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¢ $ho•t 12 Charlty balance sheet 13 Notes to th• financlal staternerrts 14-31 FAIR CREDrr CHARITY LTD IA COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENOED 31 DECEMBER 2021 Trustees J BonehiH (appointed 1 January 20211 A cla￿ {restgned 4 July 2022) AD￿￿d$ S Dukes (apwrrted 1 October 2021) T Lewtt L Mdwn Company registsred number 08991(r39 Charlty r¢gl$tefed number and Scottlsh Charlty registered number 1161809 & SC046 Registered office U￿8 Elrn Court Meriden Business Pa Copse Drive Coventry CVS 9RG Company secretary C Berneit Chief executive officer S Dukes (￿p￿nted 1 Odober 2021) Independent •uditOfS Bishop Fleming LLP Chartered Accountants 1-3 College Yard Wwcester WR12LB Page 1 FAIR CREDIT CHARITY LTD (A COMPANY UMITED BY GUARAKfEE TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The TNstees present their Annual repJrt tryjether wilh the aLKlited finan(aal statements of Ihe Charity lor the 1 January 2021 to 31 December 2021. The Annual reprrt serves the purposes of both a Trustees, report and directors. report undef company law. The T4ustees confirffl that the Annual report and financial statements of the charitable c¥)mpany compty with the current statutory requirements. the requirements of the tharitable companys gtsveming do¢ument and the provisions of the Stslemenl of Recommend¢d Pracb¢e ISORPI applbcable to charities prepaying their accounts In accordance the Finandal RO[￿Ing Stsndard appliC￿e in the UK and Repubfic of Ireland IFRS102) (effective 1 January 2019). Since the group and the Charity quafTfy a5 small urvjw Secti￿ 383 of the Companies Act 2006. the Group strategic report required of medium and large companie5 under the Companies Act 2006 Islralegic report and Dir$¢tors' rewtl Regulatws 2013 has been Cmniited. Durfng 2021 the Cherity made the decis¥)n lo its name and we are de￿ghted 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 subs*Jiary, the CIC. But as the Charity and the CIC grow, to reduce confusion. it has r￿4 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 ind￿ldual5 as w8110s lObb￿r￿j for Y￿ater rec£gnition of Ihe impacts of high4nteresl and predatory Jenoup wlll continue in business. The Trustees are responsible for keeping adequate a￿OUnting 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 ena￿e them lo ensure that Ihe finanual statements compfy wilh the Companies Act 2006. They are also respOnsi￿e.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* Ir￿ularItIes. Disclosure of Infomialion to audit¢Ms Each of the persons who are Truslees at the time 7*then 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 reapF￿lnting 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 'gr￿1P.) for the year ended 31 December 2021 ￿[Ch comprise the Consolidated statement of finan¢ial aCtI￿ties, 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 poI￿leS. The fina￿la1 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 Repu￿1¢ of IrdaThJ' (United ￿n￿￿orn 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 1ntemaliw￿f 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 f￿armial statements 15 approwiate. Based on the work we have performed. we have Tr)t hlentifted any ma￿181 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 ¢ty￿eM for a period of 81 ￿3St twelve months from when Ihe financial statements are authorised for issue. Our responslbililies and Ihe resplytsibllitses of Ihe T￿￿tee$ tmth respect to g(Hn9 concem are desc*Th￿d 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 ￿ Arrn￿l 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 O￿nion, 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 $tatemgnts. the Trustees, report has been prepwed In accordance wth app￿Cable lègal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the Ib3hl ￿ our knO￿edge and urKler5tanding of the charitable company its en￿D￿ment obtsined in Ihe course of the audit. we have not pjentified material misstslements in the Trustees. report. We have nthng to report in respect of the falb￿ matteTr in relation to COmpan￿S Act 2006 requires us to report lo you rf, in our opinMJn-. the parent chaiitable company has not kept adeq￿le and sufficient accountlng re￿￿5. or retums odequale f￿ our audit have nol been re￿ived from branches r￿1 visited by us" or the parent charitsble company financaal statements are nol in agreement with the ao))unting records and retums: or certaln disdosures of Trustees. remuneration speufied by law are not made.. or we have not recaved all lh¢ information and explanat￿￿5 W￿ requwe for our 8udiL or Ihe Tfuslees were not entiued to prepare the ffina￿al statements in aC￿rdance ¥￿th the Small companies reglme ond take advantsge of the small tompanies. exemptions ￿ preparirrfJ the Trustsos. report and frcln the requirement lo prepare a Strategi¢ repoiL RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees. responsibilities statement. the Trustee5 (who are also the directors of the arllable company kn the wrFrf)ses of company law) are reS￿Sible fc* the preparalK)n of the financial statements and for bery salisfied that they give a true al￿ fair view. and for such intemal control as the Trustees delerrnir￿ 15 ne￿$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>bL*n reaSona￿e 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 cOn￿dered 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)ft￿P1[a￿e 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 bjentir￿lItin and assessment of Asks ol matedal mlsstatemenl In ￿latIon lo irregularities. In¢luding fraud and non-complran¢e with lav￿ and regufatwxts. I￿lIded the following.. onsldering the of the entity and its enV￿onMe￿ internal control ert￿rOnment. 8nd' buslness performance. considering the results ol w enquiries of management ab￿rt their ￿*M identifioztion and assessment ofthe risk of irregularitse5. obtaining and revbewing. for any rnatte￿ Klentified. the chaiitable uJMpan￿s dorjjmentalion of their Fdicies and procedures relating lo: the identificati￿. evaluation. and ￿n￿la￿e V*ilh and reguk*iorts. and whether management were aware ofany inslances of noTrcomptiance ￿thin the w, the deteclion and res￿Se 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 W￿￿tOrS of fraud. As a result of these procedures. we Consid￿￿ the opp￿t￿nItIeS 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 requ￿e￿ to [￿10fM specific procedures to res￿nd lo these identif￿d 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 eMplo￿nent 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•$pons• lo rlsks identifi•d (￿r prwethres to Tespmj to the risks Identlf*d InchJJ8d the folltrwirvj: reviewing the finantsal statement disdosuos and testmg to sUpp￿tIng documentation to assess compllance with provisions of rdevant arrfl regulalions desryt)ed 8$ having a direct effecl on the financlal statements. enquiring of management oJKemiryJ actual and potendal ￿t￿JaIl0n c￿M$. perfomiing anatytical procedures to identfy any uThtsual or unexpected relotionshi)s that may ￿dIcate risks of material mi55talement or fraud. reading minutes of board meetiros IhrWh￿rt the YBW. in addressing the risk ol frau¢J through managernent overyide of contrds. testing the approprialenass of joumal entries and ott￿r adjustmenls: assessing whether Ihe I￿jgements made in makirKJ accounting estimates are ￿dICatI¥e of a ￿￿tial bkis,. and evalualing the iMJsws rationale of any s￿NifIcent Irarksacth)ns that are unusual or outside the Thjnnal cowse of business. Wve also comnwjnicated relevant Klentifigd Im and regulations and potential fraud risks to all engagement team members and remained alert lo any indications of fra￿j or r￿￿n￿lance with ta￿ts and regulations thr¢whoul the audit. A further desryipbon ol our resF¥)nsibiltties for the audit of the financial slatements is located on the Financial Reporting Councif5 website at." vA¥w.fr¢. .ukJaudilowe5 n5ibilitbes. This de5U4Ption fom5 part of wr Audltors, rep USE OF OUR REPORT Thls report Ls made solety to the ¢*arilab* companls trustees. a$ 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 AcCoUn￿ts 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 0ftr￿se 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 Unf￿1r&￿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 FIN￿NcIAL 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 Wa￿s. 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 cons￿ldate the financiaf slatements of Ihe Group Its subsidkqry Underta￿'ng. The results of the SUb￿diary 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￿[ $tatem8nts the rewlts of Fair For You Enterprise CIC. a 1radir subsidiary. A separate review of goirvJ concem has been undertaken by the Direckns of Fair For YcoJ Entèrprisa. and the th￿ctorS have tsken steps to ensure that the CIC ¢8n continue to meet its obligabons a$ they fal due. by undertaknn9 a reorganisatron of their loan funding in fmder to lessgn the bwden of repa￿nt 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￿$t rece￿￿￿e on loans to dients rs recoJnised using the effective intere51 meth(Kl. and is caladated and amed on a daly basis. Commissions receivable arrse in conf￿￿10n V*ith a speafic transactlon and irti)me relating lo Klividual transactiC￿S is recognised when the transaction is compW. Grants are induded In the C(N)solidaled slalement of fIn￿claI a¢tiviti8$ ￿ 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 reqUI￿d 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 inc￿de 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 eduCa￿nal operations, incfudrng support costs and ry)sls relating to Ihe govemance of Ihe Charity apwtioned to charitable aclivilies. AJI expendilvre is aC0￿nt￿ for on an accnols basis. EX￿1rture on chantsble a¢lMlies is Sncurf¢d ¢n ithrecty Underta￿￿9 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 ¢ty*thldale Ihe accounts of Fair Credrft Charity Ltd and all of its subsldiary undertakings fsubsidiariesj. The Charity has taken advanta￿ of the exemption ojntained tp*thin 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 rep￿Sent Ihe development of the or#Jinal website and ￿rfrastrUctUTe. and development of bespoke lending S￿erns. 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 ASs￿s AND DEPRECIATION The Group does not enwoy a SFeufic ¢apitar￿tion policy. A remy for impaim*nt of a fixed asset is canied If events or changes In aNmstances indicate that the caryng vahR of any fixed asset may not be re￿verable. 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 deWe0*K￿ a￿1 any proviston for rmpairnenl. Depreoation is provided al rates caknlated to TATite off the (y)st of fixed assets, tr*ir estimated residual value. over tt￿r expeded usefrJl lives on the loEk>wiro bases: FiXtu￿S and fftiings Office equipment Computer eqUIp￿nI - 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 detefrnlna￿e payrnents. LoarKs are recogni5ed when cash is advancEd to tM)rro￿ arKI measured at amc*tised 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¢r￿n( 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 Obl￿at1￿. 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 Inte￿51 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￿$1¢n ts made for delerred lax assets a￿1 liabilitses arising from all timing ¢Jifferences be￿een the reWtrfi￿ Of gatns and k)sses fina￿14 slatemenls aThY rec¢gn6tKffi in th& tax coffipulalion. A net defefted tsx asset is re¢ognised t)nly * it can be regarded as more likely than not that there will be suitsble taxable SLKPtuses from vthich the future reversal ol the underlying timfftg difference5 can be deducted. Deferred lax a55els and liatxlities are calrJJlaled at the tax rates expected to be effec*ve at the time the timing dtfferences aro expected lo reverse. 2.13 FINANCIAL INSTRUMENTS The Group has fmantyal assets and fwncial fiabliibes of a kind Ihal qualify as basic financial instruments. Basic financsal inslruments are initialty reco9nised at transacti¢)n value and subsequenlly measured at their seluernenl value ￿th the exception of bank loans whtch are subsequenty measU￿d at am0￿ed ¢osl wng the effe¢li¥e irtte￿t methtrj. Debt instruments (other than those 7*I1oty ￿payable or receivab￿ within Me ytarl, induding loans and other accounts rec•vable ar#1 Para￿e. are initially measured at presènt value of the future ¢a$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 liabl￿ty 1$ measured. initially. at the present value of the future ¢ash fl¢)w discounted at a rna￿e1 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 beI￿Ved 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 Contribut￿n to defined ¢￿In￿j￿(ffi pension sthemes 1.002287 113.547 85.726 792,588 89.721 55.711 1,201.$60 938.020 The average number of wsons ernFdoJed by the Charity during the JEar wa5 as foifows: Group 2021 No. Group 2020 No. EMplo￿eS 27 The number of empbyees whose enWro￿ benefils (exd￿j[ng ernployer pension ￿$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 De￿mber 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 De￿mber 2020 249.008 CHARITY Development COST Al 1 Jar￿ry 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 r￿Ing5 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) cHAR￿y 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 Gu￿AP1rEE) 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 ACC￿alS 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¢k￿d 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 deben￿re 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 I1￿26.014) 4.898.008 {4.699.172) {1.627.1781 3,500,1100 97.083 3.$97.083 1,673.986 4.995.091 (4,699,172) 1.969,90S Descri IKin of fijnds General fijnds - accumulated sWpIu&ldefi¢￿ from Ihe charttable trading actNities undertaken by the ¢harltabte Company. Olher income - the brought 10Tr¥8rd fiJnd5 represent previous debt held v*ilhln Fair For You CIC which have been converted into equty by vray of a perpetsl bond. Under Charity SORP 24.25. drawdowns of the perpetual t￿nd have been treated as income in Ihe ￿n￿Str1ded fund. given the purpose of the ¢h¥ntsble company CIC s￿$[<￿.•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 F￿d$- all funds Other incK¥me {2.014.522) 4.606.652 1.150.000 2.350.OOD 14,418,144> {1.826,014) 3,5CKI.000 1864.5221 6,956.652 {4.418.144) 1.673.986 Page 28 . FAIR CREDIT CHARrrY LTD (A COMPANY UMITEO BY GUARAIUEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 20. SUMMARY OF FUNDS SUMMARY OF FUNDS- CURRENT YEAR Balance at 31 D•cembEr 2021 Balanee at 1 January 2021 Incomè Expèndlture General furwjs 1.673.986 4995.091 14.699.172) 1.969,905 SUMMARY OF FUNDS- PRIOR YEAR Balance at 31 December 2020 Balance at 1 January In¢c￿e ExpeThJitu General fur•Js {864.522} 6,956.652 (4.418,144) 1.673.986 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS AN￿YsIs OF NET ASSETS BETWEEN FUNDS- CURRENT YEAR Unrestrlcted funds 2021 Total fund$ 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 1r￿pe￿Ien0Y 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 Ch￿itable 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 De￿rnber 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