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← Sparks Of Hope

2024-06-30-accounts

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

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Draft Financial Statements

LEGAL AND ADMINISTRATIVE INFORMATION

Mr. M Gluck Mr. B Muller Mr. M Damen

Trustees

Charity number (England and Wales)

1160997

Principal address

2a Northfield Road London N5 16RN

Independent examiner

Berish Hoffman FCA Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB0 6FX

CONTENTS PAGE

Trustees’ report 4 - 8 Independent examiner’s report 10 Statement of financial activities 11 Balance sheet 12 Notes to the financial statements 13 - 19

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hardship in the communities we serve. The following are the core activities we engage in to achieve our objectives:

for the Year Ended 30 June 2024

The trustees present their annual report and financial statements for the year ended 30 June 2024.

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).

Sparks of Hope was founded nine years ago by a group of business professionals who witnessed firsthand the detrimental effects of poverty and deprivation on family life in one of the most deprived areas of London. Recognizing the challenges individuals faced due to lack of qualifications or training, the charity’s mission became clear: to provide education and support, enabling individuals and families to achieve selfsufficiency.

The charity’s primary objective is to alleviate poverty and financial hardship by providing education, training, and comprehensive support to help individuals and families overcome economic challenges. In recent years, we have focused particularly on the unique difficulties faced by BAME communities, including financial pressures and complex family dynamics, with a commitment to delivering culturally appropriate services.

The Charity’s objectives are to advance such charitable purposes for the public benefit (according to the law of England and Wales) as the trustees see fit from time to time in particular but not limited to:

· The prevention or relief of poverty or financial hardship of persons resident in North London by providing or assisting in the provision of education/training and all the necessary support designed to enable individuals and families in need because of their financial and economic circumstances to generate a sustainable income and be self-sufficient

· The relief of the physical, emotional and mental sickness of persons resident in North London by the provision of advice, support, referrals and counselling

Our main aim is to reduce poverty and

1. Educational Support and Skills Development

· We provide counselling and educational resources aimed at equipping individuals with the skills needed to achieve financial independence, such as IT, bookkeeping, accounting, and web development.

2. Parenting and Family Support

· We offer regular parenting sessions to help parents create supportive, nurturing environments and strengthen relationships with their children.

· Additionally, we provide guidance and emotional support for teenagers and their families, particularly those dealing with illness or other family crises.

3. Financial Support and Empowerment · Newlywed couples receive financial assistance to help them begin their married life without the burden of financial stress.

· We offer support for individuals seeking employment or wishing to start their own businesses, helping them secure sustainable income.

4. Emotional and Mental Health Support

· We ensure that individuals experiencing emotional distress or family difficulties have access to professional therapy and support services.

Through these activities, we aim to foster self-sufficiency, resilience, and emotional well-being in the families we support. Achievements and Performance

The Trustees and working group have successfully managed the day-today operations of the charity throughout the year. The working group is responsible for reviewing applications for assistance, networking with relevant agencies, and appointing qualified therapists. They also ensure that all staff and volunteers are trained in safeguarding, health and safety, and have up-to-date DBS checks.

This year, we made a strategic change in how we undertake our activities. Rather than providing financial assistance to other charities to deliver services, we heavily invested in expanding our in-house team. This change has allowed us to offer more comprehensive, direct support to individuals and families, better addressing their needs in areas such as employment, training, and emotional well-being. As a result, we have seen an improvement in the overall impact and reach of our services, ensuring more families and individuals receive the targeted help they need. 5

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The charity’s core initiatives have been met with significant success, and the following are highlights of our key achievements during the year:

accompanies the early years of marriage. The couples have expressed deep gratitude for the opportunity to start their lives together on a stronger financial foundation.

1. Parenting and Emotional Well-being Support

· Our weekly support groups, focused on parenting and emotional well-being, have been instrumental in providing a safe and supportive space for parents to share experiences and receive guidance. These groups have not only empowered parents with practical tools to manage family life, but they have also contributed to building stronger familial relationships. Participants have reported feeling more equipped to face daily challenges with greater confidence and understanding.

2. Financial Management and Entrepreneurship Training

· We organized multiple Zoom sessions aimed at improving financial literacy and supporting participants in entrepreneurship. These sessions have proved particularly beneficial for individuals looking to gain financial independence or start their own businesses. The feedback from participants has been overwhelmingly positive, with many expressing that they feel more knowledgeable and confident in their financial decisions. Additionally, several individuals have begun to implement what they’ve learned, making strides towards financial self-sufficiency.

3. Support for Teenagers Facing Family Challenges

· This year, we supported over 30 teenagers who were facing significant emotional and practical challenges due to issues within their families. Whether coping with the illness of a family member or navigating other emotional hurdles, these teens received both individual counselling and family support. These interventions have helped the teens develop coping strategies and provided their families with the tools to better support them. The positive impact on their emotional well-being has been evident, with many expressing a sense of relief and improved family relationships.

4. Employment and Financial Stability

· Through our employment program, 12 adults secured stable jobs, which provided them with much-needed financial stability and improved their self-confidence. This program not only helped individuals find gainful employment but also supported them in adjusting to their new roles, ensuring they were prepared for the demands of the workplace. The success of this initiative has had a ripple effect, improving the overall financial health of families and allowing participants to contribute more positively to their communities.

5. Support for Newlywed Couples

· We provided grants to 20 newlywed couples, offering them the financial assistance they needed to begin their married life without the burden of financial stress. This support has allowed them to focus on building their future together, free from the anxiety that often

6. Strengthening Families Programme

· Our Strengthening Families Programme has expanded significantly this year, supporting 40 couples through therapy and parenting workshops. This program has been particularly effective in helping couples navigate personal and family difficulties, strengthen their emotional resilience, and improve communication. Couples who participated in the program reported greater satisfaction in their relationships and a better understanding of how to cope with family-related challenges.

These key achievements reflect our ongoing commitment to making a meaningful difference in the lives of the families and individuals we serve. Through direct support, targeted interventions, and community engagement, Sparks of Hope has helped empower individuals to improve their emotional well-being, gain financial independence, and build stronger family units.

The financial performance and position of the charity for the year can be found on pages 6 and 7 of the report.

At the year-end, the charity had a bank balance of 16,476£ and free reserves of 6,627£.

The charity’s reserves policy is to maintain reserves equivalent to at least three months of expenditure to ensure financial stability. The trustees are actively working on improving the charity’s reserves position to align with this policy.

The trustees have identified and assessed the major risks facing the charity and have implemented systems and processes to mitigate these risks effectively.

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.

Plans for Future Periods

Looking ahead, the Trustees plan to continue improving and expanding the support services we offer. A key focus will be addressing the increasing challenges faced by families in BAME communities, particularly as the cost of living continues to rise. We will be focusing on helping these families manage the stress of financial pressures while improving family dynamics.

In the coming year, we are excited to launch a new program designed to strengthen parent-child relationships. This program will provide structured activities aimed at fostering better communication and reducing the

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negative effects of excessive screen time.

Additionally, we plan to extend this program by collaborating with educators. By training teachers to implement similar activities in the classroom, we hope to enhance the connection between students and their families. This collaboration will not only improve family dynamics but also contribute to the social and emotional development of students.

Through these initiatives, we aim to foster stronger family relationships, improve emotional well-being, and promote financial independence across the communities we serve.

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. M Damen

The trustees’ report was approved by the Board of Trustees.

..............................

Mr. M Damen

Trustee

Dated: .........................30/04/2025

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SPARKS OF HOPE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SPARKS OF HOPE

SPARKS OF HOPE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2024

I report to the trustees on my examination of the financial statements of Sparks of Hope (the charity) for the year ended 30 June 2024.

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.

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements 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 the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

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:

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.

Unrestricted Unrestricted
funds funds
Notes 2024
£		 2023
£
Income and endowments from:
Donations and legacies 3 84,529 63,657
Other income 4 6,660 5,290
Total income 91,189 68,947
Expenditure on:
Raising funds
Charitable activities		 5
6		 20,604
80,444		 -
91,873
Total expenditure 101,048 91,873
Net expenditure and movement in funds (9,859) (22,926)
Reconciliation of funds:
Fund balances at 1 July 2023 16,976 39,902
Fund balances at 30 June 2024 7,117 16,976

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Berish Hoffman FCA

Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX 30/04/2025 Date: ............................

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SPARKS OF HOPE

BALANCE SHEET

AS AT 30 JUNE 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 12 490 654
Current assets
Debtors 13 5,629 6,152
Cash at bank and in hand 16,476 15,210
Creditors: amounts falling due within
one year		 14 22,105
(15,478)		 21,362
(5,040)
Net current assets 6,627 16,322
Total assets less current liabilities 7,117 16,976
The funds of the charity
Unrestricted funds 15 7,117 16,976
7,117 16,976

30/04/2025 The financial statements were approved by the trustees on .........................

..............................

Mr. M Damen Trustee

SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". 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 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

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.

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.

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SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

(Continued)

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:

SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

(Continued)

1 Accounting policies

1.10 Employee benefits

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.

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.

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 Income from donations and legacies

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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|||| |---|---|---| |Unrestricted|Unrestricted| |funds|funds| |2024|2023| |£|£| |Donations and gifts|84,529|63,657| |Other income| |Unrestricted|Unrestricted| |funds|funds| |2024|2023| |£|£| |Other income|6,660|5,290| |Expenditure on raising funds| |Unrestricted|Unrestricted| |funds|funds| |2024|2023| |£|£| |Fundraising and publicity| |-| |Printing and advertising|6,680| |Professional fees|13,924|-| |-| |20,604|

----- End of picture text -----

4 Other income

5 Expenditure on raising funds

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SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

6 Expenditure on charitable activities

2024 2023
£ £
Direct costs
Staff costs 26,173 -
Therapy costs 4,100 13,080
Marriage courses 15,390 6,521
45,663 19,601
Grant funding of activities (see note 7) 10,178 32,849
Share of support and governance costs (see note 8)
Support 22,443 37,383
Governance 2,160 2,040
80,444 91,873
Analysis by fund
Unrestricted funds 80,444 91,873
Grants payable
2024 2023
£ 0
Grants to institutions:
Chevras Mooz Ladol - 2,000
Friends Of Beis Chinuch Lebonos - 3,600
Friends Of Beis Soroh Schneirer 1,750 3,600
Jtag Limited - 4,000
Merkos Hatora Belz 1,750 3,600
Mifal Hachesed Vehatzedokoh 1,750 3,600
One Heart Lev echod 1,750 3,600
YHS School Donation Group - 2,000
Other < £1,000 2,485 6,554
9,485 32,554
Grants to individuals 693 295
10,178 32,849

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.

SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

8 Support costs

8 Support costs
Support Support
Governance		 2024 Support Support
Governance		 2023
costs costs costs costs
£ £ £ £ £ £
Staff costs 8,881 - 8,881 25,914 - 25,914
Depreciation 164 - 164 218 - 218
Insurance - - - 354 - 354
Bank charges 227 - 227 165 - 165
Advertising 180 - 180 - - -
Accountancy fees 291 2,160 2,451 286 2,040 2,326
General expenses 1,643 - 1,643 1,228 - 1,228
Office costs 5,057 - 5,057 2,718 - 2,718
Rent 6,000 - 6,000 6,500 - 6,500
22,443 2,160 24,603 37,383 2,040 39,423
Analysed between
Charitable activities 22,443 2,160 24,603 37,383 2,040 39,423
9 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements 2,160 2,040
Depreciation of owned tangible fixed assets 164 218

10 Trustees

During the period a trustee was paid £8,881 (2023: £8,095) as an employee of the charity (not for trustee services).

11 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
4 4
Employment costs 2024 2023
£ £
Wages and salaries 35,054 25,914

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SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

11 Employees (Continued)
There were no employees whose annual remuneration was more than £60,000.
12 Tangible fixed assets
Office
equipment
£
Cost
At 1 July 2023 6,534
At 30 June 2024 6,534
Depreciation and impairment
At 1 July 2023 5,880
Depreciation charged in the year 164
At 30 June 2024 6,044
Carrying amount
At 30 June 2024 490
At 30 June 2023 654
13 Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors 5,629 6,152
14 Creditors: amounts falling due within one year
2024 2023
£ £
Other creditors 12,778 3,000
Accruals and deferred income 2,700 2,040
15,478 5,040

SPARKS OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

15 Unrestricted funds (Continued)
Previous year: At 1 July 2022 Incoming Resources At 30 June
resources expended 2023
£ £ £ £
General funds 39,902 68,947 (91,873) 16,976
16 Analysis of net assets between funds
Unrestricted
funds
2024
£
At 30 June 2024:
Tangible assets 490
Current assets/(liabilities) 6,627
7,117
Unrestricted
funds
2023
£
At 30 June 2023:
Tangible assets 654
Current assets/(liabilities) 16,322
16,976

During the year the charity received donations totalling £4,427 (2023: £1,500) from the trustees and their family members.

15 Unrestricted funds

At 1 July 2023 At 1 July 2023 At 1 July 2023 Incoming Resources At 30 June At 30 June
resources expended 2024
£ £ £ £
General funds 16,976 91,189 (101,048) 7,117

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