Registered number: 08991099 cha numb•r: 1161809 & SC046556 FAIR CREDIT CHARITY LTD (FORMERLY KNOWN AS FAIR FOR YOU LIMITED) (A COMPANY UMITED BY GUARANTEE) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 llllll *ABD82CNT• 24109r2022 COMPANIES HOUSE A16 ? Bishop Fleming
FPJR CRED CHARITY LTD IA COMPANY UMITED BY GUARANTEE) CONTENTS Ref•renc• and admlnlstrntive det•lb of the Charlty, Its TN$t¢es and advlsers Trustses. r¢port Ind•p•ndont auditots. report on the finanelal statem•nts 7-10 Conr•olidated statemenl of financial adivilies 11 Consolidated balane¢ $ho•t 12 Charlty balance sheet 13 Notes to th• financlal staternerrts 14-31
FAIR CREDrr CHARITY LTD IA COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENOED 31 DECEMBER 2021 Trustees J BonehiH (appointed 1 January 20211 A cla {restgned 4 July 2022) ADd$ S Dukes (apwrrted 1 October 2021) T Lewtt L Mdwn Company registsred number 08991(r39 Charlty r¢gl$tefed number and Scottlsh Charlty registered number 1161809 & SC046 Registered office U8 Elrn Court Meriden Business Pa Copse Drive Coventry CVS 9RG Company secretary C Berneit Chief executive officer S Dukes (pnted 1 Odober 2021) Independent •uditOfS Bishop Fleming LLP Chartered Accountants 1-3 College Yard Wwcester WR12LB Page 1
FAIR CREDIT CHARITY LTD (A COMPANY UMITED BY GUARAKfEE TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The TNstees present their Annual repJrt tryjether wilh the aLKlited finan(aal statements of Ihe Charity lor the 1 January 2021 to 31 December 2021. The Annual reprrt serves the purposes of both a Trustees, report and directors. report undef company law. The T4ustees confirffl that the Annual report and financial statements of the charitable c¥)mpany compty with the current statutory requirements. the requirements of the tharitable companys gtsveming do¢ument and the provisions of the Stslemenl of Recommend¢d Pracb¢e ISORPI applbcable to charities prepaying their accounts In accordance the Finandal RO[Ing Stsndard appliCe in the UK and Repubfic of Ireland IFRS102) (effective 1 January 2019). Since the group and the Charity quafTfy a5 small urvjw Secti 383 of the Companies Act 2006. the Group strategic report required of medium and large companie5 under the Companies Act 2006 Islralegic report and Dir$¢tors' rewtl Regulatws 2013 has been Cmniited. Durfng 2021 the Cherity made the decis¥)n lo its name and we are deghted to report that The Folr Credtt Charity (Charity no. 1161809} Is Ihe new name fty Fair lor You knmited. The Charity was originally set-up in 2015. and at the time was also called Fair for Yw in its subsJiary, the CIC. But as the Charity and the CIC grow, to reduce confusion. it has r4 been decided to charge the Chantys name and to give il a broader role. In addition to overseeing the actmties of the CIC. the charity VAII also seek to influenc8 how the finan¢ial s•¢lor lends to lower4n¢x)rne indldual5 as w8110s lObbrj for Yater rec£gnition of Ihe impacts of high4nteresl and predatory Jen<ting the poverty wemium: Thg change coinodes with aTh)Iher milestone in our history vAth the app)intsment of Simon Dukes a$ clw.ef Executive of both the Charity and the CIC. Srmon was appinted Ydith the explicit brief of leading both arms of thg ¢vganisati¢M and we Ic¥)k f¢)rward lo the comlrwJ year accordin91y. During 2021 we welcomed Jill Bonehill as a ffifth membef of Ihe dority board of trustees. We 3¥nended our constitution lo laW tw)ard members to serve a ttmrd temi and board members $ubsequenUy those to avail Ihemselves of the opportunity. which was wel¢cme. We conlinue to appreciate the support that friends. trv5tees. board rnembw5. Staff investors have given lo thè charity. During 2021 we be rèbuilding old networks. whth have perhaps become deprioritised in the past. not least because of the pandemtc. and tlId1j new ones. We have natural affinity other tharities. government. local government arKI Imxjsing assoc4ations and by w)rking v•ith them we will maximlse the potential for grfJAng our wnpad. Obje¢tlv•s and activit1¢$
. PolicOe$ and obl•¢tiv•s
The principal objects of Falr Credit Charity Ltd Chty) are Ihe * benefit to: Advance education in relation to money and debt management Relieve financial hardship arKI distress: and Prevent and relieve po¥ety. Including Mthoul limilation through Ihe aoknceThrt provision and facilitation of affordabk sources of credit and other finaneial serwces to individuals in income houstrjds, wilh 8 view to enèbfing such persons to rent 8ndlor ¢x¥n basic goods for the h(ne aTrJ olher everythy purposes wfh a view to PVentIng such persons from falling preylo un$¢rupul¢)us or usurh)us W0ders of uethL b. Stratsgles l¢r a¢hiè¥lng obJ¢¢tives The Trus¢ees believe that Èyedil speafi¢ally alred at hjww IrKcthe househokls ngeds io be hith Msible, hhlY . flexible. wlh a holistic arnj suppxytive seMCO ddwgred with a high level of care. Page 2
FAIR CREDIT CHARrrY LTD (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (coMnNUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Objectlves and a¢tfvftles (CONTINUED) c. Actlvltlos undertaken to a¢hiewobjective5 The Charity established a not for proffl subgdiary. Fair Yw Enterywise CIC (the CIC). whKh Cc¥bnced Irading In late 2015. The subsidiarls obj'ective is to deliver the lendiTrJ solulion that meets the mdern borrowlng needs idenlifie(I by the Chanty. The Challty is cg)mmitted to quafity and inl4xmed. irKl6pendent sothal impact reporting on the effeets of high cost credit on IDW income h¢Sehold5. Achievements and p•rformance a. Key p•rforman¢e Indlcators The Group has in the period ending 31 Deomber 2021 shchved a CordIdated movament in fvnds of £295.919 (2020: £2,536.508). At 31 De¢ember 2021. Ihe Group had con501idaled reserves of £1,969,9)5 (2020: £1.673,9861. These results indude the results ofthe trading subsdiary. Falr for You Enlerprise CIC. b. Review of actlvltles The Charity ¢ontinue5 to seek research partners to advarte Ihe needs of the demographic that we seek lo seNe. The Charily has provided oversight arKI monilored the g0veM aThJ devewnenl of the subsidiary lending organisalion. The Charity Trustees have ensured that at all time a suitabty skdfed and engaged board have been in evidence and monitored the risk managgmenL fvnding stratsgy and business plan delivery. Further It has overseen the expansion ofihe senior Manernent team and Investm inlrastnKture. The estafAished nl¢he business and brand has been expanded and grown throughwt 2020, which has been welmed by the demographic the Charily seeks to ser4e. The busingss is activety looking at funding lines with a to further growlh and s¢ale. ¢. Investment policy and perfomiance The Investment in Fair Frx You Entwpiso CIC may see a future return to the Charity ono the business 1$ fully established and sustsinable. At thls time. costs are being oivered by the subsidiary and no relum for the Investment Is $rghL d. Refinancing ng 2020 Falr For You secured trartsfom¥3t¥)nal funding for business via Fa4 Fbnanc&. As part of th8 deal Falr For You refinanced £1.35m of its Inttial urtsecured and secured inve5trrt from founding Trusts and Foundations into a new bond inslNmenL Fwr For You also restruthred its £1.15m exisbng tra)d into this new Insirument as well. The new bond is redeemabEe at the sole dIstreA of Fair For You. Interest is payable to the Bondhc4der of base +3% annually. Within the financial stslemenls of Fair Credit Charity Ltd. the equty element has been treated as'olher Income". the unffjslricted fvnds, in line SORP 24.25. Pa3
FAIR CRED CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OECEM8ER 2021 fin#n¢Sal review Going concern Afier making approFfflate enqufftes. the Tnjstees have a reasonable expectation that the Group has adequat resources to continue in operatKJnal existence for the foreSeeae future. For this reason they continue to adopt the gn9 concem basis in preparing the financtal 5talemenls. Fwlher details regard the adoption of the going ncem basis can be found in acnting poFicy note 2.3. COVID-19 Following the outrjreak of COWD-19 in earty 2020. the Grcw •thd qUiY, investing in the necessary equipment to allow dl of our staff to safely and securely work from home. We followed key gu*Jance issued by the FCA. specifically aft)urvJ pTovisb)n of IQrbeardn and financial lie1. thjr customer5 remained U$. Ihioughoul: we worked hard to ensure Ihat W were meeting our customer semce SLAS given the high level of 8nxrety and (rn¢ertainty that Our ¢Jthèrs were experren¢ing. Given our preexisting colle¢lions policy where we focus on understanding and supporting our c#Jstomers we were well placed to manage the provisirming impacl of the pandemic. The CIC receN8d £26.5k in grants to enaL4e Ihe purthase of key equipment and sothyare to enatAe effective h¢)me wlxknng. We also re¢eNed £100k in grants to supporL' front SI services vthere we $8w volumes increase significanuy as a result ol high customer uncertainty and anxiety. delivertng fobearanCe and finana¥l relief to our m05t ynerable customers as wel as s•3nfftcant inveslment in our staff in the guise of tralnlng. beneffts and Wellne supwt. b. Materlal Inveslmerts poll¢y The Charity has invested Is ¥ty subsilfiary ¥•itl¥yJl relum or short tenn expectation of return. The Trustees believe considerable value is beiTr3 treated in the tTrid and develownent of a unique lendir¥J organSsation that addre$5es the needs of its Ol0[eTS. In the long tem, when il 15 a yiable mainstream competitor lo h(gh (¥edit, we wll estsblish a suitable mechanism lor a reium that will allow the ¢harityto eXId MS nNssi¢)n. Stru¢ture• goveman¢e and management
. Conslitution
The Charity and the Group Is ¢ty)stituted under a Trust deed and Is a registered charlty. undor ¢hity numbgr 1161809 {England end Wales) & SC046556 IScoUarKII. b. Methods of appolntment or el•¢llon of Trust Tnjslees are appc#nted for a lemi of 3 year5. Pre?Awsty. the Trustees were apwnted for 2 to 4 years In order to facilitsl¢ an tydedy su¢ces5ion from ar 2. Trustees are expected to complete suitable training and nduction. c. Organlsational structure and dec151onrymakOng pollcies The charity.has a Trustee Board whi¢h meets ery three rnonths and the Trustees confirm that the interests of the charity are paramounl to their decisions Len. The Board has esLiblished 2 1mmitte¢S as follows.. Fundraising and marketing D)rMiittee: b fjnsur8 the Charity has sufficaenl funding to caThy out its worf( and objectives", OveNght eLJmmittee: to oversee Ihe sthidiary. Fa* for Enterprtse CIC. Page 4
FAIR CREorr CHARITY LTO (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT {CQNTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Stwctur•• governan¢• and management (COPrnNUED} d. Flnan¢lal risk m•nagement The Twslees have assessed th8 rn0r risks to tthi¢h the Charity aThl the Group are exposed, in partKuiar those related lo the operations ar#1 finances of the Charity and the Group. a1 are satl$fied that systems and procedures are h place to mitsgate our exFosure lo Ihe major risks. Plans for future perk)d$ The Charity ¢urygnty a¢tivdy seekng research partwrs lo adVae needs of lower Irwme households we serve: likely acbvilies at this time are predominanty fthther social reporting. STATEMENT OF TRUSTEES. RESPONSI8ILmES The Trustees {who are atso directors of ttle Charity for the purpow of company law) are responsible for preparing the Trustees. report and Ihe financid statements in acCOrdar wth applicable law and United Kingdom Accountsng Slandwds (United Kingd7 GeneraltyAwited Acclwnting Practice). Company law requires the Trustees to prepare financial stalements for each ffinancial year. Under panY law. the Trustees musl not appmve Ihe finanaal statements unless tlw are 5ati5fied that they give a true and fair ew of the slate of affairs of the Grwp and the Charity and of their incoming resources and application of rvdourees. indu(fing their income aThl experKltture. for that In prwng these ffinanci ststements. the Trustees are requiod lo: select suitable accountiTrJ pdicies and •pplytrrn cgmsistenty, obseThe the methods and principles of the Charities SORP {FRS 102): make judgments and aco)unting estsmates that are reaSonae and wuderrt: slaté whèther applitsble UK A¢Unting Stsndards (FRS 102) have been followed. subjed lo any materlal departures disdosed and explained in the finanaal statements: prepare the finarrial statements on the going corKem basis unless it is inapwopriate to presume that the (>oup wlll continue in business. The Trustees are responsible for keeping adequate aOUnting re(J)rds that are suffioxent to shomf and explain the Group and the Charitys transactions aTrJ disdose with reasonable accuracy at arhy time tho financial p0511ion of the Group and the Charity and enae them lo ensure that Ihe finanual statements compfy wilh the Companies Act 2006. They are also respOnsie.f0r saleguardirKJ the assets of tt)e Group and the Charity and hence fortaking reas(able steps for the prevenlb)n and dete¢th of frnud arwj otr IrularItIes. Disclosure of Infomialion to audit¢Ms Each of the persons who are Truslees at the time 7then Ihis Tnjstees. rewt is approved has confirmed that: so far as that Twstee is avrdre. there is Th) relewdnt audit infOrmat?n of which the tharilable group's auditors are unaware, and that Trustee has tsken the steps thal ought lo have been taken as a Trnstee in order to be aware of any ielevant audit inflymation and to establish Ihal the Charitsble group's auditors are aware of that infomialim. Auditor5 The auditors. Bishop Flerniro LLP. have indicated Iheir wllingness to continue in i)ffi. The designated Trustees ill propose a motion reapFlnting the auditors at a meetiro of the Trustees.
FAR CRED CIIARITY LYD T L•vltt D*. i3- Zrru,
FAIR CREDfT CHARITY LTD (A COMPANY LIIIIITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FAIR CREDIT CHARITY LTD OPINION We have audited the financial statements of Fair Credit Chaiity Lld (th8 'parent tharitable companv) and ts subsldiaries Ilhe 'gr1P.) for the year ended 31 December 2021 [Ch comprise the Consolidated statement of finan¢ial aCtIties, the Consolhdated balance sheet the Chaiity balance sheet. the Consolidated ststement of cash Ilows and the related notes. indudir#J a summary of 5igntftcant accwnting poIleS. The finala1 reporting fram¢work that has been apptied in thwr preparation is apFlicable law and United Kingdom Accounting Standaids. indudin9 Fu)ancial RepottyNJ Stsndard 102 The financial ReFQrting Standard applicablé w) the UK and Repu1¢ of IrdaThJ' (United norn Generally Accepled A¢¢t)unting Practice}. In our opinion the financial statements". giv8 a true and fair Mew of the stato ol Ihe Group's and of Ihe parent charitable ¢ompanl5 affairs as at 31 December 2021 arKI of ihe Group's incoming resources applicalhM of resources. incfuding ils income and expenditure for the year then ended: have been properly prepared in accordance with United lfjnfvi Generafy Accepted Accounting Pracuce: and have been prepared in accordan rylh the requirements of the Cornpanies Act and the Charities Act2011. BASIS FOR OPINION We nduCted our auth"t in accordance with 1ntemaliwf Standards M Audiling (UK> IISA5 {UK)l and applicab law. Our spOnSIbl1111es under those slandards are further descrtbed in Ihe Auditors, responsibilities for the audll of the financial ststements section of cNJr report. We are independent of Ihe Gmup in accordance wlth the ethical requlrements that are relevant lo our audit of Ihe fmancial statements in the Uniled Kingdom, Aiduding the Financial ftep0"ng Counafs Ethical Starthrd. and we have fulfilled our other ethical responsibilities in ac¢ordan¢g vAth these requirements. We believe that Ihe ¥udil evid8rKa we have obtsined is sufficient and appropriate to provide a basbs for our wnion. CONCLUSIONS RELAnNG TO GOING CONCERN In audiling the financial statements. have coTrJuded that the Trustees. use of the gory concem basis of accounting in the preparation of the farmial statements 15 approwiate. Based on the work we have performed. we have Tr)t hlentifted any ma181 uneertainties relaiing to events or conditions that, irKlividually or collectively. may cast signifKanl dcwjbt on the Group's or the parent charilable companvs ability to continue as a goiryj ¢tyeM for a period of 81 3St twelve months from when Ihe financial statements are authorised for issue. Our responslbililies and Ihe resplytsibllitses of Ihe Ttee$ tmth respect to g(Hn9 concem are descThd In Ihe rÈlevant sections of this rep Page 7
FAIR CREDrr CHARITY LTD (A COMPANY LIMITED 8Y GUARANTEE) INDEPENDENT AUDITORV REPORT TO THE MEMBERS OF FAIR CREDIT CHARITY LTD (CONTINUEDI OTHER INFORMATION The other Inltymatlon the irrfrmilon Indu¢Jeil in Arrnl reF other than Ihe financial statements and our Au¢Jitors' report thereon. The Twstees are responsibfe for the other information contained within the Annual report Our (yinion on the financial slalements does cover the other inforniation and. except to the extent otherwise explrouy slated in wr we do not express any form of assurance condusKJn thereon. t)ur responsibility is lo read the other infom)atton and. in doing so. consider whether the other information is mateiially inconsistent with the finanaal statemenis or our kntrwledge oblalned in the course of the audiL or othejwse appears lo be materially misstated. If we identify such material #Konsislenoes or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in Ihe financlal statements themselves. If. based on the work we have performed. we condude that the is a mateii81 rnisstatemenl ol ihis other information. arè required to reportthat facL We have nothkng to rer)rt n Ihls.rega(d. OPINION ON OTHER MATfERS PRESCRIBED BY THE COMPANIES ACT 2006 In our Onion, based on the work undertaken in the course of Ihe audiL" Ihe information given in the Trustees. report for the finarrial year for wthich the financral statements are prepared is consistent wth the finanaal $tatemgnts. the Trustees, report has been prepwed In accordance wth appCable lègal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the Ib3hl our knOedge and urKler5tanding of the charitable company its enDment obtsined in Ihe course of the audit. we have not pjentified material misstslements in the Trustees. report. We have nthng to report in respect of the falb matteTr in relation to COmpanS Act 2006 requires us to report lo you rf, in our opinMJn-. the parent chaiitable company has not kept adeqle and sufficient accountlng re5. or retums odequale f our audit have nol been reived from branches r1 visited by us" or the parent charitsble company financaal statements are nol in agreement with the ao))unting records and retums: or certaln disdosures of Trustees. remuneration speufied by law are not made.. or we have not recaved all lh¢ information and explanat5 W requwe for our 8udiL or Ihe Tfuslees were not entiued to prepare the ffinaal statements in aCrdance ¥th the Small companies reglme ond take advantsge of the small tompanies. exemptions preparirrfJ the Trustsos. report and frcln the requirement lo prepare a Strategi¢ repoiL RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees. responsibilities statement. the Trustee5 (who are also the directors of the arllable company kn the wrFrf)ses of company law) are reSSible fc the preparalK)n of the financial statements and for bery salisfied that they give a true al fair view. and for such intemal control as the Trustees delerrnir 15 ne$sary tr> enablg the preparntb)n of finarKo1 statements Ihat ar* free from material misslalemenl. whether due to fraud or error. In preparing Ihe financaal slalements. the Trv5tees a responsljle fDr assessing the Group's and the parent tharitable companys abilty to witinue as a gtyThJ concem. disdosing. ag applicable. maiters related to going ¢)Jncem and using the going concem ba$ of accounting Un the Twstees eilher inlend to Iiqutdate the Group or the parent tharitable company or to cease operations. or have no realislic allernative lo do so. Page 8
FAIR CREDIT CHARITY LTD {A COMPANY LIPIIITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FAIR CREDIT CHARITY LTD (CONTINUED) AUDITORS. RESPONSIBIUTIES FOR THE AUDrroF THE FINANCIAL STATEMENTS Our objectives are to i>bLn reaSonae assurance abo whekn the lknanclal stslements as a Y are free from material misstaternenL wthether due to fraud or error. and to issue an AudiloTS' report that includes our opinion. Reasonable assLtrance ts a IN9h level of assuran. but t5 ntsl a guarantee that an audit conducted in accordance wlh ISAS {UKI wll detect a rnaterial misststernsnt when it exists. Misstalemenls can arise from fraud or error and are cOndered material rf. irKlividualfy or n the a99regate, they could reasonably be expected to influence the economic decision5 of users tsken on the basis of these financial stslements. Irregularilies, hi¢Wing fraud. are instarKe$ of rK)ftP1[ae laws and regulations. We design procedures in line with our responslb61ities. ouuined above. to detect material misstatements in respect of irregularities. Induding fraud. The exlenl to wht¢h our procedures are capable of detecting irregularthes. Ybctuding fraud is detailed belthy. Our procedures suffounding the bjentirlItin and assessment of Asks ol matedal mlsstatemenl In latIon lo irregularities. In¢luding fraud and non-complran¢e with lav and regufatwxts. IlIded the following.. onsldering the of the entity and its enVonMe internal control ertrOnment. 8nd' buslness performance. considering the results ol w enquiries of management abrt their M identifioztion and assessment ofthe risk of irregularitse5. obtaining and revbewing. for any rnatte Klentified. the chaiitable uJMpans dorjjmentalion of their Fdicies and procedures relating lo: the identificati. evaluation. and nlae Vilh and regukiorts. and whether management were aware ofany inslances of noTrcomptiance thin the w, the deteclion and resSe to the iisk of fra4hY. and whether management have kn(Ythedge of odual. suspeded. or alleged fraud." and the inlemal controls established to mil¥Jate the risks of fraud or n(*MPlI3n¢e wth lows and regulations. discussing amongst the audit engagement team. In¢1ng intemal tsx specialists. regarding how and where fraud might occur In the financial slalements and potential WtOrS of fraud. As a result of these procedures. we Consid the opptnItIeS and incentives that may exist within the organisation for fraud and identified the greatest potential for fraL¥I in the ¢omFAet¢ness of revenue reco9Thtion and management overrhje of controls. In ¢ommon 1h all audits under ISAS (UK). we a also reque to [10fM specific procedures to resnd lo these identifd risks. obtaining an understsndiTr3 of Ihe legal and regulatory framewoths that the tharitab ¢))mpany operates in, focusing on provistons of those laws and regulations that had a direct effect on the detemiinab.on of material amounts and disclosures in the financial statements. The key laws and regulabons we considered in this context induded the Companies Act 2Cw)6. Charilies Act 2011, and rdevant tax legislaticffl. considering provisiM5 of other laws and wulations that do not have a direct effect the financial stslements but ¢ompliarKe with Vjthich may be fundamental to the chartlable compan$ abdity to operate or to avoid a material penalty. These induded dats pmtscticffl regulaticMKs. heaEth and Safety regulations. and eMplonent legislation. Page 9
FAIR CREDrr CHARITY LTD IA COMPANY LIMITED BY GUARAtfrEE) INDEPENDENT AUDITORS. REPORT TO THE MEIABERS OF FAIR CREDIT CHARrrY LTD (CONTINUED) Audlt r•$pons• lo rlsks identifi•d (r prwethres to Tespmj to the risks Identlfd InchJJ8d the folltrwirvj: reviewing the finantsal statement disdosuos and testmg to sUpptIng documentation to assess compllance with provisions of rdevant arrfl regulalions desryt)ed 8$ having a direct effecl on the financlal statements. enquiring of management oJKemiryJ actual and potendal tJaIl0n cM$. perfomiing anatytical procedures to identfy any uThtsual or unexpected relotionshi)s that may dIcate risks of material mi55talement or fraud. reading minutes of board meetiros IhrWhrt the YBW. in addressing the risk ol frau¢J through managernent overyide of contrds. testing the approprialenass of joumal entries and ottr adjustmenls: assessing whether Ihe Ijgements made in makirKJ accounting estimates are dICatI¥e of a tial bkis,. and evalualing the iMJsws rationale of any sNifIcent Irarksacth)ns that are unusual or outside the Thjnnal cowse of business. Wve also comnwjnicated relevant Klentifigd Im and regulations and potential fraud risks to all engagement team members and remained alert lo any indications of fraj or rnlance with tats and regulations thr¢whoul the audit. A further desryipbon ol our resF¥)nsibiltties for the audit of the financial slatements is located on the Financial Reporting Councif5 website at." vA¥w.fr¢. .ukJaudilowe5 n5ibilitbes. This de5U4Ption fom5 part of wr Audltors, rep USE OF OUR REPORT Thls report Ls made solety to the ¢arilab* companls trustees. a$ a body. kn ?ffdanCe ¥th Chapter 3 of Part 16 of the Companies Act 2006, and to the charilat4e companYs trustees. as a body. Part 4 of the Chafilres (Accounts and Reportsl Regulatims 2008. ChJr audit work has been undertaken so that we might stste lo the charitable compan$ tnjstees those Matte we a required lo state to them in an ALKbilors' report and for no other purpose. To the fullest extent permitted by law. VR do not accepi or assume responsibility lo anyone other than the charitable company and its mernbers. a5 a body. for our audit work. for this report, or for the opinion5 we have fomied. Andrew Wood FCCA {S•nlor statirtory audltor) for and on behaw of Blshop Flemlng LLP Chartered AcCoUnts StalutoryAuditors 1-3 College Yard Worcester WR12L8 22nd September 2022 Page 10
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEtIlENT OF FINANCIAL ACTivmES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2021 Unreslrlcted fund$ 2021 Total lunds 2021 Totsl fvnds 2020 Note INCOME FROM: Donations Charitable ocbirities Oiher tradww aclb¥ities Other income 97.083 1,150 4.360,215 536.643 97,083 1,150 4.360.215 2.350,000 4.075.442 531.210 TOTAL INCOME 4.995,091 4.995.091 6.956.652 EXPENDITURE ON: Raising lunds lor trading activibes Chaitsble activities 4.696.135 3.037 4.696.135 3,037 4.420.015 (1,8711 TOTAL EXPEMDITURE 4.699.172 4.699.172 4.418.144 NET MOVEMENT IN FUNDS 29&919 295.919 2.538.508 RECONCILIATION OF FUNDS: Total funds brought forward Net movement in lunds 1.673.986 29S.919 1,673,986 295,919 1864.522) 2.538,508 TOTAL FUNDS CARRIED FORWARD 1.969.905 1.969,905 1.673.986 The notes on pages 14 to 31 forni part 0ftrse financid statements. Page 11
FAIR CRED CI•ARifY LYD AS AY Ji oecBIBER 2021 14 249.QC¢ 41249 T•W 8s54ts 15 37J 16 7WO.I gM.417 7,47S.1S4 588.743 Cash Ot bvrt4ndkn tw 8.ts1897 (1.785.492) SJg•.9Sfj 627&4( uAeiLmes 18 (4,894,670 TOTAL NEf&•3SErs 1.969 1.6TJ.986 GROiP FUNDS Restixsed knrrfls Unf1r&t0 thjrtsts 19 19 1.969JQS 1.873.986 TOTAL FUNDS 1.673,986 AL* 2011. TrusteE rt f 2521 Page12
FAJR CREDrrcHAE07Y LTD RE4>STERED IIVIIBEP:lJa9911J99 FOR ThE YEAR ry4DED 31 DECWat 2tr21 .11• 9.15T 11233 1SJ19Q) 10 P.570) 643 CHAPJTYFUNDS 19 Act2011. TpAI P•è 13
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINNcIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 GENERAL INFORMATION Fair Credit Charity Ltd (fomierty known as Fair For You Llmited} is a re9lslered chaiiiable company limited by guarantee incorporated in England and Was. The registered Offi is Unfi 8. Elm Court, Meritjon Business Part Copse Drive. Coventry. CV5 9RG. ACCOUIITING POUCIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The finan¢i#l slalements have been prepared in accordance wilh the Charities SORP (FRS 1021- Accounting aThJ Rewtyng by Charilies". Ststement of Recommended Prdctice appficable lo charities prepariro their accounts in accordance the Financial Reporting Standard applicable In the UK and Repvblic of Ireland {FRS 102) leffectNe 1 January 2015), the FinancAal ReWing Standard applicable in the UK and Rèwbli¢ of IrelarKI {FRS 102) and the Cornpante5 Act 2006. Fair Credil Charity Ltd meets the deftnthn of a puts1 benefit entity under FRS 102. Assets and liabilities are iThtially recognised at historiral cost or transaction value unless otheThvisp staled in the relevant aco)untlng Wicy. The Con501KJated Statement of financyal activilies (SOFA) and Consofidaled balan sheet consldate the financiaf slatements of Ihe Group Its subsidkqry Underta'ng. The results of the SUbdiary are consolidated on a line by line basis. The Group has taken advanlage of the exemptiffi alknxed under section 408 of the Companies Act 2006 arKI has not wesented its ct•m Statement of acts¥ities in these financial statements. 2.2 COMPANY STATUS The Charity is a ctiaritabje company limited by guarnntee. The members ol tho Charity are the Trustees named on page 1. In the event of the Cttarty being wwrKI up. the habtlAy in respect of the guarantee is limited to £10 per member of the Chatity. 2.3 GOING CONCERN The accounts have been drawn up on the ng cThcem basis as the Trustees. are of the opin*)n Ihal lh¢ tharity will o)niinue in opeobonal existenre for the foreseeable future. The consdidated final[ $tatem8nts the rewlts of Fair For You Enterprise CIC. a 1radir subsidiary. A separate review of goirvJ concem has been undertaken by the Direckns of Fair For YcoJ Entèrprisa. and the thctorS have tsken steps to ensure that the CIC ¢8n continue to meet its obligabons a$ they fal due. by undertaknn9 a reorganisatron of their loan funding in fmder to lessgn the bwden of repant in (uture peri¢)Js. Page 14
FAIR CREDrr CHARITY LTD (A COMPANY LIMITED BY GUARANTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2021 ACCOUNTING POLICIES (conlinued) 2.4 INCOME Al in¢ome ts re¢ognised c#ice tr Charity has entiuement to the income. it is probable that the irK>)me win be received and the affw)unt of incoff receNable can be measured reliabty. Loan Inte$t recee on loans to dients rs recoJnised using the effective intere51 meth(Kl. and is caladated and amed on a daly basis. Commissions receivable arrse in conf10n V*ith a speafic transactlon and irti)me relating lo Klividual transactiCS is recognised when the transaction is compW. Grants are induded In the C(N)solidaled slalement of fInclaI a¢tiviti8$ a TKeivabl8 basis. The balanc8 of received for Spectfic purposes but not expended during the period is shown in the relevant fvnds on the Balance sheet. Where income i8 recebved in advance of entitlement of receipt. Its recognition is deferred and inclLKled in creditors a5 deferred income. Where entillemenl occu Pagg15
FAIR CREDIT CHARITY LTD {A COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ACCOUNTING POUCIES (continutd) 2.5 EXPENDITURE Expenditure is recrynised once Ihere is a legal or corbstructive obligation to transfer economic benefit to a third party. it is probable that a transfer of eoxjnorrir benefjts VAI be reqUId in 5elllemenl and the amount of the ¢)bltgation can be measured Itabty. Fundrnising costs are trK>se In(Jjr in seeking volunl8ry Contribut#$ and do not incde the costs of dissomrnating inform3lion n support of the charitsble aclivitses. Support Costs are those costs incurred directly in supp)rt of expenditure on the objects of the Charity arthl indude project management carried out al Headquarter5. Costs of generall funds are costs incwred attsacting voluntary hK3)me. and Ih)se intrjrred In tradlrthj adivilies that raise fiJnd5. Charitsble xliMiie5 and Govemanee costs are u)sts incurred on the Chariiys eduCanal operations, incfudrng support costs and ry)sls relating to Ihe govemance of Ihe Charity apwtioned to charitable aclivilies. AJI expendilvre is aC0nt for on an accnols basis. EX1rture on chantsble a¢lMlies is Sncurf¢d ¢n ithrecty Underta9 the a&i¥itie$ 7thich fvrther Ihe Group's objective5, as well as any asscwted supp)rt cosls. 2.6 BASIS OF CONSOLIOATION The financial ststements ¢tythldale Ihe accounts of Fair Credrft Charity Ltd and all of its subsldiary undertakings fsubsidiariesj. The Charity has taken advanta of the exemption ojntained tpthin seclion 408 of the Cornpanie$ A¢1 2006 not to present its own IrKX)me ar expendiiurp ac¢ounL The nel movement n funds for the dealt *rylh n the aczounts of the Cknty was £963 (2020.. £(4.9581). 2.7 INTANGIBLE ASSETS AND AMORTISATION The Group does not employ a speufic cawtalisalion polw in relation to intangitrAe assets. Intangible a$sets are rec4nised when futu economic benefits are probable and the Cost or value of the asset can b8 measured reliatly. Intaftgible assets a iiitialty reco3ni$ed al D)st and are 5LFbsgquenUy measured al ¢051 net of amortisation and any provision for impaim)enL Development Costs repSent Ihe development of the or#Jinal website and rfrastrUctUTe. and development of bespoke lending Serns. The estimaled useful lives are as fo1th". Arnorti5ation is prowded on intsngibFe fixed assets at rates cal(yJlated to write off the cost of each asset. less their estimated residual value. over their expected usetul Ilves on the following bases.. Devel¢¥Knent expenditwe 20- 33% straight ne Page 16
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ACCOUNTING POLICIES {contlnued) 2.8 TANGIBLE FIXED ASss AND DEPRECIATION The Group does not enwoy a SFeufic ¢apitartion policy. A remy for impaimnt of a fixed asset is canied If events or changes In aNmstances indicate that the caryng vahR of any fixed asset may not be reverable. Shtsrtfalls betsveen the ¢arnwrKJ value of fixed assets and thelr rewerable amounts are reco9ni5¢d as impaimients. Impaimienl losses are recognised in Ihe Ststwywit of finan¢ial aclibities. Tangible fixed assets a wied * cost. nel of deWe0K a1 any proviston for rmpairnenl. Depreoation is provided al rates caknlated to TATite off the (y)st of fixed assets, trir estimated residual value. over ttr expeded usefrJl lives on the loEk>wiro bases: FiXtuS and fftiings Office equipment Computer eqUIpnI - 25% strawjht line 25% slrdKJht line 25% straight line 2.9 DEBTORS Short terni debtots a measured at transaction price. less any impairment. Loans lo borrowefs a finanaal assets wilh fixed or detefrnlnae payrnents. LoarKs are recogni5ed when cash is advancEd to tM)rro arKI measured at amctised cosl using the effeclive Interest method. Loans are dereccrynised vthen the nght to receNe cash Ilws fr< the asset have expired, usuallywhen all amounts tstan¢ing have been repwd. At each balan¢e Sheet date thg Group assesses rf there is objective evidence that any of its loans are impaired. Additionally. rf during the course of the year. there obje¢tive evidence that any individual loan is impaired. a Speci loss be recxJgni5ed. 2.10 CASH AT BANK AND IN HAMD Cash al bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or les$ from the date of.acquisition oropening of the dep)sit or similar a¢¢ount. 2.11 UABILMES AND PROVISIONS Liabilitses are recDJrised when there is an obfoatMM at the 88larte sheet date as a result of a past event. it is probable that a transfer of ecoTrJmic benefit WIN be trod in setu¢rn( and Ihe an)Unt ol the setvement can be estimated rdiabiy. LiatAities a re¢c¥JThsed at th& am¢wnt Ihat Ihe Group anticipates il WIN pay to setue the debt or the amounl it has received as advanced payments for the go¢Jds or services it must wovide. ProwsK)ns a measured at the best estimate of the amounts required lo settle the Oblat1. Where the effecl of Ihe time vlue of money is material. the provision is based on the present value of those amounts. dTrscwnted at Ihe pre tax discoLml rate thal reflects the risks specific lo the liabdty. The unwindlng of Ihe dis¢ounl is recognised wthin Inte51 pardble and Similar charges. Page 17
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ACCOUNTING POUCIES (¢ontlnuedl 2.12 DEFERRED TAXATION Full prO$1¢n ts made for delerred lax assets a1 liabilitses arising from all timing ¢Jifferences beeen the reWtrfi Of gatns and k)sses fina14 slatemenls aThY rec¢gn6tKffi in th& tax coffipulalion. A net defefted tsx asset is re¢ognised t)nly * it can be regarded as more likely than not that there will be suitsble taxable SLKPtuses from vthich the future reversal ol the underlying timfftg difference5 can be deducted. Deferred lax a55els and liatxlities are calrJJlaled at the tax rates expected to be effecve at the time the timing dtfferences aro expected lo reverse. 2.13 FINANCIAL INSTRUMENTS The Group has fmantyal assets and fwncial fiabliibes of a kind Ihal qualify as basic financial instruments. Basic financsal inslruments are initialty reco9nised at transacti¢)n value and subsequenlly measured at their seluernenl value th the exception of bank loans whtch are subsequenty measUd at am0ed ¢osl wng the effe¢li¥e irttet methtrj. Debt instruments (other than those 7I1oty payable or receivab within Me ytarl, induding loans and other accounts rec•vable ar#1 Parae. are initially measured at presènt value of the future ¢a$h ows and subsequentty at amortised cost ustrThJ the effective interest method. Debt instruments that are payable or receivable within one year. typlcally trade debtots and ¢reditoTr. are measured. initially and subsequenuy. at the undiscounted arrwnt of the cash or oth&rconsiderab"on expected to be pald or received. However. if the arrangements of a short terni instrument constitLrte a financing transaction. like the payment of a trade debt deferred beyond normal business terms or financed al a rate of interest Ihat is not a market rate or in Ihe case of an out right short tenn loan not at market rate, the finan(?al asset or liablty 1$ measured. initially. at the present value of the future ¢ash fl¢)w discounted at a rnae1 rate of w)terest for a simlar debt instrument and subsequenlty al amortised cost. 2.14 PENSIONS The Group operates a defined contrtjution nSTon scherng arthj tre pension charge wresents the amounts payable by the Group to the fijnd in respect of the year. 2.15 FUND ACCOUNTING General funds are unrestricted funds which are available for use at the dtscretion of the Trustees In furtheranee of the general obiectsves of the Group and wtiich have not been Oesignated for other purptsses. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMEHT preparati( of the finarK4al ststements requires management to make signTfKant jud9ements and eslimates. E5tim8tes aTrJ judgements are conlinually evaluated aThJ a based on historical experience and other factors, 1ft9 expectations of future events that are beIVed to be reasonable under the circumstances. There are no si9nbficant btems in the statements where these judgements and estimates have been made. Page 18
FAIR CREDrr CHARITY LTD (A COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INCOME FROM DONATIONS AND LEGACIES Unrestricted funds 2021 Total funds 2021 Total funds 2020 97.083 97,083 2.350.000 INCOME FROM CHARITABLE ACTMTIES Unrnstrlcted funds 2021 Total funds 2021 Total funds 2020 Granl income 1.1SO INCOME FROM OTHER TRADING ACTMTIES Ineome fiom non charitable trading activlties Unr•stricted funds 2021 Total funds 2021 Total fijnds 2020 Sales Trading income 1.362.400 2.997,815 1 J62.400 2,997,81S 1.576.140 2.499.302 4.3eAJ215 4J60215 4.075,442 TOTAL 2020 4.075.442 4.075,442 OTHER INCOMING RESOURCES Unr•strl¢ted fund$ 2021 Total funds 2021 Total funds 2020 Other operdllng Incwne 536,643 536.643 531.210 Page.19
FAIR CREDIT CHARITY LTD IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEP41ENTS FOR THE YEAR ENDED 31 OECEMBER 2021 EXPEMDrruRE ON RAISING FUNDS OTHER TRADING EXPENSES Unrestricted fund$ 2021 Total funds 2021 Total funds 2020 Trading expenses Staff costs Deweciation arbd amorlisation Cost sales Administration expenses Administration slaff costs 3.042.768 1.189.139 126.831 324,971 3.042.768 1.189.139 126.831 324.971 3.060.579 924.535 62.328 347,025 12,063 13.485 12.421 12.421 4.696.135 4.696.135 4.420.015 TOTAL 2020 4.420.015 4.420.015 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTMTIES Summary by fund type Unr•$tric¢•d funds 2021 Total fvnds 2021 Totsl funds 2020 Support costs 3.037 3.037 11.871> TOTAL 2020 (1.871) {1,871 Page 20
FAIR CREDIT CHARrtY LTD IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ANALYSIS OF EXPENDrruRE ON CHARrtABLE ACTlVtnES (CONTINUED) Summary by expenditijre type Total funds 2021 Totsl funds 2020 Depreciation Other costs 2021 2021 Support costs 3.037 &037 (1.8711 TOTAL 2020 158 (2.029) (1.871) 10. ANALYSIS OF EXPENDrruRE BY ACTIVITIES Support Costs 2021 Total fvnds 2021 Totsl funds 2020 Charitat4e actlvlties 3,037 3.037 {1,871) TOTAL 2020 (1,871) (1,871) ANALYSIS OF SUPPORT COSTS .Totel funds 2021 Totsl lunds 2020 Depreclatk Audit fees Legal arKI professlonal Insurance General costs 158 {2.7691 36 626 78 2.520 470 47 3,037 (1,871) Pagè 21
FAIR CREDIT CHARITY LTD IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 11. AUDITORS. REMUNERATION 2021 2020 Fetts pardble lo the Charitys auditix for the aut*t of the Charitys annu81 accounts 18,700 17.500 Fees payab'le lo the Charitls auditor in respect of.. All taxation advisory services not induded atx)ve 1.650 1.600 12. STAFF COSTS Group 2D21 Group 2020 Wages aThJ salaries Soci81 security costs Contributn to defined ¢Inj(ffi pension sthemes 1.002287 113.547 85.726 792,588 89.721 55.711 1,201.$60 938.020 The average number of wsons ernFdoJed by the Charity during the JEar wa5 as foifows: Group 2021 No. Group 2020 No. EMploeS 27 The number of empbyees whose enWro benefils (exdj[ng ernployer pension $ts) exceeded £60.000 was: Group 2021 Group 2020 In the band £60.001- £70.(WJ In the ban(1 £70,001 - £80,OC In the band £80.001- £90.000 13. TRUSTEES. REMUNERATION AND EXPENSES DurirKJ the year. rb) Tntstees received any remuneration or other benefits {2020 - £NILI. Durirvj the ar WKied 31 Dember 2021. Trustee expertses have b8gn wKurrwJ12020- £NILI. Page 22
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARAprtEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14. INTANGIBLE ASSErs GROUP D•¥elopmont COST At 1 January 2021 Addibons 386.883 250.653 At 31 December 2021 637,536 AMORTISATION At 1 January 2021 Clw for the year 137,875 111.094 At 31 December 2021 248.969 NEf BOOK VALUE At 31 De¢ber 2021 388.567 At 31 Dember 2020 249.008 CHARITY Development COST Al 1 Jarry 2021 53.601 At 31 Dec*mber 2021 63.601 AMORTISATION At 1 January 2021 53,601 At 31 December 2021 53,601 NET BOOK VALUE At 310ecember 2021 At 31 December 2020 Pa9e 23
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEIIBER 2021 15. TANGIBLE FIXED ASSETS GROUP Fixtures and rIng5 Offs¢e Computer equlpm•nt equipmènt Total COST OR VALUATION At 1 January 2021 Additi¢)ns 53,047 11.817 6,103 17.243 76.393 11,817 At 31 December 2021 64.864 6.103 17.243 88.210 DEPRECIATION At 1 January 2021 Charge lor the year 11,798 15.737 6.103 17.243 3S.144 15.737 At 31 December 2021 27.535 6.103 17.243 50.881 NET BOOK VALUE Ai 31 Decembw 2021 37,329 37.329 Ai 310ecember 2020 41249 41.249 Page 24
FAIR CRED CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 15. TANGIBLE FIXEO ASSETS (CONTINUED) cHARy offi Computer •qulpmènt equlpment Total COST OR VALUATION At 1 January 2021 6,103 17,243 23,346 At 31 December 2021 6.103 17243 23.346 DEPRECIATION At 1 January 2021 6,103 17243 23.346 At 31 December 2021 6.103 17243 23.346 NEf BOOK VALUE At 31 December 2021 At 31 December 2020 Page 25
FAIR CREDrr CHARtrY LTD (A COMPANY LIMITED BY GuAP1rEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 16. DEBTORS Group 2021 Group 2020 Charlty 2021 Charity 2020 DUE VIITHIN ONE YEAR Trade debtor5 Afflounts owed by group undertthThJs Other debtors Prepayments and accDJed in¢xKne 250.279 279,149 3.623 623 7.331.751 88.156 7,106.141 89.864 470 7.670.106 7.475.154 3.623 1.093 17. CREDITORS: MqOUNTS FALLING DUE wmiiN ONE YEAR Group 2021 Group 2020 Charlty 20Z1 Charity 2020 Bank loans Other roans Tfade credrtors Other tsxalion ard social security ACCalS and deferred incon 5.324 2•.000 1.146.387 199.422 1e4.359 1.745.960 708,307 136.993 768,377 2.570 3.359.637 1.785.492 5.09D 2.570 Page 26
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMEPtrs FOR THE YEAR ENDED 31 DECEMBER 2021 18. CREDITORS: AMOUNTS FALLING OUE AFTER MORE THAN ONE YEAR Group 2021 Group 2020 Bank k)ar 44,676 4,850.000 other loans 3.756,9S7 3.7S6.957 4.894,676 In¢kd wlhln the above are am¢yffits fakng due as follrms: Group 2021 Group 2020 BETWEEN ONE AND TWO YEARS Bank loans Olher loans 10,648 4,350.000 3,7¥957 Bank loans Other 31.945 500.000 OVER FIVE YEARS Bank loans 2,083 Bank loans of £NIL (2020.. £50.000) were unsecured, but re guaranteed by the UK Government. Induded withrn Other loans is £3.469.583 (2020". £4.100.000) of seojred tMJrrowings. Social Growth Fund LLP hold an unlimited debenre incorporating a fixed aTrJ floating tharge over the Undertaking and all property and 85sets present and fiJttJre. induding 9C#)lI1. bth)k debts. uncalled capital, buildings. fixtu and fixed plant and machinèry. The femaining Qher loans of £2.033.334 (2020: £1.CW.OTh)) arg The effective Intere# fate on loan lundwvJ forthe ar erKled 31 Dewnlw 2021 wa$ 8%. Page 27
FAIR CREDIT CHARITY LTD IA COMPA14Y LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 Decembèr 2021 Balance at 1 J•nuary 2021 In¢om• Exponditure UNRESTRICTED FUNDS General Funds- dl hjnds Other incrKne I126.014) 4.898.008 {4.699.172) {1.627.1781 3,500,1100 97.083 3.$97.083 1,673.986 4.995.091 (4,699,172) 1.969,90S Descri IKin of fijnds General fijnds - accumulated sWpIu&ldefi¢ from Ihe charttable trading actNities undertaken by the ¢harltabte Company. Olher income - the brought 10Tr¥8rd fiJnd5 represent previous debt held v*ilhln Fair For You CIC which have been converted into equty by vray of a perpetsl bond. Under Charity SORP 24.25. drawdowns of the perpetual tnd have been treated as income in Ihe nStr1ded fund. given the purpose of the ¢h¥ntsble company CIC s$[<.•ry are ident¥al. STATEMENT OF FUNDS - PRIOR YEAR Balance at 1 January 2019 las r9sts1ed) Balance at 31 December 202Q Income ExpeThSture UNRESTRICTED FUNDS General Fd$- all funds Other incK¥me {2.014.522) 4.606.652 1.150.000 2.350.OOD 14,418,144> {1.826,014) 3,5CKI.000 1864.5221 6,956.652 {4.418.144) 1.673.986 Page 28 .
FAIR CREDIT CHARrrY LTD (A COMPANY UMITEO BY GUARAIUEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 20. SUMMARY OF FUNDS SUMMARY OF FUNDS- CURRENT YEAR Balance at 31 D•cembEr 2021 Balanee at 1 January 2021 Incomè Expèndlture General furwjs 1.673.986 4995.091 14.699.172) 1.969,905 SUMMARY OF FUNDS- PRIOR YEAR Balance at 31 December 2020 Balance at 1 January In¢ce ExpeThJitu General fur•Js {864.522} 6,956.652 (4.418,144) 1.673.986 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANYsIs OF NET ASSETS BETWEEN FUNDS- CURRENT YEAR Unrestrlcted funds 2021 Total fund$ 2021 Tangible fixed assets Intsngible ffixed assets Current assets Creditors due VAlhin one Creditors due in more tt)an 37.329 37.329 388,567 388.567 8,660,603 8.660.603 {3,359,637} (3,359.637 13,756,957) {3.756.957 TOTAL 1.969,9)5 1,969,905 Page 29
FAIR CREDIT CHARITY LTD (A COMPANY LIMITED B Y GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 DECEMBER 2021 21. ANALYSIS OF NET ASSEfs 8EtWEEN FUNDS ICONTINUED) ANALYSIS OF NET ASSEfs BETWEEN FUNDS. PRIOR YEAR Unrestricted fund5 2020 Tolal fijnds 2020 T8ng5ble fixed ¥5sels Intanglble fixed assets Current assets Cieditors dutr wthin Creditors due kn more than one year 41,249 41.249 249.008 249.008 8.063.897 8,063,897 (1.785.492) (1.785.492) (4,894.676) 14,894,676) TOTAL 1.673.986 1.673.986 22. PENSION COMMITMEpirs The GrDup operates a defined contritrrtrtion pens¥)n Sd)e. The assets of the scheme ore held separatety from those of the Group in an 1rpeIen0Y administered fuTrJ. The pension st charge represents contributions payable to the Grwp to the fund and gmounled lo £8S.726 {2020 - £55,711). Contrtbulions of q4701 {2020- £6,343) were payable to the fvrKI at the balance sheet date. 23. OPERATING LEASE COMMITMENTS At 31 1)e¢ember 2021 the Group the Charity had rg)mmitments to make fuiure minlmum lease payments under norKatKelable operating lea as foilws.. Group Group Charity As restated As restated 2020 2020 2021 Not latsr than 1 >Ear Later than 1 yEar rLot later Ihan 5 )pars 30.030 142SO 33.090 42,750 44.280 75,840 In the prior spar. opefating lease cornmilments were disdosed wrtlNn the financial statèmènts as the charitable companys eommitments. However, the relevant operating lease agreements are in tho subdiary companls name and relevant costs ale shchvn in Ihe subsKliatys profit and loss account. As such. the wnparatNe fws ha¥e restated. There Is no impxt upon either the group or charitable companvs Statement of Financial Actsvilw arKI Statement of Fmancial Position. 24. MEMBERS. LIABILITY Each member of the charitatle company undertakes to ¢¢¢ribUte lo Ihe assets of the Chitable company in the event of rf being wound up while hejshe is a member. or Tmihin one year after helshe ceases to be member. such amount as may be required. Tr)t exceediThJ £10 for the debts and liabilibes ¢ontra¢ted before helshe ¢eases to be a member. Page 30
FAIR CREDif CHARITY LTD (A COMPANY LIMITED BY GUARAKfEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2021 25. RELATED PARTY TRA14SACTIONS The charitable company has taken the exemption urwjef FRS 102 S8cfw)n 33.1A and not discloses any transactions entered into beiween wholl*owned group compaiwes. 26. CONTROLLING PARTY The Trustees do rth)t c¢$der there to be sole contrdlir4 party. PRINCIPAL SUBSIDIARY Fair For You Enterprise CIC Subsidiary name Company registstion number Basis d control Falr For Enterwse CIC 09798014 The Board of Trustees. as members of Fair For Yw Enterprise CIC. may. by specsal resolution direct the Directors of the CIC. to tske or refrainfrwi ¢aking spe¢ifi¢ acbon. Total assets as at 31 December 2021 Totsl liabdities as al 31 December 2021 Total equity as al 31 Oecember 2021 £9.076.389 £(7.115,127) £1.961.262 Total income for the year ended 31 Dernber 2021 Expenditure lor the yEar erKled 31 December 2021 {ind lax) Profrt for the year erthd 31 December 2021 (after tax) £4.896.858 £14.698.985) £197.873 Page 31