis Yisroel Keren Hatzolas Doros Beis Ahron Trust Live and Learn Keren Chochmas Shloma Inspirations Friend of Yeshiva Daas Sholem Shotz Care All Limited Zlotchiv Beis Aharon TT Activity Centre Chevras Mo'oz Ladol Beth Feige The Happy and Healthy Trust Karlin London Mars Org. Ltd Ora V'simcha Other < £2,000 Grants to individuals |
2021 £ 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 2,000 - - - - - - 11,332 4,304 53,636 |
2020 £ - - - - - - - - 3,600 2,400 2,600 3,600 3,600 2,000 5,430 6,800 30,030 |
|---|---|---|
Institutional grants are made to institutions which share the same objectives and ethos as the Charity and include educational grants and grants to provide financial assistance to families.
Grants to individuals consist of grants made to needy families.
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
6 Support costs
| Support costs Governance costs £ £ Staff costs 9,450 - Depreciation 388 - Bank charges 189 - Advertising - - Accountancy fees 307 2,010 General expenses 1,289 - Office costs 2,515 - Rent 6,500 - Bad debt - - 20,638 2,010 Analysed between Charitable activities 20,638 2,010 |
2021 Support costs Governance costs £ £ £ 9,450 6,825 - 388 517 - 189 126 - - 250 - 2,317 396 1,800 1,289 285 - 2,515 1,889 - 6,500 5,000 - - 552 - 22,648 15,840 1,800 22,648 15,840 1,800 |
2020 £ 6,825 517 126 250 2,196 285 1,889 5,000 552 17,640 17,640 |
|---|---|---|
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration , reimbursement of expenses or benefits from the charity during the year.
8 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 2 | 1 | |
| Employment costs | 2021 | 2020 |
| £ | £ | |
| Wages and salaries | 9,450 | 6,825 |
There were no employees whose annual remuneration was more than £60,000.
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
| 9 | Tangible fixed assets | |||
|---|---|---|---|---|
| Office equipment | ||||
| £ | ||||
| Cost | ||||
| At 1 July 2020 | 6,534 | |||
| At 30 June 2021 | 6,534 | |||
| Depreciation and impairment | ||||
| At 1 July 2020 | 4,983 | |||
| Depreciation charged in the year | 388 | |||
| At 30 June 2021 | 5,371 | |||
| Carrying amount | ||||
| At 30 June 2021 | 1,163 | |||
| At 30 June 2020 | 1,550 | |||
| 10 | Debtors | |||
| 2021 | 2020 | |||
| Amounts falling due within one year: | £ | £ | ||
| Other debtors | 5,000 | 8,000 | ||
| 11 | Creditors: amounts falling due within one year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Other creditors | 3,258 | 11,236 | ||
| Accruals and deferred income | 3,810 | 1,799 | ||
| 7,068 | 13,035 | |||
| 12 | Analysis of net assets between funds | |||
| Unrestricted | Unrestricted | |||
| funds | funds | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Fund balances at 30 June 2021 are represented by: | ||||
| Tangible assets | 1,163 | 1,550 | ||
| Current assets/(liabilities) | 7,744 | 10,678 | ||
| 8,907 | 12,228 |
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SPARKS OF HOPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021
13 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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