SPARKS OFHOPE ANNUAL REPORT . AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 **Page** Trustees’ report 4 - 6 Independent examiner’s report 7 Statement of financial activities 8 Balance sheet 9 Notes to the financial statements 10-17 LEGAL AND ADMINISTRATIVE INFORMATION ## **Trustees** Mr. M Gluck Mr. B Muller Mr. M Damen (Appointed 26 April 2023) **Charity number** 1160997 ## **Principal address** 2a Northfield Road London N16 5RN ## **Independent examiner** Berish Hoffman FCA Landau Morley LLP 325-327 Oldfield Lane North Middlesex UB6 0FX 2 ## **SPARKS OF HOPE** ## TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 The trustees present their annual report and financial statements for the year ended 30 June 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply 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)” (effective 1 January 2019). ## Background Sparks of Hope was originally the brainchild of a group of successful business acquaintances, who observed the devastating effects on family life that unfortunately result from deprivation and poverty. Being also resident in one of the most deprived areas of London, they were in a position to scrutinize 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 initiated eight years ago by these likeminded persons to endeavour to alleviate the problems that are inevitably the result of this inability to self- support. ## 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 by giving 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. In recent years, BAME communities in North London have been disproportionately affected by Covid pandemic due to the close-knit nature of their lifestyles, there was increased anxiety, fear and misinformation about health. There are continued cultural expectations that couples will have large families early in relationships `,` however the pandemic and issues around finance cause familial tension, pressure and stress. As referred to above, our principal aim is to relieve poverty and hardship wherever it appears. The Charity is active, therefore in: - Assisting newlyweds with their initial expenses, to help them with the preliminary stages of setting up a new home, so they might settle down in a pleasant atmosphere, unimpeded by the burden of debt. - Providing advice by suitably qualified people to achieve gainful employment either by helping them in setting up in business or guiding them to the most suitable employment. - Counselling and encouraging the teaching and learning of skills and professions such as IT, book keeping, accounting and web knowledge, in order to achieve gainful employment and self-sufficiency. - Where the need unfortunately arises, for the emotionally disturbed or distressed to have reasonably easy access to the services/ therapy required. The Trustees confirm their compliance with the duty to have due regard to the Public Benefit guidance published by the Charity Commission when reviewing the Charity’s aims and objectives in planning future activities. 4 ## TRUSTEES’ REPORT (CONTINUED) ## Our Vision To assist to create a society where every individual family is a stable self-supporting unit, able to cope but, where the need arises has immediate access to culturally appropriate assistance and services. ## 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 and 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 ensure that all volunteers, therapists and staff have up to date DBS checks. The trustees have established a “strategy forum” between key community organisations and senior volunteers of the community, the forum meet regularly to raise the profile of issues, solutions, and ways of encouraging people to seek help and de-mystifying processes. The trustees also focused this year on enhancing voluntary advisors to give of their services for people in need on a voluntary basis. These sessions took place in the charity’s premises and helped reduce the charity’s costs considerably. During the period the charity has provided the following in line with its objectives: The charity provided grants to registered charities and to individuals. The charity provided grants to registered charities and to individuals. We launched a new telephone helpline which simplifies the process of accessing information about appropriate mental and qualified emotional health service providers. Our Employment programme has enabled 23 adults to find paid employment, giving them and their families financial stability and confidence. We Worked with 65 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 grant was £172 supporting 18 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 72 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 Family Programme that is offering parents, the resilience needed to manage and bounce back from all types of challenges that emerge from daily life. 5 TRUSTEES’ REPORT (CONTINUED) ## Plans for future periods For the next year The Trustees plan to maintain the current programmes and continue to focus on our Strengthen Families Programme. The Trustees would like to expand their parental workshops and ensure that there are positive programmes supporting teenagers and children. We are not looking to duplicate services and will ensure to network and use existing cultural appropriate services. We plan more projects to builds strong relationships across communities. We aim to reduce social isolation, loneliness and depression for many young couples, helping them on their own cultural terms, to find awareness of help that is available to them. The Trustees would like to thank our funders who believe in our aspirations and have committed their funds to Sparks of Hope to carry out their objectives ## Financial review Details of the financial performance and position of the charity can be found on pages 5 and 6. At the year end, the Charity had a bank balance of £36,736 and held free reserves of £39,030. The charity’s reserves policy is to hold reserves of at least 3 months’ expenditure. 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. ## 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 (Resigned 26 April 2023) Mr. M Damen (Appointed 26 April 2023) The trustees’ report was approved by the Board of Trustees. ## Mr. M Damen Trustee Dated: 6 ## 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 2022. ## 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: 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the financial statements do not accord with those records; or 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 FCA** Landau Morley LLP 325-327 Oldfield Lane North Middlesex UB6 0FX Dated: 28 April 2023 7 ## **SPARKS OF HOPE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 30 JUNE 2022**_ |||**Unrestricted **|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2022**|**2021**| ||**Notes**|**£**|**£**| |**Income and endowments from:**|||| |Donations and legacies|**3**|99,273|78,993| |Other income|**4**|7,794|-| |**Total income**||107,067|78,993| |**Expenditure on:**|||| |Charitable activities|**5**|76,072|82,314| |**Net income/(expenditure) for the year/**|||| |**Net movement in funds**||30,995|(3,321)| |Fund balances at 1 July 2021||8,907|12,228| |**Fund balances at 30 June 2022**||39,902|8,907| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 8 ## **SPARKS OF HOPE** ## **BALANCE SHEET** ## _**AS AT 30 JUNE 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2022**
**£**
7,334
36,736
44,070
(5,040)|**£**
872
39,030
39,902
39,902
39,902|**2021**
**£**
5,000
9,812
14,812
(7,068)|**£**
1,163
7,744| |---|---|---|---|---| |||||8,907| |||||8,907| |||||8,907| The financial statements were approved by the Trustees on ......................... Mr. M Damen **Trustee** 9 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **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 2a Nordfield Road, London, N16 5RN ## **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 amounts 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. 10 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **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 pretax 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. 11 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **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**| ||**2022**|**2021**| ||**£**|**£**| |Donations and gifts|89,273|78,993| |Other grants|10,000|-| ||99,273|78,993| ## **4 Other income** ||**Unrestricted**|**Total**| |---|---|---| ||**funds**|| ||**2022**|**2021**| ||**£**|**£**| |Other income|7,794|-| 9 12 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **5 Charitable activities** |Therapy costs
Marriage courses
Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)|**2022**
**£**
14,351
1,036
15,387
23,266
35,019
2,400
76,072|**2021**
**£**
6,030
-| |---|---|---| |||6,030
53,636
20,638
2,010| |||82,314| |**6**
**Grants payable**
Revach Vehazola Trust
Friends of Yeshiva Luzern
Yad Vochessed Association Limited
Shir Chesed Beis Yisroel
Keren Hatzolas Doros Alei Siach
Beis Aharon Trust Ltd
Live and Learn
Keren Chocmas Shloma Trust
Inspirations
Friend of Yeshiva Daas Sholem Shotz
Care All Limited
Zlotchiv
Besi Aharon TT Activity Center
Other < £2,000
Grants to individuals|**2022**
**£**
2,000
2,200
-
-
-
-
-
-
-
-
-
-
-
16,856
2,210
23,266|**2021**
**£**
-
-
3,600
3,600
3,600
3,600
3,600
3,600
3,600
3,600
3,600
3,600
2,000
5,430
4,304| |---|---|---| |||53,636| 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. 10 13 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2022**_ |**7**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
21,491
-
Depreciation
291
-
Insurance
710
-
Bank charges
225
-
Accountancy fees
279
2,400
Consultancy fees
1,250
-
General expenses
893
-
Office costs
3,295
-
Rent
6,000
-
Advertising
585
-
35,019
2,400
Analysed between
Charitable activities
35,019
2,400|**2022**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
21,491
9,450
-
291
388
-
710
-
-
225
189
-
2,679
307
2,010
1,250
-
-
893
1,289
-
3,295
2,515
-
6,000
6,500
-
585
-
-
37,419
20,638
2,010
37,419
20,638
2,010|**2021**
**£**
9,450
388
-
189
2,317
-
1,289
2,515
6,500
-| |---|---|---| |||22,648| |||22,648| ## **8 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. ## **9 Employees** The average monthly number of employees during the year was: ||**2022**|**2021**| |---|---|---| ||**Number**|**Number**| ||3|2| |**Employment costs**|**2022**|**2021**| ||**£**|**£**| |Wages and salaries|21,491|9,450| There were no employees whose annual remuneration was more than £60,000. 14 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **10 Tangible fixed assets** |**10**
**Tangible fixed assets**||| |---|---|---| |**Cost**
At 1 July 2021
At 30 June 2022
**Depreciation and impairment**
At 1 July 2021
Depreciation charged in the year
At 30 June 2022
**Carrying amount**
At 30 June 2022
At 30 June 2021
**11**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**12**
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**Office equipment**
**£**
6,534
6,534
5,371
291
5,662
872
1,163
**2022**
**2021**
**£**
**£**
7,334
5,000
**2022**
**2021**
**£**
**£**
3,000
3,258
2,040
3,810
5,040
7,068|| |||6,534| |||5,371
291| |||5,662| |||872| |||1,163| |||**2021**
**£**
5,000| |||**2021**
**£**
3,258
3,810| |||7,068| ## **13 Analysis of net assets between funds** |**Analysis of net assets between funds**||| |---|---|---| ||**Unrestricted**|
**Unrestricted**| ||**funds**|**funds**| ||**2022**|**2021**| ||**£**|**£**| |Fund balances at 30 June 2022 are represented by:||| |Tangible assets|872|1,163| |Current assets/(liabilities)|39,030|7,744| ||39,902|8,907| 15 ## **SPARKS OF HOPE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2022**_ ## **14 Related party transactions** There were no disclosable related party transactions during the year (2021 - none). 16 *;*'. *-"*- SPARKS OFHOPE